Legal Vocab Test 3
geographical indications
Where a product, particularly wine or liquor is marketed by reference to a geographic region
currency exchange rights
When a company negotiates with a foreign government in advance for preferential access to hard currency
counterpurchase agreement
involves sale of goods or services with the condition that the seller buy other goods produced in that country
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
private political risk insurance
2 markets - Lloyd's of london and other insurance syndicates Private has less regulation but is more expensive,
unitary index adjustment
A contractual provision in which the investor and the government agree on payment through a commonly accepted measure of relative currency value or national inflation
tax haven
A country where the effective tax rate on a relevant item of income is very low or zero
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.
dutiable value
Customs value of goods entered into any country - must be reported by the importer-of-record to national customs authorities at time of entry
commerce control list
Details which products can and cannot be shipped to certain countries, determines if a license is needed for exports
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 ". usually deal with fungible goods or agricultural commodities
value added tax (VAT)
EU, like a sales tax on retail goods, each eu member state has its own rate
barter
Exchange goods without involving money. direct exchance of goods for goods or services.
biopiracy
Extracting plants and animals indigenous to the emerging nation for research, alter the plant or animal, and then obtain patents related to this research without providing the host country with compensation or affordable access to the inventions
essential character
If two or more headings or subheadings each describe only certain materials or components in composite goods, the article must be classified under the heading that describes the material or components that give the article its
Nontransfer Insurance
Investors can purchase insurance to protect against a hard or soft blockages
notification registration
More open to technology transfers Countries with general acceptance of transfer make exceptions for heightened concerns, japan, general system of notification with exceptions for areas of heightened concerns,
substantial transformation
Occurs 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 that of the original item
priority claim
PCT established centralized utility patent application process, if at least one of the applicants named in the PCT application is a national or resident of a PCT signatory, the PCT gives the application a _______- on that invention in all signatory states
eminent domain
Power of a government to take private property for public use.
transfer pricing
Pricing of goods, services, and intangible property bought and sold by operating units or divisions of a company doing business with an affiliate in another jurisdiction
import substitution rights
Rights that a US investor can arrange with a foreign government when the new venture will manufacture a product in the soft-currency country that the nation had previously imported; the investor must reach this agreement for hard currency before actually committing capital to the soft-currency nation
multilateral sanctions
Sanctions imposed by more than one country
language politics
Situation found in regions of a few countries where laws require that companies conduct business in a certain language
exclusive rights
When exploitation of a licensed IPR requires significant financial resources from a firm, they may seek exclusive rights to enhance chances of adequate return on investment; typically the licensor doesn't want to put all eggs in 1 basket though
country of origin
The country from which an imported article is said to have originated according to specific rules, known as rules of origin
right of priority (established in paris convention)
The date of an applicant's foreign application is deemed to be the same as the date of the applicant's original application on the same invention, so long as the foreign application was filed before the first anniversary of the original application
intellectual property rights
The legal protection of the original works of inventors, authors, creators, and performers under patent, copyright, and trademark law. Such rights became a contentious area of trade negotiations in the 1990s. increasingly important assest of any large corp, critical to a company's ability to compete effectively
traditional theory
The theory that prohibits the takings of all foreign property, foreign investors should be exempt from the sovereign's condemnation rights
short supply controls
US law permits the use of these to protect the US economy from excessive foreign demand of scarce materials. apply to certain foodstuffs, medicines, basic metals, or natural resources
contract manufacturing
a business arrangement in which the production of goods is contracted or "outsourced" by one firm to a manufacturing firm, often overseas
royalty
a license fee for the grant of a license of an IPR
tariff schedule
a listing of specific items, coded numerically and described by name or use
utility patent
a patent that protects the way an invention is used and works, broad range of potential applications
manufacturing drawback
a refund of duties and taxes paid on merchandise that is imported, subjected to manufacture or production, and then exported within five years
political risk insurance
a type of insurance that can be taken out by businesses, of any size, against political risk—the risk that revolution or other political or economic conditions will result in a loss
entry process
all commercial shipments must go through this administrative process supervised by national customs authorities and informally referred to as 'clearing customs'
rejected merchandise drawback
allowed for imported merchandise that was shipped without consent, is defective, or does not conform to specifications or to samples
validated end user program
allows qualified exporters to pre-approve shipments to foreign trusted customers, business partners, and subsidiaries of American companies of certain high-technology or dual-use items without the need for individual export licenses, only available for china and india
