LEGL 4900 - Roessing - Test 2
Court of International Trade
this court hears cases dealing with tariffs
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
nullification or impairment
when one WTO member nation acts contrary to its commitments in a GATT/WTO agreement, such as raising a tariff above the bound rate or imposing an unjustified quota on imports
Conformity assessments
when one country recognizes the certifications of products from another country
Principles of WTO Trade Law
1. Multilateral trade negotiations 2. transparency and predictability of trade opportunities 3. Reciprocal tariff reductions and bound commitments 4. Nondiscrimination and unconditional MFN status 5.National treatment of foreign goods 6. Elimination of quotas and other non-tariff barriers 7. Consultations and dispute resolution
Section 301
A provision of U.S. trade law that requires USTR to take action against foreign unfair trade practices, defined as policies that restrict U.S. commerce unreasonably and unjustifiably.
Free Trade Area (FTA)
A region where member states remove all trade barriers between themselves, but each member state nevertheless keeps different barriers against non-member states
local content requirement
A requirement stipulating that a certain proportion of the value of the goods made in one country must originate from that country.
World Bank
A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation. Its formal name is the International Bank for Reconstruction and Development.
commercial invoice
A statement prepared by the seller of merchandise addressed to the buyer showing a detailed listing and description of merchandise sold, including prices, shipping, and terms
Tariff
A tax on imported goods. Usually computed either as percentage of value (ad valorem) or on the basis of physical units (specific or flat tariffs)
Free Trade Agreement (FTA)
A trade agreement with broader coverage that establishes a "free trade area" in which special tariff and customs provisions govern the flow of trade between the participating countries... better than MFN status
Product Standards
A voluntary guideline for product characteristics established by a recognized private or industry organization or association
Pesquera Mares Australes Ltda. v. US
Chilean salmon exporter accused of dumping salmon in US market as less than fair value. They did not sell in Chile, so had find normal value based on sales in Japan. Problem- salmon sold in US as premium, but salmon sold in Japan was of both premium and super-premium grades. ITA says these are identical products anyway, and included price of super-premium in determination of normal value, thus finding larger dumping margin and higher AD duties.
Treaty Power
Authority of US to enter treaties pursuant to Article II of the Constitution. Negotiated by President with advice and consent of Senate (2/3 vote)
Customs Broker
Authorized agent, licensed by federal law, to act for and on behalf of importers in making entry of goods
Japan Line v. County of Los Angeles
California imposes an ad valorem property tax on cargo containers owned by Japanese companies and temporarily located in California ports. Supreme Court says that the tax in unconstitutional... Applying a tax to cargo containers used only for foreign commerce violates Commercial Clause.
Commerce Clause
Clause stating that Congress can regulate interstate and international commerce.
Country of origin
Country from which an imported article is said to have originated according to rules of origin
Customs Market
Customs union that also removes restrictions on the free movement of money, labor, and factors of production
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
Transparency
Extent to which government regulations (including customs and import procedures, as well as technical regulations, product standards, and others) are made readily available to the public, including foreign firms
Civil Customs Fraud
Far more serious than negligence, exists when there is clear and convincing evidence that importer knowingly made a materially false statement or omission while entering goods into US
Supremacy Clause
Federal law is supreme over state law
Liquidation
Final computation and assessment of the applicable duty on entered goods by Customs
Subsidy
Financial contribution made by government to benefit specific domestic enterprise or industry
essential character
If two or more headings or subhheadings each describe only certain materials or components in composite goods, article must be classified under heading that describes the material or components that most characterize it
Trade Barrier
Impediment to trade in goods or services
Nontariff barriers
Impediments to trade other than tariffs
Domestic or regional value contest test
In addition to tariff-shift rule, this is the other common preferential rule of origin... it is a type of value-added test requiring minimum percentage of value to be from country of origin
Heavyweight Motorcycles & Engines & Power-Train Subassemblies
ITC investigates whether Harley's complaint about increased importing of motorcycles into US. Domestic shipments falling, inventories rising, production down profits down, employment down. Partially caused by recession, but Japanese market share in US going up. Judge awards incremental duties starting at 45% and declining to 10% after 5 years.
