CH. 13 Export & Import Regulation Flashcards
a type of tax imposed on many goods before the can enter a country
customs laws (ex. tariff/duty)
- ) Goods must physically be present at the official U.S. port of entry
- )U.S. law must allow that type of good to enter the country
- )The good cannot be from an embargoed country.
- )”Customs” must release the good for delivery after inspection
- ) Duty must have been paid.
requirements for “formal entry” of goods into the U.S.
a tax on imported goods
duties
Goods must be classified in order for a duty to be applied to them. The U.S. uses the Harmonized Tariff schedule to classify the goods.
classification of goods
when a good can be classified in more than one tariff selection, must resort to general rules of interpretation
interpretation
requires use of heading that provides the more specific description of the good over one that gives a more general description
rule of specificity
heading for material, component, or function that provides for essential character of a good
essential character
Three types of Tariffs:
- ) ad valorem-% rate on goods imported
- ) specific duty -specific amount, based on weight or unit of measure
- )compound duty-both ad valorem and specific duty
3 types of tariffs
how to compute a duty
duty=value of good x tariff rate
valuation in based on the transaction value of goods - transaction value requires that the value of the imported good be on a commercially realistic basis.
transaction value
price of identical (or similar) goods sold to unrelated customer
identical goods
re-sale price of goods sold in the US deducing international freight, duties, and commissions
deductive value
cost to manufacture for labor and material, along with general expenses and anticipated profit
computed value
articles assembled abroad in whole or in part of fabricated components that are products of the US
exemptions/reductions in value of the goods
customs duty previously paid is refunded wholly or in part because the goods are improved then exported (not sold in the US)
drawbacks
zones outside of “customs” territory where activities take place and no duty imposed unless goods enter the commerce of the country where zone is physically located.
free trade zones
determining the nationality of a product
country of origin
last country in which product changed into different product
substantial transformation
based on percentage of component parts making up finished goods
value added
list of types of processes or operations that are considered to confer origin upon good
specific process test
imported goods must be marked as to country of origin
- ) permanent
- ) legible
- ) conspicuous
* goods that can’t physically be marked will be marked on their containers*
marking requirements
three main purposes of export regulation:
- ) national security
- ) foreign policy
- ) preserve items in “short supply”
export regualtion
their are export restrictions on certain tangible and nontangile things that cannot leave the US borders or US market.
export restrictions
will provide the export classification number
commerce control list
list specific ultimate destination countries and items that are prohibited/restricted from being exported to those countries
commerce country chart
A license is required if the goods or technical information has an ECCN
license required
The Electronic Export Information (EEI) needs to be filed when the value of the commodity classified under each individual Schedule B number is over $2,500 or if a validated export license is required to export the commodity.
general license
shipping or transferring any controlled items outside of the U.S.
exports
legally exported item, that is then exported from the foreign country to another foreign country.
re-exports
from a proper foreign destination to another unauthorized foreign destination (often by a relatively innocent US exporter)
diversion
transfer of technology or information rather than a good
deemed export
