LEGL 4900 Test 3

entry process

"clearing customs" for imports - must know tariff classification, customs value, country of origin

kirksaeng v John Wiley

- Cornell student buys cheaper Thai textbooks an resells to US students - Supreme Court said this is fine and the company cannot control where the textbooks go after sell

nissan motor USA v us

- FTZ subzone - Nissan imported machinery to be tested and either accepted or returned, but US wanted to tax bs it was not "merchandise" - courts agreed it was taxable

ADC v Hungary

- ICSID arbitration creeping expropriation - ADC invests in an airport, Hungary expropriates the airport and investment of ADC is taken - ICSID handles dispute and says damages should be based on compensation at time of award and not at time of investment (ADC won)

US v zhi yong guo

- IEEPA violating EAR - Guo is Chinese and paid his friend, an American to buy export controlled cameras and shipped to china - guo then came to US and bought 10 more and attempted to bring back in luggage, but was arrested - charged with exporting controlled items without a license - guo argued that compliance was impossible bc the EAR is too vague and complex and he did not know he needed a license - court sided with US

entry summary form

- states item, value, origin

ferrostaal metals v us

- substantial transformation - co had steel from Japan that was galvanized in New Zealand but US denied import bc of issues w Japan - co said it was substantially transformed in new Zealand - ferrostaal won

export enforcement

BIS can delay shipments, give temporary denial orders for illegal shipments, and monitor compliance

Henrietta lacks

Cancer cells taken without her knowledge, became HeLa cell line. - never gave consent and was never compensated

prior approval schemes

IPR transfer scheme with a protectionist govt and strict regulation

Missile Technology Control Regime

Voluntary agreement that seeks to control export and production of missile technology capable of carrying weapons of mass destruction.

commerce control list

products of concern

PCT

utility patent agreement that allows signatories priority claim

if not wholly obtained...

we use these to determine origin: - tariff-shift rule - domestic or regional value content rule - specific processing rules

transfer pricing

when related International parties buy from each other, they set their own price which messes up taxes - so IRS requires use of market price for tax purposes

Bank of America v US

- Bank of America does business in Thailand, Philippines, and argentina and is taxed there - requested tax credit but IRS denied - US court upheld denial bc the countries had different tax systems

Kirkpatrick v. Environmental Tectonics

- act of state doctrine - Kirkpatrick won military contract with nigeria - ETC lost and discovered it was the result of bribery - ETC took to court, but Kirkpatrick moved for dismissal based on act of state doctrine - Supreme Court said it did not apply

briggs & stratton corp v baldridge

- antiboycott - Arab states called for Israel boycott, blacklisted those who did not comply - briggs makes engines, had past dealings with Israel, was blacklisted when trying to export to syria - syria cleared this up with an answered questionnaire claiming there was not dealings with Israel, but never authenticated - removed from list but still blacklisted - said the EAR violated 1st, 5th, 9th amendment - court upheld antiboycott regulation

US v mandel

- exporting high tech without license - Mandel applied for license, but did not finish the process before shipping to Hong Kong - in discovery, panel requested to know why the items were on the control list, but govt refused bc it doesn't matter because it is a political question and unreviewable by a court - court ordered them to present this to discovery, but decision reversed on appeal

Zimbabwe issue

- expropriated farmland and redistributed to the poor but their inexperience led to failure - money became worthless

patent cases

- federal district courts hear cases - appeals heard by federal circuit

customs specialists

- field import specialists: initial determinations as to entry of goods - national import specialists: give advice on specifics

negligence vs fraud and gross negligence cases

- fraud and gross negligence require clear and convincing evidence - negligence only requires that the act occurred, and the defendant must show that it did not occur as a result of negligence

New Zealand comite interprofessionnel du vin de champagne v wineworths group

- geographical indication trademark - wineworth (Australian) tried to sell sparkling wine labeled "champagne" to new Zealand - court agreed it could not call it this bc it was not produced in champagne region of France

buy American act

- govt can only buy American products - Eisenhower said it meets the standard if at least 50% US content and assembly - trump suggested 95% for iron/steel and 55% for others

