How to Import into the US

FOOD, DRUGS, COSMETICS AND MEDICAL DEVICES

15. Foods, Cosmetics, Etc. The importation into the United States of food, beverages, drugs, devices, and cosmetics is governed by the provisions of the Federal Food, Drug, and Cosmetics Act, which is administered by the Food and Drug Administration of the Department of Health and Human Services, Rockville, MD. 20857. That Act prohibits the importation of articles that are adulterated or misbranded including products that are defective, unsafe, filthy, or produced under unsanitary conditions. The term “misbranded” includes statements, designs, or pictures in labeling that are false or misleading and failure to provide required information in labeling.

Imported products regulated by the Food and Drug Admistration are subject to inspection at the time of entry. Shipments found not to comply with the laws and regulations are subject to detention. They must be brought into compliance, destroyed, or re-exported. At the discretion of the Food and Drug Administration, an importer may be permitted to bring a nonconforming importation into compliance if it is possible to do so. Any sorting, reprocessing, or relabeling must be supervised by the Food and Drug administration at the expense of the importer.

Various imported foods such as confectionery, dairy products, poultry, eggs, and egg products, meats, fruits, nuts, and vegetables are also subject to requirments of other agencies as has been previously discussed. Seafoods are also subject to the requirements of the National Marine Fisheries Service of the National Oceanic and Atmospheric Administration of the Department of Commerce, 1335 East-West Highway, Silver Spring, Md. 20910.

16. Biological Drugs. The manufacture and importation of biological products for human consumption are regulated under the Public Health Service Act. Domestic and foreign manufacturers of such products must obtain a license for both the manufacturing establishment and the product intended to be produced or imported. Additional information may be obtained from the Food and Drug Administration, Department of Health and Human Services, Rockville, Md. 20857.

Biological drugs for animals are regulated under the Virus Serum Toxin Act administered by the Department of Agriculture. The importation of viruses, serums, toxins and analogous products, and organisms and vectors for use in the treatment of domestic animals is prohibited unless the importer holds a permit from the Department of Agriculture covering the specific product. These importations are also subject to special labeling requirements.

17. Biological Materials and Vectors. The importation into the United States for sale, barter, or exchange of any virus, therapeutic serum, toxin, antitoxin, or analogous products, or arsphenamine or its derivatives (or any other travalent organic arsenic compound), except materials to be used in research experiments applicable to the prevention, treatment, or cure of diseases or injuries of man is prohibited unless these products have been propagated or prepared at any extablishment holding an unsuspended and unrevoked license for such manufacturing issued by the Secretary of the Department of Health and Human Services. Samples of the licensed product must accompany each importation for forwarding by the port director of Customs at the port of entry to the Director, Center for Biologics Evaluation and Research, 5600 Fishers Lane, Rockville, MD 20867.

A permit from the U.S. Public Health Service, Atlanta, Georgia 30333, is required for shipments of any etiological agent or insect, animal or plant vector of human disease or any exotic living insect, animal, or plant capable of being a vector of human disease.

18. Narcotics Drugs and Derivatives. The importation of controlled substances including narcotics, marijuana and other dangerous drugs is prohibited except when imported in compliance with regulations of the Drug Enforcement Administration of the Department of Justice, Washington, D.C. 20537. Examples of some of the prohibited controlled substances are amphetamines; barbituates; coca leaves and derivatives such as cocaine; hallucinogenic substances such as LSD, mescaline, peyote, marijuana and other forms of cannabis; opiates including methodone; opium including opium derivatives, such as morphine and heroine; synthetic substitutes for narcotic drugs.

19. Drug Paraphernalia. Items of drug paraphernalia are prohibited from importation or exportation under Section 863, Title 21 of the United States Code. The term “drug paraphernalia” is defined as any equipment, product, or material of any kind which is primarily intended or designed for use in manufacturing, compounding, converting, concealing, producing, processing, preparing, injecting, ingesting, inhaling, or otherwise introducing into the human body a controlled substance, possession of which is unlawful under the Controlled Substance Act (Title II of Public Law 91-513). Items of drug paraphernalia include, but are not limited to, the following items:

• Metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without screens, permanent screens, hashish heads, or punctured metal bowls;
• Water pipes;
• Carburetion tubes and devices;
• Smoking and carburetion masks;
• Roach clips; meaning objects used to hold burning material, such as a marijuana cigarette, that has become too small or too short to be held in the hand;
• Miniature spoons with level capacities of one-tenth cubic centimeter or less;
• Chamber pipes;
• Carburetor pipes;
• Electric pipes;
• Air-driven pipes;
• Chilliums;
• Bongs;
• Ice pipes or chillers;
• Wired cigarette papers; or
• Cocaine freebase kits.

