International Business Law: Chapter 14

maquiladoras

production-sharing plants, common not only in Mexico but also thought the Caribbean and Central America

certificate of origin (CO)

required for all shipments moving among the United States, Canada, and Mexico

national treatment

states that once goods arrive from another NAFTA country, they must be treated without discrimination and no differently than domestically made goods

export taxes

taxes prohibited by NAFTA on exports unless the taxes are also applied to similar goods sold for domestic consumption

binational panels

panels where NAFTA cases now go, apply the same standard of review as would a court of law convened in the country where the case originated

arbitral panel

a NAFTA panel, consisting of five members who are experts in trade or law

regional value content

a less popular method by which the rule of origin is based for certain goods

tariff shift rule

a rule allowing for a change in tariff classification, a regional value-content requirement, or both, depending on the requirements for that particular product (Annex 401)

substantial transformation test

a test used to determine the country of origin of goods imported into the United States when the goods are produced or assembled in more than one country

common market

also called an economic community, it seeks to further facilitate free competition within a group of nations

customs union

develops when there is free trade in all goods that come through any of the members, even imports from outside the ___________________

free trade are (FTA)

develops when two or more countries agree to eliminate or phase out customs duties and other barriers to trade among the member countries

customs user fees

fees imposed on importers to help fund the cost of customs enforcement and port services

production sharing

the process of spreading manufacturing and assembly operations across international borders