A. Bourjois & Co. v. Katzel

- grey area trade marks - Supreme Court reversed decision and said bourjois can place an injunction against katzel for selling powder in the US and competing with the bourjois trademark

changes after 9/11

- increased presidential power to disrupt terrorist networks, specifically with money - renewed concerns for nuclear warfare - china has become an economic player - china hacking US companies for military tech - Russia aggression

BEAT

- makes multinational companies pay at least 10% tax

INA v iran

- nationalization - INA (international insurance company) subsidiary bought 20% of shargh (Iranian insurance co) approved by govt - iran decides to nationalize and INA sues for value and legal costs - INA wins claims plus interest

uses of FTZs

- originally meant to encourage international trade for firms with free ports - minor changes can be made - no time limit - no retail sales - substantially changed goods can be entered with tariff rate of either new or old good - can be reexported without paying taxes

apple v Samsung

- patent act - jury awards $1 billion to apple in infringement damages - samsung files for reduction bc they should not have to pay all back to apple - damages are cut in half even though the patent act usually makes you pay all profits from infringement

3M mask issue

- president pressuring 3M - they are made in china, but president wants all to be released to the US bc it is an American company - US then expects 3M to only sell to American market which is unhumanitarian and hurts 3M profits

prof Roessing's case

- reengineering / classification issue - his company was importing bowls for a cheaper tax and then changing them to sinks after import

carl Zeiss v us

- rule of relative specificity - imported near surgery microscopes - customs labeled it "stereoscopic microscope for imaging" but Zeiss argued "instruments for medical use" - court and appeal sided with govt bc it is more specifically a microscope

General Rules of Interpretation (GRIs)

- rules at beginning of tariff schedule to determine dutiable status

OBB Personenverkehr AG v Sachs

- sachs in American who bought a aural pass thru a US website to use OBB railroad - sachs fell and lost both legs from train - sachs sues OBB in the US, OBB claims sovereign immunity - was not able to make a strong enough case against OBB

Lacoste v crocodile International

- trademark - started suing each other and still going on bc of international trade - led to the Madrid protocol for international trademarks

Bhopal gas (union carbide)

- union carbide subsidiary in india (partially owned by Indian govt) has a leak and poisons community w mass casualties - victims try to sue the parent co, but us court refused bc it was not a us company that was responsible - parent company avoided liability but still paid a settlement

national security controls

- uses wassenaar arrangement - requires license from BIS

US v mousavi

- willfulness in violation of IEEPA - mousavi immigrated to us, has a job here, but IRS found $45k from Kuwait for developing a gas pipeline from Iran to Kuwait, but he had no license from OFAC - violated embargo of Iran and ITR - claims he did not willfully intend to violate - court upheld that he should have known better bc he clearly knew about the embargo (was a citizen of Iran, had travelled there recently, had been doing business there)

us v golden ship trading co

- wu imported shirts from hui, who claimed he made them in DR, but they were really made in china and slightly altered in DR and sent to US - wu acted without care for country of origin and penalized $44,000 - negligence even though hui lied to wu

classification

1. determine meaning of terms (question of law) 2. determine if merchandise falls within those terms (question of fact)

problems with Paris convention

1. does not require minimum protection standards 2. unenforceable thats why they created TRIPS

reasons for export controls

1. protect national security 2. promote US foreign policy 3. prevent short supply of essential domestic materials

Australia group

42 countries that combat spread of bio and chemical weapons

buy-back agreement

A type of countertrade in which the seller agrees to supply technology or equipment to construct a facility and receives payment in the form of goods produced by the facility.