rule of relative specificity
If an article can be classified under two or more headings or subheadings, it should be classified under the one that most specifically and narrowly describes article with greatest degree of accuracy and certainty
Arizona v. United States (2012)
Only the federal government may regulate immigration laws and enforcement
Informal Entry
Personal and commercial shipments of less than $2,500, doesn't require surety bond and import duties are payable immediately.... If less than $800, no payment of duties necessary
Youngstown Sheet & Tube Co. v. Sawyer
President Truman issues executive order to have Sawyer seize all steel mills to avert suspected strikes. Result: The President's inherent powers as Commander in Chief do not give him the power to do this because he does not have the power to seize private property. - infringes on 5th A rights.
Adjustments to imports
President may put these on goods if he/she judges that it will provide greater economic and social benefits than costs
Reciprocal trade
Presidential power to negotiate tariff reductions on a product-by-product basis with other countries if foreign country reciprocated by lowering its tariffs
constructed value
Price of the dumped product compared to the cost of producing the product in the exporting country plus a reasonable amount for selling, packaging, administration, and other costs and for a reasonable profit... Used if there are insufficient third country sales to come up with a price
Section 301 of the Trade Act of 1974
Retaliation- USTR investigates
Thailand: Restriction on Importation of Cigs. (Case)
Thailand doesn't allow importing of US cigarettes because they are protecting their citizens' health. Panel says this is not admissible- it is inconsistent to allow sales of domestic cig.s but not international ones even if those international ones passed same standard tests.
normal trade relations
The U.S. government's replacement for the term most favored nation
dumping margin
The difference between the normal value and export price
WTO Dispute Settlement Body
The enforcement body of the WTO which can empower aggrieved states to impose retaliatory tariffs against countries that violate the organization's rules
Government procurement
This refers to the policies and procedures for purchasing goods and services for the use of the government and public trading enterprises
Non-preferential rules of origin
Those applicable to imports of DEVELOPED countries that will receive normal tariff treatment.
Inherent Powers
Those that are expressley granted to the President in article II of the Constitution... "executive power shall br vested in a president"
Argentina - Safeguard Measures on Imports of Footwear
Trend of increased quantity of shoes being imported to Argentina from US and EU, Argentina increases bound import tariffs on footwear from 35% to 200%. EU and US bring case in WTO, argue that there had been a steadying/declining trend in last several years. Panel rules that Argentina tariffs are illegal because investigation was inadequate. In order to put safeguard measures on, you must prove that increase was SUDDEN, RECENT, and DAMAGING TO DOMESTIC INDUSTRY.
