CH. 13 Export & Import Regulation

Question 1

a type of tax imposed on many goods before the can enter a country

Answer 1

customs laws (ex. tariff/duty)

Question 2

1. ) Goods must physically be present at the official U.S. port of entry
2. )U.S. law must allow that type of good to enter the country
3. )The good cannot be from an embargoed country.
4. )”Customs” must release the good for delivery after inspection
5. ) Duty must have been paid.

Answer 2

requirements for “formal entry” of goods into the U.S.

Question 3

a tax on imported goods

Answer 3

duties

Question 4

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.

Answer 4

classification of goods

Question 5

when a good can be classified in more than one tariff selection, must resort to general rules of interpretation

Answer 5

interpretation

Question 6

requires use of heading that provides the more specific description of the good over one that gives a more general description

Answer 6

rule of specificity

Question 7

heading for material, component, or function that provides for essential character of a good

Answer 7

essential character

Question 8

Three types of Tariffs:

1. ) ad valorem-% rate on goods imported
2. ) specific duty -specific amount, based on weight or unit of measure
3. )compound duty-both ad valorem and specific duty

Answer 8

3 types of tariffs

Question 9

how to compute a duty

Answer 9

duty=value of good x tariff rate

Question 10

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.

Answer 10

transaction value

Question 11

price of identical (or similar) goods sold to unrelated customer

Answer 11

identical goods

Question 12

re-sale price of goods sold in the US deducing international freight, duties, and commissions

Answer 12

deductive value

Question 13

cost to manufacture for labor and material, along with general expenses and anticipated profit

Answer 13

computed value

Question 14

articles assembled abroad in whole or in part of fabricated components that are products of the US

Answer 14

exemptions/reductions in value of the goods

Question 15

customs duty previously paid is refunded wholly or in part because the goods are improved then exported (not sold in the US)

Answer 15

drawbacks

Question 16

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.

Answer 16

free trade zones

Question 17

determining the nationality of a product

Answer 17

country of origin

Question 18

last country in which product changed into different product

Answer 18

substantial transformation

Question 19

based on percentage of component parts making up finished goods

Answer 19

value added

Question 20

list of types of processes or operations that are considered to confer origin upon good

Answer 20

specific process test

Question 21

imported goods must be marked as to country of origin

1. ) permanent
2. ) legible
3. ) conspicuous
   * goods that can’t physically be marked will be marked on their containers*

Answer 21

marking requirements

Question 22

three main purposes of export regulation:

1. ) national security
2. ) foreign policy
3. ) preserve items in “short supply”

Answer 22

export regualtion

Question 23

their are export restrictions on certain tangible and nontangile things that cannot leave the US borders or US market.

Answer 23

export restrictions

Question 24

will provide the export classification number

Answer 24

commerce control list

Question 25

list specific ultimate destination countries and items that are prohibited/restricted from being exported to those countries

Answer 25

commerce country chart

Question 26

A license is required if the goods or technical information has an ECCN

Answer 26

license required

Question 27

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.

Answer 27

general license

Question 28

shipping or transferring any controlled items outside of the U.S.

Answer 28

exports

Question 29

legally exported item, that is then exported from the foreign country to another foreign country.

Answer 29

re-exports

Question 30

from a proper foreign destination to another unauthorized foreign destination (often by a relatively innocent US exporter)

Answer 30

diversion

Question 31

transfer of technology or information rather than a good

Answer 31

deemed export