Section 301 of the Trade Act of 1974

Allows prez to take action, incl retaliation, to obtain removal of any act of foreign gov't that violates an int'l trade agreement or is discrim, and burdens/restricts U.S. trade.

national thermal power (NTPC) v singer

- arbitration - NTPC (indian) contracted with singer (British) for equipment - dispute led to ICC in London arbitration where singer won and tried to enforce awar - NTPC argued it should be heard in India bc it is not a foreign award - court sided with singer, Supreme Court ordered retrial in india - since contract was under Indian law, dispute should be settled in india

diamond v chakrabarty

- biopiracy - chak engineered bacterium to break down crude oil, wanted to patent it - US PTO rejected bc it is a living thing, court reversed, diamond appeals to the Supreme Court - Supreme Court affirmed you can patent a plant

otter products v us

- classification/principal use - otter box imported cases and US classified as "briefcases and similar containers" taxed at 20% - otter box said it should be "other plastics" at 5.3% - court sides with otterbox

compaq computer v commissioner of IRS

- compaq makes computers and buys parts from a subsidiary in singapore - IRS said the transfer price was too low and was not being taxed enough - but court found compaq used the market price

TVBO production v Australia sky net

- copyright - TVB owens "twin of brothers" show and gives licensing to other parties - an Australia company aired it in violation of the copyright

CSU v Xerox

- csu sues Xerox bc they would not sell licenses for their copyrights or patents - court sides with Xerox

operation mega flex

- customs has been seizing chinese imports - fake shoes, herb pills that alleviate covid symptoms, and weapon items - is it worth paying customs to monitor this? - is it worth it considering it slows down the import process?

mobilcom v webreg

- domain name, cybersquatting, bad faith - webreg registered the domain "mobilcom.com" and offered to sell to mobilcom for $35k - mobilcom is trademarked and argues webreg bought the domain in bad faith - under UDRP, court decides it should be transferred to mobilcom

better home plastics v us

- essential character - shower curtain co taxed under "curtains and interior blinds" for 12.8% but want to be under "tableware, kitchenware, other household and toilet articles sub curtains and drapes" at 3.36% - better home won bc essential purpose was the clear plastic part

sanction

restricts trade, financial, banking, property, travel relationship between a country - run by OFAC in treasury dept - pros: can target individuals - cons: not always successful in persuading change, hurts civilians, other countries will just trade and US will lose out on trade, hard to enforce for individuals

political risk

risk that profits will be affected by changes in host country's political structure or instability

trading with the enemy act

roosevelt - now limited to wartime power

binding ruling

ruling letter - official position of customs for the transaction it was issued - has a searchable database for rulings since 1989 (CROSS)

subsidiary

separate corporate entity organized under laws of the foreign country - not liable

commercial invoice

separate invoice for each commercial shipment

nuclear suppliers group

share information and set voluntary guidelines for nuclear tech and material

extraterritorial jurisdiction

should the US be able to extend its export laws to goods that have already left? - soviet gas pipeline crisis

automated commercial environment

single window of shipping info sent to various agencies

foreign trade zones (FTZs)

special locations for storing domestic and imported inventory in order to avoid paying duties until the inventory is used in production or sold

special tariff rate

specified dollar amount per piece, weight, or measure

US patriot act

strengthened executive powers with seizure post 9/11 - addresses money laundering and requires banks to produce SARs (suspicious activity reports)

Nationalization

taking an entire industry to restructure economy

expropriation

taking an isolated item of property

informed compliance

the "softer" mechanisms designed to place the burden of voluntary compliance on importers

Madrid protocol

the Geneva act but for trademarks - centralized filing system

formal entry

the administrative process required to import goods into the customs territory of a country 1. goods arrive at port of entry 2. goods are allowed to enter, not from an embargoed country 3. delivery allowed after customs inspection 4. estimated duties paid or customs bond

barter

the direct exchange of one set of goods or services for another

WTO wants to make a uniform rule for origin

they want to use the tariff-shift rule

preferential rules of origin

those applicable to goods traded within a free trade area or customs union, or that receive preferential tariff treatment under trade preference programs for developing countries - Africa growth and opportunity act - nafta

criminal penalties

title 18, chap 27 of the US Code - customs fraud and smuggling - max sentence of 2 years per violation - smuggling can be up to 20 years

customs/dutiable value

transaction value of the goods

reexport

transfer of American controlled good from one foreign country to another

deemed reexport

transfer of an item from a licensed person to a different foreign person

diversion

transfer, transshipment, rerouting, or reexport of controlled goods from a legal destination to another foreign illegal destination where no license has been received

sanctions

treasury dept - focus on problematic people/countries

Bikram Yoga

tried to copyright hot yoga poses but US copyright office said this is not allowed bc it is cultural property of India

