The United States offers a number of special duty reduction programs for products that originate from certain countries. Each of the programs requires that the good originate from beneficiary country. If the good was imported into the beneficiary country then the material must be "transformed" by a process or manufactured into a product of that country. Transformation is where things get a bit gray, contact an expert to determine if and how a good can be transformed. Value Requirements: The amount of value to be added consists of: 1. the[...]
THE FOLLOWING WILL BE IN EFFECT DECEMBER 3, 2011.Ever since an intelligent business man designed footwear with a textile outer sole (i.e. textile bottom) that footwear was subject to duty rates approximately 25% - 35% lower than equivalent footwear with a rubber or plastic outer sole - what a way to utilize Tariff Engineering! President Obama signed Presidential Proclamation 8742 that was published in the Federal Register on November 3, 2011. What the Proclamation did was add a U.S. Note 5 to the footwear Chapter in the tariff schedule ("Chapter[...]
What is a Foreign Trade Zone?A United States Foreign Trade Zone (FTZ) is a geographic location within the United States but is considered to be outside of Customs territory. Similar to a Bonded Warehouse, (inside Customs territory) many prerequisites for entry such as quotas are not to be adhered to. Additionally, goods may be transferred to a foreign trade zone with less formality than the bonded warehouse.What are its advantages?1. Both Domestic as well as foreign goods may be stored in a foreign trade zone for an UNLIMITED amount of[...]
What is a bonded warehouse?Customs bonded warehouses are licensed warehouses that satisfy strict security regulations. It is within bonded warehouses that goods may enter the United States but are not considered "cleared" through customs. Merchandise in a bonded warehouse is considered still to be in Customs custody and duties do not have to be paid. What are its advantages? 1. Customs duties do not have to be withdrawn until goods are released from the warehouse.2. Duty rates that are applied are based on the time the goods are released not[...]
For Tariff Classification purposes, there are circumstances in which more than one word can describe an item. What do you do?! Well the law provides under the "General Rules of Interpretation" 2(b) that consideration is to be given to every heading that identifies an item by name, language or description. Okay, that is great but my goods can be described in more than one way.General Rules of Interpretation 3 comes along and simplifies the identification of the goods.Relative Specificity More SPECIFIC language is preferred over general language, thus the heading[...]
Many goods are unassembled or incomplete when they arrive at the port. The U.S. Harmonized Tariff Schedule for classification predominantly addresses complete and assembled products. However, the law provides via the "General Rules of Interpretation" for unassembled or incomplete goods by allowing certain goods to be classified as though they are complete and assembled. The rule qualifies these goods by its ESSENTIAL CHARACTER. Essential character is not defined in the law but all depends on the specifications of the product. Can a person objectively recognize the product for what it[...]
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