Imports

Made in USA

US-made goods do not have to be designated "Made in USA" when sold in US, but if a seller chooses to make the "Made in USA" claim, it can only do so if all or virtually all of the materials, processing or component parts are made in USA and final assembly or processing took place in US.

Country Imposing Safeguard

Under WTO countries imposing safeguard measures should compensate the nation against which the measures are imposed.

WTO Agreement on Safeguards (1994)

"Safeguard" may be imposed by a country only after an independent administrative agency in the importing country has conducted an investigation and determined that legal requirements for imposing "safeguard" have been met and the increase in imports are the actual cause of the domestic industry's decline; decline due to an overall economic slowdown such as a recession or decline due to technological advances by domestic competitors are not enough.

Petitions for "Trade Adjustment Assistance" Can be Filed by Who?

- Group of workers (3 or more) - Employer, state jobs agency or labor union

ITC Limited-Duration Remedy Possibilities

- Tariff Increases - Tariff-Rate Quotas - Absolute Quotas - Auctioned Quotas - Financial Assistance to Workers or Domestic Industry

How does US safeguards differ from GATT/WTO?

- U.S. law does not limit the imposition of safeguards (or "import relief") to situations where the injury or risk of injury to domestic industry arises from "unforeseen developments" - Requirements for determining a "serious injury" differ under U.S. law than under GATT/WTO.

Steps in Importation

1. Formal Entry - Estimated duties paid or a customs bond posted 2. Liquidation - Final computation and assessment of the applicable duties; if additional duties are owned a "notice of adjustment" is issued 3. Protest - Initially with U.S. Bureau of Customs and Border Protection at the port of entry with appeals thereafter to Customs headquarters in Washington and, ultimately to Court of International Trade and then to Court of Appeals for the Federal Circuit) 4. Enforcement Procedures - Include civil violations and criminal penalties depending on the situation.

Customs Law

A broader term which encompasses "tariff law" but also covers other aspects of the control of goods and people crossing international borders.

Compound Tariff

A combination of both ad valorem and specific tariff rates

Secretary of Labor Determines What?

A. If significant number of workers in a firm have (or are threatened to) partially or wholly lose their jobs. B. Firm's sales or production had decreased absolutely C. Increased imports of like or directly competitive products importantly contributed

Marking and Labeling of Imports

Countries require imported goods be marked with the country of origin, some goods are exempt

Escape Clause

Allows a country to take temporary corrective action to "escape" (be relieved of its tariff concessions) in order to "safeguard" its domestic industry where: 1. As a result of unforeseen developments 2. Due to a tariff concession (or obligation under a trade agreement) 3. Increased quantities of an imported product 4. Are causing (or threatening to cause) serious injury to domestic producers of like or directly competitive products

Who can Petition for Import Relief?

Any firm, trade association, union, worker group, Congress, President, ITC itself.

Preferential Rules of Origin

Applicable to free trade area or customs union or applicable to developing countries. Ex. General preferential NAFTA rule to be "NAFTA origin goods, goods must be "wholly produced or obtained" in Canada, Mexico or the United States or, if contain non-NAFTA originating inputs must meet either regional value content requirements or "tariff shift" rules of origin.

Developing Countries and Safeguard

Are exempted from application of the "safeguard" measure unless their imports amount to more than 3% of the imports of that product.

Rules of Origin

Are used to determine the country of origin; Non-preferential rules of origin" applicable to countries that receive normal tariff treatment - general non-preferential rule - from what country are the goods "wholly obtained" or, if not "wholly obtained in one country, then the country of origin is the country where the goods last underwent a "substantial transformation" into a new and different article.

Basis and Procedures for WTO Safeguards

Article XIX of GATT (1947)

U.S. Bureau of Customs and Border Protection

Assesses and collects tariffs and administers duty-free zones.

Tariff Classification

Assigning types or kinds of goods to categories based on the name, use or physical characteristic of the good.

What can the President Do?

Can make an adjustment to imports if, in his or her discretion, it will help the domestic industry make a positive adjustment to import competition and economic and social benefits will outweigh the cost.

Possible Benefits of Secretary of Labor Determination in your favor?

Cash, tax credits, vouchers for job search expenses, training, relocation, health care insurance; in some circumstances for older workers benefits can be wage subsidies

Clearing Customs

Commercial shipments go through an ​administrative entry in which customs officials A) If there are any prohibitions or restrictions B) Whether any tariff (duty) is due

Dutiable Status of Goods

Depends on A) classification/coding "Harmonized Commodity Description and Coding System" B) Customs Value C) Country of Origin

Harmonized Commodity Description and Coding System

Developed by the "World Customs Organization" an international convention that uses standard rules and tariff language to describe and classify plus assign a code to goods.

Importing

Entering of goods into a country

Trade Adjustment Assistance Program

Federal assistance program for workers who become unemployed as result of increased imports of foreign goods.

"HTS" designation for what?

For a good and determine the applicable tariff given the country of origin.

ITC Does What?

Gives public notice, holds hearings, makes a determination (affirmative or negative) as to injury and, if affirmative, may recommend a limited-duration remedy.

Quotas

Government imposed limit on the quantity, or in exceptional cases the value, of the goods or services that may be exported or imported over a specified period of time.

Harmonized Tariff Schedule of the United States

Has 2 columns: (1) "general rate" - applicable to imports from countries which the U.S. accords "normal trade relations" status; (2) "special rate" - special tariff treatment if the item comes from a developing country or from a free trade area in which US participates;

Substantial Transformation

If there is a substantial transformation resulting in a new article with a new name, character or use, then it is no longer a foreign article needing to be marked.

Under Section 201 petition for import relief is made to who?

International Trade Commission, an independent agency.

Tariff Law

Laws and regulations that determine the "dutiable" status of good and the rate of the duty.

"Dutiable" Status of Goods

Legal status of the imported goods at the time of entry

General WTO Safeguarding Rule

Member nations may not raise tariff rates on imported goods just to protect domestic industry or domestic jobs, but under limited circumstances a government may impose temporary safeguards, emergency remedies provided by law (usually tariffs) to protect its domestic industry from injury from increased imports.

Tariff Engineering

Modifying or engineering a product prior to importation in order to obtain a favorable duty.

Ad Valorem Tariff

Percentage of the value of the article imported

Safeguarding

Protecting domestic industries from foreign competition, buying time for domestic industries to adjust.

Global Quotas

Quantitative import restrictions on a particular product regardless of its country of origin.

Drawbacks

Refunds of duties already paid on imported goods when the goods are reexported or destroyed and foreign trade zones.

Preferred Tariffs Form of Safeguard

Should be as less restrictive as possible, temporary (lifted when conditions permit) and "global" in nature.

Specific Tariff

Specified amount per unit of weight or measure

Trade Compensation

Takes the form of Country A lowering tariff duties on certain products coming from Country B to offset the increased duties coming from the safeguard measure imposed by Country A on different products for which Country B was a large supplier to Country A

Tariff Schedule

The nation's tariff rates (according to the country of origin of the good) for each classification; the U.S. tariff schedule is at "Harmonized Tariff Schedule of the United States."

What if Countries Don't Reach Agreement on Trade Compensation?

Then Country B may "suspend ... substantially equivalent concessions"

If Secretary of Labor determination is affirmative?

Then group of workers is certified as eligible for trade adjustment assistance. Workers certified as eligible can then apply individually for benefits with state jobs office.

What is the Importer's Duty?

To use reasonable care to determine the dutiable status of the good being imported and to report it to customs authorities (and to provide necessary documentation).

Section 201 of the Trade Act of 1974

US "safeguards" law