David Chapter 15 mod

David Chapter 15 mod - Chapter 15 C USTOMS C LEARANCE...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 15 C USTOMS C LEARANCE LEARNING OBJECTIVES At the end of this chapter the student should be able to: 1 Identify the characteristics of duties that may be imposed upon imports. 2 Identify the characteristics of non-tariff barriers to imports. 3 Identify the functions and requirements of the customs clearing process. 4 Identify the functions of foreign trade zones. REVIEW/PREVIEW In this chapter, we will look at some terms and procedures in customs clearance. It is important to keep in mind that some of these things are artificially complex because most countries dislike imports that compete with local business people. 15-2 Chapter 15 Customs Clearance CHAPTER OUTLINE 15-1 Duty I. Duty is the tax an importer must pay to allow goods into a country. II. Duty is classified in three different ways: a. Type of goods imported, determined by rules of Classification that are basically standardized worldwide b. Value of goods i. Based on invoice value ii. Based on rules that differ country to country, called the Valuation rules c. Country from which goods are imported, based on Rules of Origin III. From the three ways, customs determines the Tariff that will be charged on the import. 15-1a Classification I. Worldwide coding scheme—Harmonized Commodity Description and Coding System II. Classifies both imports and exports III. Code uses up to 10 digits: a. First six digits represent “root” of the international coding—they’re the same in all countries b. Last four digits are country-specific c. Example: 6402.19.05 = golf shoes i. .30 = for men. ii. .60 = for women. iii. .90 = for other persons (presumably children). IV. Harmonized System divided into twenty-one Sections logically determined by type of product and material V. Sections are divided into one or more chapters. VI. There is a total of 97 Chapters. VII. Six General Rules of Interpretation a. The Section, Chapter, and Heading only serve as guides, and the correct classification may be in a different Section, Chapter, and Heading altogether. b. The classification of an incomplete or unfinished product is that of the finished product. For example, shipments that contain all of the subassemblies for a final product should be classified as the final product rather than as individual parts. This is true of chemical compounds as well. c. When in doubt between two classifications, the one with the most specific description is the correct one. However, if the product is made up of several parts, each of which would lead to a different classification, then the classification that lends it its “essential character” is the correct one. Chapter 15 Customs Clearance 15-3 d. When there is no category under which a specific product can be classified, then the classification that should be used is that of a product that would be most like it....
View Full Document

{[ snackBarMessage ]}

Page1 / 14

David Chapter 15 mod - Chapter 15 C USTOMS C LEARANCE...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online