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Export/Import Procedures and Documentation, 5th Edition

Book Description

The details of international business are growing more complex by the day—and even the most seasoned professionals can find themselves in need of guidance. This comprehensive answer book supplies readers with a clear view of the entire export/import process, explaining the ins and outs of shipping and insurance; payment mechanisms; distributors vs. agents; customs and export control requirements; and transportation issues.

Featuring dozens of sample contracts, procedures, checklists, and ready-to-use forms—Export/Import Procedures and Documentation is an authoritative voice in the everchanging, often confusing world of international laws and regulations. The revised fifth edition contains new and expanded information on topics including:

Corporate oversight and compliance • Valuation • The Export Control Reform Act • Licensing requirements and exceptions • International Commerce Trade Terminology • The shifting definition of “Country of Origin” • Specialized exporting and importing • And more

Thorough and accessible, this trusted resource provides readers with the tools they need to manage supply chain dynamics around the world, and keep everything organized, up-to-date, and above board each step of the way.

Table of Contents

  1. Cover
  2. Title
  3. Copyright
  4. Contents
  5. Preface
  6. Acknowledgments
  7. About the Author
  8. Part I Organizing for Export and Import Operations
    1. Chapter 1. Organizing for Export and Import Operations
      1. A. Export Compliance Department
      2. B. Import Department
      3. C. Combined Export and Import Departments
      4. D. Manuals of Procedures and Documentation
      5. E. Record-Keeping Compliance
      6. F. Software
      7. G. Federal, State, International, and Foreign Law
  9. Part II Exporting: Procedures and Documentation
    1. Chapter 2. Exporting: Preliminary Considerations
      1. A. Products
      2. B. Volume
      3. C. Country Market and Product Competitiveness Research
      4. D. Identification of Customers: End Users, Distributors, and Sales Agents
      5. E. Compliance With Foreign Law
        1. 1. Industry Standards
        2. 2. Foreign Customs Laws
        3. 3. Government Contracting
        4. 4. Exchange Controls and Import Licenses
        5. 5. Value-Added Taxes
        6. 6. Specialized Laws
      6. F. Export Controls and Licenses
      7. G. Patent, Trademark, and Copyright Registrations and Infringements
      8. H. Confidentiality and Non-Disclosure Agreements
      9. I. Antiboycott Compliance
      10. J. Employee Sales Visits to Foreign Countries—Immigration and Customs Compliance
        1. 1. Carnets
      11. K. Utilization of Freight Forwarders and Foreign Customs Brokers
      12. L. Export Packing and Labeling (Hazardous Materials)
      13. M. Terms of Sale
      14. N. Consignments
      15. O. Leases
      16. P. Marine and Air Casualty Insurance
      17. Q. Methods of Transportation; Booking Transportation
      18. R. Country of Origin Marking
      19. S. Foreign Warehousing and Free Trade Zones
      20. T. Export Financing and Payment Insurance
      21. U. Tax Incentives
      22. V. Export Trading Companies, Export Trade Certificates of Review, and Export Management Companies
      23. W. Translation
      24. X. Foreign Branch Operations, Subsidiaries, Joint Ventures, and Licensing
      25. Y. Electronic Commerce
    2. Chapter 3. Exporting: Sales Documentation
      1. A. Isolated Sales Transactions
        1. 1. Importance of Written Agreements
        2. 2. Email Orders
        3. 3. The Formation of Sales Agreements
        4. 4. Common Forms for the Formation of Sales Agreements
          1. a. Price Lists
          2. b. Requests for Quotations
          3. c. Quotations and Costing Sheets
          4. d. Purchase Orders
          5. e. Purchase Order Acknowledgments, Acceptances, and Sales Confirmations