United States - Measures Affecting the Production and Sale of Clove Cigarettes
US bans flavored cig.s except for menthols. Indonesia, which produces Cloves, claims that this is unlawful discrimination. Panel agrees, these are "like-products", Indonesia is allowed to put retaliatory sanctions on US
Non-market economy
US has special rules for AD investigations of imports in these countries. Looks at what value of factors of production would be in a surrogate market economy country that is at a similar stage of economic development
Normal Trade Relations (NTR) Status
US term for MFN
modify or withdraw a concession
Under WTO rules, you must negotiate directly with the countries most affected and by agreement reduce or offset tariffs on other items equal to an equivalent amount in trade
presidential memorandum
Usually less formal than an executive order and often state in its text that it does not create enforceable legal rights... often used to give guidance or delegate routine presidential functions to lower government officials
Least Restrictive Trade
WTO member countries, in setting otherwise valid restrictions on trade, shall make them no more onerous than necessary to achieve the goals for which they were imposed
Notice of adjustment
When Customs at port of entry determines that additional duties are owed, they send this to importer. Importer must respond, or duty will be assessed as corrected
contract manufacturing
a business arrangement in which the production of goods is contracted or "outsourced" by one firm to a manufacturing firm, often overseas
customs union
a common external tariff adopted by members of a free trade area; that is, participating states adopt a unified set of tariffs with regard to goods coming in from outside
zero quota
a complete ban on the import of a product
negative determination
a decision by the agency either to not initiate an investigation or that a material injury does not exist
commercial presence
a foreign company setting up subsidiaries or branches to provide services in another country
Import substitution subsidy
a government subsidy whose payment is contingent on its recipient using or purchasing domestically made goods over imported goods
Trade Preference
a law that grants favorable trade and tariff treatment to products coming from developing countries, and is intended to aid in their economic development
Trade-Related Investment Measures (TRIMs)
a national rule or regulation on foreign investment that has a direct or indirect effect on trade in goods
Global supply chain
a network of a firm's outsourcing suppliers and contractors
Federal Preemption
a principle asserting the supremacy of federal legislation over state legislation when both pertain to the same matter
Tariff Engineering
a process of minimizing the impact of tariffs by modifying the form in which the product is imported
Domestic like product
a product which is like, or most similar in characteristic and use with, the article subject to investigation
Market Disruption
a situation, usually caused by too many imports, that threatens a particular industry with products that are in direct competition with that industry
countervailing duty
a special tariff levied in addition to the normal tariff imposed on imports of subsidized goods for the purpose of offsetting the subsidy
upstream subsidy
a subsidy bestowed on raw materials or component parts ("inputs") for use in an exported product
Tariff bindings
agreed tariff rates- become capped at that rate
most favored nation status
agreement to offer a trading partner the lowest tariff rate offered to other MFN trading partners
tariff concession
agreement to reduce a tariff to a specified level
unitary business
an affiliated or related group of companies under common control
International Monetary Fund (IMF)
an institution established in 1944 that provides loans and facilitates international monetary exchange
trade agreement
an international agreement between nations on matters related to trade and tariffs
United Nations (UN)
an organization of independent states formed in 1945 to promote international peace and security
circumvention
any attempt by an exporter or importer to unlawfully or deceptively evade import restrictions or duties, including AD/CVD duties
unconditional MFN trade
any new lower tariff that applies to an item imported from one MFN trading partner automatically applies to the same or like items imported from all other nations that are in MFN status with the importing country, without any concession being required from those nations in return
conditional MFN trade
any trade advantage applied to an item imported into a country will also be applied to the same or like items coming from any other country that has MFN status with the importing country, provided that country reciprocates and lowers tariff rates in an equivalent amount in return
Trade Adjustment Assistance (TAA)
government programs that offer temporary assistance to workers who lose jobs because of foreign trade or their firms moving abroad
sanitary and phytosanitary measures
government rule or regulation that protects or enhances food, animal, or plant safety or quality, including preventing the spread of pathogens and disease
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
government rules or regulations on IPRs that have a direct or indirect effect on trade in goods
Agricultural export subsidies
payments or other benefits given to farmers that directly encourage, or are conditional upon, the export of food or agricultural products
Escape clause
permits a country to temporarily escape or be relieved from its tariff concessions under certain conditions
Trade preferences
preferential tariff treatment, granted by GATT/WTO agreements to developing WTO members
export price
price at which a product is sold to an unaffiliated or unrelated buyer in the importing country, exclusive of shipping and insurance charges
Privatization
process by which a government sells or transfers government-owned industries or other assets to the private sector
procurement offsets
prohibits a procuring agency from awarding a contract to a foreign firm on the basis of certain conditions
competitive need limitation
quantitative limit on imports from each beneficiary country, but can be waived (and are not applicable to "least developed" countries
Drawback
refund of duties already paid on imported goods when the goods are re-exported or destroyed
Manufacturing drawback
refund of duties and taxes paid on merchandise that is imported, subject to manufacturer or production, then exported within 5 years
unconditional MFN trade
requires that if a nation negotiates a reduced tariff rate on a certain product imported from one WTO member, that rate of duty automatically becomes applicable to like products imported from any and all other WTO members
US Trade Representative
responsible for negotiating complex bilateral and multilateral trade and tariff agreements for the president
General Rules of Interpretation
rules found at the front of the tariff schedules help to classify goods
global safeguards
safeguard measures placed on imports of specific products without discrimination as to their countries of origin
Dumping
selling products in a foreign country at lower prices than those charged in the producing country
antidumping duties
special import tariffs assessed in addition to normal tariffs imposed for the purpose of offsetting the unfairly low price of dumped goods
Import-Export Clause
states cannot impose a tax on imports or exports; only the federal government can do this
Tariff-shift rule
states that the country of origin is the last country in which all 'inputs' into the finished article underwent a defined change in tariff classification
adverse effects subsidies
subsidies that are not automatically prohibited, but may still be "actionable" because of their harmful effects
Prohibited Subsidies
subsidies that require recipients to meet certain export targets, or to use domestic goods instead of imported goods. They are prohibited because they are specifically designed to distort international trade, and are therefore likely to hurt other countries' trade.
