NATIONAL IMPORT AND EXPORT REGULATION

1. NATIONAL IMPORT AND EXPORT REGULATION • Topics for Discussion in Chapter • Import Regulation • Assessment of Duties • Marking • Standards • Exceptions • Export Regulation • General License • Validated License

2. 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.

3. 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

4. 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

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. EXPORT REGULATION • Agency • Bureau of Export Administration publishes export restriction. • Restrictions • Technical Information • Goods • Destination • License Requirements • Validate License • General License

11. 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

12. 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