national import and export regulation topics for discussion in chapter import regulation assessment...
TRANSCRIPT
NATIONAL IMPORT AND EXPORT REGULATION
• Topics for Discussion in Chapter• Import Regulation
• Assessment of Duties
• Marking
• Standards
• Exceptions
• Export Regulation• General License
• Validated License
IMPORT REGULATION
• Assessment of Duties-tax on imported good.
– Classification of Goods• Source
– Harmonized Tariff Schedule-uniform classification system used to classify goods for assessment of duties on imported goods.
» Sections-22 sections that broadly cover products from different industries.
» Chapter-99 chapters that groups products by industry ranging from agricultural and components to finished products. Headings and subheading follow chapter.
IMPORT REGULATIONS
• Assessment of Duties– Classification of Goods
• Interpretation-when a good can be classified in more than one tariff selection, must resort to General Rules of Interpretation.
– Rule of Specificity-requires use of Heading that provides the more specific description of the good over one that gives a general description
– Essential Character-Heading for material, component, or function that provides for essential character of good
– Deference is given to Customs Interpretation
IMPORT REGULATIONS
• Assessment of Duties– Tariff Computation
• Forms of Tariff» Ad Volorem Duties-percentage rate on imported
good.
» Specific Duty-specified amount on imported goods.
» Compound Duty-both ad valorem and specific duty.
• Tariff Computation» Duty=Value of Good X Tariff Rate
IMPORT REQUIREMENTS
• Assessment of Duties– Valuation of Goods is based on Transaction
Value of Good• Transaction Value requires that the value of the
imported good be on a commercially realistic basis.– Price of Identical Goods Sold to Unrelated customer.
– Deductive Value-Price of good sold in the United States deducting international freight, duties and commissions.
– Computed Value-fabricated by adding the manufacturer’s actual labor and material costs, along with estimates of its general expenses.
IMPORT REQUIREMENTS
• Assessment of Duties– Valuation of Goods
• Exemptions to Value of the Goods– Section 9802-articles assembled abroad in whole or in part
of fabricated components that are products of United States. Maquiladora
– Drawbacks-form of tax relief in which a lawfully collected customs duty is refunded or remitted wholly or in part because of the particular use made of the commodity.
– Foreign Trade Zones-Zones outside custom territory where activities take place and no duty until departure.
IMPORT REGULATION
• Assessment of Duties– Country of Origin-determining the nationality of
a product.• Approaches to determining Country of Origin
– Substantial Transformation-last country in which product changed into different product.
– Value Added-based on percentage of component parts making up finished good. Problem with this approach.
– Specific process Test-list the types of processes or operations that are considered to confer origin of good
– Change in Tariff Classification-product changes tariff.
IMPORT REQUIREMENTS
• MARKING REQUIREMENTS– In United States, imported goods must be
marked as to country of origin• Whether or nor marking is required is determined if
the purchaser is the ultimate purchaser.
– Customs Modernization Act• Importer is under a duty of reasonable care to
correctly classify and value the goods being imported and keep proper records on imported good.
IMPORT REGULATION
• STANDARDS REQUIREMENT-use of product quality, safety measures, quantity measure to impede imports.
– Agreements• WTO Agreement of Technical Barriers to Trade
• WTO Agreement on Sanitary Phyto-Sanitary
• International Labor Organization
– Purpose• Requires that member nation not use standards to
impede imports and makes rules transparent.
EXPORT REGULATION
• Agency– Bureau of Export Administration publishes
export restriction.• Restrictions
– Technical Information
– Goods
– Destination
• License Requirements– Validate License
– General License
EXPORT REGULATION
• License Requirements– General License-not required for individual
exporters• Shipper’s Export Declaration
• Destination Control Statement
– Validated License-grants a specific license for specific exporter for specific destination
– Is Country on Country List?
– Is Product on Commodity Control List
EXPORT REGULATIONS
• Government Agencies Relevant to Exporting– Department of Energy-nuclear technology and
Gas– Department of Justice-Drugs– Munitions- Department of State– Environmental Protection Agency-Pesticides– Patent and Trademark-Intellectual Property