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Customs Delays

"France, once required Japanese video players be cleared through a tiny Customs office in the town of Poitiers with horrendous delays..."

Exporters sometimes find that their goods are held up at foreign ports because of inexplicable delays by Customs Officials. These are sometimes the result of a deliberate government policy to restrict imports.

The Customs authorities may argue that the documentation or marking of the goods is not exactly as required.

Exporter documentation should try to give as little excuse as possible for such delays.

However, should the Customs authorities decide to inspect thoroughly each item imported, rather than just a sample, there will always be horrendous delays.

Canada once used this technique in the port of Vancouver to pressure Japan into agreeing to place "voluntary restraints" on auto exports to Canada.

 


Site Contents for:
Export Trade Barriers

Page 1/11 Tariff Barriers and Non-tariff barriers

Page 2/11 - About Tariff Lists, Dutiable Value and Anti Dumping Duties

Page 3/11 Countervailing Duties, "...substantial additional charge on export is the consular fee required..." Customs Nomenclature

Page 4/11 Free Trade Zone, Bonded Warehouses GATT now known as WTO

Page 5/11 European Directive and CE marking requirement 

 

 

 
 


Government Purchasing Policies

In some countries, government departments and agencies are required, officially or unofficially to buy locally made goods rather than imports. Japan, for example, has been accused of this practice.

In the United States, "Buy American" legislation requires that all or most goods bought by government departments and agencies be produced in that country.

In the latest GATT now known as WTO www.wto.org agreement, signatory countries are to drop this practice for contracts over $200,000, except for certain specified types of goods - such as telecommunications and electrical generating equipment.
 

Customs Valuation Procedures

Not all countries use the same method to assess the import duty on the value of goods imported. By using one method rather than another, an importing country can set a higher value on the goods and therefore levy a larger Ad Valorem duty.

One guilty country of such practice was Canada. Its previous Customs code allowed it to impose duty levels not directly related to the price paid for the goods but to what is termed "fair market value". This was branded by other countries, particularly the United Stated, as a non-tariff barrier and an unfair protective device.

It was defended by Canada as a necessary measure to prevent predatory export pricing by foreign firms and the setting of artificially low transfer prices on goods sold to Canadian subsidiaries by foreign multinational parent corporations.

 

 

Page 6/11 Trading Blocks, common tariff barrier &  European Economic Community

Page 7/11 ASEM Members, APEC -Asia Pacific Economic Cooperation, AABF Africa-Asia Business Forum CHOGM

Page 8/11 Exchange control and 'import quotas' together with 'tariffs' are the main form of protectionism

<<This Page 9/11 - France, once required Japanese video players be cleared through a tiny Customs office with horrendous delays. 

Page 10/11 APEC Asia-Pacific Economic Cooperation - This huge regional trade group from 21 nations accounts for more than half of the world's economic output and 42% of its population.

Page 11/11 The ASEAN Economic Community represents a huge market with a combined population of one 600 million people.

 

 

 

 

 
  Canada agreed to adopt in 1984 the standardized GATT customs valuation procedure. This has involved a switch from "fair market value" to "international transaction price" as the basis for assessment of import duties, at the Tokyo round of GATT trade negotiations that ended in 1979
 

Technical Barriers

These are technical standards set for imported goods designed to exclude them from the domestic market.

One example might be the requirement that the product should be packed in certain-sized containers when it would clearly be uneconomical for the foreign manufacturer to do so because of the small size of the market.

Another example, unnecessary health regulations may be used to exclude foreign goods.
 

Voluntary Restraints

Sometimes, when one of its domestic industries is being badly hurt by foreign imports, a government will undertake to persuade the exporting countries to voluntarily restrict their exports.

The government usually obtains co-operation for such a program of voluntary restraint by making explicit or implicit their intention to impose quotas or increase tariffs.

Voluntary restrain, as far as the exporting country is concerned, is the less disagreeable alternative. Canada and the EEC have used this policy to reduce imports of Japanese goods.

France, for example, once required that all imports of Japanese video players be cleared through a tiny Customs office in the inland town of Poitiers.
 

Next Page 10/11 APEC Asia-Pacific Economic Cooperation
This huge regional trade group together accounts for more than half of the world's economic output and 42% of its population.

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Site Contents for:
Export Trade Barriers

 


Site Contents for:
Secrets of
International Trade


 

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