reinsurance treaty
an agreement among insurance companies that spreads the risk among its members
electronic export information
an electronic filing of information required for each export shipment leaving the United States, exporters in the US use the automated system to file this
consolidated screening list
an online compilation of prohibited end users
automated commercial environment
an online system of US Customs and Border Protection, in collaboration with the US Census Bureau, single window for sending export information and shipment information
cybersquatting
the registering of a domain name with the intent to profit from the goodwill of a trademark belonging to another, later offering to sell the domain to the company that owns the TM at an inflated price
port of entry
any place when customs or immigration authorities permit the entry of goods or people
non-preferential rules of origin
applicable to imports from developed countries that receive normal tariff treatment or that have 'normal trade relations'
franchising
arrangement in which the licensor permits the licensee to sell certain goods under the licensor's tm or service mark under the terms of an agreement
composite goods
articles made of different materials or components in the GRI
License Exception
authorization to export without a license
customs broker
authorized agent, licensed by federal law, to act for and on behalf of importers in making entry of goods
currency swaps
broad assortment of financial contracts that may be purchased from financial intermediaries to hedge against fluctuation risk, transfers risk of fluctuation to the intermediary; A financial innovation used to hedge exchange rate risk over a long period of time, whereby one party agrees to trade periodic payments in a given currency with another party who agrees to do the same in a different currency
franchise tax
can impose taxed based on the franchiser's worldwide operations even if its local operations fizzle, laws that are specifically directed at the franchising phenomenon
passive investment
can involve either a passive debt investment (making a loan to a foreign business) or passive equity investment (chasing an equity interest in the foreign business portfolio investment that does not allow for control of the business), least regulated type of foreign investment, they do not raise the specter of 'outsider influence' that often lead to foreign gov to exercise greater regulation
compound tariff rate
combination of both ad valorem and specific rates
dual use items
commercial items that may also have military or "proliferation" uses (relating to the proliferation of nuclear, chemical, or biological weapons)
copyright
dealt with in the berne convention, national treatment, minimum substantive laws, prohibitions against copying literary and artistic works and granting authors exclusive rights to adaptations and broadcasts of works, no filing requirement, signatories agree to grant national treatment to copyright holders from other signatories automatically from the moment of creation (rather than time of filing)
soft blockages
delays in processing conversion requests by the local authorities
parallel imports
develop when importers buy products from distributors in one country and sell them in another to distributors who are not part of the manufacturer's regular distribution system
sanction
economic or financial, regulation that restricts or prohibits certain relationships with specified foreign countries, foreign entitites, or named foreign individuals bc of their support of terrorism, prolif of weapons of mass desctruction, for intl drug trafficking, or other threats to national security
prior disclosure
encourages importers to voluntarily report their own possible violations of customs laws, allows importers to admit mistakes and inform customs of a possible violation before learning that it is being investigated limits penalties
trade creditors
entities that sell supplies or services to the venture should try to buy locally in local currency; retain hard-currency for repatriation
countertrade
international trade that involves the barter of products for products rather than for currency
deemed reexport
the release or transfer of an item from someone who was licensed to receive it to a different foreign person
parallel trade
the resale of goods between countries without the authorization of the owner of the intellectual property (IP) rights associated with those goods
liquidation
final computation and assessment of the applicable duty on entered goods by customs, finishes the entry
informal entry
for personal and commercial shipments valued at 2,500 or less may be cleared through this process
parallel exchange
foreign investors form a consortia to trade local soft currency investors, all committed to controlling inconvertibility, spread the risk over a larger group
comity
general notion that nations will defer to and give effect to the laws and court decisions of other nations
international emergency economic powers act
grants authority to the President to place restrictions on trade and international financial transactions during peacetime as well as wartime, current grant of authority to the pres to regulate economic and financial transactions and to place restrictions on import/export during a peacetime intl emergency
rule of relative specificity
if an article can be classified under two or more headings or subheadings, it must be classified under the one that most specifically, most narrowly describes the article with the greatest degree of accuracy and certainity
grant back
if the licensee develops improvements in the licensed tech or creates new inventions based upon the licesend tech, licensor may seek this ... to itself for ownership in or at least the right to use (often w/out compensation) such new tech
output or customer restrictions
if the licensor plans to use the licensee as a source of products for the licensor's own distribution requirements
counterfeit goods
imitation goods that are sold illegally
gray market
importation of merchandise produced and sold abroad and then imported back into the US for sale in competition with the US trademark owner
Currency inconvertibility
inability to convert currency
inconvertibility
inability to covert foreign currency into U. S. dollars.
