9.0 EXPORT/IMPORT CUSTOMS PRACTICES
Customs is a government agency entrusted with enforcement of laws and regulations to collect and protect the export and import activities and to regulate the flow of goods in and out of the country. Each country has its own rules and regulation for export and import activities and there are some of goods that are restricted or forbidden to be exported and imported. Customs role are to avoid the prohibited goods to be bring into or bring out of the country. Practices is a method, procedure, process or rule used in a field or profession.
9.1 Role of Customs Department
There are many role and variety of objectives of Customs department. Firstly, it collects a customs duty on export and import. Secondy, it
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c) Accelerate economic growth
Third role of customs department is the collection of statistics. For future policy making, it is important for the economy to keep account of the flow of goods and services to and from the economy in its international trade relations. Economic Analysis Department monitor and analyse the performance of customs revenue collection on a continuous basis.
9.2 Types of Customs Duty
In customs, a tax levied by a government on the import and export of goods. Usually a tax imposed on imports by the customs authority of a country. A few example of Customs Duty are as follow:
a) Export Duty
Export duty is a duty imposed on export tariff. Customs will collect the duty when the goods are about to leave the country. For example, the export of canned food to Argentine will be imposed export duty by Customs Malaysia.
b) Import
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They are widely used in international commercial transactions or procurement processes as the use in international sales is encouraged by trade councils, courts as well asinternational lawyers. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. Incoterms inform sales contract defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer. However, it does not constitute contract or govern law. Also, it does not define where titles transfer and does not address the price payable, currency or credit
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
Trade, of course, is only part of a larger network of relationships between our two countries. This network evolves in response to many complex influences, and exporters need to consider how our two countries' ever-expanding, ever-changing relationships will affect their activities. To take just a few examples:
Cuba’s tariff system is defined in Law 124. This law sets out the operation and functions of the customs system. These laws and their regulations define requirements for import permits, establish import tariffs, and set out procedures for customs clearance.
Secondly, the existence of merchant may maintain the stability in border areas (South-East). And the oversea trade is also an extremely part of the tribute system that can display China’s powerfulness. Lastly，the author calls for lax of business environment and tax policy with the expectation of trade
Academic Consortium on International Trade (2000) Letter to Presidents of Universities and Colleges. Available at: http://www.spp.umich.edu/rsie/acit/ [Accessed 1 April 2014]
The Foreign Trade Zone is a designated area within a country that is setup so to help eliminate certain barriers in trade such as tariffs and bureaucratic regulations and is setup to help enhance global market presence by attracting foreign investors and new business, materials brought into the FTZ are not subject to customs duties, regulations or quotas, for customs purposes the FTZ is still outside of the country, however the material brought into an FTZ must be in the country legally, just because it may be legal in another country it must still comply with the laws of the country where the material is entering the FTZ. When the goods are sold to the consumers where the FTZ is located they are subject to the customs duty of that country, an FTZ can be described as a hub where raw materials, parts or components enter and a finished product or good is exported.
import taxes. Due to the Tariff Act of 1883 a tax needed to be paid on vegetables, but not for
Culture consists of the beliefs, behaviors, objects, and other characteristics common to the members of a group or society. Through culture, people and groups define themselves, conform to society 's shared values, and contribute to society. Thus, culture includes many elements of language, customs, values, norms, mores, rules, tools, technologies, products, organizations, and institutions. As elements, values and beliefs determine what is true and just in the society. Example, the American dream is to have a family, be wealthy and work hard. Then come the written rules called the norms. These define how to behave in accordance with the society. Example: The road stops signs, swimming pool “no running” signs and the no smoking area boards which are to be followed. Symbols and language are another indication that help people understand the world. Example: Sports uniforms,
A tax or duty to be paid on a particular class of imports or exports.
Despite the importance of globalization, the international intermodal transport systems have seen increased scrutiny to support new freight, volume, and distance regulations when freight moves. The technological improvements continue to permit larger quantities of freight to be moved more efficiently. The intermodal transport systems are crucial to further globalization. However, the transport systems themselves are not necessarily the grounds for greater international trade. Therefore, international trade necessitates dissemination groundwork that can secure the trade between numerous partners. The governing regulations within the international trade agreements substantiate trade measure accomplishments. These factors promote efficiencies or inefficiencies of the transportation groundwork. Furthermore, the transport systems infrastructure encourages or can impede the possibilities of international trade.
Exporting is the commercial activity of selling and shipping a good or goods to a foreign country. Importing is the commercial activity of buying and bringing in goods from a foreign country. The benefits of exporting and importing are good to a countries economy as it creates local jobs. The Honda plant in Alliston exports the Honda Civic (a three door hatchback and four-door sedan) as well it is the only facility in the world that builds the full-size Odyssey minivan and the Acura MDX sport utility vehicle.
Thailand establishes a lot of policies to control and protect the import and exports goods, Thailand control and manage the quotas of import goods, import license administration, and export registration, export quotas, export licensing administration. Other supporting measures are tariffs, domestic taxes levied, and import surcharges and special taxes to protect and support the export of particularindustries.Protection measures include security measures, anti-dumping and countervailing and technical barriers to trade.
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.
Foreign Customs: Since foreign customs regulations vary widely with each country, travelers are advised to learn in advance the regulations that apply to each country that will be visited. If allowances for cigarettes, liquor, currency, and certain other items, are not taken into account, they can be impounded at national borders. Business travelers that plan to carry product samples with them may be required to pay import duties. In some countries, duties and extensive customs procedures on sample products may be avoided by obtaining an ATA Carnet.
International trade is an economic practice where countries can import and export goods with no concerns to government intervention which includes tariffs and import/export bans or limitations. International trade has several advantages on developing countries; who are nations with low levels of economic resources or low standard of living. Developing countries can advance their economy through strategic free trade agreements. Free trade generally improves the quality of life of poor nations. Nations can import goods that are not easily available within their borders; importing goods may be cheaper for than trying to produce consumer goods. Many developing nations do not have the production procedures available for translating raw materials into valuable goods.