BUSI-LAW-178 - Quiz #2

What are workers entitled to if damaged by foreign competition?

there is no compensation, unless if unfair business practices.

The dutiable value of imported goods into the U.S. includes what costs? Chapter 12 p.322

transaction value is the price paid or payable for the merchandise when sold for export to the United States/

It is true that the department of commerce has responsibility for non-military commercial goods, commodity and technology?

yes, true

What is the NAFTA's national treatment principle?

is similar to that found in GATT. it states that once goods arrive from another NAFTA country, they must be treated without discrimination and no differently than domestically made goods.

What does Country-of-origin information impact? *** need to review ****

is the country from which an imported article is said to have originated according to specific legal rules.

When can countervailing duty to be imposed Chapter 11 P.306

on imports of subsidized goods for the purpose of offsetting the subsidy. The result is that the cost of imported goods is brought back to where it would have been had the goods not been subsidized.

**** Possible Essay Question **** JK Chemicals is a U.S. based manufacturer of agricultural chemicals. They sold 2000 gallons of its most toxic pesticide to a Sahara traders company headquartered in North Africa the nation of Chad. Sahara traders refused to disclose the use that it intended to make of the product. They ultimately shipped the pesticide to North Korea government for the use in chemical weapons program. Is JK Chemicals liable for the ultimate transshipment of the pesticide to North Korea?

**** This is Diversion issue *** **** review Chapter 13 p.355 Yes, why This is called diversion is the unlawful transfer, transshipment, rerouting, or re-exporting of controlled goods or technology from one destination, to which the goods or technology could be legally shipped, to another destination that has not been lawfully authorized to receive the items. JK Chemicals will only be liable if they were a willings participant in violating the law, otherwise they were just part of scam.

Two principle agencies that are in charge of exporting?

1. State department 2. The department of Commerce

To determine the dutiable status of goods, it is necessary to know what ? Chapter 12 - p.313

1. The classification and coding of the article 2. The customs value of the article 3. The country of origin of the article

What is Diversion as regards goods? Chapter 13 p.355

A diversion is the unlawful transfer, transshipment, rerouting, or re-exporting of controlled goods or technology from one destination, to which the goods or technology could legally be shipped, to another destination that has not been lawfully authorized to receive the items.

American exports returned to the U.S. are dutiable except under what circumstances?

American-made goods are returned to the U.S. not substantially transformed.

What is a free trade area?

An FTA develops when two or more countries agree to eliminate or phase out customs duties and other barriers to trade among the member countrues

What is a Voluntary restraint agreement

An agreement between countries to limit imports or exports to a fixed number that is not set down in any laws or regulations

What is Antidumping? Chapter 11 P. 297 What are the rules applicable to this area?

Antidumping duties are special import tariffs assessed in addition to normal tariffs imposed for the purpose of offsetting the unfairly low price of dumped goods. The usual remedy for dumping is for the importing country to place antidumping duties on the dumped products/

What is a sectoral issue?

Are issues of concern to a particular industrial, agricultural, or service sector of the economy. example might be automobile manufacturing, telecommunications etc.

Do the U.S. have an agreement where we give an import preference to Central American and Caribbean nations? Why because their economies are developing.

CAFTA

To which countries/areas does U.S. law grant trade preferences to imports?

CAFTA and developing nations

Who is the US biggest trade partner?

Canada

GATT 1994's Agreement on Rules of Origin requires...?

Desiring to ensure that rules of origin themselves do not create unnecessary obstacles to trade;

What is the U. S. escape clause? Chapter 11 P. 293

Does not follow the GATT guidelines U.S. law refers to safeguards as "positive adjustments"

What is a same condition drawback?

Drawback is a refund of duties paid on imported goods when the goods—or other items manufactured from the goods—are subsequently exported or destroyed. ... Unused merchandise drawback—also called "same condition" drawback—applies when goods are imported into the U.S. and then exported without being changed

Customs Markings Rules Chapter 12 p. 327

Every article of foreign origin imported into the United States must be indelibly and permanently marked in English in a conspicuous place and in such a manner as to indicate the name of the country of origin of the article to the ultimate purchaser in the United States.

What happen in Briggs and Stratton Corp. v. Baldridgep The court addresses a challenge to the U.S. anti-boycott regulations . U.S. Company thought by saying it had no business with Israel, it would not be violating the law The court found the company had violated the law

Facts:Under the "General Principles" worked out by the Arab states, a firm could be blacklisted if it traded with Israel. Briggs had been blacklisted because they sold internal combustion engines to Israel. Issue: Whether Briggs will get his compensation back for all the lost profit under the Fifth Amendment "taking clause." The court found the company had violated the law

What is a customs union?

