Legal Vocab Test 3

geographical indications

Where a product, particularly wine or liquor is marketed by reference to a geographic region

currency exchange rights

When a company negotiates with a foreign government in advance for preferential access to hard currency

counterpurchase agreement

involves sale of goods or services with the condition that the seller buy other goods produced in that country

global supply chain

/integrated international network of logistics, communications, finance, and trade relationships designed to take a product from inception through production and delivery to customers

private political risk insurance

2 markets - Lloyd's of london and other insurance syndicates Private has less regulation but is more expensive,

unitary index adjustment

A contractual provision in which the investor and the government agree on payment through a commonly accepted measure of relative currency value or national inflation

tax haven

A country where the effective tax rate on a relevant item of income is very low or zero

same condition drawback

A drawback of duties paid on imported goods that are re-exported in the "same condition" as they were imported, provided they were not significantly altered.

dutiable value

Customs value of goods entered into any country - must be reported by the importer-of-record to national customs authorities at time of entry

commerce control list

Details which products can and cannot be shipped to certain countries, determines if a license is needed for exports

substitution drawback

Duties paid on imported goods may be received by a U.S. firm that imports goods and then exports other goods of the "same kind and quality ". usually deal with fungible goods or agricultural commodities

value added tax (VAT)

EU, like a sales tax on retail goods, each eu member state has its own rate

barter

Exchange goods without involving money. direct exchance of goods for goods or services.

biopiracy

Extracting plants and animals indigenous to the emerging nation for research, alter the plant or animal, and then obtain patents related to this research without providing the host country with compensation or affordable access to the inventions

essential character

If two or more headings or subheadings each describe only certain materials or components in composite goods, the article must be classified under the heading that describes the material or components that give the article its

Nontransfer Insurance

Investors can purchase insurance to protect against a hard or soft blockages

notification registration

More open to technology transfers Countries with general acceptance of transfer make exceptions for heightened concerns, japan, general system of notification with exceptions for areas of heightened concerns,

substantial transformation

Occurs when the original article loses its identity as such and is transformed into a new and different article of commerce having "a new name, character, or use" different from that of the original item

priority claim

PCT established centralized utility patent application process, if at least one of the applicants named in the PCT application is a national or resident of a PCT signatory, the PCT gives the application a _______- on that invention in all signatory states

eminent domain

Power of a government to take private property for public use.

transfer pricing

Pricing of goods, services, and intangible property bought and sold by operating units or divisions of a company doing business with an affiliate in another jurisdiction

import substitution rights

Rights that a US investor can arrange with a foreign government when the new venture will manufacture a product in the soft-currency country that the nation had previously imported; the investor must reach this agreement for hard currency before actually committing capital to the soft-currency nation

multilateral sanctions

Sanctions imposed by more than one country

language politics

Situation found in regions of a few countries where laws require that companies conduct business in a certain language

exclusive rights

When exploitation of a licensed IPR requires significant financial resources from a firm, they may seek exclusive rights to enhance chances of adequate return on investment; typically the licensor doesn't want to put all eggs in 1 basket though

country of origin

The country from which an imported article is said to have originated according to specific rules, known as rules of origin

right of priority (established in paris convention)

The date of an applicant's foreign application is deemed to be the same as the date of the applicant's original application on the same invention, so long as the foreign application was filed before the first anniversary of the original application

intellectual property rights

The legal protection of the original works of inventors, authors, creators, and performers under patent, copyright, and trademark law. Such rights became a contentious area of trade negotiations in the 1990s. increasingly important assest of any large corp, critical to a company's ability to compete effectively

traditional theory

The theory that prohibits the takings of all foreign property, foreign investors should be exempt from the sovereign's condemnation rights

short supply controls

US law permits the use of these to protect the US economy from excessive foreign demand of scarce materials. apply to certain foodstuffs, medicines, basic metals, or natural resources

contract manufacturing

a business arrangement in which the production of goods is contracted or "outsourced" by one firm to a manufacturing firm, often overseas

royalty

a license fee for the grant of a license of an IPR

tariff schedule

a listing of specific items, coded numerically and described by name or use

utility patent

a patent that protects the way an invention is used and works, broad range of potential applications

manufacturing drawback

a refund of duties and taxes paid on merchandise that is imported, subjected to manufacture or production, and then exported within five years

political risk insurance

a type of insurance that can be taken out by businesses, of any size, against political risk—the risk that revolution or other political or economic conditions will result in a loss

