Export Control and Customs in Project Business

Question 1

Damex

Answer 1

Siemens SW application that helps to achieve compliance to export control regulations

Question 2

Damex-E

Answer 2

To check and document end use and end user

Question 3

Damex-P

Answer 3

For Itemspecific checks, e.g. license requirements

Question 4

Damex SPS

Answer 4

Sanctioned Party screening

Question 5

FMP, Foreign made products

Answer 5

Can be subject to US Re-Export law. CPM has to contact Export Control which calculates the percentage of US parts within the product and compares it to the sales price. Siemens applies US Export Control at the threshold of 10%US parts within a product

Question 6

Customs preference - three preconditions

Answer 6

1) Free trade agreement
2) Delivered good must be from preferential origin
3) Provide documentary evidence in the form of preference certificates to customs authorities

Question 7

Preferential origin of a product

Answer 7

Product is classified as preferential origin if a certain percentage of goods, which have been manufactured in the same country as the product is exceeded

Question 8

ECC Clauses (3)

Answer 8

1) Reservation clause: If Siemens is prohibited to perform due to Export Control and Customs regulations this clauses releases Siemens from contractual obligations
2) Clause to be used in sales contracts: Engages Siemens’ customers to comply with all export and re-export regulations when dealing with a third party
3) security in the supply chain - Clause commits suppliers to appropriate measures in order to ensure security in the supply chain

Question 9

AWV (Advances warning verification)

Answer 9

Result of Damex-E and SPS

Question 10

De minimis rule - what does it define?

Answer 10

Whether a foreign made product is subject to US Re-Export law or not

Question 11

Why does Siemens does not use DDP?

Answer 11

The seller bears all costs and risks and is responsible for customs clearance in the country of import. Supplier can most probably not obtain a refund of import sales tax in the country of receipt if he is not registered for tax purposes in the country of receipt

Question 12

Product Classification - why important

Answer 12

Coding is essential to ensure correct and efficient customs clearance as well as for the determination of export prohibitions or export license requirements

Question 13

DCS (Destination control statement)

Answer 13

Must appear on bills and can be indicated on delivery notes - informs consignees about licensing requirements, prevents Siemens to be liable for Export Control violations of the consignee

Question 14

Are incoterms Sales contracts?

Answer 14

No, they define special sales terms regarding deliveries but do no constitute a sales contract

Question 15

What to AL (based in German) and ECCN (US) include?

Answer 15

Information regarding export restrictions and licensing requirements

Question 16

What is necessary to appear on invoice and delivery note?

Answer 16

Classification codings

Question 17

The classifications for preferential agreement are…

Answer 17

PREF (Prefered Statement) and PUL (Preferential Country of Origin)

Question 18

According to national legal requirements the classification X assigns the product to a specific country or economic area

Answer 18

LKZ

Question 19

If the percentage of US Parts within this products exceeds a certain de minimis level it X subject to US Export Control Law

Answer 19

If the US content in a FMP is below the respective de minimis level the FMP is not subject to US Re-Export Law

Question 20

Damex SPS is made on X -related basis

Answer 20

Order

Question 21

The fact that a contractual relationship exists between Siemens and the parties involved in the project is X regarding whether

Question 22

AL

Answer 22

National Export list number. Item Specific code for products listed in the EU-Dual_Use List or another national export list. HAS TO BE ENTERED

Question 23

ECCN

Answer 23

Export Control Classification Number, item specific code if the product is subject to the US Export Administration Regulations (EAR) HAS TO BE ENTERED

Question 24

HS

Answer 24

International identification number of goods and provides information e.g. rates of duty

Question 25

PUL

Answer 25

Is the preferential country of origin. It’s the country in which the preference has been acquired through manufacturing operations

Question 26

PREF

Answer 26

PREF stands for preference statement. PREF-Y shows positive preference and is used for countries which are entitled to preferential agreements.