1. Scholar
Dr.Bidhan Mahajon
Guide
Dr. Remadevi.R. MD(AYU)
Professor and H.O.D
1
Department of Dravyaguna Vijnanam
V.P.S.V. Ayurveda College
Kottakkal

2. NATIONAL IMPORT AND EXPORT
REGULATION
• Topics for Discussion in Chapter
• Import Regulation
•
•
•
•
Assessment of Duties
Marking
Standards
Exceptions
• Export Regulation
• General License
• Validated License

3. IMPORT REGULATION
• Assessment of Duties-tax on imported good.
– Classification of Goods
• Source
– Harmonized Tariff Schedule-uniform classification
system used to classify goods for assessment of duties on
imported goods.
» Sections-22 sections that broadly cover products from
different industries.
» Chapter-99 chapters that groups products by industry
ranging from agricultural and components to finished
products. Headings and subheading follow chapter.

4. IMPORT REGULATIONS
• Assessment of Duties
– Classification of Goods
• Interpretation-when a good can be classified in more
than one tariff selection, must resort to General
Rules of Interpretation.
– Rule of Specificity-requires use of Heading that provides
the more specific description of the good over one that
gives a general description
– Essential Character-Heading for material, component, or
function that provides for essential character of good
– Deference is given to Customs Interpretation

5. IMPORT REGULATIONS
• Assessment of Duties
– Tariff Computation
• Forms of Tariff
» Ad Volorem Duties-percentage rate on imported
good.
» Specific Duty-specified amount on imported goods.
» Compound Duty-both ad valorem and specific duty.
• Tariff Computation
» Duty=Value of Good X Tariff Rate

6. IMPORT REQUIREMENTS
• Assessment of Duties
– Valuation of Goods is based on Transaction
Value of Good
• Transaction Value requires that the value of the
imported good be on a commercially realistic basis.
– Price of Identical Goods Sold to Unrelated customer.
– Deductive Value-Price of good sold in the United States
deducting international freight, duties and commissions.
– Computed Value-fabricated by adding the manufacturer’s
actual labor and material costs, along with estimates of its
general expenses.

7. IMPORT REQUIREMENTS
• Assessment of Duties
– Valuation of Goods
• Exemptions to Value of the Goods
– Section 9802-articles assembled abroad in whole or in
part of fabricated components that are products of United
States. Maquiladora
– Drawbacks-form of tax relief in which a lawfully
collected customs duty is refunded or remitted wholly or
in part because of the particular use made of the
commodity.
– Foreign Trade Zones-Zones outside custom territory
where activities take place and no duty until departure.

8. IMPORT REGULATION
• Assessment of Duties
– Country of Origin-determining the nationality
of a product.
• Approaches to determining Country of Origin
– Substantial Transformation-last country in which product
changed into different product.
– Value Added-based on percentage of component parts
making up finished good. Problem with this approach.
– Specific process Test-list the types of processes or
operations that are considered to confer origin of good
– Change in Tariff Classification-product changes tariff.

9. IMPORT REQUIREMENTS
• MARKING REQUIREMENTS
– In United States, imported goods must be
marked as to country of origin
• Whether or nor marking is required is determined if
the purchaser is the ultimate purchaser.
– Customs Modernization Act
• Importer is under a duty of reasonable care to
correctly classify and value the goods being
imported and keep proper records on imported good.

10. IMPORT REGULATION
• STANDARDS REQUIREMENT-use of product
quality, safety measures, quantity measure to impede imports.
– Agreements
• WTO Agreement of Technical Barriers to Trade
• WTO Agreement on Sanitary Phyto-Sanitary
• International Labor Organization
– Purpose
• Requires that member nation not use standards to
impede imports and makes rules transparent.

11. EXPORT REGULATION
• Agency
– Bureau of Export Administration publishes
export restriction.
• Restrictions
– Technical Information
– Goods
– Destination
• License Requirements
– Validate License
– General License

12. EXPORT REGULATION
• License Requirements
– General License-not required for individual
exporters
• Shipper’s Export Declaration
• Destination Control Statement
– Validated License-grants a specific license for
specific exporter for specific destination
– Is Country on Country List?
– Is Product on Commodity Control List

13. EXPORT REGULATIONS
• Government Agencies Relevant to
Exporting
– Department of Energy-nuclear technology and
Gas
– Department of Justice-Drugs
– Munitions- Department of State
– Environmental Protection Agency-Pesticides
– Patent and Trademark-Intellectual Property