entry process

all commercial shipments must go through this administrative process supervised by national customs authorities and informally referred to as 'clearing customs'

rejected merchandise drawback

allowed for imported merchandise that was shipped without consent, is defective, or does not conform to specifications or to samples

validated end user program

allows qualified exporters to pre-approve shipments to foreign trusted customers, business partners, and subsidiaries of American companies of certain high-technology or dual-use items without the need for individual export licenses, only available for china and india

reinsurance treaty

an agreement among insurance companies that spreads the risk among its members

electronic export information

an electronic filing of information required for each export shipment leaving the United States, exporters in the US use the automated system to file this

consolidated screening list

an online compilation of prohibited end users

automated commercial environment

an online system of US Customs and Border Protection, in collaboration with the US Census Bureau, single window for sending export information and shipment information

cybersquatting

the registering of a domain name with the intent to profit from the goodwill of a trademark belonging to another, later offering to sell the domain to the company that owns the TM at an inflated price

port of entry

any place when customs or immigration authorities permit the entry of goods or people

non-preferential rules of origin

applicable to imports from developed countries that receive normal tariff treatment or that have 'normal trade relations'

franchising

arrangement in which the licensor permits the licensee to sell certain goods under the licensor's tm or service mark under the terms of an agreement

composite goods

articles made of different materials or components in the GRI

License Exception

authorization to export without a license

customs broker

authorized agent, licensed by federal law, to act for and on behalf of importers in making entry of goods

currency swaps

broad assortment of financial contracts that may be purchased from financial intermediaries to hedge against fluctuation risk, transfers risk of fluctuation to the intermediary; A financial innovation used to hedge exchange rate risk over a long period of time, whereby one party agrees to trade periodic payments in a given currency with another party who agrees to do the same in a different currency

franchise tax

can impose taxed based on the franchiser's worldwide operations even if its local operations fizzle, laws that are specifically directed at the franchising phenomenon

passive investment

can involve either a passive debt investment (making a loan to a foreign business) or passive equity investment (chasing an equity interest in the foreign business portfolio investment that does not allow for control of the business), least regulated type of foreign investment, they do not raise the specter of 'outsider influence' that often lead to foreign gov to exercise greater regulation

compound tariff rate

combination of both ad valorem and specific rates

dual use items

commercial items that may also have military or "proliferation" uses (relating to the proliferation of nuclear, chemical, or biological weapons)

copyright

dealt with in the berne convention, national treatment, minimum substantive laws, prohibitions against copying literary and artistic works and granting authors exclusive rights to adaptations and broadcasts of works, no filing requirement, signatories agree to grant national treatment to copyright holders from other signatories automatically from the moment of creation (rather than time of filing)

soft blockages

delays in processing conversion requests by the local authorities

parallel imports

develop when importers buy products from distributors in one country and sell them in another to distributors who are not part of the manufacturer's regular distribution system

sanction

economic or financial, regulation that restricts or prohibits certain relationships with specified foreign countries, foreign entitites, or named foreign individuals bc of their support of terrorism, prolif of weapons of mass desctruction, for intl drug trafficking, or other threats to national security

prior disclosure

encourages importers to voluntarily report their own possible violations of customs laws, allows importers to admit mistakes and inform customs of a possible violation before learning that it is being investigated limits penalties

trade creditors

entities that sell supplies or services to the venture should try to buy locally in local currency; retain hard-currency for repatriation

countertrade

international trade that involves the barter of products for products rather than for currency

deemed reexport

the release or transfer of an item from someone who was licensed to receive it to a different foreign person

parallel trade

the resale of goods between countries without the authorization of the owner of the intellectual property (IP) rights associated with those goods

liquidation

final computation and assessment of the applicable duty on entered goods by customs, finishes the entry

informal entry

for personal and commercial shipments valued at 2,500 or less may be cleared through this process

parallel exchange

foreign investors form a consortia to trade local soft currency investors, all committed to controlling inconvertibility, spread the risk over a larger group

comity

general notion that nations will defer to and give effect to the laws and court decisions of other nations

international emergency economic powers act

grants authority to the President to place restrictions on trade and international financial transactions during peacetime as well as wartime, current grant of authority to the pres to regulate economic and financial transactions and to place restrictions on import/export during a peacetime intl emergency

rule of relative specificity

if an article can be classified under two or more headings or subheadings, it must be classified under the one that most specifically, most narrowly describes the article with the greatest degree of accuracy and certainity

grant back

if the licensee develops improvements in the licensed tech or creates new inventions based upon the licesend tech, licensor may seek this ... to itself for ownership in or at least the right to use (often w/out compensation) such new tech

output or customer restrictions

if the licensor plans to use the licensee as a source of products for the licensor's own distribution requirements

counterfeit goods

imitation goods that are sold illegally

gray market

importation of merchandise produced and sold abroad and then imported back into the US for sale in competition with the US trademark owner

