Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

International Management WS16/17 > Foreign Trade > Flashcards

Foreign Trade Flashcards

1
Q

Scheme for working out whether the product originated in a Contracting Party

A
  1. Contracting Party exports to Contracting Party (Appendix I, Art. 2(1))
  2. Wholly obtained in Contracting Party (Appendix I, Art. 2(1)(a))
    OR
    sufficient working or processing (Appendix I, Art. 2(1)(b))
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How do I find out who is a Contracting Party?

A

Art 2(1) Contracting Party means those listed in Article 1(3)

Art 1(3) - “as listed in the preamble”

–> See Preamble

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Where is wholly obtained in a Contracting Party defined

A

Appendix I, Art. 4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the steps to determining if there is sufficient working or processing (simplest case)?

A
  1. Minimal treatment? No! (required by Art 5(3), defined in Art 6)
  2. Sufficiently worked or processed - Art 5(1) says must fulfill conditions in Annex II
    a. Preference criteria:
    - “use ex Chapter 86” or “use heading 8608, alternative method in column 4”
    - write condition; instead of “materials”, write “non-originating materials”
    b. Preference determination:
    - ex works price:
    - % of ex-works price = €x
    - “The value of the non-originating materials used may not exceed €x”
    c. Determination of non-originating materials:
    - add non-originating materials (from outside EU)
    - < €x
    Conclusion: EU originating product
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the steps to determining if there is sufficient working or processing and the determination of input materials without origin leads to a conclusion it is not an EU originating product (for chapter 86 only) so only column 3

A

Write: > €x, so not an EU originating product HOWEVER application of cumulation

d. Determination of non-originating materials using cumulation (Appendix I, Art 3):
- add non-originating materials using cumulation
- > or < than €x
- not an EU originating product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the steps to determining if there is sufficient working or processing and the determination of input materials without origin using cumulation leads to conclusion of not an EU originating product with heading 8608?

A
  • “BUT application of column 3 criteria” using tolerance Art. 5(2) of the Attachment
    Apply previous steps again, BUT condition must say:
    “Manufacture in which the value of all non-originating materials used does not exceed 40% of the ex-works price
    AND value of the non-originating materials from heading 8608 used must not exceed 10% of the ex-work price of the product”.
    Repeat preference determination, determination of non-originating materials and determination of non-originating materials using cumulation with first condition –> Condition fulfilled, BUT
    e. Value of non-originating materials from heading 8608 < 10% of the ex-work price of the product
  • ex-work price =
  • 10% of ex-work price = €y
    –> The value percentage of the non-originating materials from heading 8608 used may not exceed €y
  • Non-originating materials from heading 8608 used: calculate
  • > or < €y
    Conclusion: (not) EU originating product
    If not EU originating product –> “Third country customs clearance is necessary in country X”
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What do I need to consider when applying Annex II % condition to materials?

A
  • Consider accessories, spare parts and tools included in price (Appendix I, Art 8)
  • Don’t consider neutral elements: energy and fuel, plant and equipment, machines and tools, goods which neither enter into the final composition of the product nor are intended to do so (Appendix I, Art 10)
  • Sets: see Appendix I, Art 9
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How does tolerance work in the Regional Convention?

A

Tolerance for non-originating materials (in contracting parties, not including EU) not exceeding 10% ex works price of product (e.g. if originating material must be from other headings);
BUT
it can’t exceed Appendix II percentages (Art 1(2) and Appendix I, Art 5(2))

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What do I need to consider for cumulation of origin?

A
  • Contracting Party 1 (EU) sells material to Contracting Party 2.
  • Contracting Party 2 sells product using the material to Contracting Party 1 (EU).
    In Contracting Party 2 (exporting Country):
    1. No working or processing –> product retains origin in Contracting Party 1 (Appendix I, Art 3(4)
    2. “Insufficient working or processing” AND value added is LESS than value of materials originating in other Contracting Party –> product originates in Contracting Party which accounts for highest value of originating materials used (Appendix 1, Art 3(3))
    3. “Insufficient working or processing”, value added is GREATER than value of materials originating in other Contracting Party –> originates in Contracting Party 2 (Appendix I, Art 3(3))
    4. More than “insufficient working or processing” but less than “sufficienty worked or processed” –> material originates in Contracting Party 2 (Appendix I, Art 3(1) or 3(2) depending on where materials are from)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How is “value added” defined?