EU rules of origin

union customs code - more objective rules like methods stated above - "list rules"

right of priority

For a period of one year, an application for a patent in a second member country will be treated as though it had been filed on the same date as the application made in the first member country. - prevents a race to the patent office

notification-registration schemes

IPR transfer system more open to technological transfer - simple registration procedure - might not be enforceable under a country's laws - risk that foreign govt can disclose your intellectual property (ie. sharing trade secrets)

Electronic Export Information (EEI)

a U.S. electronic form completed by the exporter for each shipment where a license is required or if valued over $2,500

patent trolls

a firm or individual that produces no products or services and owns patents only to obtain licensing fees from other firms

customs broker

a licensed agent to on behalf of importers (more than 90% of entries use this)

the gray market

a situation where products are sold through unauthorized channels of distribution. Also called parallel importing. company sells license to a foreign company and foreign company sells good to US company and competes with the owner at a cheaper price

enforced compliance

active investigation of customs violation and prosecution of violators

reinsurance treaty underwriter

agreement among insurance companies to spread risk among members - underwriter can decide to take on your investment

ICSID (International center for the settlement of investment disputes)

agreement to use this for international disputes for investors

worldwide tax credit system

all income earned anywhere by US citizen is taxable by the US - as opposed to territorial taxation

priority claim

allows applicant to lock in an application date before having to pay so they can raise money before going thru process

modern-traditional theory

allows foreign takings with certain requirements - for public purpose - nondiscriminatory - appropriate compensation

Patent Cooperation Treaty (PCT)

allows international registration thru WIPO (utility patents)

Cybersquatting

an affect of the first to file rule - filing a name with intent to profit from it

consolidated screening list

an online compilation of prohibited end users

ad valorem tariff rate

based on percentage of value

export management and compliance program

best way for company to ensure compliance

contract manufacturing

business arrangement where production of goods is outsourced by one firm to an overseas manufacturer

made in the USA

can be labeled as long as 95% of final value is made in US

issue with drawbacks

can be penalized for errors in filing of drawbacks, so many firms do not do it

currency swaps

can be purchased from intermediaries to hedge against fluctuation risk

franchise tax

can impose taxes based on franchisers worldwide operations even if a local operation is doing poorly

intellectual property

central growth for stock market as the economy becomes more knowledge-based - can sometimes lead to a monopoly - most rapidly growing method of business abroad

transshipment

changing country of origin to avoid tariffs and quota limits

actual use

classification by the use to which that article is actually put

gross negligence

clear and convincing evidence the act was done with knowledge or reckless disregard - double the penalty for negligence

compound tariff rate

combination of both ad valorem and specific rates

wholly obtained

comes all from one country

EAR

commerce dept - dual use items

export controls

commerce dept - focus on product and where it is going

dual-use items

commercial items that may also have military or "proliferation" uses (relating to the proliferation of nuclear, chemical, or biological weapons)

Net Book Value

cost - accumulated depreciation - not as much as actual value of a company or property

commerce country chart

countries of concern

tax haven

country with low tax rates for income

passive investment

either passive debt investment (giving loan to foreign business) or massive equity investment (purchasing equity in foreign business without control)

trade creditors

entities that sell supplies to venture (should buy local for soft currency issues)

required documentation

entry docs must be filed with 5 days - others filed within 10 days

European Patent Convention (EPC)

established a regional patent system allowing any nationality to file a single international application for a European patent

conscious avoidance

exporter purposely avoided learning the truth about an end user

FRAND

fair, reasonable, and nondiscriminatory - refers to licensing

liquidation

final assessment of applicable tax on entered good that "closes the book" - 314 days to follow up

customs law penalties and enforcement

found in title 19, section 1592 of the US Code

reasonable care checklist

general questions for all transactions

international emergency powers act (IEEPA)