ELECTRONIC PRODUCTS

13. Radiation-Producing Products, Including Sonic Radiation. Television receivers, cold-cathode gas discharge tubes, microwave ovens, cabinet and diagnostic X-ray equipment and devices, laser products, ultrasound generating equipment, sunlamps, and other electronic products for which there are radiation performance standards are subject to the Radiation Control for Health and Safety Act of 1968. An electronic product imported for sale or use in the United States for which there is a radiation performance standard may be imported only if there is filed with each importation an importer’s entry notice (Form FD 701) and an electronic product declaration (Form FD 2877), both of which are issued by the Food and Drug Administration, Center for Devices and Radiological Health, Rockville, MD 20850.

The declaration must describe the compliance status of the product. the importer must affirm that the product was (1) manufactured prior to the effective date of the applicable Federal standard; or (2) complies with the standard and has a label affixed by the manufacturer certifying compliance; or (3) does not comply with the standard but is being imported only for purposes of research, investigation, study, demonstration, or training; or (4) does not now comply with the standard but will be brought into compliance. The provisions of the Radiation Control for Health and Safety Act apply to electronic products manufactured in the United States, as well as to imported products.

14. Radio Frequency Devices. Radios, tape recorders, stereos, televisions, citizen band radios or combinations thereof, and other radio frequency devices are subject to radio emission standards of the Federal Communications Commission, Washington, D.C. 20554, (202) 418-1170, under the Communications act of 1934, as amended. Importations of such products may be accompanied by an FCC declaration (FCC 740) certifying that the imported model or device is in conformity with, will be brought into conformity, or is exempt from, the Federal Communication Commissions requirements.

CONSUMER PRODUCTS-SAFETY

Any consumer product offered for importation will be refused admission if the product fails to comply with an applicable consumer product safety rule, specified labeling or certification requirements, or is determined to be a hazardous product or contain a product defect which constitutes a substantial product hazard.

12. Flammable Fabrics. Any article of wearing apparel or interior furnishing, or any fabric or related material which is intended for use or which may be used in wearing apparel or interior furnishing cannot be imported into the United States if it fails to conform to an applicable flammability standard isued under Section 4 of the Flammable Fabrics Act. This Act is administered by the by the U.S. Consumer Product Safety Commission, Washington, D.C. 20207. Certain products can be imported into the United States as provided in Section 11(c) of the Act for the purpose of finishing or processing to render such products not so highly flammable as to be dangerous when worn by individuals, provided that the exporter state, on the invoice or other paper relating to the shipment, that the shipment is being made for that purpose. The provisions of the Flammable Fabrics Act apply to products manufactured in the United States as well as to imported products.

CONSUMER PRODUCTS-ENERGY CONSERVATION

11. Household appliances. The Energy Policy and Conservation Act, as ammended calls for energy standards for household consumer appliances and for labeling them to indicate expected energy or secretions of consumption. The Department of Energy, Office of Codes and Standards, Washington, D.C. 20585, is responsible for test procedures and energy performance standards. The Federal Trade Commission, Division of Enforcement, Washington, D.C. 20580, regulates the labeling of these appliances. The Act covers the following consumer products: (1) refrigerators and refrigerator-freezers; (2) freezers; (3) dishwashers; (4) clothes dryers; (5) water heaters: (6) room air conditioners; (7) home heating equipment, not including furnaces; (8) kitchen ranges and ovens; (9) clothes washers; (10) humidifiers and dehumidifiers; (11) central air conditioners; (12) furnaces; (13) certain other types of household consumer appliances, as appropriate.

Importation of these products must comply with the applicable Department of Energy and Federal Trade Commission requirements. Importers should contact these agencies for requirements which will be in effect at the time of anticipated shipment. It should be noted that not all appliances are covered by requirements of both agencies.