          6. f. Pro Forma Invoices
          7. g. Commercial Invoices
          8. h. Conflicting Provisions in Seller and Buyer Sales Documentation
          9. i. Side Agreements
      2. B. Ongoing Sales Transactions
        1. 1. Correlation with Documentation for Isolated Sales Transactions
        2. 2. Important Provisions in International Sales Agreements
          1. a. Selling and Purchasing Entities
          2. b. Quantity
          3. c. Pricing
          4. d. Currency Fluctuations
          5. e. Payment Methods
          6. f. Export Financing
          7. g. Security Interest
          8. h. Passage of Title, Delivery, and Risk of Loss
          9. i. Warranties and Product Defects
          10. j. Preshipment Inspections
          11. k. Export Licenses
          12. l. Import Licenses and Foreign Government Filings
          13. m. Governing Law
          14. n. Dispute Resolution
          15. o. Termination
      3. C. Export Distributor and Sales Agent Agreements
        1. 1. Distinction Between Distributor and Sales Agent
        2. 2. Export Distributor Agreements
          1. a. Territory and Exclusivity
          2. b. Pricing
          3. c. Minimum Purchase Quantities
          4. d. Handling Competing Products
          5. e. Effective Date and Government Review
          6. f. Appointment of Subdistributors
          7. g. Use of Trade Names, Trademarks, and Copyrights
          8. h. Warranties and Product Liability
        3. 3. Export Sales Agent Agreements
          1. a. Commissions
          2. b. Pricing
          3. c. Shipment
          4. d. Warranties
          5. e. Relationship of the Parties
      4. D. Foreign Corrupt Practices Act Compliance
      5. E. U.S. Export Control Laws
    3. Chapter 4. Exporting: Other Export Documentation
      1. A. Freight Forwarders
      2. B. Shipper’s Letters of Instructions
      3. C. Commercial Invoices
      4. D. Bills of Lading
      5. E. VOCCs and NVOCCs
      6. F. Packing Lists
      7. G. Inspection Certificates
      8. H. Marine and Air Casualty Insurance Policies and Certificates
      9. I. Dock and Warehouse Receipts
      10. J. Consular Invoices
      11. K. Certificates of Origin
      12. L. Certificates of Free Sale
      13. M. Delivery Instructions and Delivery Orders
      14. N. Special Customs Invoices
      15. O. Shipper’s Declarations for Dangerous Goods
      16. P. Precursor and Essential Chemical Exports
      17. Q. Animal, Plant, and Food Export Certificates
      18. R. Drafts for Payment
      19. S. Letters of Credit
      20. T. Electronic Export Information
      21. U. Freight Forwarder’s Invoices
      22. V. Air Cargo Security and C-TPAT
        1. 1. Air Cargo Security
        2. 2. Customs and Trade Partnership Against Terrorism (C-TPAT)
    4. Chapter 5. Export Controls and Licenses
      1. A. Introduction
      2. B. Scope of the EAR
      3. C. Commerce Control List
      4. D. Export Destinations
      5. E. Customers, End Users, and End Uses
      6. F. Ten General Prohibitions
      7. G. License Exemptions and Exceptions
      8. H. License Applications and Procedures
        1. 1. Documentation From Buyer
        2. 2. License Application Form
        3. 3. Procedures
      9. I. Re-Exports
      10. J. Export Documentation and Record-Keeping
      11. K. Special Comprehensive Licenses
      12. L. Technology, Software, and Technical Assistance Exports
      13. M. Validated End-User Program
      14. N. Antiboycott Regulations
      15. O. Violations and Penalties
      16. P. Embargoes and Trade Sanctions Programs
      17. R. U.S. Munitions and Arms Exports
      18. S. Enforcement
  10. Part III Importing: Procedures and Documentation
    1. Chapter 6. Importing: Preliminary Considerations
      1. A. Products
      2. B. Volume
      3. C. Country Sourcing
      4. D. Identification of Suppliers
      5. E. Compliance With Foreign Law
        1. 1. Foreign Export Controls
