Abstract
The “foodgroups” of customs compliance include bonded warehousing, classification, valuation, origin, and special trade programs; but within the groups, origin issues are not a standalone element. On the contrary, origin decisions are intertwined within the company’s decisions and central to its supply chain and customs programs.
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Notes
- 1.
Drawback is the more common name to which this type of duty recovery is referred. IPR is the name specifically used within the European Union. IPR distinguishes itself from drawback as for IPR a license needs to be obtained prior to importation of the product that will be re-exported. Drawback has no such requirement. This makes it perhaps easier to go back in time and claim drawback, but the EU’s IPR license will only be issued in case the importer has an accounting system that can clearly identify the goods for which duty drawback files are claimed, making the refund process more organized from day 1. The EU distinguishes IPR drawback and IPR refund, with IPR refund as the required system mostly for excise goods.
- 2.
The main differences between OPR and US 9802 are that USA only allows limited transformation/processing, duty relief is based on HS code/value of exported product (EU) or a reduction in value over which duties are paid upon re-import of the finished product (US), and in the EU (like with IPR), a license is required prior to export of the goods to be returned.
- 3.
In a Dutch Tariefcommissie case (1995/45, nr 13023, of 19 October 1994), part of the case the court ruled on related to a Ferrari imported into the European Union without documentation regarding its origin and without claiming a duty exemption based on the returned good provisions is still a dutiable import. Although it is commonly known the Ferraris are solely manufactured in Italy (i.e., European Union origin) and the court was willing to confirm the country of origin of the Ferrari as being Italy, the importer that wanted to re-import the Ferrari as a returned good was denied his claim to duty-free treatment because the period allowed for goods to be outside the EU (3 years) had expired.
- 4.
In “Does offshoring still make sense?” John Ferreira and Len Prokopets review a variety of costs elements associated with “full landed costs.” Although the duty and FTA aspect is not worked out in detail, in “Is it possible to accurately calculate Total Landed Costs?” Steve Banker does elaborate on these aspects.
- 5.
Dual-use items are goods that can be used for multiple purposes. If the end use is associated with strategic or military purposes, the licensing requirements will likely be different from if the dual-use good is used for nonstrategic or nonmilitary purposes. In various countries, export licensing is not HS but Export Control Number or Export Commodity Control Number (ECN or ECCN) based. The required license is dependent on ECN/ECCN code, end use, end user, and country of (final) destination.
- 6.
For example, one of the most common product standards is CE Marking. Products can only be sold in the European Union if they are CE marked. The American Automobile Labeling Act requires all engines to list the level of USA, Mexican, and Canadian content, and also sets forth other labeling requirements on cars.
- 7.
Recent cases with food items and lead content in toys have resulted in renewed focus on labeling requirements, and more strict measures and penalties are put in place.
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© 2011 Springer-Verlag Berlin Heidelberg
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van de Heetkamp, A., Tusveld, R. (2011). Associated Programs. In: Origin Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-19808-3_9
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DOI: https://doi.org/10.1007/978-3-642-19808-3_9
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