gives president power to regulate economic and financial transactions, place trade restrictions during peacetime emergency

export control classification number (ECCN)

gives reason for control for each each and if license is required for certain countries

production assists

goods, services, or intellectual property given to a foreign producer by the importer at a free or reduced price for use in producing goods for import - used for custom manufacturing - used in contract manufacturing

antiboycott laws

governments can make it unlawful for citizens or companies to participate in a boycott - US requires that requests to participate in a boycott for companies must be ignored and reported - Briggs case

combined nomenclature (CN) of the EU

harmonized schedule for the EU

patent law treaties implementation act (PLTIA)

harmonizes US law for Geneva act - went from 14 to 15 years for patents

foreign availability

high-technology products that are available worldwide, from many sources so ineffective to prevent US exports

mitigating

impact penalty - erroneous advice, cooperating with the investigation, bringing the error to customs attention and voluntarily paying, prior good shipment record

aggravating circumstances

impact penalty - withholding evidence, providing misleading info, prior improper shipment, illegal transshipments to hide origin

rejected merchandise drawback

imported goods shipped without consent, are defective, or do not conform to specifications as long as returned to customs within 3 years

tariff engineering

modifying a product prior to importation, or leaving it at an earlier stage of manufacturing for the purpose of obtaining a lower tax (prof Roessing's sink/bowl case)

syndicates

money provided by investors to insure certain projects (case by case)

statute of limitations

must bring action to collect duty within 5 years of discovery of violation

Calvo Doctrine

nationalization is a legit exercise of the sovereign's preeminent right to restructure the economy - communism / bolshevik revolution inspired - new states after WW2 could not afford to compensate for nationalization

GILTA

new tax code rule - assumes profit sharing for multinational companies

soft currency

not freely exchangeable for currencies of other nations

fundamental research

not in scope of EAR - tech or software that is the result of ordinarily shared broadly works

utility patent

obtained for processes, machines, articles of manufacturing, and compositions of matter - different from a design patent (such as the Coke bottle)

substantial transformation

occurs when original article loses identity and is transformed into a new article having "new name, character, or use" different from original - determined case by case

screwdriver plants

one in which minimal value is added to the product

boycott

organized refusal, backed by sanctions, to trade with one or more other nations

tariff-shift rule

origin is last country where all inputs underwent a change in classification - most objective and certain

active investment

ownership interest in a foreign business - branch or subsidiary

? clause compromise

parties will begin to come together they process of framing the dispute for the arbitrator

intellectual property

patent (inventions), trademark (logos), copyright (movies, art), trade secrets - headed by WIPO - WTO/ITC acts as a court

Paris Convention

patent filings (utility patents) - says trademark and patens will receive same treatment as domestic applicants for all signatories

countertrade

payments to the franchiser with goods instead of hard currency

informal entries

personal and commercial shipments $2,500 or less can be done this way - can be done thru mail - shipments $800 or less have no duties

OPIC (Overseas Private Investment Corporation)

political risk insurance

currency risk

potential threat to a firm's operations in a country due to fluctuations in the local currency's exchange rate - fluctuation and inconvertibility

validated end user program

preapprove exports without individual licenses

transaction value

price actually paid for merchandise when sold plus (packing, commission, assists, fees) but does not include shipping, insurance, import duties, finders feels, assembling, inland shipping post import

unitary profit margin preservation / unitary index adjustment

price to foreign investor adjusted periodically to maintain the same profit margin

? Parallel exchange?

private investors spread risk of exchange rate over several to avoid impact

traditional theory

prohibits all takings of foreign property

section 337 of the tariff act

prohibits importations that infringe on US IPR

exclusive rights

promise that the licensor won't give rights to anyone else within the area bc it would create competition for the licensee

short supply controls

protect economy from foreign demand for scarce materials

Export Credit Agencies

provide export financing or credit insurance

drawback

refund of duties already paid on imported goods when reexported or destroyed

manufacturing drawback

refund of taxes paid on merchandise that is imported, produced or change, then exported within 5 years (yarn rule)

