Export Control and Customs in Project Business Flashcards
Damex
Siemens SW application that helps to achieve compliance to export control regulations
Damex-E
To check and document end use and end user
Damex-P
For Itemspecific checks, e.g. license requirements
Damex SPS
Sanctioned Party screening
FMP, Foreign made products
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
Customs preference - three preconditions
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
Preferential origin of a product
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
ECC Clauses (3)
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
AWV (Advances warning verification)
Result of Damex-E and SPS
De minimis rule - what does it define?
Whether a foreign made product is subject to US Re-Export law or not
Why does Siemens does not use DDP?
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
Product Classification - why important
Coding is essential to ensure correct and efficient customs clearance as well as for the determination of export prohibitions or export license requirements
DCS (Destination control statement)
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
Are incoterms Sales contracts?
No, they define special sales terms regarding deliveries but do no constitute a sales contract
What to AL (based in German) and ECCN (US) include?
Information regarding export restrictions and licensing requirements
What is necessary to appear on invoice and delivery note?
Classification codings
The classifications for preferential agreement are…
PREF (Prefered Statement) and PUL (Preferential Country of Origin)
According to national legal requirements the classification X assigns the product to a specific country or economic area
LKZ
If the percentage of US Parts within this products exceeds a certain de minimis level it X subject to US Export Control Law
If the US content in a FMP is below the respective de minimis level the FMP is not subject to US Re-Export Law
Damex SPS is made on X -related basis
Order
The fact that a contractual relationship exists between Siemens and the parties involved in the project is X regarding whether
AL
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
ECCN
Export Control Classification Number, item specific code if the product is subject to the US Export Administration Regulations (EAR) HAS TO BE ENTERED
HS
International identification number of goods and provides information e.g. rates of duty
PUL
Is the preferential country of origin. It’s the country in which the preference has been acquired through manufacturing operations
PREF
PREF stands for preference statement. PREF-Y shows positive preference and is used for countries which are entitled to preferential agreements.