        2. 2. Exchange Control Licenses
        3. 3. Export Quotas
      6. F. U.S. Customs Considerations
        1. 1. Utilization of Customs Brokers
        2. 2. Importation Bonds
        3. 3. Importer’s Liability and Reasonable Care
        4. 4. Application for Importer’s Number
        5. 5. Ports of Entry
        6. 6. Import Quotas
        7. 7. Antidumping, Countervailing, and Other Special Duties
        8. 8. Classification
        9. 9. Valuation
        10. 10. Duty-Free and Reduced Duty Programs
        11. 11. Column 2 Imports
        12. 12. Deferred Duty Programs (Bonded Warehousing and Foreign Trade Zones)
        13. 13. Record-Keeping Requirements
        14. 14. Customs Rulings
      7. G. Import Packing and Labeling
      8. H. U.S. Commercial Considerations
        1. 1. Prevailing Market Price
        2. 2. Buy American Policies
        3. 3. U.S. Industry Standards
      9. I. Terms of Purchase
      10. J. Consignments
      11. K. Leases
      12. L. Marine and Air Casualty Insurance
      13. M. Method of Transportation; Booking Transportation
      14. N. Import Financing
      15. O. Patent, Trademark, and Copyright Registrations and Infringements
      16. P. Confidentiality and Non-Disclosure Agreements
      17. Q. Payment
      18. R. Translation
      19. S. Foreign Branch Operations, Subsidiaries, Joint Ventures, and Licensing
      20. T. Electronic Commerce
    2. Chapter 7. Importing: Purchase Documentation
      1. A. Isolated Purchase Transactions
        1. 1. Importance of Written Agreements
        2. 2. Email or Internet Orders
        3. 3. The Formation of Purchase Agreements
        4. 4. Common Forms for the Formation of Purchase Agreements
          1. a. Price Lists
          2. b. Requests for Quotations and Offers to Purchase
          3. c. Quotations
          4. d. Purchase Orders
          5. e. Purchase Order Acknowledgments, Acceptances, and Sales Confirmations
          6. f. Commercial Invoices
          7. g. Conflicting Provisions in Seller and Buyer Sales Documentation
          8. h. Side Agreements
      2. B. Ongoing Purchase Transactions
        1. 1. Correlation With Documentation for Isolated Purchase Transactions
        2. 2. Important Provisions in International Purchase Agreements
          1. a. Purchasing and Selling Entities
          2. b. Quantity
          3. c. Pricing
          4. d. Currency Fluctuations
          5. e. Payment Methods
          6. f. Import Financing
          7. g. Security Interest
          8. h. Passage of Title, Delivery, and Risk of Loss
          9. i. Warranties and Product Defects
          10. j. Preshipment Inspections
          11. k. Export Licenses
          12. l. Governing Law
          13. m. Dispute Resolution
          14. n. Termination
      3. C. Import Distributor and Sales Agent Agreements
        1. 1. Distinction Between Distributor and Sales Agent
        2. 2. Import Distributor Agreements
          1. a. Territory and Exclusivity
          2. b. Pricing
          3. c. Minimum Purchase Quantities
          4. d. Handling Competing Products
          5. e. Appointment of Subdistributors
          6. f. Use of Trade Names, Trademarks, and Copyrights
          7. g. Warranties and Product Liability
        3. 3. Import Sales Agent Agreements
          1. a. Commissions
          2. b. Pricing
          3. c. Shipment
    3. Chapter 8. Import Process and Documentation
      1. A. Importer Security Filing and the 10+2 Program
      2. B. Bills of Lading
      3. C. Commercial Invoices
      4. D. Pro Forma Invoices
      5. E. Packing Lists
      6. F. Inspection Certificates
      7. G. Drafts for Payment
      8. H. Arrival Notices
      9. I. Pickup and Delivery Orders
      10. J. Automated Commercial Environment (ACE)
      11. K. Entry/Immediate Delivery
      12. L. Entry Summary
      13. M. Other Entries
      14. N. Reconciliation
      15. O. GSP, AGOA—Special Programs
      16. P. NAFTA/Other FTA Certificates of Origin