Export Administration Regulations (EAR)

regulations designed to control the export and re-export of most commercial items (dual-use items). EAR restrictions vary from country to country - controlled by BIS

Wassenaar Arrangement

replaced COCOM for export controls for conventional arms and dual-use goods - cybersecurity, listening tech, hacking - everyone agrees to do something which is more effective than one country

prior disclosure

reporting errors to customs before learning of an investigation - limited penalties

tied-purchase clause

require the franchisee to buy certain goods from franchiser

domestic or regional value content rule

requires that a minimum percentage of the value of materials and direct processing be performed in a country for it to have "originated there"

field of use limitations

restrict the applications for which the licensee may employ the IPR

Mickey Mouse Protection Act

Extended copyrights

Origin jurisdiction

FTC and Customs overlap - customs oversees foreign origin - FTC regulates "Made in USA"

same-condition drawback

A drawback of duties paid on imported goods that are re-exported in the "same condition" as they were imported, provided they were not significantly altered.

Doha Round

A series of negotiations under the World Trade Organization. It followed the Uruguay Round and has focused on agricultural subsidies, intellectual property, (wine and geo indication issues), but has made no progress

customs tariff

Canadian harmonized schedule

multilateral sanctions

Sanctions imposed by more than one country like the UN and are more effective - successful with Iran

SDN list

Specially Designated Nationals & Blocked Persons - shows companies and individuals frozen out of America

biopiracy

The commercial development of naturally occurring biological materials, such as plant substances or genetic cell lines, by a technologically advanced country or organization without fair compensation to the peoples or nations in whose territory the materials were originally discovered.

deemed export

The transfer of or access to technology controlled under the EAR or ITAR to a foreign person even while in the United States.

non-preferential rules of origin

Those applicable to imports of DEVELOPED countries that will receive normal tariff treatment

TRIPS

Trade-Related Aspects of Intellectual Property Rights - update of Paris and Berne conventions and part of the WTO - deals with state-to-state resolution - set minimum standards - 50 year copyright protection - escape clause for public good - allows exclusion for biological patents

WIPO

UN agency in Geneva processes patent application

counterfeit goods

US businesses lose over $250 billion each year to counterfeits

geographical limitations

When the licensor agrees to provide services within a specific nation

customs bond

can be bought for one or all shipments over a year - ensures payments of duties

classification by use

classify an article by use

Formulary Apportionment System

divides income by nations that have claims to it (more systematic)

branch

division of the home country corporation that is not a separate legal person - more liability

private political risk insurance

Lloyd's of London or other insurance syndicates - expensive

composite goods

articles made of different materials or components

loopholes

double Irish, dutch sandwich

making materially false statements to customs

"material" if it refers to identity, quality, value, source, origin, or affects tax for import - does not matter if intentional or negligent - no violation for reasonable mistakes

ITAR

(International Traffic in Arms Regulations) state dept. - weapons and military tech - recent issues with 3D printing of weapons and selling of design or parts of the weapon without licensing, registration, serial numbers - can buy weapons 80% built and use software to print the rest - Obama regulated this, trump does not

civil customs fraud

(more serious) clear evidence the importer knowingly made materially false statement or omission - penalty is the value of the goods

Act of State Doctrine

A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory. - for comity (good relations)

Foreign Sovereign Immunities Act (FSIA)

A statute which states that American courts generally cannot entertain suits against foreign governments - does not include state sponsor of terrorism exception and a few others

CFIUS

Committee on Foreign Investment in the United States - regulates foreign entities when purchasing US businesses, can block worrisome investment, vague rules

geographical indication

Defined by WTO Facilitates multi-national trade agreements Wine has quality, reputation or other characteristics determined by where it comes from

substitution drawback

Duties paid on imported goods may be received by a U.S. firm that imports goods and then exports other goods of the "same kind and quality "

penalties for export violation

EAR penalties are found in IEEPA - civil fines not greater than $290k - willful not greater than $1 million and less than 20 years

value added tax (VAT)

