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
