Shipping & Documentation
1. Used to fight corruption in developing countries (bc no trust) 2. Ensure that the price charged by the exporter reflects the true value of the goods 3. Prevents substandard goods from entering their country 4. Mitigates attempts to avoid the payment of customs duties
Inspection Certificate
In the US, rates are usually expressed as a rate per
$100 ($.50 per $100)
attests that the good conform to the chemical description and purity levels contained in the invoice provided by the exporter
Certificate of Analysis
A document provided by an independent inspection company, or by the Agricultural Department of the exporting country's government, that attests that the goods conform to the agricultural standards of the importing country.
Certificate of Certification
A document that attests that the product exported conforms to all of the regulations in place in the exporting country and that it can be sold freely in the exporting country.
Certificate of Certification
Certificate of Certification is sometimes called
Certificate of Conformity
Some importers use this certificate as a guarantee of quality if they are worried that the exporter will ship sub-standard goods.
Certificate of Free Sale
document provided by and independent inspection company that attests that the goods conform to the description contained in the invoice provided by the exporter
Certificate of Inspection
document provided by the exporter's insurance company that attests that the goods are insured during their international voyage
Certificate of Insurance
The NAFTA Certificate of Origin is actually a
Certificate of Manufacture
document provided by the exporter's chamber of commerce that attests that the goods were manufactured in the country in which the exporter is located
Certificate of Manufacture
C/O
Certificate of Origin
document provided by the exporter's chamber of commerce that attests that the goods originated from the country in which the exporter is located
Certificate of Origin
1. Burma/Myanmar 2. The Democratic Republic of the Congo 3. Iraq 4. The Ivory Coast 5. Liberia 6. Libya 7. Somalia 8. Yemen 9. Zimbabwe
Countries that there are many limits to what can be shipped there
NAFTA, Israel, South Africa
Country-Specific Certificates
AES Weblink + EDI
Direct connection to your in-house computer system
Items not requiring a license are classified as (most goods)
EAR99
What replaces the SEC
EEI
EEI
Electronic Export Information
document required by some exporting countries in the case of sensitive exports, such as ammunition, to ensure that the product is used for acceptable (to the exporting country's government) purposes
End-Use Certificate
To be a qualifying product for NAFTA certification origin
grown, born, raised
AES PcLink is better for
high volume exporters
Even if a product is classified as EAR99, exporters still need to determine
if the partner of the product is on one of several lists.
CBP automated systems electronically support the facilitation of
importing and exporting goods
USPPI can be a Foreign Entity if
in the US when items are purchased or obtained for export
Invoices for International Documents compared to domestic
international are much more complete and detailed than in a domestic environment
Single Administrative Document
is similar to the Shipper's Export Declaration
Substantial Transformation: Steel rods into wire (y/n)
n
Total embargo
no products can be exported to this country
In the case of an ___________, the insurance company provides the exporter with a series of certificates that it uses as needed.
open policy
1. Import License 2. Certificate of Origin 3. Import Forms 4. Certificate of Insurance 5. Certificate of Inspection 6. Certificate of Free Sale 7. Phyto-Sanitiary Certificate 8. Consular Invoice 9. Certificate of Manufacture 10. Certificate of Analysis 11. Certificate of Certification
Types of Import Documents
1. Bills of Lading 2. Charter Parties 3. Aircraft Leases 4. Packing List 5. Manifest
Types of Transport Documents
Who is an AES administered by
US Census Bureau
Party who directly negotiated between the US seller and foreign buyer and received the order for the export of the merchandise
US Order Party
USPPI
US Principal Party of Interest
Shipment of merchandise under the same Schedule B commodity number is valued more than _______ and is sent from the same exporter to the same recipient on the same day
US$2,500
SED is not accepted after
2008
"This merchandise licensed by US for ultimate destination [country]. Diversion contrary to US law prohibited"
A Destination Control Statement
If a license is necessary, an exporter needs to obtain an
Individual Validated Export License or the express authorization to ship to a country
3 Options for AES
1. AES Direct 2. AES PcLink 3. AES Weblink + EDI
Certificates for Conformity of the Goods
1. Certificate of Free Sale 2. Certificate of Certification
Certificates for Inspection of the Goods (3)
1. Certificate of Inspection 2. Certificate of Analysis 3. Phyto-Sanitiary Certificate
Certificates for the Origin of the Goods (2)
1. Certificate of Origin 2. Certificate of Manufacture
5 countries that the US has a total embargo
1. Cuba 2. Iran 3. North Korea 4. Sudan 5. Syria 6. Crimea region of Ukraine
Types of International Documents
1. Export 2. Import 3. Transport
Types of Export Documents (4)
1. Export License 2. Destination Control Statement 3. Shipper's Export Declaration 4. Certificate of End-Use
Documentation Requirements for International Documents
1. Filled correctly and within a specific time frame 2. most countries still require documents to be printed on paper and not submitted electronically 3. Common to issue more than one original document (one for each of several parties)
What types of products need an export license?
