legl 4900 exam 3

sanction

a regulation that restricts or prohibits certain relationship with specified country and entities because of their support for international terrorism, proliferation, or other threats to national security

language politics

a situation in which the laws require that companies conduct business in certain languages

informed compliance

a softer mechanism designed to place burden of voluntary compliance on importers

informal entry

a type of entry for personal and commercial shipments valued at 2500 or less with no surety bonds

domestic or regional value content test

a value added test that requires some minimum percentage of value of materials and direct processing operations be performed in a country in order for it to be originated

negligent violations

a violation which the importer fails to use reasonable care, skill, and competence to ensure that all customs documents and statements are materially correct and all laws are complied with

enforce compliance

active investigation of customs violations and the prosecution of violators

export

actual shipment out of the US in any manner to a foreign person in the US

rejected merchandise drawback

drawback for imported merchandise that was shipped without consent, defective, or does not conform to specification

same condition drawback

drawbacks of duties paid on imported goods that are reexported in the same condition as they were imported, cannot be significantly altered

substitution drawback

duties paid on imported goods and then exports other goods of same kind and quality fungible goods or ag products

importing

entering of goods into the customs territory of a country

trade creditors

entities that sell supplies or services to the venture

utility patent

a patent with a broad range of potential applications

political risk analysis

a primary way of managing political risk through proactive management where the enterprise retains a firm or personnel to analyze a host country's risk of nationalization or expropriation

geographical indications

a product is marketed by reference to a geographic region common with alcohol

royalty

fee for a license of intellectual property rights

grant back

a provision a licensor seeks in order to give back ownership to themselves or at least the right to use new technology developed from its IPR

countertrade

a reciprocal arrangement between buyer and seller for the sale of goods or services intended to minimize the outflow of foreign exchange from the buyer's home country

drawback

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

priority claim

given on an invention in all signatory states what at least one of the applicants named in the patent cooperation treaty application is a national or resident of a signatory country

license

gives limited permission to use trademarks, copyrights, and know how in making goods for sale in the vicinity of a foreign company's country

export management and compliance program

good way for ensuring compliance for a company to establish this, must be in writing and state compliance policies

production assists

goods, services, or IP furnished by the importer to a foreign producer for use in producing merchandise for import to the US

gray market

parallel trade when importations of merchandise produced and sold abroad and then imported back into the US for sale in competition with the US trademark owner

design patents

patents that protect the ornamental features of an article of manufacture

countertrade payments

payments made to the franchisor with goods instead of hard currency

modern traditional theory

permits takings but imposes certain requirements on the nation exercising its taking power

insurance syndicates

pools of money provided by investors to insure specific projects

nationalization

taking of an entire industry or natural resources as part of a plan to restructure the nation's economic system

expropriation

taking of an isolated item of property

formal entry

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

electronic export information

used by exporters in the US electronic filings required for each export shipment leaving the US

commerce control list and commerce country chart

used to determine if a license is needed for export published by bureau of industry and security

multilateral sanctions

usually from resolution of UN security council and usually more effective than sanction that don't have universal support

barter

direct exchange of good

fair reasonable and nondiscriminatory

FRAND terms that can significantly reduce the risk of patent hold up and the perceived advantages of litigation

general rules of interpretation

GRI found at the beginning of the tariff schedule and used to determine an articles tariff classification

contract manufacturing

a business arrangement in which the production of goods is contracted or outsources by one firm to a manufacturing firm used for production assists

compound tariff rate

a combo of ad valorem and specific tariff rates for an item

soft currency

a currency that is not freely exchangeable for currencies of other nations

commercial invoice

a document required for all shipments intended for sale commercial use in the US

notice of adjustment

a document sent to the importer when customs at the port of entry determines that additional duties are owed

combined nomenclature

a harmonized tariff schedule of the EU

non transfer insurance policy

alternative for US investors for inconvertibility risk protects against hard blockages type of political risk insurance

entry process

an administrative process that all commercial shipments must go through supervised by national customs authorities aka clearing customs