A

Ex-works (product) price minus customs value of materials originating in other Contracting Parties outside the EU (Appendix 1, Art 1)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Wie untergliedert man die Zollbelastung bei der Einfuhr?

A
  1. Regelzollsatz
  2. Wert- oder mengenmäßig eingeschränkte Zollvergünstigungen
    a. Zollkontingent
    i. Lizenzkontingent
    ii. Zollkontingent im Windhundverfahren
    b. Zollplafond
  3. Zeitlich aber nicht wert- oder mengenmäßig eingeschränkte Zollvergünstigung
    i. Zollaussetzung
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Was ist eine Lizenzkontingent?

A
  • Wert- oder mengenmäßig eingeschränkte Zollvergünstigungen
  • Mit der Erteilung der Einfuhrlizenz an Firmen ist die Anwendung der Zollvergünstigung garantiert
  • Danach, Regelzollsatz
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Was ist eine Zollkontingent im Windhundverfahren?

A
  • Eine Zollkontingent
  • Reservierung von Kontingentsmengen is nicht möglich.
  • First come, first served
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Was ist eine Zollplafond?

A

• Wert- oder mengenmäßig eingeschränkte Zollvergünstigungen
• Anders bei einem Zollkontingent führt das Erreichen des Plafonds nicht automatisch zum Wegfall der Zollvergünstigung:
1. Amtsblatt: Plafond
2. Plafond wird erreicht
3. Mit einer Rechtsverordnung der Europäische Kommission wird die Aufhebung der Vergünstigung bekannt gegeben
4. Tritt in Kraft (3 Tage später)
5. Regelzollsatz

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Was ist eine Zollaussetzung?

A
  • Zeitlich aber nicht mengen- oder wertmäßig eingeschränkte Zollvergünstigung
  • Die Europäische Gemeinschaft gewährt aufgrund von Verträgen oder autonom (ohne vertragliche Verpflichtung), zolltarifliche Abgabenvergünstigungen bei der Einfuhr, die zu einer Zollermäßigung bis hin zum Zollsatz 0% führen.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are import duties?

A

Customs duties payable on the importation of goods - Art. 5(20)

  • Customs (third country customs, preference customs)
  • Anti-dumping customs
  • Import VAT
  • Consumer taxes (mineral oil, alcohol, tobacco tax and electricity tax)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What customs procedures are there?

A
  1. Release for free circulation - collection
  2. Export
  3. Special procedures:
    - Transit, comprising external and internal transit
    - Storage, comprising customs warehousing and free zones
    - Specific use, comprising temporary admission and end-use
    - Processing, comprising inward and outward processing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is the Transit customs procedure?

A

Transporting goods from one country, going through another country and selling it in a third country.

e.g. arrives in Holland, goes to Germany –> customs duties payable to Germany, not Holland.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is the inward processing customs procedure?

A

Further processing of the goods in the EU before being re-exported and sold outside the EU

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the outward processing customs procedure?

A

Further processing of the goods outside the EU before being re-imported and sold in the EU –> only pay customs on value added

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the advantages of the customs warehousing (Zollagerverfahren) customs procedure?

A

Only pay customs when you sell the goods (interest advantage), time for inward processing stops

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is needed for determination of the amount of customs to pay?

A
  1. Customs tariff
  2. Origin
  3. Customs value
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What governs the international customs value?

A

WTO Valuation Agreement

GATT-Zollwertkodex

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

In order, what methods are used to determine the customs value of goods?

A

TI-TITS-DCF

  1. Transaction value of the imported goods
  2. Transaction value of identical goods
  3. Transaction value of similar goods
  4. Deductive value
  5. Computed value
  6. Fall-back method
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

How to determine whether you can use the transaction value of the imported goods for the customs value?