1. National treasures, antiques, or works of art 2. Products put under control for political or military purposes 3. Scarce natural resources
Why a Consular Invoice? (3)
1. Predict the demand of US$ or other foreign currency 2. Revenue 3. Correct classification and duty assessment
What lists does the exporter need to look at for a purchaser to be on
1. The Entity List 2. The Unverified List 3. The Specially Designated Nationals and Blocked Persons List 4. The Denied Persons List
U.S Export Controls focus on four elements to determine if an export needs a license
1. Type of product exported 2. person or entity purchasing the product 3. ultimate country of destination 4. what the product will be used for
The SED is required for shipments to
1. US 2. Virgin Islands 3. Puerto Rico 4. Guam
Roles USPPI can be
1. US Manufacturer 2. US Seller 3. US Order Party 5. Foreign Entity
The US government considers some countries ______ and other _____
1. friendly 2. unfriendly
Carnets can be used for ______trips and are valid for ____ year and cover over ____ countries.
1. multiple 2. one 3. 70
A Certificate of Insurance can be based on a _______ specifically contracted for a particular voyage, or it can be based on the ________ that covers all of an exporter's shipment.
1. single policy 2. open policy
EEI's are submited via
AES
ACE
Automated Commercial Environment
AES
Automated Exported System
The US does not require and SED for shipments to
Canada
1. Goods to be sold or hired out abroad for financial gain 2. Perishable or consumable items (as they would not normally be re-exported) 3. Goods used as a means of transport 4. Equipment to be used for the construction, repair or maintenance of building or for earth moving and like projects
Carnet may not be used for:
allow fast, trouble free importation into countries belonging to the Carnet scheme, without the need to pay duty and/or local tax at the time of import.
Carnets
are like passports for goods, replacing the need for usual customs documentation.
Carnets
A commercial invoice that is printed on stationary provided by the consulate of the country in which the good will be imported
Consular Invoice
The Bureau of Industry and Security maintains a Commerce Control List, in which all products of concern to the US are given an ______.
Export Control Classification Number (ECCN)
express authorization by a given country's government to export a specific product before it is shipped
Export License
a limit, set by the exporting country's government, on the quantity of a specific commodity that can be exported in a given year
Export Quotas
Who has the responsibility of insuring that the goods can be legally exported from the US
Exporter
Each document for international transactions has the same requirements (T/F)
False- different
All countries have specific administrative forms that have to be submitted by the importer in order to clear Customs
Import Forms
The express authorization, granted by the government of the imported country, to import a particular product in a given country
Import License
1. A detailed description of the goods, with HS number 2. The Incoterms rule of the transaction 3. Details on the costs of domestic transportation, loading, insurance, etc 4. Details on the weight and dimensions of the goods 5. Details on the itinerary of the shipment 6. The terms of payment
Invoices for International Documents Requirements
AES Direct
Online filing
To be a qualifying product for NAFTA certification
Origination, Substantial Transformation, Assembled from origin parts
AES PcLink
PC-based software
attests that the agricultural goods are free of pests and disease and conform to the standards of the importing country
Phyto-Sanitiary Certificate
1. Requested by some buyers 2. required by some governments (sometimes based on product or industry) 3. checks the quantity, quality, or consistency, documentation, verifies standards compliance (CE Mark, ASME, etc)
Pre-Shipment Inspection
PSI
Pre-Shipment Inspection
A quote (preview of the commercial invoice) provided by the exporter to the importer for the purpose of obtaining a letter of credit
Pro forma Invoice
SED
Shippers Export Declaration
the primary system through which the trade community will report imports and exports
Single Window - what ACE is becoming
ATA
Temporary Admission
The Shipper's Export Declaration was a
data-collection document used to tabulate what products are exported from the US, and to which countries they are exported
Some countries require exporters to pay an _____ _____ on certain commodities
export taxes
A Destination Control Statement is required for
products that have obtained a Validated Export License
The USPPI can the US Manufacturer if
selling the merchandise for export
Why do you need the HS Number in a invoice?
so that the goods can be classified correctly by Customs
Greek arms dealer Prodromos Bodosakis, cheif shareholder and executive of the Greek Powder and Cartridge factory (main gunpowder and firearms factory in Greece)
supplied both the Nationalist (best and latest weapons) and the Republicans (oldest and least valuable) - Free-lancing the sales for personal profit.
Goods in the Commerce Control List may fall under the control of one or more government agency including
the Department of Defense, Department of State, or the Drug Enforcement Agency
Governments control their exports when
the commodity that is exported is scarce or when their country is one of the few that produces a particular product
Who determines the admissibility of ACE?
the government
US Principal Party of Interest
the person in the US that receives the primary benefit monetary or otherwise of the export transaction
An insurance certificate can be issued by (3)
the seller, forwarder, or insurance company
Products need a license because
they may be potentially dangerous or have "dual use"
Why do you need a certificate of origin
to determine import tariff treatment
Why do you need details on the costs of domestic transportation, loading, insurance, etc
to help Customs determine the dutiable value of the goods
1. Shipment of merchandise under the same Schedule B commodity number is valued more than US$2,500 and is sent from the same exporter to the same recipient on the same day 2. Merchandise requires an export license 3. Merchandise subject to ITAR
when an EEI required
Manual process will be streamline and automated, paper will be eliminated, and the international community will be able to more easily and efficiently comply with US laws and regulations.
with ACE as the Single Window
Substantial Transformation: Assemble Photo pages ---> album (y/n)
y
Substantial Transformation: Wood-->Table (y/n)
y