There is free trade in all goods that come through any of the union members, even imports from outsite the customs union. Example, the EU

What is Diversion? When would a person be liable? (Know this item) Chapter 13 p.355

If the person was a willing participant in violating the law.

What does Liquidation of goods mean? Chapter 12 p. 334

In a normal import transaction, assuming no erros or penalties are at issue, the entry will be liquidated. This "closes the book" - making the entry complete

What is the purpose of the GATT?

Is a multilateral agreement regulating international trade. According to its preamble, its purpose is the "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis.

What the values of an item have to do with duties?

It depends on the value of the item; it impacts the duties you pay on it.

The GATT Escape Clause Chapter 11 P. 291 *** review for cheat sheet ***

It permits a country to temporarily "escape" or be relieved from its tariff concessions under certain conditions For example, unforeseen circumstance that has affect your local domestic market. The GATT will let you protect your home market.

What does The North American Agreement on Labor Cooperation do? Chapter 14 p. 396

It was intended to make labor policies more uniform by promoting the basic labor principles in the protections of workers, for example, the right to strike, equal pay for women and men, minimum working conitions

Have the trade sanctions against the Castro government in Cuba been successful? Chapter 13 p. 369

No, false

Since the end of the Cold War it is true that all controls have been abolished on commodities going to Russia?

No, false

What is an offset and are they legal?

Offset agreements often involve trade in military goods and services and are alternatively called: industrial compensations, industrial cooperation Yes, it is legal

What goods must only contain only North American parts or materials to receive the NAFTA tariff rates? Chapter 14 p.380

Only goods that qualify under NAFTA's rules of origin can obtain NAFTA tariff rates. The most important rules are 1. The goods must be wholly produced or obtained in Canada, Mexico, or the U.S. 2. The goods may contain non-originating inputs (components or raw materials), but must meet the regional value content requirements or the tariff shift rules of origin found in Annex 401 of the NAFTA agreement.

What happened in Samsonite v. United States? Chapter 14

Samsonite sue the United States over Duties fees imposed on their steel strips. Samsonite claimed that the steel strips were om condition ready for assembly without further fabrication in Mexico. But the court ruled that the steel were fabricated and assembled in Mexico. The steel strips also loss its physical identify when it was fabricated to the shape of a 'C'. Thus, the steel strips did not qualify for Duty-Free treatment under Holding Affirmed

What sector for business produces the most towards U.S. GDP?

Services

What does the The Fair Trade Commission do as regards NAFTA? Chapter 14 p. 397

Supervises the implementation of the agreement and attempts to resolve disputes that may arise regarding its interpretation or application.

Where is a Judicial review of a protest of entry heard? What court?

The Court of International Trade

Regarding environmental issues and NAFTA- are there mandatory regulations? Chapter 14 p.396 review for possible essay ***

The North American Agreement on Environmental Cooperation (NAAEC) does not set environmental or ecological standards. However, it calls for the three countries to enforce their law more effectively. The CEC ....

What previous law was the basis of NAFTA?

The U.S. and Canada free trade agreement

How are goods classified/ "classifications for goods" for duties? Chapter 12 p. 314

The first step is to determine its tariff classification, which is a method of categorizing different types or kinds of goods based on a uniform descriptive nomenclature or terminology, according to their tariff name, use, or physical characteristics.

What does Section 301 refers to? (section 301 of the U.S. Trade Act of 1974) Chapter 10 P. 282

The law permits the United States Trade Representative (USTR) to take retaliatory trade action against other countries whose trade polices toward the United States are unreasonable or discriminatory. The purpose of the law is to discourage foreign countries from violating their trade agreements with the United States.

Who enforces US export laws? Chapter 13 p.362

The responsibility is spread across several departments and of government,.

What does the ISO 9000 refer to Chapter 10 P. 273

The standard for ensuring product quality through the product design and manufacturing process. Companies become ISO 9000-certified through a costly and rigorous inspection of their facilities and documentation of their quality control systems. ISO 9000- certification makes selling in Europe much easier

Dumping

The unfair trade practice of selling products in a foreign country for less than the price charged for the same or comparable goods in the producer's home market

Who sets technical regulations and product standards in the United States?

There are numbers of agencies such as, FDA, Dept. of Agriculture, Dept. of Transportation etc.