specific subsidy
subsidy available only to a particular enterprise or industry
global tariffs
tariff imposed on a particular classification of goods without regard to the country of origin of goods
provisional safeguards
tariffs that can be used for 200 days if critical circumstances that could cause irreparable harm to a domestic industry exist
technical barriers to trade
technical regulations and standards that apply to imported foreign products, even if they also apply equally to domestic products
informed compliance
the "softer" mechanisms designed to place the burden of voluntary compliance on importers
trade compensation
the act of lowering import duties on certain products coming from a foreign country for the purpose of offsetting increased duties imposed on other products from that country
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
balance of payments
the difference between the amount of money that comes into a country and the amount that goes out of it
trade consultations
the first step in dealing with a potential nullification/impairment of a WTO member nation (pre-WTO dispute settlement)
ultimate purchaser
the last person in the US who receives an article in the form in which it was imported... Country of origin must be clearly marked for ultimate purchaser.
dutiable status
the legal status of imported goods at the time of entry for purposes of compliance with the tariff and customs laws
WTO (World Trade Organization)
the only international body dealing with the rules of trade between nations... Established in 1995 Uraguay round, incorporates GATT, adds multilateral agreements on services and dispute resolution process.
Unilateralism
the policy that a nation should retaliate on its own against another country that discriminates against its products or firms rather than relying on an established international or multilateral framework for trade dispute resolution.
transaction value
the price actually paid or payable for goods when sold for export
Normal value
the price charged for that product in the exporter's home market
Tariffication
the process by which quotas, licensing schemes, and other non-tariff barriers to trade are "converted" to tariffs
multiple taxation
the same service or property is subjected to the same or a similar tax by the governmental authorities of more than one nation.
Composite goods
Article made or different materials or components
Entry process
"Clearing customs"- procedures for getting goods through administrative check by national customs authorities
Trade Promotion Authority
"Fast-track" process for approving trade agreements set up by the Trade Reform Act of 1974. Gives president (through USTR) limited and temporary authority to negotiate trade agreements pursuant to the objectives set out by Congress.
Carl Zeiss v. US
"Microscopes" or "medical instruments?" Microscopes (government) because this is narrower, more specific, and describes product with more accuracy and certainty.
Import relief
"positive adjustment to import competition"- US term for safeguards
Foreign trade zones (FTZs)
-Secure sites in U.S. under supervision of U.S. Customs. -FTZs offer storage, exporting, manufacturing, assembly, repacking, testing, and repairing services. -Import duties and taxes are paid only when the goods leave the FTZ and enter US commerce.
American National Standards Institute (ANSI)
1. A private, non-profit organization that coordinates the development and use of voluntary consensus standards in the United States and also gives firms access to English translations of standards and technical regulations across the world along with US standards in various other popular world languages.
