LGLS 4080 / LGLS4080 BOOK GLOSSARY & QUIZ QUEST
VERY USEFUL
Chapter 12 Imports Customs Tariffs
Customs and Tariff Laws are enforced by the US Bure
... [Show More] au of Customs and Border Protection.
True False
For tariff purposes, goods entering the US are classified according to the Federal Customs and Tariff Code.
True False
The country of origin of products that undergo manufacturing operations in several different countries is determined by the substantial transformation test.
True False
The official position of Customs concerning a particular transaction is represented by:
a. a US Customs Entry Summary Form.
b. a formal rulemaking.
c. a pre-importation judicial review.
d. a binding ruling.
Which of the following is used to determine the dutiable status of a good?
a. Its classification
b. Its customs value
c. Its country of origin
d. All of the above
The tariff schedules describe articles by:
a. their physical characteristics, use and country of origin.
b. their name, use and country of origin.
c. their name, physical characteristics and use.
d. their name and physical characteristics only.
The HTS rule of interpretation that provides that where an article could be classified under more than one heading, it must be classified under the one that most specifically describes it, is:
a. the rule of specific classification.
b. the rule of relative specificity.
c. the rule of classification by essential character.
d. the relativity rule.
Which of the following elements is added to the transaction value of goods to determine their dutiable value?
a. Packing costs incurred by the buyer
b. International freight charges
c. Any license fee the buyer must pay
d. Both a and c
The substantial transformation test is used to determine:
a. the essential character of goods.
b. the actual use of goods.
c. the country of origin of goods.
d. the principal use of goods.
Legally defined sites within a country that are subject to special customs procedures are:
a. free trade areas.
b. custom free zones.
c. foreign trade zones.
d. free custom areas.
A 99-percent refund of duties and taxes paid on merchandise that is imported, subjected to manufacturing operations and exported within five years, is:
a. a tariff preference.
b. a customs drawback.
c. a manufacturing drawback.
d. a tariff return.
General Rules of Interpretation
Generalized System of Preferences
beneficiary developing country
a set of (6) rules that are an integral part of the HTSUS and that governs its use
a system under which the United States aids in the economic development of certain developing countries by allowing their products to enter the United States at reduced rates of duty, or duty-free, until such time as these countries establish their own competitive industries
the designation of a country in order for that country to be eligible for GSP status
binding ruling the official position of customs with respect to the specific transaction for which a ruling was issued
competitive need
contract manufacturing
country of origin
the condition required for a specific product to receive GSP benefits, determined by an annual review process conducted on a product-by-product basis
a business arrangement in which the production of goods is contracted or “outsourced” by one firm to a manufacturing firm, often overseas
the nation from which an imported good originates, as established by the importing country’s rules of origin
customs broker an authorized agent who is licensed by federal law to act for and on behalf of importers in the entry of goods
deemed liquidation
dual transformation
a situation in which an entry that has not been liquidated within one year is dutied at the rate accepted on the entry summary form
a requirement that the raw materials brought from another country into the GSP country undergoes a substantial transformation in the GSP country
dutiable status the status according to which tariffs, restraints on imports, and other import controls are applied to goods
dutiable value the customs value
enforced compliance
essential character test
the active investigation of customs violations and the prosecution of violators
a method that helps determine the classification of mixtures of chemicals, foodstuffs, and other substances or materials that are blended together if there is no classification that fits the mixture
fair trade a worldwide movement based broadly based on the theory that trade between rich and poor should be based on notions of social and economic justice, and which advocates that small farms and farm workers in developing countries receive a fair price in return for their agricultural and handicraft products
foreign trade zone
the legally defined sites within a country that are subject to special customs procedures
formal entry the administrative process required to import goods into the customs territory of a country
general rate of duty
harmonized tariff schedule
the tariff rate applicable to imports from normal trade relations (NTR) nations
a system be which goods being imported into the United States have been classified
importing the process of entering goods into the customs territory of a country
informal entry the administrative process where a bond is not required for entry, and import duties are payable immediately at the time of entry
informed compliance
the “softer” mechanisms designed to place the burden of voluntary compliance on importers
liquidation the final computation and assessment of the applicable duty on entered goods by customs
manufacturing drawback
name, character, or use test
notice of adjustment
a 99 percent refund of duties and taxes paid on merchandise that is imported, subjected to manufacture or production, and then exported within five years
a test used to determine the country of origin for tariff purposes (other than in specialized cases)as well as to determine how foreign-made products are to be marked or labeled
a document sent to the importer when customs at the port of entry determines that additional duties are owed
ports of entry the major seaports, airports, inland ports, and border crossings where customs offices are located
production assist
rule of relative specificity
the goods, services, or intangibles furnished by the importer to a foreign producer, free or at a reduced price, for use in producing merchandise for import and sale in the United States; also called dutiable assists
the heading that provides the most specific description shall be preferred to headings that provide more general descriptions
rules of origin the national laws and regulations of administrative agencies, usually customs authorities, which are used to determine the country of origin of imported products
same-condition drawback
special rate of duty
substantial transformation
substitution drawback
tariff engineering
the drawbacks that are utilized when the imported goods are not processed or manufactured, but are re- exported in the “same condition” as they were imported
the tariff rate applicable to one or more special tariff programs
a transformation that occurs when the original article or product 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
