Variable import levies temporary surcharges duty

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Unformatted text preview: d to imports from certain countries • GATT (now WTO) prohibits the use, with three exceptions: o Historical preference arrangements already existing o Preference is part of formal economic integration treaty o Industrial countries are permitted to grant preferential market access to LDCs Customs Duties • Ad valorem duty • Expressed as percentage of value of goods; the trend is towards increasing use • Specific duty • Expressed as specific amount of currency per unit of weight, volume, length, or other unit of measurement • Compound or mixed duties Other Duties and Import Charges • Anti- dumping Duties o Dumping is the sale of merchandise in export markets at unfair prices o Special import charges equal to the dumping margin • Countervailing Duties • Variable Import Levies • Temporary Surcharges Duty Drawback • Refunds of duties paid on imports that are processed or incorporated into other goods and re- exported Reduces the price of imported production inputs Used to encourage exports After NAFTA, U.S. reduced drawbacks on exports to Canada and Mexico China had to reduce drawbacks in order to join the WTO • • • • 8- 2 Company Exporting organization • Business enterprises are the main active participants in world trade and in exporting • Exporting is usually the first step for companies getting into foreign markets • This mode involves the least financial risk but also the lowest level of control over what happens in the foreign market Export Selling Export selling involves selling the same product in its domestic form into a foreign market with no changes in the marketing mix whatever. Export selling is an “arms- length” process: there is usually no direct contact between the producer of the goods and the final customer Export Marketing Export marketing tailors the marketing mix to international markets and customers • Export marketing implies a deep understanding of the target market environment • It involves adapting the marketing mix for the target markets: Decisions concerning adaptations in product design, pricing, distribution and channels, advertising, and communications Corporate export development stages Exporting Seller: 1. The firm is unwilling to export; it will not even fill an unsolicited export order. 2. The firm fills unsolicited export orders but does not pursue unsolicited orders. Such a firm is an export seller. 3. The firm explores the feasibility of pro- active exporting (this stage may bypass Stage 2). 4. The firm exports to one or more markets on a trial basis. Corporate export development stages (2) Exporting Marketing: 5. The firm is an experienced expo...
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