ARMS, AMMUNITION, AND RADIOACTIVE MATERIALS

9. Arms, Ammunition, Explosives, and Implements of War. These items are prohibited for importation except when a license is issued by the Bureau of Alcohol, Tobacco and Firearms of the Department of the Treasury, Washington, D.C. 20226, (202) 927-8320, or the importation is in compliance with the regulations of that department. The temporary importation, in-transit movement, and exportation of arms and ammunition is prohibited unless a license is issued by the Office of Defense Trade Controls, Department of State, Washington, D.C. 20520. Any questions about exporting shotguns should be referred to the U.S. Department of Commerce, Exporter Assistance Staff, Washington, D.C. 20230.

10. Radioactive Materials and Nuclear. Many radioisotopes, all forms of uranium, thorium, and plutonium, and all nuclear reactors imported into the United States are subject to the regulations of the Nuclear Regulatory Commission in addition to import regulations imposed by any other agency of the United States. Authority to import these commodities or articles containing these commodities requires a license from the Nuclear Regulatory Commission, Washington, D.C. 20555.

Radioisotopes and radioactive sources intended for medical use are subject to the provisions of the Federal Food, Drug, and Cosmetic Act, which is enforced by the Food and Drug Administration.

In order to comply with Nuclear Regulatory Commission requirements, the importer must be aware of the identity and amount of any NRC-controlled radioisotopes, or uranium, thorium, and plutonium, and of any nuclear reactor being imported into the United States. To assure passage through Customs, the importer must demonstrate to U.S. Customs which Nuclear Regulatory authority the controlled commodity is being imported under. The authority cited may be the number of a specific or general license, or the specific section of the Nuclear Regulatory Commission regulations which establishes a general license or grants an exemption to the regulations. The foreign exporter may save time for the prospective importer by furnishing him complete information concerning the presense of NRC-controlled commodities in U.S. importation.

II. ALCOHOLIC BEVERAGES IMPORT REQUIREMENTS

Any person or firm wishing to engage in the business of importing distilled spirits, wines, or malt beverages into the United States must first obtain an importer’s basic permit from the Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury, Washington, D.C. 20226, Tel. (202) 925-8110. That agency is responsible for administering the Federal Alcohol Administration Act.

Distilled spirits imported in bulk containers of a capacity of more than one gallon may be withdrawn from Customs custody only by persons to whom it is lawful to sell or otherwise dispose of distilled spirits in bulk. Bulk or bottled shipments of imported spirits or distilled or intoxicated liquors must at the time of importation be accompanied by a copy of a bill of lading or other documents, such as an invoice, showing the name of the consignee, the nature of its contents, and the quantity contained therein (18 U.S.C. 1263).

U.S. Customs will not release alcoholic beverages destined to any state for use in violation of its laws, and the importation of alcoholic beverages in the mails is prohibited.

The United States adopted the metric system with the enactment of the Metric Conversion Act of 1975. In general, imported wine must conform with the metric standards of fill if bottled or packed on or after January 1, 1979. Imported distilled spirits, with some exceptions, must conform with the metric standards of fill if bottled or packed on or after January 1, 1980. Distilled spirits and wines bottled or packed prior to the respective dates must be accompanied by a statement to that effect signed by a duly authorized official of the appropriate foreign country. This statement may be a separate document or be shown on the invoice. Malt beverages including beer are not subject to metric standards or fill.

MARKING

Imported wines in bottles and other containers are required to be packaged, marked, branded, and labeled in accordance with the regulations in 27 CFR Part 4. Imported malt beverages, including alcohol-free and nonalcoholic malt beverages, are also required to be labeled in conformance with the regulations in 27 CFR Part 7.

Each bottle, cask or other immediate container of imported distilled spirits, wines, or malt beverages must be marked for Customs purposes to indicate the country of origin of the alcoholic beverages contained therein, unless the shipment comes within one of the exceptions outlined by the Bureau of Alcohol, Tobacco and Firearms. Contact BATF for information on these exceptions.

CERTIFICATE OF LABEL APPROVAL

Labels affixed to bottles of imported distilled spirits and wine must be covered by certificates of label approval issued to the importer by the Bureau of Alcohol, Tobacco and Firearms. Certificates of label approval or photostatic copies must be filed with Customs before the goods may be released for sale in the United States. Certificate of label approval requirements must also be met for fermented malt beverages if simalar to the Federal requirements (27 CFR Parts 4, 5 and 7).

