3. Customs 101: Basic Information Required
• Based on information provided by
importer, Customs must make several
basic decisions:
– Admissibility: Are the goods to be admitted to
the country under any circumstances?
– If admissible, under what conditions are the
goods to be admitted?
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4. Customs 101: Admissibility
• Admissibility: Not all goods may be
imported into a country, because of:
The nature of the goods. Contraband
(drugs), dangerous goods (weapons, bombs),
products of endangered species (elephant
tusks), etc.
The country of origin. In the U.S., for
example, products from Cuba and North
Korea, are prohibited
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5. Customs 101: Conditions for importing goods
• Importers must provide the following basic
information to Customs when importing
goods:
Country of origin: Determines admissibility (see
above) and whether special treatment, such as
reduced or punitive duties, are to be applied.
Description of goods: Imported goods must be
assigned a tariff code to know what rate of duty will be
applied and whether special treatment is required.
Value of goods: Usually, the amount of duty to be
paid is based on the ad valorem value of the goods,
which as a rule of thumb starts with the price paid by
the importer.
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6. Customs 101: Special Treatment for Imported Goods
• Preferential Treatment: Some imported
goods, depending on their origin and/or
nature, may be eligible for preferential
treatment, including reduced or zero Customs
duties.
Free Trade Agreements, such as NAFTA, give
reciprocal preferential treatment, subject to qualification
rules, to products of member countries. Unilateral trade
preference programs, such as GSP or AGOA, give
preferential treatment to goods from certain countries.
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7. Customs 101: Special Treatment for Imported Goods
• Punitive Treatment: Other imported goods,
depending on their origin and/or nature, are
subject to punitive treatment, such as
additional duties or quotas.
Anti-Dumping and Countervailing Duties are imposed
when the importing country determines that certain
goods are being unfairly priced so as to cause damage
to the domestic industry producing the same product.
Quantitative Restrictions, such as quotas, may be
imposed where the volume of certain imported goods is
deemed to damage or threaten domestic producers and
competition.
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8. Customs 101: Don’t Try This At Home
• Importing is highly regulated and the rules
enforced by the Customs authorities in all
countries.
• Violations, even if unintentional, can be
subject to severe civil and even criminal
penalties.
• Inform and protect yourself in your
international trade business by engaging
reputable Customs services professionals
to assist and represent you in importing.
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