Currency inconvertibility

inability to convert currency

inconvertibility

inability to covert foreign currency into U. S. dollars.

bad faith *excepted from UDPR

intentional wrongful behavior / under UDRP now includes some negligence w/out finding of intent

gray market goods

items manufactured outside a country and then imported without the consent of the trademark holder

export controls

laws and regulations that govern the licensing of certain goods and technology exported from the U.S. or released or transferred to non U.S. citizens

antiboycott laws

legal responses by governments that make it unlawful for their citizens or companies to participate in a boycott

rules of origin

legal rules used to determine the country of origin of imported products (found in trade agreements, national statutes, regulations of customs authorities)

fair, reasonable, and nondiscriminationatory (FRAND)

licensing that can significantly reduce the risk of patent 'hold up' and the perceived advantages of litigation, but only applies in limited circumstances, terms of a license (samsung required to give a license to apple on these terms before seeking injunctive relief)

license

limited permission to use the US firm's trademarks, copyrights, or know how in making products for sale in the vicinity of the foreign company's country

commerce country chart

lists each country and indicates when an export license is required. (if X under 'reason for control'). Not all countries need an export liscense, published by BIS

inconvertibility risk

the risk that the government of a country with soft currency will hinder the foreign entrepreneur from trading the foreign currency back into US dollars

hard blockages

occur when the foreign government passes a law that prevents conversion or transfer of currency

soft currency

one that is not freely exchangeable for currencies of other nations; it is expected to fluctuate erratically or depreciate against other currencies.

foreign person

one who is neither a US citizen nor a permanent US resident

boycott

organized refusal of one or more nations, often backed by economic sanctions to trade with one or more other nations, often used for political reasons

repatriated

paid out to the U.S. person, typically in the form of a dividend

double taxation

the same income is taxed by two different tax authorities

design patent

patents protecting the ornamental features of an article of manufacture

modern-traditional theory

permits takings of foreign property but imposes some requirements 1) for a public purpose 2) nondiscriminatory 3) accompanied by prompt and adequate compensation

insurance syndicates

pools of money provided by investors to insure specific projects

currency risk

potential threat to a firm's operations in a country due to fluctuations in the local currency's exchange rate

privatization

process of converting government enterprises into privately owned companies

tariff engineering

process of modifying or engineering a product prior to importation for the purposes of obtaining a lower rate of duty

export credit agencies

promote investment from their own countries, government corps that provide political risk insurance

useful patent

protection for any new inventions, whether products or processes, in all field of tech, provided that they are new, and are capable of industrial application

nonobvious patent

protection for any new inventions, whether products or processes, in all field of tech, provided that they are new, and involve an innovative step

countertrade

reciprocal arrangement btwn buyer and seller for the sale of goods or services intended to minimize the outflow of foreign exchange from the buyers, country. local currency earnings are used to purchase local products, which are then exported to a hard currency country. the proceeds are converted and returned to foreign investor.

dutiable status

refers to the legal status of imported goods at the time of entry for purposes of compliance with the tariff and customs laws

reexport

refers to the shipment or transfer of American-controlled items or technology from one foreign country to another foreign country or foreign person

net book value

reflects the tax related depreciated cost of assests w/out regard to wehther there has in fact been true depreciation in value

drawback

refund of duties already paid on imported goods when the goods are reexported or destroyed

deemed export

release or transfer of any item subject to control, including technology or software to a foreign person in the US

binding ruling

represents the official position of Customs with respect to the specific transaction for which it was issued, importers make a written request for a ruling letter from customs in advance of an entry

tied purchase clause

require the franchisee to buy certain goods from the franchiser

commercial invoice

required for all shipments intended for sale or commercial use in the US

prior approval

requires approval from a government agency for the transfer of IPRs

domestic or regional value content test

requires that some minimum percentage of the value of materials and direct processing operations be performed in a country in order for it to have 'originated' there

fundamental research

research in science, engineering, or mathematics, the results of which ordinarily are published and shared broadly within the research community, and for which the researchers have not accepted restrictions for proprietary or national security reasons

