LEGL 4900 Ch 12
same-condition drawback
drawback of duties paid on imported goods that are reexported in the same condition as they were imported, provided they were not significantly altered
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 this
General Rules of Interpretation (GRI)
found at the beginning of the tariffs schedule, used to determine a good's tariff classification
manufacturing drawback
a refund of duties and taxes paid on merchandise that is imported, subjected to manufacture or production, and then exported within 5 years
specific tariff rate
a specified dollar amount per piece or unit of weight or measure
binding ruling
aka a ruling letter, written request from Customs in advance of an entry, represents the official position of Customs with respect to the specific transaction for which it was issues
entry process
aka clearing customs, customs authorities determine whether any import prohibitions or restrictions apply to the goods, whether the goods are subject to any other laws and regulations affecting their entry, and whether any tariffs or import duties are due
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 certainty
prior disclosure
if an importer admits its mistakes and informs Customs of a possible violation before learning that it is being investigated, the penalties are limited
formal entry
the administrative process required to import goods into the customs territory of a country
tariff-shift rule
the country of origin is the last country in which all "inputs" (raw materials, component parts, etc.) in the finished product underwent a defined change in tariff classification.
importing
the entering of goods into the customs territory of a country
liquidation
the final computation and assessment of the applicable duty on entered goods by Customes
ultimate purchaser
the last person in the US who receives an article in the form in which it was imported
rules of origin
the legal rules used to determine the country of origin of imported products
dutiable status
the legal status of imported goods at the time of entry for purposes of compliance with the tariff and customs laws
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
transaction value
the price actually paid or payable for goods when sold for export
tariff engineering
the process of modifying or engineering a product prior to importation, or importing it at an earlier stage of manufacturing, for the purposes of obtaining a lower rate of duty
preferential rules of origin
those applicable to 1) goods traded within a free trade area or customs union 2) goods imported from countries that receive special tariff treatment pursuant to a trade agreement 3) goods imported under a trade preference program for developing countries
non-preferential rules of origin
those applicable to imports from developed countries that receive normal tariff treatment
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
rejected merchandise drawback
allowed for imported merchandise that was shipped without consent, is defective, or does not conform to specifications or samples
customs broker
an authorized agent, licensed by federal law, to act for and on behalf of importers in making entry of good
global supply chain
an integrated international network of logistics, communications, finance, and trade relationships designed to take a product from inception through production and delivery to customers
port of entry
any place when customs or immigration authorities permit the entry of goods or people
composite goods
articles made of different materials or components
ad valorem tariff rate
based on a percentage of the value of the articles imported
compound tariff rate
combination of both ad valorem and specific rates
substitution drawback
received by a UD firm that imports goods and then exports other goods of the "same kind and quality"
enforced compliance
refers to the active investigation of customs violations and the prosecution of violators
commercial invoice
required for all shipments intended for sale or commercial use in the US
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
country of origin
that country from which an imported article is said to have originated according to specific rules, known as rules of origin
informed compliance
"softer" mechanisms designed to place the burden of voluntary compliance on importers
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
contract manufacturing
a business arrangement in which the production of goods is contracted or "outsourced" by one firm to a manufacturing firm, often overseas
tariff schedule
a listing of specific items, coded numerically and described by name or use
drawback
a refund of duties already paid on imported goods when the goods are reexported or destroyed
foreign trade zones (FTZs)
legally defined sites - warehouses and manufacturing facilities - operated pursuant to legislation and under government license, that are legally "outside" the customs territory of the country they are in
informal entry
personal and commercial shipments valued at $2,500 or less may be cleared through this process