A
  1. Bestehen Verwendungs- / Gebrauchsbeschränkungen - Art. 70(3)(a) UCC–> Ja –> ZW-Ermittlung nach Art 74(2)a-d; 74(3) UCC
  2. Bestehen besondere Kauf- oder Preisbedingungen - Art. 70(3)(b) UCC –> Ja –> Ist Berichtigung des Rechnungspreises möglich? –> Nein, ZW-Ermittlung nach Art 74(2)a-d; 74(3) UCC.
  3. Besteht Erlösbeteiligung - Art. 70(3)(c) UCC–> Ja –> Ist Berichtigung des Rechnungspreises möglich? Nein, ZW-Ermittlung nach Art 74(2)a-d; 74(3) UCC
  4. Besteht Verbundenheit - Art. 70(3)(d) UCC–> Ja –> Presibeeinflussung? –> Ja –> Ist Berichtigung des Rechnungspreises möglich? Nein, ZW-Ermittlung nach Art 74(2)a-d; 74(3) UCC.
    Ansonsten, Art. 70 -Transaktionswert +/ ./. (Art. 71, 72)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is the transaction value of the imported goods?

A

The price actually paid or payable for the goods when sold for export to the customs territory of the Union, adjusted, where necessary (Art 70 Union Customs Code)

  • price actually paid or payable
  • goods, not services
  • sale (not commission)
  • for export
27
Q

What does the “existing limitation of application/use” condition for the transaction value as the customs value mean?

A 
There must be no restrictions as to the disposal or use of the goods by the buyer, other any of the following:
- restrictions imposed or required by a law or by the public authorities in the Union
- limitations of the geographical area in which the goods may be resold, or
- restrictions which do not substantially affect the customs value of the goods
Art 70(3)(a)UCC
28
Q

What does the “existing special purchase or price conditions” condition for the transaction value as the customs value mean?

A 
Sale or price must not be subject to some condition or consideration for which a value cannot be determined wrt the goods being valued
Art 70(3)(b)
29
Q

What does the “existing income participation” condition for the transaction value as the customs value mean?

A 
No part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made
Art 70(3)(c)
30
Q

What does the “existing bond” condition for the transaction value as the customs value mean?

A

The buyer and seller must not be related OR
The relation must not have influenced the price
Art 70(3)(d)

31
Q

What are the functions of warehouses?

A
  • Transit function
  • Credit function
  • Control measures relating to foreign trade policy
  • Export storage
32
Q

What is the transit function of a warehouse?

A

Following a transfer into the customs warehouse, imported non-community goods are not be transferred into free circulation. Instead they will later be re-expored

E.g. import of fire fighters’ helmets from the USA destined for Russia

33
Q

What is the credit function of a warehouse?

A

Payment of entry duties is postponed until the stored goods are transferred into customs free circulation

34
Q

What is the function of a warehouse to control measures relating to foreign trade policy?

A

Bridging the Union’s economic protection measures with respect to third countries

E.g. At the time of import, the required import approval was not available for textiles from USA. Until this is issued, the goods can be temporarily stored without having to pay duties.

35
Q

What is the export storage function of a warehouse?

A

Non-community goods are transferred to a customs warehouse with the aim of ending a previous customs process

E.g. To end inward processing, goods are transferred to the warehouse as the export of the processed products can only take place at a later date. If the goods are not transferred to the warehouse then the deadline for settling the processing transactions could expire.

36
Q

What conditions are there for a person to operate a customs warehouse (i.e. be the warehousekeeper)

A
  1. Established in the EU
  2. Applicant must guarantee proper application of warehouse provisions
  3. Must demonstrate an economic need. This exists when:
    - goods are stored in a large amount
    - the warehouse is mainly intended for the storage of goods
    - average duration of storage is longer than 32 days
37
Q

What two authorities are involved in the export procedure?