FOREIGN DOCUMENTATION

Importers of wines and distilled spirits should consult the Bureau of Alcohol, Tobacco and Firearms about foreign documentation required; for example, certificates of origin, age, etc.

ALCOHOLIC REQUIREMENTS OF OTHER AGENCIES

In addition, importation of alcoholic beverages is subject to the specific requirements of the Food and Drug Administration. Certain plant materials when used for bottle jackets for wine or other liquids are subject to special restrictions under plant quarantine regulations of the Animal and Plant Health Inspection Service (APHIS). All bottle jackets made of dried or unmanufactured plant materials are subject to inspection upon arrival and are referred to the Department of Agriculture.

Wines or distilled spirits from countries require original certificates of origin as a condition of entry: Bulgaria, Canada, Chile, France, Federal Republic of Germany, Republic of Ireland, Jamaica, Mexico, Portugal, Romania, Spain and United Kingdom.

Public Law 100-690, codified under 27 U.S.C. 213-219A, requires that a health warning appear on the labels of containers of alcohol beverages bottled on or after November 18, 1989. The Government warning states that: (1) According to the Surgeon General, women should not drink alcoholic beverages during pregnancy because of the risk of birth defects. (2) Consumption of alcoholic beverages impairs your ability to drive a car or operate machinery and may cause health problems.

AGRICULTURAL COMMODITIES

1. Cheese, Milk, and Dairy Products. Cheese and cheese products are subject to the requirements of the Food and Drug Administration and the Department of Agriculture. Most importations of cheese require an import license and are subject to quotas administered by the Department of Agriculture, Foreign Agricultural Service, Washington, D.C. 20250.

The importation of milk and cream is subject to requirements of the Food, Drug and Cosmetic Act and the Import Milk Act. These products can be imported only by obtaining permits from the Department of Health and Human Services, Food and Drug Administration, Center for Food Safety and Applied Nutrition, Office of Labeling (HFS-156), 200 C Street, N.W., Washington, D.C. 20202; and the Department of Agriculture.

2. Fruits, Vegetables, and Nuts. Certain agricultural commodities (including fresh tomatoes, avocados, mangoes, limes, oranges, grapefruit, green peppers, Irish potatoes, cucumbers, eggplants, dry onions, walnuts and filberts, processed dates, prunes, raisins, and olives in tins) must meet United States import requirements relating to grade, size, quality, and maturity (7 U.S.C. 608(e). Inquiries on general requirements should be made to the Agricultural Marketing Service of the Department of Agriculture, Washington, D.C. 20250. Additional restrictions may be imposed by the Animal and Plant Health Inspection Service (APHIS) of that department, Washington, D.C. 20782, under the Plant Quarantine Act, and by the Food and Drug Administration, Division of Import Operations and Policy (HFC-170), 5600 Fishers Lane, Rockville, Md. 20857, under the Federal Food, Drug and Cosmetic Act.

3. Insects. Insects in a live state which are injurious to cultivate crops (including vegetables, field crops, bush fruit, and orchard, forest, or shade trees) and the eggs, pupae, or larvae of such insects are prohibited for importation, except for scientific purposes, under the regulations prescribed by the Secretary of Agriculture.

All packages containing live insects or their eggs, pupae, or larvae, which are not injurious to crops or trees, are allowed to enter the United States only if covered by a permit issued by the Animal and Plant Health Inspection Service (APHIS) of the Department of Agriculture and are not prohibited by the U.S. Fish and Wildlife Service.

4. Livestock and Animals. Inspection and quarantine requirements of the Animal and Plant Health Inspection Service (APHIS) of the Department of Agriculture must be met for the importation of (1) all cloven-hoofed animals, such as cattle, sheep, deer, antelope, camels, giraffes; (2) swine including the various varieties of wild hogs and the meat from such animals; (3) horses, asses, mules, and zebras; (4) animal by-products, such as untaned hides, wool, hair, bones, bone-meal, animal casings, glands, organs, extracts, or secretions of ruminants and swine; (5) animal germ-plasm, including embryos and semen; and (6) hay and straw. A permit for importation must be obtained from that agency before shipping from the country of origin.

