Foreign Trade Zones
Source: http://ia.ita.doc.gov/ftzpage/tic.html
In reading and going over chapter 17, I learned a lot but what most interesting is that the field that I work in which is a Logistic Company and we export and import shipments all day long. We do lots from holding goods and receiving and shipping out goods to the Georgia Port Authority and we do custom paperwork. So this was very enlightening to me and there was lots of information on the internet. I choose this article because of the homework assignment that was given to us and I think that it was great information to anyone learning about FTZs.
Foreign trade zones (FTZs) are designated sites where special customs procedures apply. Foreign trade zones in the United States are comparable to so-called free trade zones in many countries, though procedures vary widely from country to country. FTZs allow domestic activity involving foreign items to take place as if it were outside the customs territory of the United States for duty payment purposes, thus offsetting customs advantages available to overseas producers who export in competition with products made in the United States.
WHAT IS AN FTZ?
A foreign trade zone is a restricted access site authorized by the Foreign-Trade Zones Board, which consists of the treasury and commerce secretaries (the secretary of commerce chairs the board). FTZs, upon activation under regulations of the U.S. Customs Service, are secure areas under U.S. Customs supervision. These zones are at or near U.S. Customs ports of entry. Formal customs entry procedures don?ft apply in these zones, although FTZs are within the territory and jurisdiction of the United States.
WHY WERE SUCH ZONES ESTABLISHED?
Congress established the Foreign-Trade Zones Board in 1934 to license and regulates FTZs in the United States. FTZs were established for a number of reasons, the primary being to encourage and expedite U.S. participation in international trade. Foreign goods may be admitted to an FTZ without being subject to customs duties and certain excise taxes. FTZs allow deferred payment of duties until goods are entered into the commerce of the United States. Under zone procedures, the usual customs entry procedures and payment of duties are not required on foreign merchandise until it actually enters customs territory for domestic consumption. Foreign mercha...
... middle of paper ...
...ms clearance. FTZs also assist state and local officials to develop their economies by attracting foreign commerce. And by helping U.S. companies improve their international competitiveness, FTZs can help retain local business and encourage the development of additional jobs. FTZs also facilitate international trade, as noted in the advantages above.
DO OTHER COUNTRIES HAVE FTZs?
Many other countries operate special customs areas, such as free trade zones (also referred to as FTZs) and export processing zones. U.S. exporters and other interested parties should contact the embassy or customs officials of individual countries for specific procedures, requirements, and arrangements. Although there may be several similarities, it should not be assumed that a free trade zone overseas operates under the same principles as a foreign trade zone in the United States. Contact information for foreign embassies is available by calling the Trade Information Center at 800- USA-TRADE, or by visiting www.export.gov/tic. Many U.S.freight forwarders also have working relationships with trade zones overseas and can provide information on the documentation required to ship goods through them.
Trade is the most common form of transferring ownership of a product. The concepts are very simple, I give you something (a good or service) and you give me something (a good or service) in return, everyone is happy. However, trade is not limited to two individuals. There are trades that happen outside national borders and we refer to that as international trading. Before a country does international trading, they do research to understand the opportunity costs and marginal costs of their production versus another countries production. Doing this we can increase profit, decrease costs and improve overall trade efficiency. Currently, there are negotiations going on between 11 countries about making a trade agreement called the Trans-Pacific
Office of Industries, U.S. International Trade Commission.(2009).Export controls: an overview of their use, economic effects, and treatment in the global trading system. Retrieved from United States International Trade Commission http://www.usitc.gov/publications/332/working_papers/ID-23.pdf
Prior to NAFTA (Inc. April 2006), “… tariffs of thirty percent or higher on export goods to Mexico were common, as were long delays caused by paperwork…. NAFTA addressed this imbalance by phasing out tariffs over 15 years. Approximately 50 percent of the tariffs were abolished immediately when the agreement took effect, and the remaining tariffs were targeted for gradual elimination.” According to Kimberly Amadeo (2015), article 102 of the NAFTA agreement outlines its purposes which is to “Grant the signatories Most Favored Nation status, eliminate barriers to trade and facilitate the cross-border movement of goods and services, promote conditions of fair competition, increase investment opportunities, provide protection and enforcement of intellectual property rights, create procedures for the resolution of trade disputes, and establish a framework for further, trilateral, regional, and multilateral cooperation to expand the trade agreement’s benefits.”. This quotation, condenses the agreement by stating that the intentions of NAFTA which was an agreement created to ease trade on imports and exports, by eliminating tariff barriers, in order to encourage competition and venture opportunities. Although, free trade is supposed to bring wealth, strength, and prosperity it should also
Just as Adam Smith supported the Navigation Acts in Great Britain to protect the navy (their chief means of defense; Smith 1776: 464), the United States has gone to great lengths to protect their chief means of defense: the technologically advanced electronics and machinery areas. The motive for these measures has not changed over the centuries. The desire to maintain superiority over other nations and to retain the ability to defend the sovereignty of the nation have remained an important aspect of both foreign and trade policy. It is the trade policy that we are most concerned with in this paper.