the condition where an importer may export U.S.-made goods in the substitution of imported goods that are of the “same kind and quality” (i.e., interchangeable) and receive the drawback on the imported items
the process of modifying or engineering your product prior to importation for the purposes of obtaining a lower rate of duty
tariff shift rule a NAFTA rule of origin that states that if goods are made from materials or components that originated outside North America, they only qualify for free trade status only if each and every non–North American material or component has undergone the change in tariff classification required in NAFTA Annex 401
trade preference the advantage or favorable treatment (usually a reduced tariff or duty free treatment) granted by one country to the imports of another country
transaction value
ultimate purchaser
the dutiable value as defined by U.S. law
the last person in the United States who receives an article in the form in which it was imported
CHAPTER 13 EXPORTS
Antiboycott the provisions or laws that prohibit a boycott
blocked persons list
Commerce Control List
conscious avoidance
a list maintained by the Department of Treasury’s Office of Foreign Assets Control that contains the names of individuals and organizations deemed to represent restricted countries or known to be involved in terrorism and narcotics trafficking
a list of goods whose export may be prohibited or curtailed by the Department of Commerce
a practice by which an exporter purposely avoids learning information that might have a bearing on his or her license application
debarred list a list of parties barred from exporting defense articles
deemed exports the communication or other transfer by an American citizen of technology, technical data, software, encryption technology, computer source code, or any other controlled information to a foreign national
destination control statement
a required designation for U.S. exports that are listed on the Commerce Control List but not classified as EAR99 that must be included on the bill of lading, air waybill, or other documents that accompany the shipment to the end user
Diversion the unlawful transfer, transshipment, rerouting, or reexporting of controlled goods or technology from a destination to which the goods or technology could legally be shipped to another destination that has not been lawfully approved to receive the items
dualuse items the commercial items that may also have military or “proliferation” uses relating to the proliferation of nuclear, chemical, or biological weapons
Export an actual shipment of goods that are subject to the export regulations [of a country]
export license the part of a licensing system administered by the U.S. Department of Commerce, in cooperation with the Department of Defense, which receives and approves licenses for exports of goods or transfers of technology on a casebycase basis
export management and compliance program
extraterritorial jurisdiction
foreign policy controls
international emergency economic powers
national security control
red flag indicators
a company program that states the firm’s compliance policies; involves personnel at all levels; uses trained personnel or outside specialists to implement the policies; provides for a system of internal audits to prevent and detect violations; provides for compliance throughout a supply chain; and has provisions for notification of the Bureau of Industry and Security in case of a question, violation, or other irregularity
an area where a nation, as a matter of law, extends the power of its export control laws over its goods and technology once they have left its territory
the “carrot and stick” of diplomacy where nations often grant or deny trade privileges to further their foreign policy objectives
a statute that provides the current grant of authority to the president to regulate economic and financial transactions and to place restrictions on importing or exporting during a peacetime (or wartime) national emergency
the regulations that restrict exports of goods or technology that could make a significant contribution to the military capabilities of any other country and would prove detrimental to the national security of the United States
the warning signs of a possible illegal attempt to violate U.S. export controls
Reexport the shipment or releases of the domestic country’s technology from one foreign country to another foreign country
short supply controls
special comprehensive license
specially designated nationals
the regulations that control the export of certain critical goods or strategic raw materials that may be in short supply
a special licensing process for companies that will make multiple shipments over an extended time for special reasons
the individuals and organizations deemed to represent restricted countries or known to be involved in terrorism and narcotics trafficking
U.S. munitions list
Wassenaar Arrangement
the regulations that identify those categories of equipment and technologies subject to export control
an agreement between forty governments (as of 2010) including the United States, Canada, Europe, Japan, and Russia that allows these countries to coordinate their export control strategies and to develop lists of items and technologies that should be controlled
The export and import of defense articles and services are governed by the Patriot Act.
True False
US export controls apply to both exports and reexports.
True False
The International Emergency Economic Powers Act grants authority to the President to regulate economic and financial transactions in wartime only.
True False
Which of the following constitutes a reason for a nation to restrict exports?
a. Protection of national security
b. Implementation of foreign policy
c. Prevention of short supply of domestic materials
d. All of the above
The unlawful transfer, rerouting, transshipment or re-exporting of controlled goods or technology from one approved destination to another destination that has not been approved is:
a. a redirection.
b. an illegal destination shift.
c. a diversion.
d. a delivery fraud.
Commercial items that may also have military uses are called:
a. bi-purpose items.
b. strategic civilian items.
c. dual-use items.
d. dual-purpose items.
Authority for prohibiting or curtailing exports is vested in:
a. the President.
b. Congress.
c. the Department of Commerce.
d. the US Trade Representative.
Items whose export needs to be controlled are listed in:
a. the Export Control Chart.
b. the Export Restriction List.
c. the Export Control Classification.
d. the Commerce Control List.
The communication by an American citizen of technology, technical data or any other controlled information to a foreign national is called:
a. a reexport of US technology.
b. a deemed export.
c. espionage.
d. technology exchange.
Under the International Emergency Economic Powers Act, the President may:
a. seize foreign assets held in US banks.
b. control the transfer of goods and securities to and from the US.
c. impose a trade embargo against a foreign country.
d. All of the above
Violations of export control laws are punishable by:
a. civil penalties only.
b. criminal fines only.
c. civil penalties, denial orders, criminal fines and imprisonment. [Show Less]