In addition, all animal imports must be accompanied by a health certificate. Entry procedures for livestock and animals from Mexico and Canada are not as rigorous as those for animals from other countries. Entry of animals is restricted to cetain ports which are designated as quarantine stations. A special offshore, high-security facility, the Harry S. Truman Animal Import Center, has been established at Key West, Florida, so that livestock can be safely quarantined when imported from countries affected with foot and mouth disease (FMD) or other serious animal diseases that do not occur in the United States.

5. Meat and Meat Products. All commercial shipments of meat and meat food products (derived from cattle, sheep, swine, goats, and horses) offered for entry into the United States are subject to the regulations of the Department of Agriculture and must be inspected by the Animal and Plant Health Inspection Service (APHIS) and the Food Safety and Inspection Service of that department prior to release by U.S. Customs. Meat products from other sources (including, but not limited to wild game) are subject to APHIS regulations and the provisions of the Federal Food, Drug, and Cosmetics Act, which is enforced by the Food and Drug Administration.

6. Plant and Plant Products. The importation of plants and plant products is subject to the regulations of the Department of Agriculture and may be restricted or prohibited. Plants and plant products include fruits, vegetables, plants, nursery stock, bulbs, roots, seeds, certain fibers including cotton and broomcorn, cut flowers, sugarcane, certain cereals, elm logs and elm lumber with bark attached. Import permits are required. Further information should be obtained from the Animal and Plant Health Inspection Service (APHIS). Also, certain endangered species of plants may be prohibited or require permits or certificates. The Food and Drug Administration also regulates plant and plant products, particularly fruits and vegetables.

7. Poultry and Poultry Products. Poultry, live, dressed, or canned; eggs, including eggs for hatching; and egg products are subject to the requirements and regulations of the Animal and Plant Health Inspection Service (APHIS) and the Food Safety and Inspection Service of the Department of Agriculture.

Except for live poultry and poultry products entering through land ports from Canada, permits are required, as well as special marking and labeling; and in some cases, foreign inspection certification. The term “poultry” is defined as any live or slaughtered domesticated bird, e.g., chickens, turkeys, ducks, geese, swans, partriges, guinea fowl, pea fowl, non-migratory ducks, pigeons, and doves. Other birds (e.g., commercial, domestic, or pen-raised grouse, pheasants and quail, and migratory birds) as well as certain egg products are subject to APHIS regulations and to the provisions of the Federal Food, Drug, and Cosmetics Act, enforced by the Food and Drug Administration. Inquiry should also be made to the Fish and Wildlife Service, Washington, D.C. 20240, about their import requirements, restrictions, and prohibitions.

8. Seeds. The importation into the United States of agricultural and vegetables seeds and screenings is governed by the provisions of the Federal Seed Acto 1939 and regulations of the Agricultural Marketing Service, Department of Agriculture. Shipments are detained pending the drawing and testing of samples.

An individual may make his/her own Customs clearance of goods imported for personal use or business. All merchandise coming into the United States must clear Customs and is subject to a Customs duty unless specifically exempted by law. Clearance involves a number of steps: entry, inspection, appraisement, classification and liquidation.