Slaves and slave trade has been an important part of history for a very long time. In the years of the British thirteen colonies in North America, slaves and slave trade was a very important part of its development. It even carried on to almost 200 years of the United States history. The slave trade of the thirteen colonies was an important part of the colonies as well as Europe and Africa. In order to supply the thirteen colonies efficiently through trade, Europe developed the method of triangular trade. It is referred to as triangular trade because it consists of trade with Africa, the thirteen colonies, and England. These three areas are commonly called the trades “three legs.”
The U.S Congress enacted the Tariff Act of 1789, which can also be known as the first major U.S tariff. To explain a little further, tariff acts are connected to federal trade policy by not only regulation, but they are one of the main factors of a way that the federal government controls taxes. This Tariff Act of 1789 was not only designed to raise revenues by placing a tax on the import of foreign goods, but encourage domestic production in business in the United States. In the same year, the Tonnage Act was also passed; this act placed a 50 cents tax on foreign ships entering American ports, 30 cents, on American built but foreign owned ships and 6 cents, on American ships. These two acts were the first two main tariffs in the United
The article “Open Trade, Closed Borders,” by Margaret Peters focuses on the many interactions between immigration policy and trade policy; in doing this Peters addresses multiple research questions. The overarching question that she is trying to solve is what causes variation in any given country’s policy on immigration? She specifically focuses on the immigration of low-skill workers in all of her examples in order to simplify the question. Other questions she asks are why do we not see open trade and open immigration at the same time, what happens if the changes in trade policies are not caused by outside factors, can trade affect immigration, can immigration drive trade policies, why is every sample country used in this research more restrictive today than before when it comes to immigration, and what are some other explanations for policies regarding immigration? All of the
Today alcohol is a part of culture all around the world. Even looking into the past alcohol has been a symbol to most countries. Alcohol has been a symbol for America’s culture since colonial times. Through Prohibition’s huge failure of banning the sale, transportation, and manufacture of alcohol, Americans showed how alcohol was an important to the culture of America. United States has surely been accustomed to controversies relating the consumption of alcohol. The most recent and ongoing controversy is whether the legal drinking age should be lowered from twenty-one to eighteen.
Our modern day society depends on technology for everything, can anyone imagine a life without their phone or computer? Probably not, social media and other popular applications have become so ingrained into our daily lives. Not only can we connect with people anytime throughout the day but we also have so many useful applications that help us on a daily basis. Thinking back to when I was eight years old, I couldn 't wait for sixth grade because my parents had promised to get me a cell phone, I remember counting down the days till the summer of fifth grade was over because I already knew which cell phone I wanted. Once I got it I couldn’t stop showing my mom all of the cool things it could do. Which looking back at it today, it really couldn
Technology has affected individual lives in many ways. One way is social media; it can help people be able to communicate online. They no longer have to see each other face to face or talk to each other on the phone. Another way is internet; people no longer need books to research things you can find almost anything on the internet now. It can also increase more Carpal Tunnel Syndrome and Computer Vision Syndrome.
The political force moved away from the painstakingly and time-consuming technique of multilateral tariff negotiations to smaller regional and bilateral provisions - the Regional Trade Agreement. In these arrangements; members accord preferential treatment , basically agreeing to liberalize the exchange of goods and services amongst each another giving regard to certain trade barriers. RTA is not the first-hand way of trade liberalization though. Initially, when multilateral trade discussions used to happen, two-sided and multiparty FTA”s filled the vacuum. There were restrictions from stringent and premeditated trade arrangements earlier, thus a lot of states are now moving towards freer trade for their own benefits.
All nations can get the benefits of free trade by being specialized in producing goods they have a comparative advantage and then trade them with goods produced by other nations in the world. This is evidenced by comparative advantage theory. Trade depends on many factors, country's history, institution, size and. geographical position and many more. Also, the countries put trade barriers for the exchange of their goods and services with other nations in order to protect their own company from foreign competition, or to protect consumers from undesirable products, or sometimes it may be inadvertent.
Thailand’s booming economy has encouraged me to begin a new business relationship with a highly recognized Thai company. I manufacturer a line of products for the sugar processing industry. I recently signed a one-year contract with Thai Chemiclas and Engineering Co. Ltd., located in Bangkok, to be my exclusive representative in the Thailand area. Thai Chemicals and Engineering will promote my product line and get it into the all the sugar mills in the area. They will purchase two containers per month for which we have negotiated a compatible price. The containers will be shipping out of Savannah, Georgia with a final destination of the port of Bangkok. The shipping terms will be CIF: Bangkok. I decided to use a local company to represent my product line for various reasons. First of all, I need someone that knows the culture and business environment who has an established relationship with other locals. Once my products become known, I would like to establish a factory in Thailand. Therefore, I found it necessary to gather all the information required to begin a new business in Thailand.
The notion of work-life balance has evolved greatly becoming ambiguous over time, along with the struggle of achieving it. It is important to realize that work-life balance can mean different things to different people. It can change and mean different things at various points in people’s careers. Work-life balance is the relative importance of work and personal life to a particular individual (work-life Balance, 2016) . With my own literal interpretation of the meaning behind this term, work-life balance is basically trying to find an equal level of work outside life. It is about having a perfectly-optimal career along with a perfectly-optimal life. But with close introspection you come to realize that work
Currently, almost 80% of products from Central America and the Dominican Republic already enter the United States duty-free. This is a direct result from unilateral preference programs such as the Caribbean Basin Initiative (CBI) and the Generalized System of Preferences (GSP).