Tuesday, October 20, 2009

Trade Terms Tuesday

Welcome to Trade Terms Tuesday! Each Tuesday, we will share three trade-related terms. In order to reach out to our diverse readership, we will try to provide one for exports, one for imports and one for logistics/transportation. Since we completed the alphabet last week, we will start over with the A’s this week.

Arrival Notice
Issued by the carrier, NVOCC, or other agent, this notice advises the consignee to the projected arrival or actual arrival of cargo.

Antidumping Duty, Dumping
Dumping is the sale of a commodity in a foreign market at less-than-fair value. Dumping is generally recognized as an unfair practice because the practice can disrupt markets and injure producers of competitive products in an importing country. The WTO permits imposition of antidumping duties equal to the difference between the price in the importing country and the normal value of the product in the exporting country. A penalizing tariff is imposed to discourage sale of foreign goods at less than a fair market price, which would be detrimental to local manufacturers.

The antiboycott laws were adopted to encourage, and in specified cases, require U.S. firms to refuse to participate in foreign boycotts that the United States does not sanction. They try to prevent U.S. firms from being used to implement foreign policies of other nations which do not agree with U.S. policy. The antiboycott provisions of the Export Administration Regulations (EAR) apply to the activities of individuals, corporations and unincorporated associations resident in the United States and certain other entities.

Conduct that may be penalized under the TRA and/or prohibited under the EAR includes:

  • Agreements to refuse or actual refusal to do business with or in Israel or with blacklisted companies.

  • Agreements to discriminate or actual discrimination against other persons based on race, religion, sex, national origin or nationality.

  • Agreements to furnish or actual furnishing of information about business relationships with or in Israel or with blacklisted companies.

  • Agreements to furnish or actual furnishing of information about the race, religion, sex or national origin of another person.

  • Implementing letters of credit containing prohibited boycott terms or conditions.

The TRA does not "prohibit" conduct but denies tax benefits ("penalizes") for certain types of boycott-related agreements.

1 comment:

LaurenM said...

Back to the A's! Wow... good info, thank you!