European Economic Community - Import Regime for Bananas
1993- European Economic Community increases tariffs on bananas from Latin America from 20% to between 20% and 180%, complex licensing scheme was also set up... Latin American countries claim that these violate GATT standard, GATT panel agrees
India - Quantitative Restrictions on imports of agricultural, textile, and industrial products
1997- US brings WTO complaint against India for arbitrary, case-by-case import licensing scheme. India claims that without these restrictions, their balance of payments and thus currency value would spring out of control. WTO panel agrees with US, says that licensing and restrictions are discriminatory and not justified by balance-of-payments.
Codex Alimentarius
A collection of internationally recognized standards, codes of practice, guidelines, and other recommendations relating to foods, food production, and food safety.
schedule of concessions
A country's tariff bindings, these are legal commitments considered part of GATT agreement itself
Binding ruling
A determination, made by U.S. Customs, and only applicable to the United States, that classifies a specific product and assigns it a tariff rate before the goods are imported. The ruling is binding on U.S. Customs, which means that it cannot "change its mind" after the product is imported.
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.
Port of entry
A harbor, border town, or airport by which people and goods may enter a country.
Market Access Agreements
Agreements that provide exporters of goods and services with market access to foreign countries in the following areas: 1) Technical barriers to trade 2)Government procurement of goods and services 3) Trade in services 4) Trade in agricultural products 5) Trade-related investment measures 6) Trade-related aspects of intellectual property rights
rejected merchandise drawback
Allowed for imported merchandise that was shipped without consent, is defective, or does not conform to specifications or to samples
International Trade Organization
An institution proposed by the several countries at the close of WWII that was to serve as a permanent international organization to promote trade liberalization and set the rules fir international trade
Special Drawing Rights
An international reserve asset established by the IMF (artificial currency that can be exchanged between countries)
import trade barrier
Any impediment, direct or indirect, to the entrance or sale of imported goods or services existing in the country of importation
Otter Products LLC v. US
Are they containers (20%) or other plastic (5.3%)? Court rules for Otter- other plastics. Because not listed by name and not similar to other containers listed.
Indirect nontariff barriers
Barriers that seems perfectly neutral and nondiscriminatory on their face, while their effect is to discriminate against foreign-made products or firms
International Organization for Standardization (ISO)
Based in Geneva, this is a NGO comprising the national standards institutes of 163 countries, has developed 21,000 standards for goods, services, and technology in many industries
equal dignity rule
Both statutes and treaties are of equal importance
Market-oriented exporter
Exporting firm in an NME country that is not under government control and that does business on competitive terms. ITA may look at prices in this case
Transparency
Degree to which a foreign government's import laws or regulations are made readily available to the public
performance standards
Describe how products should function (often used in US)
beneficiary developing countries
Developing countries that are eligible for preferential treatment under the program
United States - Countervailing Measures Concerning Certain Products from the European Communities (European Steel)
During 60s-70s, European steel industry being kept alive by labor groups, low-interest loans, and equity investments from European governments. US puts CVD duties on European steel because of these subsidies. Later, government sells their share but CVDs remain. WTO Appellate body says that must look on a case-by-case basis at whether prior subsidies have passed through to newly privatized company.
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 "
United States - Sections 301-310 of the Trade Act of 1974
EC argues that Sections 301-310 of US Trade Act violate WTO principles. WTO says it is legal but retaliatory tariffs should only be imposed against other WTO members through formal WTO dispute settlement process
European Communities - Measures Concerning Meat and Meat Products (Hormones)
EC bans sale of beef from cattle injected with growth hormones (most US beef is injected with GH). WTO says this ban is illegal because it is COMPLETE BAN allowing no traces- and thus it is not based on scientific principles.
CE Mark
EU internationally recognized symbol for quality and product safety for many different types of products
Safeguards against injury
Emergency remedies provided by law, usually tariffs, used to protect a domestic industry from injury resulting from increased imports of like or competing products
Prior Disclosure
Encouraging of importers to voluntarily report their own possible violations of customs law. Penalties are limited if importers do this.
