BLW 547 Chapter 12
notice of adjustment
a document sent to the importer when customs at the port of entry determines that additional duties are owed
essential character test
a method that helps determine the classification of mixtures of chemicals, foodstuffs, and other substances or materials that are blended together if there is no classification that fits the mixture
dual transformation
a requirement that the raw materials brought from another country into the GSP country undergoes a substantial transformation in the GSP country
General Rules of Interpretation
a set of (6) rules that are an integral part of the HTSUS and that governs its use
deemed liquidation
a situation in which an entry that has not been liquidated within one year is dutied at the rate accepted on the entry summary form
harmonized tariff schedule
a system be which goods being imported into the United States have been classified
Generalized System of Preferences
a system under which the United States aids in the economic development of certain developing countries by allowing their products to enter the United States at reduced rates of duty, or duty-free, until such time as these countries establish their own competitive industries
name or character or use test
a test used to determine the country of origin for tariff purposes (other than in specialized cases)as well as to determine how foreign-made products are to be marked or labeled
substantial transformation
a transformation that occurs when the original article or product 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
fair trade
a worldwide movement based broadly based on the theory that trade between rich and poor should be based on notions of social and economic justice, and which advocates that small farms and farm workers in developing countries receive a fair price in return for their agricultural and handicraft products
customs broker
an authorized agent who is licensed by federal law to act for and on behalf of importers in the entry of goods
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
formal entry
the administrative process required to import goods into the customs territory of a country
informal entry
the administrative process where a bond is not required for entry, and import duties are payable immediately at the time of entry
trade preference
the advantage or favorable treatment (usually a reduced tariff or duty free treatment) granted by one country to the imports of another country
competitive need
the condition required for a specific product to receive GSP benefits, determined by an annual review process conducted on a product-by-product basis
substitution drawback
the condition where an importer may export U.S.-made goods in the substitution of imported goods that are of the "same kind and quality" (i.e., interchangeable) and receive the drawback on the imported items
dutiable value
the customs value
beneficiary developing country
the designation of a country in order for that country to be eligible for GSP status
same-condition drawback
the drawbacks that are utilized when the imported goods are not processed or manufactured, but are re-exported in the "same condition" as they were imported
transaction value
the dutiable value as defined by U.S. law
liquidation
the final computation and assessment of the applicable duty on entered goods by customs
production assist
the goods, services, or intangibles furnished by the importer to a foreign producer, free or at a reduced price, for use in producing merchandise for import and sale in the United States; also called dutiable assists
rule of relative specificity
the heading that provides the most specific description shall be preferred to headings that provide more general descriptions
ultimate purchaser
the last person in the United States who receives an article in the form in which it was imported
foreign trade zone
the legally defined sites within a country that are subject to special customs procedures
ports of entry
the major seaports, airports, inland ports, and border crossings where customs offices are located
country of origin
the nation from which an imported good originates, as established by the importing country's rules of origin
rules of origin
the national laws and regulations of administrative agencies, usually customs authorities, which are used to determine the country of origin of imported products
binding ruling
the official position of customs with respect to the specific transaction for which a ruling was issued
importing
the process of entering goods into the customs territory of a country
tariff engineering
the process of modifying or engineering your product prior to importation for the purposes of obtaining a lower rate of duty
dutiable status
the status according to which tariffs, restraints on imports, and other import controls are applied to goods
general rate of duty
the tariff rate applicable to imports from normal trade relations (NTR) nations
special rate of duty
the tariff rate applicable to one or more special tariff programs
manufacturing drawback
a 99 percent refund of duties and taxes paid on merchandise that is imported, subjected to manufacture or production, and then exported within five years
tariff shift rule
a NAFTA rule of origin that states that if goods are made from materials or components that originated outside North America, they only qualify for free trade status only if each and every non-North American material or component has undergone the change in tariff classification required in NAFTA Annex 401
contract manufacturing
a business arrangement in which the production of goods is contracted or "outsourced" by one firm to a manufacturing firm, often overseas