bad faith *excepted from UDPR
intentional wrongful behavior / under UDRP now includes some negligence w/out finding of intent
gray market goods
items manufactured outside a country and then imported without the consent of the trademark holder
export controls
laws and regulations that govern the licensing of certain goods and technology exported from the U.S. or released or transferred to non U.S. citizens
antiboycott laws
legal responses by governments that make it unlawful for their citizens or companies to participate in a boycott
rules of origin
legal rules used to determine the country of origin of imported products (found in trade agreements, national statutes, regulations of customs authorities)
fair, reasonable, and nondiscriminationatory (FRAND)
licensing that can significantly reduce the risk of patent 'hold up' and the perceived advantages of litigation, but only applies in limited circumstances, terms of a license (samsung required to give a license to apple on these terms before seeking injunctive relief)
license
limited permission to use the US firm's trademarks, copyrights, or know how in making products for sale in the vicinity of the foreign company's country
commerce country chart
lists each country and indicates when an export license is required. (if X under 'reason for control'). Not all countries need an export liscense, published by BIS
inconvertibility risk
the risk that the government of a country with soft currency will hinder the foreign entrepreneur from trading the foreign currency back into US dollars
hard blockages
occur when the foreign government passes a law that prevents conversion or transfer of currency
soft currency
one that is not freely exchangeable for currencies of other nations; it is expected to fluctuate erratically or depreciate against other currencies.
foreign person
one who is neither a US citizen nor a permanent US resident
boycott
organized refusal of one or more nations, often backed by economic sanctions to trade with one or more other nations, often used for political reasons
repatriated
paid out to the U.S. person, typically in the form of a dividend
double taxation
the same income is taxed by two different tax authorities
design patent
patents protecting the ornamental features of an article of manufacture
modern-traditional theory
permits takings of foreign property but imposes some requirements 1) for a public purpose 2) nondiscriminatory 3) accompanied by prompt and adequate compensation
insurance syndicates
pools of money provided by investors to insure specific projects
currency risk
potential threat to a firm's operations in a country due to fluctuations in the local currency's exchange rate
privatization
process of converting government enterprises into privately owned companies
tariff engineering
process of modifying or engineering a product prior to importation for the purposes of obtaining a lower rate of duty
export credit agencies
promote investment from their own countries, government corps that provide political risk insurance
useful patent
protection for any new inventions, whether products or processes, in all field of tech, provided that they are new, and are capable of industrial application
nonobvious patent
protection for any new inventions, whether products or processes, in all field of tech, provided that they are new, and involve an innovative step
countertrade
reciprocal arrangement btwn buyer and seller for the sale of goods or services intended to minimize the outflow of foreign exchange from the buyers, country. local currency earnings are used to purchase local products, which are then exported to a hard currency country. the proceeds are converted and returned to foreign investor.