      17. Q. Specialized Products Import Entry Forms
      18. R. Examination and Detention
      19. S. Liquidation Notices
      20. T. Notices of Redelivery
      21. U. Post Entry Amendment
      22. V. Requests for Information
      23. W. Notices of Action
      24. X. Protests
      25. Y. Record-Keeping
      26. Z. Administrative Summons
      27. AA. Search Warrants
      28. BB. Grand Jury Subpoenas
      29. CC. Seizure Notices
      30. DD. Prepenalty Notices
      31. EE. Penalty Notices
      32. FF. Customs Audits
      33. GG. Penalties
      34. HH. Prior Disclosure
      35. II. Court of International Trade
      36. JJ. Appeals
      37. KK. Offers of Compromise
      38. LL. ITC and Commerce Questionnaires
  11. Part IV Global Customs Considerations
    1. Chapter 9. Determining the Proper Classification of a Product
      1. A. The Organization of the Tariff Schedules
      2. B. The General Rules of Interpretation
      3. C. Duty Rates
    2. Chapter 10. Determining the Proper Value to Declare
      1. A. Transaction Value
        1. 1. Additions to the Transaction Value
        2. 2. Deductions from the Transaction Value
        3. 3. Related Parties
      2. B. Transaction Value of Identical Merchandise
      3. C. Transaction Value of Similar Goods
      4. D. Deductive Value
      5. E. Computed Value
      6. F. Fall-Back Methodology
        1. 1. Unacceptable Methods
      7. G. First-Sale Transactions
    3. Chapter 11. Determining the Proper Country of Origin
      1. A. Preferential Duty Laws
        1. 1. Substantial Transformation
        2. 2. The 35 Percent Agreements
          1. a. GSP: Generalized System of Preferences
          2. b. CBERA: Caribbean Basin Economic Recovery Act
          3. c. AGOA: African Growth and Opportunity Act
          4. d. United States–Israel Free Trade Agreement
        3. 3. The Free Trade Agreement Tariff-Shift or Tariff-Shift Plus Regional Value Content Rules
          1. a. North American Free Trade Agreement (NAFTA)
            1. 1) Preference Criterion A
            2. 2) Preference Criterion B
            3. 3) De Minimis
            4. 4) Regional Value Content
            5. 5) Preference Criterion C
            6. 6) Preference Criterion D
            7. 7) Preference Criterion E
            8. 8) Preference Criterion F
            9. 9) Accumulation/Cumulation
            10. 10) Fungibility
            11. 11) Certificates of Origin
          2. b. The Other Free Trade Agreements
      2. B. Country of Origin Marking Laws
        1. 1. Country of Origin for Marking Purposes
        2. 2. NAFTA Country of Origin Marking Rules
        3. 3. Other Free Trade Agreement Marking Rules
      3. C. Federal Trade Commission Rules on “Made in the USA” Marking
      4. D. Government Procurement
        1. 1. The Buy American Act
        2. 2. The Trade Agreements Act and the WTO Agreement on Government Procurement
        3. 3. Other Buy American–Type Requirements
          1. a. Buy America
          2. b. The Berry Amendment
  12. Part V Specialized Exporting and Importing
    1. Chapter 12. Specialized Exporting and Importing
      1. A. Drawback
        1. 1. Unused Drawback
        2. 2. Rejected Merchandise Drawback
        3. 3. Manufacturing Drawback
      2. B. Foreign Processing and Assembly Operations
      3. C. Barter and Countertrade Transactions
  13. Appendix A. Incoterms Diagram
  14. Appendix B. International Sales Agreement (Export)
  15. Appendix C. Department of Defense – Compliance Program Guidelines
  16. Appendix D. Informed Compliance: Reasonable Care
  17. Appendix E. USITC Harmonized Tariff Schedule Contents
  18. Appendix F. International Purchase Agreement (Import)
  19. Appendix G. ACE Program and Standard Reports
  20. Appendix H. Guidance on Internet Purchases
  21. Appendix I. Regulatory Audit Questionnaires
  22. Appendix J. Export/Import–Related Web Sites
  23. Glossary of International Trade Terms
  24. Index