binding ruling

an advance written request from customs that sets in how a product will be treated at customs

reinsurance treaty

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

customs broker

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

global supply chain

an integrated international network of logistics, communications, finances, and trade relationship designed to take a product from inception through production and delivery to customers

automated commercial environment

an online system of US customs and border protection in collaboration with the census bureau

boycott

an organized refusal of one or more nations, often backed by economic sanctions to trade with one or more other nations

port of entry

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

rules of relative specificity

applies when an article can be classified under two or more headings so it must be classified under the one that most narrowly described the article with the greatest degree of accuracy and certainty

profit margin preservation provisions

approach for which the price or payment to foreign investor will be adjusted periodically to maintain the same profit margin

franchising

arrangement in which the licensor permits the licensee to sell certain goods under the licensors trademark or service mark under the terms of the franchising agreement

composite goods

articles made of different materials and components

currency swaps

assortment of financial contracts that may be purchased from intermediaries to hedge against fluctuation risk

patent protection

available for any new inventions whether products or process in tech provided they are new, nonobvious, and useful

useful

capable of industrial application

tied purchase clauses

clauses in franchising agreements that require the franchisee to buy certain goods from the franchisor difficult to justify

dual use items

commercial items that may also have military, terrorist, or proliferation uses listed in wassenaar arrangement of dual use goods

national security control

controls coordinated with US allies on the basis on the Wassenaar Arrangement, license required from the bureau of industry and security

short supply controls

controls to protect the US economy from excessive foreign demand for scarce materials, permitted by the US and used to preserve needed food and ag products or medicines in critical short supply

right of priority

convention that states the date of an applicant's foreign application is deemed to be the same as the date of the applicant's OG application on the same invention (within one year) given by paris convention prevented a race to patent office

country of origin

country from which imported articles are said to have originated according to specific rules

export administration act

created the export administration regulations (EAR)

soft blockages

delays in processing conversion requests by local authorities

cybersquatting

derived from the first to file rules for domain names when registering for a domain name with intent to profit from the goodwill of a trademark belonging to another

export licenses requirements

identity of item country of destination reason of control identity of end user end use of item

currency inconvertibility

inability to covert currency

unitary index adjustment

index commonly accepted measure of relative currency value and national inflation

bad faith

intentional wrongful behavior and in the UDRP it includes some negligence without finding intent

nonobvious

involve an inventive step

export controls

laws and regulations that govern the control and licensing of certain goods and technology exported from the US or released or transferred to anyone who is not a US citizens whether inside or outside the US

franchise tax

laws that can impose taxes based on the franchisor's worldwide operations even if local operations fizzle

antiboycott laws

legal responses by government that make it unlawful for their citizens or companies to participate in boycotts

foreign trade zone

legally defined sites, warehouses, and manufacturing facilities operated under government license that are outside the customs territory of the country they are in

exclusive rights

licensees sole use and right to the IPR within some geographical area to enhance its chances of earning an adequate return

geographical limitations

licensing provision that limits a licensees ability to sell a product derived from IPR in a specific regions

field of use limitations

licensing provision that restricts the applications for which the licensee may employ the IPR

output of customer restrictions

licensing provision that restricts who or how much a licensee can sell of a product from IPR

tariff schedule

listing of specific items, coded numerically and described by name with a tariff rate according to the country of origin

consolidated screening list

lists of countries and groups that is unlawful to transfer any controlled item to from multiple departments of US government

debt investment

making a loan to a foreign business

passive investment

minority investments that involve either a passive debt investment or equity investment that does not give control over the business

civil customs fraud

more serious negligence and exists where an importer knowingly made a materially false statement or omission while entering goods into the US

ad valorem tariff rate

most common type of tariff based on a percentage of value of the articles imported

extraterritorial jurisdiction

nation's ability to extend the power of its export control laws over its goods and technology once they have left its territory

net book value

nationalization value of an asset from tax related depreciated cost of assets without regard to whether there has in fact been a true depreciation of value

active investment

occurs when a US investor engages in FDI in a host country, ownership and subject to the laws of the foreign host country

