Chap 10

Definition of Customs clearance

• Most of countries „do not like“ import goods

• the process of selling goods in a local market.

• Dictated by customs authorities

• complex process that an importer has to

  follow after bringing goods into a country

What is tax than an importer must pay in order to bring goods into a country ?

• Import duty
• Import tax
• Customs fee
• Export tax

How to calculate a duty?

• Type of goods

  „Harmonized System

  Number“ (HS-Code)

• Value of goods

  „Valuation methods“

  (tariff rate or duty rate)

• Origin of goods

• Comparative method

What is most frequently used duty valuation?

• Transaction value of the sale

• Comparative value method
• Residual method
• Transaction cost method

What is seldom used duty valuation method?

• Transaction Value Method
• Brussels Definition of Value (price)

• Residual Value Method
• Comparative Value Method

Which method is NOT universally adopted for determining the rules of origin?

• A) Substantial transformation

• B) Change in HS classification

• C) Transparent rules

• D) Both A and B

What is required from countries regarding their rules of origin?

• A) Adopt the U.S. Customs rules

• B) Provide a ruling on a country of origin within 100 days

• C) Make their rules of origin transparent and unbiased

• D) Follow the EU classification strictly

What does "substantial transformation" refer to in the context of rules of origin?

• A) The product's first point of manufacturing

• B) The country where the product is assembled

• C) The place where the product is sold

• D) The country where the product acquired its most substantial transformation

What does "change in HS classification" mean?

• A) The country of origin is where the product was first classified

• B) The country where the last change in the HS-classification occurred

• C) The country where the product is finished

• D) The country where the raw materials were sourced

What is a special case mentioned regarding rules of origin?

• A) Rules are determined by the first point of sale

• B) Rules are fixed and cannot be negotiated

• C) Rules are negotiated in free trade agreements between particular countries

• D) Rules are set by the country of import