European Communities - Regime for the Importation, Sale & Distribution of Bananas
European community is world's largest grower of bananas. Increases tariffs and other barriers on Latin America to help out Africa, Caribbean, and Pacific growers. US files case along with Latin America because American companies owned farms in Latin America. Court says that US can file this case even though its exports aren't directly affected!
Less than fair value
Export price of product sold in US is less than normal value of foreign like or similar product sold for consumption in exporting/producing country
Prior approval
In these countries, regulated products must undergo testing and inspection by an approved laboratory, receive certification of compliance with technical standards, and then receive prior regulatory approval before sale
Prior certification
In these countries, regulated products need only undergo testing or inspection and certification. The testing lab's certification remains on file with the manufacturer or importer, and no regulatory approval is needed prior to import or domestic sale.
U.S. Department of Homeland Security
Includes Customs and Border Protection, Immigration and Customs Enforcement
US Department of Commerce
Includes International Trade Administration (ITA), has broad authority over international trade issues. Foster trade, promote US exports, investigate US company claims of foreign market access, administer US unfair import laws, issue export licenses, keep stats.
Congressional-executive agreement
International agreements between the president, representing the US, and a foreign country, negotiated and concluded by the President and voted into law by a simple majority vote of both the Senate and House of Representatives
Market-oriented industry
One in which resources and labor costs are procured at free-market prices, there is little government involvement, and producers are mostly privately owned even in NME country
US v. Golden Ship Trading Co.
J. Wu enters shipments of t-shirts from Hui, who claims that they are from Dominican Republic. In fact, they were made in China, but sleeves and a "made in DR" sticker were attached in DR. Attaching sleeves does not make them a product of DR, and textiles from China require textile visa. Wu says she was tricked by Hui, but court says that she had responsibility to verify information in entry documents and thus owes penalties for negligence.
Watch list/priority watch list
List of countries that, according to USTR, don't protect US IPRs
tariff schedule
Listing of specific items, coded numerically and described by name or use
Foreign like product
Merchandise produced in the same country and by the same person as the allegedly dumped merchandise, or of the same component materials, or of the same general class of merchandise
Water's edge election
Multinational corporations can exclude income of related entities that are incorporated in foreign country or that earn majority of their income in foreign country
Section 232
National security- US department of Commerce (ITA)
Nissan Motor Mfg. Corp. v. US
Nissan has FTZ subzone at its auto manufacturing plant in Smyrna, TN. They import machinery for use in subzone, assemble and test it. Customs rules that it is not merchandise and thus must have duties assessed. Court agrees.
executive order
Official, legally binding regulation or written directive issued by the president, usually addressed to government officials, departments, or agencies, and used to set policy an direct government operations
Sole executive international agreement
One negotiated and put into legal effect without congressional approval
Bulk Aspirin from the People's Republic of China
Rhodia files case against China, arguing that it is dumping bulk aspirin in US. Two producers were able to show that their export pricing was not under government control and received smaller AD duties based on individual dumping margins, while all other Chinese exporters were given a 144% rate!! Court of International Trade later reverses this after Rhodia moves to China because there is no longer a "like domestic product."
Section 201 of the Trade Act of 1974
Safeguard tariffs- ITC investigation b4
U.S. Department of the Treasury
Sanctions, OFAC
Dole v. Carter
Senator Dole sues Carter administration for giving Hungarian crown back to Hungary (it had been held in US for safekeeping since WWII), saying this amounted to a treaty without Senatorial approval. Court says that small matters such as these can be settled
negotiating rounds
Sessions under GATT dedicated to trade liberalization (reducing tariffs and removing artificial barriers to trade)- remember Uraguay and Doha
Ferrostaal Metals Corp.
Shipping steel into Port of Seattle. Steel was from Japan but galvanized in New Zealand, New Zealand is listed as COO. Customs said it should have been Japan. Court agrees that galvanization is substantial transformation, NZ is COO.
