Introduction

Glenn Derbyshire – B.Adm, B.Comm, Prof. Customs Broker (416) 491-5050 ext 6619 Office: Room B3069 Glenn.Derbyshire@senecac.on.ca

Export Import
CANADA

INDIA

Export

Import

=
Value$

World Trade Organization
• Established 1995 (G.A.T.T.) • Creates multilateral trading system • Legal ground rules for International trade • Binds governments to keep their trade policies within agreed limits

Dispute Settlement
• Mapped out stage by stage settlement procedure up to a panel of experts • Also an appeal process

Policy Review
• Review of trade policies of all countries to understand their impact • “Transparency” • Member countries agree to not change their import rules and tariffs unless agreed to by the WTO

Tariffs
• Most Favoured Nation Tariff • MFN ensures all members of the WTO treat each other equally under the tariff. • If two goods are being imported into a WTO Country (1), the same trade rules apply to both shipments, as long as the Origin countries (2) & (3) are WTO members. • The exception to this rule would be would occur if Country (1) had a separately negotiated trade agreement with one of the countries (2) or (3)

Intellectual Property
• Protecting :
– – – – – Copyrights Patents Trademarks Designs Trade secrets

When trade is involved

Other Aspects of WTO

• Agriculture • Textiles • Anti-Dumping and Subsidization

Customs Agencies
– Manage The Physical Movement of Goods, people and Conveyances across borders and frontiers – Implement Government policies

– Collection of Duties and Taxes – Protection of Society: Security
– Criminal – Terrorist

Customs Agencies
– – – – – – Environmental Protection Collection Of Statistical Information Trade Compliance Trade Facilitation Protection of Cultural Heritage Immigration

Duty
– A levy ,payment, or tax imposed by law on exported or imported goods Three types - Specific - ad valorem - mixture

World Customs Organization
• Began in 1947 • 159 members (USA, Canada, Japan, China, Germany, France, UK etc) • Members represent 95% of all world trade

World Customs Organization
Promotes an honest, transparent & largely predictable Customs environment through: - Harmonization - Co-operation - Communication

Harmonization: Origin of Goods
• Rules are worldwide as opposed to regional • Origin affects tariff treatment which affect duty rates • Trade agreements: Preferential Duty rates for goods originating from parties of the agreement.

Harmonization: Commodity Description
• Harmonized Commodity Description and Coding System • Implemented Jan 01/88 • The goods, their description -> 6 digit subheading • Chapter: First 2 digits • Heading: First 4 digits • Sub heading: First 6 digits Example: Tomatoes Harmonized Classification #: 2002.10 Chapter: Heading: Subheading: 20 2002 2002.10

Harmonization: Commodity Description
Example: Disposable Lighters Harmonized Classification #: 9613.10 Chapter: Heading: Subheading: 96 9613 9613.10

Harmonization: Valuation

• Transaction Value:
“The price actually paid or payable by the buyer to the seller for the goods imported”

Harmonization: Valuation

• Transaction Value: The amount of money going to the exporter from the importer must match the value declared by the importer to the Customs Authorities of the importing country.