field of use limitations

restrict the applications for which the licensee may employ the IPR (ex. only use tech in connection with one specified application)

trading with the enemy act

restrict trade with hostile countries during times of war or during a time of emergency

geographical limitations

restricted by the licensor when licensee is transferred use of IPR, may limit license within a specific area

active investement

results in the investor having an ownership interest in the foreign business as either a foreign branch or subsidiary

political risk

risk that arises from the possibility that a host government will take actions harmful to foreign investors or that political turmoil will endanger investments

specific tariff rate

specified dollar amount per piece, or unit of weight or measure

tariff-shift rule

states that the country of origin is the last country in which all 'inputs' (raw materials, component parts, etc.) into the finished article underwent a defined change in tariff classification

Nationalization

taking of an entire industry or natural resource as part of a plan to restructure the nations economic system by a government

ad valorem tariff rate

tariff based on a percentage of the value of the articles imported

informed compliance

the "softer" mechanisms designed to place the burden of voluntary compliance on importers

enforced compliance

the active investigation of customs violations and the prosecution of violators

export

the actual shipment or transmission out of the US in any manner, or releasing or transferring of tech or software to a foreign person in the US, can occur by any means including physical shipment or by electronic means

formal entry

the administrative process required to import goods into the customs territory of a country

foreign availability

the controlled item, or one of comparable quality, is "available-in-fact" from non-US sources in sufficient quantities so that any attempt to control for national security purposes would be ineffective

creeping expropriation

the effect of laws and regulations that subject the investor to discriminatory taxes, legislative controls over management of the firm, price controls, forced employment of nationals, license cancellation, and restrictions on currency convertibility

importing

the entering of goods into the customs territory of a country

conscious avoidance

the exporter purposely avoided learning the truth about an end user or destination -information that might have had a bearing on his or her license application

technology

the information necessary for the development, production, use or operation of items and in almost any form

Foreign Direct Investment (FDI)

the investor owns and actively controls the productive assests of ongoing business concerns in a foreign country

ultimate purchaser

the last person in the US who receives an article in the form in which it was imported

principal use

the ordinary use to which articles of the same class and kind as those being imported are usually put and which is greater than any other single use of the article

fluctuation risk

the possibility that the currency of the country in which the US investor has put its money will devalue against the US dollar

profit margin preservation

the price or payment to the foreign investor will be adjusted periodically to maintain the same profit margin (approach to build currency adjustment mechanism into contractual payment terms)

transaction value

the price that is actually paid or payable for the goods when sold for export

buy-back agreement

the provider of the equipment or technology used in manufacturing will receive, as its payment, a portion of the goods manufactured by the supplier's equipment or the factory in which the equipment is installed

General Rules of Interpretation (GRIs)

the six international rules designed to help you understand and properly apply the Harmonized System categories. The additional U.S. rules of interpretation apply to 8-digit U.S. subheadings.

preferential rules of origin

those applicable to goods traded within a free trade area or customs union, goods imported from countries that receive special tariff treatment pursuant to a trade agreement, or goods imported under a trade preference programs for developing countries

political risk analysis

tries to forecast political disruptions that can threaten the value of a foreign investment

diversion

unlawful transfer, transshipment, rerouting, or reexporting of controlled goods or tech from one destination to which the goods or tech were legally shipped to another destination or foreign person who has not been licensed to receive the items

Export Control Classification Number (ECCN)

used by the CCL and CCC to identify items. / An alpha-numeric code, e.g., 3A001, that describes an item and indicates licensing requirements. All ECCNs are listed in the Commerce Control List (CCL) (Supplement No. 1 to Part 774 of the EAR).

national security controls

used to prohibit the export of goods or technology that would make a significant contribution to another country's military that would be detrimental to the U.S.'s national security. export of an item may be controlled to particular countries for reasons of national security if the item would make a signifanct contribution to the military of any country or combination of countries

export management and compliance program

what companies establish to ensure compliance with exports

Expropriation

when a domestic government seizes a foreign company's assets without any reimbursement, taking of an isolated item of property

extraterritorial jurisdiction

when a nation extends the power of its export control laws over its goods and tech once they have left its territory

notice of adjustment

when customs at the port of entry determines that additional duties are owed, this is sent to the importer

civil customs fraud

where there is clear and convincing evidence that the importer knowingly made a materially false statement or omission while entering or attempting to enter goods into the US