Japan Taxes on Alcoholic Beverages- 1996 WTO
Shochu is a "like product" and "directly competitive and substitutable" with other imported spirits, so Japan was discriminating. WTO rules that this violates WTO agreements, Japan must change tax schemes.
Better Home Plastics Corp. v. US
Shower curtains... Curtain, plastic liner, and hooks. Is it curtain, household article, or other synthetics? Liner gives it its essential character (keeping water in), so it should be under curtains and drapes.
Direct nontariff barriers
Specifically limit import of goods or services or deny access of foreign firms to the local market
Specific tariff rate
Specified amount per unit of weight or measure (as opposed to ad valorem)
Star-Kist Foods, Inc. v. United States
Star-Kist argues that lower tariffs on tuna negotiated by President was illegal because Reciprocal Trade Agreements Act of 1934 was unconstitutional (gave treaty powers to President). Court says congressional delegation was constitutional because it provided president with discernible standards to guide any decisions in carrying out the purposes of the act
Presidential proclamation
Statement or declaration of the president usually addressed to the general public announcing a finding or commemorating an event
China Compulsory Certification Mark (CCC Mark)
Symbol of approved product in China
Japan Industrial Standards Mark (JIS Mark)
Symbol of approved product in Japan; indicates that manufacturer has submitted to on-site investigations by appropriate Japanese ministry and has met accepted standards for quality control, production techniques, and research methods
International Trade Commission (ITC)
assesses the effects of dumping on domestic businesses. Bipartisan, independent agency
emergency powers
broad powers exercised by the president during times of national crisis, granted by Congress
Design Standards
characteristics that govern how a product should be designed (often used in Japan)
compound tariff rate
combination of both ad valorem and specific rates
consumption abroad
consumers or firms making use of a service in another country
Priority Foreign Countries
countries that deny adequate protection to US IPRs. USTR identifies and reports a list of these countries
Tariff schedules
detailed product-by-product listings of all tariffs for that country
Domestic Subsidies
distort markets by causing overproduction and suppressing prices while protecting the incomes of farmers
tariff concession
each country's promise to reduce tariffs on imports of a given item in return for tariff concessions from other countries
Nondiscrimination
every WTO member has an equal opportunity to trade with another WTO member - based on the most-favored nation principle which asserts that one cannot grant special advantages to certain countries through favorable trade policies with the exception of RTAs and GSP = generalized system of preferences which allows AICs to apply lower tariffs on LDCs. It is also based on national treatment which asserts that governments cannot use domestic policies such as taxation, subsidies, etc. to help their domestic industries and hurt foreign industries
Trade in services
exports and imports of services such as financial services, tourism and shipping
presence of natural persons
individuals traveling from their own country to supply services in another
Material injury
injury that is not inconsequential, immaterial, or unimportant. Judged through 1) import value 2) price effect 3) impact on domestic industry sales, profits, market share, wages, unemployment, etc.
Technical Regulation
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
anti-circumvention
laws and penalties intended to discourage circumvention
Trade balancing requirements
laws that condition a company's right to import foreign goods on the basis of the volume of goods that company exports
Rules of origin
legal rules used to determine the country of origin of imported products
Tariff Rate Quota
lower tariff rates applied to imports within the quota than those over the quota
export subsidy
made available to domestic firms upon the export of their products or made contingent on export performance
absolute quota
maximum number of products that can be imported (currently none)
bound rate
maximum tariff rate a country may charge on an item, although tariff rates may be reduced below the bound rate
nontariff barriers
nontax methods of increasing the cost or reducing the volume of imported goods
substantial transformation
occurs when the processing of an article results in a new and different article having a distinct name, character, or use; occurs when an HS classification changes
auctioned quota
one in which the quota rights are sold to the highest bidder
allocated quota
one in which the total limit is "allocated" among several specific countries
Principal Use
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