What is the Commerce Control List? Chapter 13 p.352

There are three broad reasons for controlling exports 1. To protect national security 2. To promote U.S. foreign policy 3. To prevent the short supply of essential domestic materials. The department of commerce determines which items to control by consulting with other executive departments. The president establishes the list of controlled countries.

Can the U.S Customs basically exempt certain products from Marking Rules? Chapter 12 p.327

These generally are objects that are incapable of being marked because of their size or special characteristics. Examples, include works of art, unstrung beads, nuts, bolts, cigarettes, eggs, feathers etc..

What does the Court of International Trade do/hear?

This court performs judicial review of the rules and decisions of U.S. Customs. It is the use of a single specialized court for customs and trade issues, with a appeal to a single appellate court, provides uniformity of the law.

The customs service may seize articles imported into the U.S. that violate trademark must be register with whom?

Trademark owners can, in many cases, obtain court injunctions directing Customs to exclude goods which infringe a recorded trademark

If a country is not a member of GATT, under U.S. law a countervailing duty can be imposed without regard to whether a U.S. firm is injured or not.

True

On one hand, advocates for Free Trade argue for the most limited restrictions while the national security press for more restrictions

True

The U.S. Export control system is conflicted?

True

What are the rules on Dumping? Chapter 11 p. 297

Virtually all developed nations have antidumping statutes that define dumping and that set out the administrative procedures and remedies available in dumping cases.

What is substantial transformation rule? How does it work? What factors must a person assert to prove an item has been substantially transformed?

When the original article 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 the original items.

Are there intellectual property rights as covered under NAFTA

Yes, trademarks copyrights patents

Loan guarantees by French government to French film makers who utilizes French equipment in making French films. It this illegal?

Yes, why because it not supporting a social cause and not for a specific time - therefore it is creating a barrier for anyone else in entering the film industry

Are there NAFTA investment provisions? Chapter 14 p.392

Yes, True

Can the US control which goods or services are exported?

Yes, True

Can you trade in intellectual property? (internationally)

Yes, True

Does the Department of Commerce have any the responsibility regarding imports or exports? chapter 13 p.362

Yes, True

Does the U.S. Postal Service letter carrier act as an agent for the U.S. Bureau of Customs and Border Protection for purposes of collecting import duties?

Yes, True

Are there marking or labeling issues under NAFTA? Chapter 14 p.385

Yes, True marking or labeling are set out in Annex 311

U.S. Trade Representative has requested your advice on a variety of issues To reduce rate loans offered by U.S. banks to U.S. businesses willing to relocate their operations to economically depressed inner-cities

Yes, it is legal. But it must be for a specific time to stimulate their economies

Are U.S anti-boycott laws applicable to foreign affiliates of U.S. based companies?

Yes, true

Are U.S. anti-boycott laws applicable to foreign affiliates of U.S. based companies? Chapter 13 p. 360

Yes, true

Are formulas, blueprints, and technical data subject to control when exported?

Yes, true

What are Intellectual property rights?

are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.

When can goods be denied entry into the US?

are those that would injure community health, public safety, American workers, children, or domestic plant and animal life, or those that would defeat our national interests.

Subsidy Chapter 11 P. 304 **** review for cheat sheet ** Audio 12:00

is defined in the SCM agreement as a financial contribution, including any form of income or price support, made by a government that confers a benefit on a specific domestic enterprise or industry.

Trade in services

includes professional services (e.g., law, accounting, architecture, engineering, etc), health care, insurance, travel, and many others

What does NAFTA do?

is Free trade agreement between U.S., Canada and Mexico - the purpose is to spur trade and investment in North America to improve the standard of living throughout the continent. These countries have agreed to rules that give the goods and services of each country even more favorable treatment than that given to most other WTO members.

What is a technical regulation? Chapter 10 P. 265

is a law or regulation affecting a product's characteristics - such as its performance design, construction, chemical composition, materials, packaging, or labeling-that must be met before a product can be imported or sold in a country.

Drawback *** Cheat sheet **** Chapter 12 p. 328

is a refund of duties already paid on imported goods when the goods (or other goods manufactured from the original goods) are re-exported or destroyed There is a time limitation on drawback

The GATT 1994 Agreement on Government Procurement applies to Chapter 10 P. 274

only to those countries that signed, and applies to goods and services worth 130,000 SDR's (US $197,000) and construction contracts over 5 million SDR's (US $7.6 million)

What is meant by national treatment?

products must be treated without discrimination and no differently than domestically made goods.

What is the WTO Agreement on Agriculture is designed to increase?

the process of removing government intervention in the farming sector and ending government programs that distort normal market conditions