officially entered goods

occurs when goods have arrived at port of entry, goods are not prohibited, delivery is authorized by customs, and estimated duties have been paid

export control classification number

on both control lists give exporters this number and tell whether a license is required for export to specific countries

principal use

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

validated end user program

program that allows qualified exporters to pre approved shipments to foreign trusted customers, partners, and subsidiaries of american companies of certain high tech or dual use without need for individual export license

traditional theory

prohibits all takings of foreign property

why control exports

protect national security promote US foreign policy prevent short supply of essential domestic materials

copyrights

protected by the berne convention which is based on national treatment scheme and all signatories must have minimum substantive laws

export credit agencies

public groups that promote investment from their own countries

private political risk insurance

purchased from private syndicates that provide insurance on a case by case basis

equity investment

purchasing an interest in a foreign business as a portfolio investment

deemed reexport

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

fundamental research

research in science, engineering, or math of which the results of are published and there are not restriction for proprietary or national security reasons not within scope of EAR

import substitution rights

rights available when new venture will manufacture a product in the soft currency country that the nation had previously imported

currency exchange rights

rights granted from negotiations between investor and host country for preferential access to hard currency can solve the inconvertibility problem

fluctuation risk

risk of possibility of that the currency of the country in which the investor has put all their money will devalue against the dollar

political risk

risk that profits will be affected by changes in the hosts political structure of instability

inconvertibility risk

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

preferential rules of origin

rules applicable to goods from a FTA, imported from countries with special tariff treatment, or goods from trade preference programs

non preferential rules of origin

rules applicable to imports from developed countries that receive normal tariff treatment (PNTR)

biopiracy

scientists extracting plants and animals from indigenous to an emerging nation for research and alter the plant and then obtain patents for the research without providing the host with compensation

reexport

shipment or transfer of american controlled items from on foreign country to another foreign country or person

specific tariff rate

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

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 securities reasons would be ineffective

tariff shift rules

the country of origin is the last country in which all inputs into the article underwent a required change in tariff classification

dutiable value

the customs value the transaction value of the goods selling price

creeping expropriation

the effect of laws and regulations that subject the investor to discriminatory taxes, controls, restrictions of convertibility, etc

conscious avoidance

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

liquidation

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

hard blockages

the foreign government passes a law that prevent conversion or transfer of currency

HTSUS

the harmonized tariff schedules of the US maintained by the ITC

technology

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

foreign direct investment

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

parallel exchange

the investors who are all committed to the local incontrovertibility risk spread the risk over a larger group with hope of reducing the vagaries of local bureaucracy

ultimate purchaser

the last person 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 tariff and customs laws - class code - customs value - country of origin

manufacturing drawback

the most common type of drawback in the US which encourages US manufacturers to export by giving a refund of duties and taxes paid on merchandise that is imported and then exported within five years

transaction value

the price actually paid or payable for the merchandise when sold for export plus packing, commissions, royalty, etc.

tariff engineering

the process of modifying or engineering a product prior to importation, or importing at an earlier stage of the process for the purposes of obtaining a lower rate of duty

buy back agreement

the provider of the equipment or tech used in manufacturing will receive as payment a portion of the goods manufactured by the supplier's equipment

deemed export

the release or transfer of any item subject to control to a foreign person in the US

counterpurchase agreement

the sale of goods to a buyer often foreign government which requires a condition that the seller buy other goods produced in that country

currency risk

two types of fluctuation and inconvertibility

diversion

unlawful transfer or transshipment or reexporting of controlled goods or technology from one destination to which goods and tech are legally shipped to another destination who has not been licensed to receive the items

export administration regulations

very broad scope and controls all items in US and moving in transit through the US all US origin items wherever located certain foreign made items containing 25%+ of US origin content certain items made in foreign countries with US tech items made a facility located outside of US if facility was designed and built with US tech

essential character

what the article is known as and its predominant overarching use important for assembled products, food, and blended mixtures

privatization

when a national sovereign transfer government owned assets to private parties

substantial transformation

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