EU tax that is sales tax but higher - supplies that make more than $100k in euros in sales to EU must pay VAT - services are taxed at the place they were provided

protesting liquidations

importer can protest within 90 days

negligent violations

importer fails to use reasonable care to ensure material is correct and laws are complied with

ICANN (Internet Corporation for Assigned Names and Numbers)

in charge of domain names - includes the UDRP for disputes which follows a first to file rule

Deferral Principle

income from foreign country not taxed until is actually paid out

Subpart F (or passive) income

income taxed immediately in some cases so taxes cannot be forever avoided

global supply chain

integrated international network of logistics, communications, finance, and trade relationships designed to take a product from inception through production and delivery to customers

bad faith

intentional wrongful behavior or negligence without a finding of intent in some cases

Berne Convention

international copyright treaty - requires minimum standards for all members - no filing requirement, just the C

customs modernization and informed compliance act (mod)

introduced informed compliance - requires importers use reasonable care with imports (need to know what they're doing)

currency exchange rights

investor bringing in desired industry can negotiate preferential access to hard currency

Foreign Direct Investment (FDI)

investor takes a controlling interest in a foreign company - often used to take advantage of a country's resources

inconvertibility insurance

investors buy this to avoid hard blockages and can pay more to avoid soft blockages of in currency risk

political risk insurance

investors unwilling to risk foreign govt taking their property or business

specific processing rules

item originates in country if it was subjected to specific forms of manufacturing in that country

record-keeping requirements

keep record of import transactions from the date of entry and give to customs on demand - exception if destroyed by an act of god - fines up to $100k or 75% value - negligent fines up to $10k or 40%

NATO

kept military tech from Soviet Union through COCOM program

ultimate purchaser

last person in the US who receives the good in the same form it was imported

creeping expropriation

laws and regulations that discriminate against the investor intended to get take charge of the industry

language politics

laws require that companies conduct business in a certain language - something to be aware of with franchises

dutiable status

legal status of imported goods at the time of entry for compliance with tariff and customs - takes into account: item, value, origin - decides: tariff, quotas, etc.

Smoot-Hawley Tariff Act

legislation passed in 1930 that established very high tariffs. Its objective was to reduce imports and stimulate the domestic economy, but it resulted only in retaliatory tariffs by other nations - these rates are given to countries without normal trade relations

end user controls

license applications must specify the end user

royalty

license fee

output or customer restrictions

licensor can restrict customer base (usually to keep from competitors)

franchising

licensor permits licensee to sell goods under a trademark under certain terms

license

limited permission to use the US firm's IPR

tariff schedule

listing of specific items, coded numerically and described by name or use - based on harmonized commodity description and coding system (harmonized system) developed by the WCO (Brussels) - can be found in national legislation

harmonized tariff schedule of the us (HTSUS)

maintained by the ITC and posted online

transnational takeovers

mergers between companies in developed economies

country of origin

we look at: - name, character, use

import substitution rights

when a new venture will manufacture a product in soft currency country so they don't have to import it

rule of relative specificity

when an article can be classified under more than one heading, it should be put under the most specific description of the article

qualified claims

when an article is not fully something but can mention partial production ex: designed in California, assembled in china

principal use

when article has more than one use, you use the the main use

notice of adjustment

when customs notices more duties are owed

counterpurchase agreement

when foreign govt requires the seller buy some goods produced in that country when making a trade to offset the price of hard currency the govt must pay

grant back

when negotiating over ownership and use rights if the licensee develops improvements in the licensed tech or creates new inventions based on that tech, the licensor may seek a grant back to itself of ownership in or at least the right to use-often without compensation-such new tech,

essential character

when there are multiple pieces to a composite good that are described separately in headings, you should use the material that gives the good its essential character - ex: Apple Watch is more of a device than a watch

joint ventures

when two or more companies join forces - sharing resources, risks, and profits, but not actually merging companies - to pursue specific opportunities - when a US investor wants some control over its minority investment - a firm that dears disclosure of software/trade secrets would be hesitant to join a venture bc they lack full control

geneva act

worldwide patent registration for design patents for 15 years - US has signed but not ratified