A
  1. Customs office of export is the customs office:
    - responsible for supervising the place where the exporter is established, or
    - where the goods are packed or loaded for export shipment.
    Tasks: completes formalities for assigning goods leaving the customs territory to a customs procedure, including risk-based controls
  2. Customs office of exit: Completes customs controls relating to the completion of exit formalities including releasing the goods for exit and supervising the physical exit of the goods from the customs territory
38
Q

What is the normal export procedure?

A
  1. Exporter/representative lodges his export declaration (Single Administrative Document or SAD) at the customs office of export (Arts. 263, 172 UCC), and if requested lodges supporting documenting and presents the goods
    a. Customs office of export conducts risk analysis (Art 264 UCC) and accepts the customs declaration (Art 172)
    b. Customs office of export releases the goods (makes goods available for the export procedure) (Art 194 UCC)
    c. SAD 1 (statistics), SAD 2 (KOBRA for risk analysis), SAD 3 (stamped, given to declarant to take to customs office of export).
  2. Exporter/representative presents the goods and the SAD 3 to the customs office of exit.
    - Customs office of exit performs customs controls relating to the completion of exit formalities and supervises the physical exit of the goods from the customs territory.
39
Q

What is the electronic export procedure (keywords only)

A
  1. Customs declaration
  2. Acceptance of customs declaration
  3. Release for export / Export Accompanying Document (EAD) - shows export declaration lodged, shipment released for export
  4. Advance export notification
  5. Transport / EAD / Presentation of goods
  6. Release for exit / Transport
  7. Confirmation of exit
  8. Proof of export
40
Q

What is the electronic export procedure?

A
  1. Customs declaration: Exporter lodges electronic export declaration with the customs office of export
  2. Acceptance: Customs office of export accepts the export declaration
  3. Release for export/EAD (Export Accompanying Document): Customs office of export:
    a) examines whether the export is permissible
    b) issues a Master Reference Number (MRN)
    c) carries out a risk analysis (may request presentation of goods or documents if necessary)
    d) releases the goods for export and issues and Export Accompanying Document (EAD) to identify the export operation
  4. Advance export notification; customs office of export notifies the customs office of export that the goods are on their way
  5. Transport/EBD/Gestellung:
    - consignment travels to customs office of exit
    - exporter/representative presents the EAD and goods to the customs office of exit
  6. Release for exit/Transport:
    - The customs office of exit releases the goods for exit and supervises the physical exit of the goods from the EU customs territory
    - The goods are transported to the receiver
  7. Confirmation of exit:
    - The customs office of exit confirms the exit to the customs office of export.
  8. Proof of export: The customs office of export provides proof of export to the exporter/representative
41
Q

How is preferential status documented?

A

One of the following:

  • Movement certificate EUR. 1 or EUR-MED
  • origin declaration EUR-MED
  • Invoice declaration (usually for goods value up to 6.000€
  • Approval of “authorised exporter” if goods value over 6.000€
  • -> customs reductions or exemption from customs in the country of destination
42
Q

What does TR stand for?

A

Turkey

43
Q

What does IS stand for?

A

Iceland

44
Q

What does LI stand for?

A

Liechtenstein

45
Q

What does NO stand for?

A

Norway

46
Q

What does CH stand for?

A

Switzerland

47
Q

What does DZ stand for?

A

Algeria

48
Q

What does EG stand for?

A

Egypt

49
Q

What does IL stand for?

A

Israel

50
Q

What does JO stand for?

A

Jordan

51
Q

What does LB stand for?

A

Lebanon

52
Q

What does MA stand for?

A

Morocco

53
Q

What does PS stand for?

A

Palestine

54
Q

What does SY stand for?

A

Syria

55
Q

What does TN stand for?

A

Tunisia

56
Q

What does AL stand for?

A

Albania

57
Q

What does BA stand for?

A

Bosnia and Herzegovinia

58
Q

What does HR stand for?

A

Croatia

59
Q

What does MK stand for?

A

Macedonia

60
Q

What does ME stand for?

A

Montenegro

61
Q

What does RS stand for?

A

Serbia

62
Q

What does FO stand for?

A

Faroe Islands

63
Q

What does XK stand for?

A

Kosovo

International Management WS16/17 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions