International trade regulations are a way for the governments of different countries to regulate the movement of goods, services and people between them. These regulations can be in the form of tariffs, duties, and non-tariff barriers, and they are designed to help protect the environment, protect the health of citizens, and protect intellectual property rights.
Customs declared value
International trade regulations require traders to accurately declare the customs declared value of the goods they ship. Incorrect or misleading declared values can lead to significant civil penalties and even imprisonment.
The correct customs declared value is essential to a speedy and accurate import process. Failure to do so can delay shipments, affect the supply chain, and lead to criminal and civil penalties.
There are several ways to determine the customs value of goods. The WTO Customs Valuation Agreement provides for several accepted methods to determine the value.
The first method is known as the Transaction Value Method. This method is the primary valuation method. It calculates the ultimate transaction value of a shipment, which is usually the total amount paid for imported goods.
Customs valuation system
International trade regulations require Customs to value imported goods before assessing their duty liabilities. The most common way to do this is through the use of the transaction value method. This system relies on the total amount that was actually paid for the goods, as well as any payments made as a condition of sale.
In addition to a transaction value, Customs may choose to apply other valuation methods. These include the deductive value, the computed value, and the fall-back value.
When choosing a method, Customs should consider the rules and guidelines of the specific trade agreement in question. They should also be cognizant of the general principles of value.
Incoterms FCA (Free Carrier)
FCA or Free Carrier Incoterm is one of eleven International Chamber of Commerce (ICC) Incoterms. These terms are designed to help trade professionals determine what is a reasonable cost and a reasonable risk in transferring goods across international borders. The ICC created these rules in 1936. Since then, they have been updated every ten years.
FCA is a popular option among sellers because it allows them to keep more of the shipping process under their control. This means that they don’t have to worry about loading, transporting, and unloading the goods.
FCA can be used for both containerised and air cargo. While it may seem like a minor difference from the more common EXW Incoterm, it’s worth noting that FCA does include all the charges associated with transportation.
Comparative advantage matters for trade
Comparative advantage is one of the most important concepts in economic theory. It refers to the ability of an individual or a country to produce a good at a lower cost than another company.
The concept was first developed in the 19th century by David Ricardo, who suggested that countries had comparative advantage based on the relative abundance of their factors of production. This includes things such as labor, technology, and human capital.
Although Ricardo’s idea has been around for a while, it wasn’t until the late nineteenth century that it was firmly established as a key concept in economics. Since then, economists have continued to study the concept.
NAFTA bans tariffs on American imports
NAFTA is a trade agreement that was negotiated in 1992 between the United States, Canada, and Mexico. It was a free trade pact aimed at increasing trade and economic activity in North America.
While the overall effect of the trade pact has been positive, some critics say it has caused a net loss of jobs. These critics believe that the trade pact benefited multinational corporations, while hurting families and local governments.
Critics argued that NAFTA was responsible for a widening trade deficit and wage stagnation. But some economists argue that domestic manufacturing was already under stress decades before the pact was enacted.
The pact also introduced rules of origin. In the case of the auto industry, a certain percentage of car components needed to be manufactured in North America. Eventually, the rules of origin reached 75 percent.
NAFTA protects intellectual property rights
NAFTA provides a framework for effective protection and enforcement of intellectual property rights. These provisions ensure that the United States, Mexico and Canada can continue to trade with each other in a way that respects the other parties’ intellectual property rights.
Intellectual property rights are a form of ownership that allows a person or entity to develop a unique capacity to market and produce goods. These rights include copyrights, patents, trademarks and industrial designs. They provide a limited and time-bound benefit to the owner.
The United States, Mexico and Canada negotiated a new trade deal, the U.S.-Mexico-Canada Agreement (USMCA), after almost thirty years of bilateral relations. This agreement aims to continue the successful U.S.-Mexico trade relationship while bringing forward many advances in IPR protection.