dutiable status
refers to the legal status of imported goods at the time of entry for purposes of compliance with the tariff and customs laws
reexport
refers to the shipment or transfer of American-controlled items or technology from one foreign country to another foreign country or foreign person
net book value
reflects the tax related depreciated cost of assests w/out regard to wehther there has in fact been true depreciation in value
drawback
refund of duties already paid on imported goods when the goods are reexported or destroyed
deemed export
release or transfer of any item subject to control, including technology or software to a foreign person in the US
binding ruling
represents the official position of Customs with respect to the specific transaction for which it was issued, importers make a written request for a ruling letter from customs in advance of an entry
tied purchase clause
require the franchisee to buy certain goods from the franchiser
commercial invoice
required for all shipments intended for sale or commercial use in the US
prior approval
requires approval from a government agency for the transfer of IPRs
domestic or regional value content test
requires that some minimum percentage of the value of materials and direct processing operations be performed in a country in order for it to have 'originated' there
fundamental research
research in science, engineering, or mathematics, the results of which ordinarily are published and shared broadly within the research community, and for which the researchers have not accepted restrictions for proprietary or national security reasons
field of use limitations
restrict the applications for which the licensee may employ the IPR (ex. only use tech in connection with one specified application)
trading with the enemy act
restrict trade with hostile countries during times of war or during a time of emergency
geographical limitations
restricted by the licensor when licensee is transferred use of IPR, may limit license within a specific area
active investement
results in the investor having an ownership interest in the foreign business as either a foreign branch or subsidiary
political risk
risk that arises from the possibility that a host government will take actions harmful to foreign investors or that political turmoil will endanger investments
specific tariff rate
specified dollar amount per piece, or unit of weight or measure
tariff-shift rule
states that the country of origin is the last country in which all 'inputs' (raw materials, component parts, etc.) into the finished article underwent a defined change in tariff classification
Nationalization
taking of an entire industry or natural resource as part of a plan to restructure the nations economic system by a government
ad valorem tariff rate
tariff based on a percentage of the value of the articles imported
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
export
the actual shipment or transmission out of the US in any manner, or releasing or transferring of tech or software to a foreign person in the US, can occur by any means including physical shipment or by electronic means
formal entry
the administrative process required to import goods into the customs territory of a country
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 security purposes would be ineffective
creeping expropriation
the effect of laws and regulations that subject the investor to discriminatory taxes, legislative controls over management of the firm, price controls, forced employment of nationals, license cancellation, and restrictions on currency convertibility
importing
the entering of goods into the customs territory of a country
conscious avoidance
the exporter purposely avoided learning the truth about an end user or destination -information that might have had a bearing on his or her license application
technology
the information necessary for the development, production, use or operation of items and in almost any form
Foreign Direct Investment (FDI)
the investor owns and actively controls the productive assests of ongoing business concerns in a foreign country
ultimate purchaser
the last person in the US who receives an article in the form in which it was imported
principal use
the 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
fluctuation risk
the possibility that the currency of the country in which the US investor has put its money will devalue against the US dollar
profit margin preservation
the price or payment to the foreign investor will be adjusted periodically to maintain the same profit margin (approach to build currency adjustment mechanism into contractual payment terms)
transaction value
the price that is actually paid or payable for the goods when sold for export
buy-back agreement
the provider of the equipment or technology used in manufacturing will receive, as its payment, a portion of the goods manufactured by the supplier's equipment or the factory in which the equipment is installed
General Rules of Interpretation (GRIs)
the six international rules designed to help you understand and properly apply the Harmonized System categories. The additional U.S. rules of interpretation apply to 8-digit U.S. subheadings.
preferential rules of origin
those applicable to goods traded within a free trade area or customs union, goods imported from countries that receive special tariff treatment pursuant to a trade agreement, or goods imported under a trade preference programs for developing countries
political risk analysis
tries to forecast political disruptions that can threaten the value of a foreign investment
diversion
unlawful transfer, transshipment, rerouting, or reexporting of controlled goods or tech from one destination to which the goods or tech were legally shipped to another destination or foreign person who has not been licensed to receive the items
Export Control Classification Number (ECCN)
used by the CCL and CCC to identify items. / An alpha-numeric code, e.g., 3A001, that describes an item and indicates licensing requirements. All ECCNs are listed in the Commerce Control List (CCL) (Supplement No. 1 to Part 774 of the EAR).
national security controls
used to prohibit the export of goods or technology that would make a significant contribution to another country's military that would be detrimental to the U.S.'s national security. export of an item may be controlled to particular countries for reasons of national security if the item would make a signifanct contribution to the military of any country or combination of countries
export management and compliance program
what companies establish to ensure compliance with exports
Expropriation
when a domestic government seizes a foreign company's assets without any reimbursement, taking of an isolated item of property
extraterritorial jurisdiction
when a nation extends the power of its export control laws over its goods and tech once they have left its territory
notice of adjustment
when customs at the port of entry determines that additional duties are owed, this is sent to the importer
civil customs fraud
where there is clear and convincing evidence that the importer knowingly made a materially false statement or omission while entering or attempting to enter goods into the US
