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