The U.S. Customs Service does not require an importer to have a license or permit. Other agencies may require a permit, license, or other certification, depending on what is being imported. Customs entry forms do ask for your importer number. This is either your IRS business registration number, or if your business is not registered with the IRS or you do not have a business, your social security number.
The importer must declare the dutiable value of merchandise. The final appraisement is fixed by Customs. Several appraisement methods are used to arrive at this value. The transaction value serves as the primary basis of appraisement. Transaction value is the price actually paid or payable by the buyer to the seller for the goods imported. Other factors may also add to the dutiable value of merchandise, such as packing costs, selling commissions, royalty or licensing fees, etc. When the transaction value cannot be determined, then the value of the imported goods being appraised is the transaction value of identical merchandise. If merchandise identical to the imported goods cannot be found or an acceptable transaction value for such merchandise does not exist, then the value is the transaction value of similar merchandise. Similar merchandise means merchandise that is produced in the same country and by the same person as the merchandise being appraised. It must be commercially interchangeable with the merchandise being appraised. The identical or similar merchandise must have been exported to the United States at or about the same time the merchandise being appraised is exported to the United States.
The importer must determine the classification number of the merchandise being imported. The Harmonized Tariff Schedule of the United States (HTSUS), issued by the United States International Trade Commission, prescribes the classification of merchandise by type of product; e.g., animal and vegetable products, textile fibers and textile products.
The importer must pay estimated duties and processing fees if applicable. Customs makes the final determination of the correct rate of duty. The duty rate of an item is tied to its classification number. The HTSUS provides several rates of duty for each item: general rates for countries with which we maintain normal trade relations (NTR); special rates for special programs (free, or lower than the rates currently accorded NTR countries); and column 2 rates for imports not eligible for either general or special rates. Customs duties are generally assessed at ad valorem rates, a percentage of which is applied to the dutiable value of the imported goods. Some articles, however, are dutiable at a specific rate (so much per piece, liter, kilo, etc); others at a compound rate of duty (i.e., combination of both ad valorem and specific rates).
If formal entry is required – the importer may have to post a surety bond.
It is the importers responsibility to ensure that his or her goods being imported meet admissibility requirements – such as proper marking, safety standards, etc. – and that the proper permits, if required, have been obtained in advance of the goods arriving in the United States.

United States Trade Representative

The USTR is a cabinet-level official with the rank of Ambassador who advises the President on trade policy. The USTR coordinates the development of U.S. trade policy initiatives; leads U.S. international trade negotiations; and seeks to expand U.S. exports by promoting removal or reduction of foreign trade barriers.

U.S. Munitions List

The USML identifies those items or categories of items considered to be defense articles and defense services subject to export control. The USML, is similar in coverage to the International Munitions List (IML), but is more restrictive in two ways. First, the USML, currently contains some dual-use items that are controlled for national security and foreign policy reasons (such as space-related or encryption-related equipment). Second, the USML contains some nuclear- related items. Under Presidential directive, most dual-use items are to be transferred from the USML, to the Commerce Department’s dual-use list. State, with the concurrence of Defense, designates which articles will be controlled under the USML. Items on the Munitions List face a stricter control regime and lack the safeguards to protect commercial competitivei~ess that apply to dual-use items.

Validated Export License

A document issued by the U.S. Government authorizing the export of commodities for which written export authorization is required by law. Compare: General Export License.

Value

Value is the selling price or cost if not sold, including freight, insurance, and other charges to U.S. port of export, but excluding unconditional discounts and commissions. On the SED, value should be reported to the nearest whole dollar, omit cents. Report one value for each Schedule B number.

Value-Added Tax

A European Community (EC) tax assessed on the increased value of goods as they pass from the raw material stage through the production process to final consumption. The tax on processors or merchants is levied on the amount by which they increase the value of items they purchase. The EC charges a tax equivalent to the value added to imports and rebates value-added taxes on exports.

Visa

Visas are required by many countries for entry of a foreigner. A visa is a stamp in a foreign national’s passport issued by a U.S. consular officer which creates a legal presumption that there are no apparent reasons to deny entry into the U.S. Regardless of the stamp, the final decision to grant admission is made by an officer of the U.S. Immigration Service at the port of entry.

Visa Waiver

A program of selected countries to eliminate the visa requirement on a test basis.

Voluntary Export Restriction

An understanding between trading partners in which the exporting nation, in order to reduce trade friction, agrees to limit its exports of a particular good. Also called Voluntary restraint agreement.

Voluntary Restraint Agreement

Informal bilateral or multilateral understandings in which exporters voluntarily limit exports of certain products to a particular country destination in order to avoid economic dislocation in the importing country and the imposition of mandatory import restrictions. These arrangements do not involve an obligation on the part of the importing country to provide “compensation” to the exporting country, as would be the case if the importing country unilaterally imposed equivalent restraints on imports. See: Voluntary Export Restriction.

Warehouse Receipt

A receipt issued by a warehouse listing goods received for storage.

Webb-Pomerene Association

Associations engaged in exporting that combine the products of similar producers for overseas sales. These associations have partial exemption from U.S. anti-trust laws but may not engage in import, domestic or third country trade or combine to export services.

Wharfage

A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.

With Average (W.A.)

A marine insurance term meaning that a shipment is protected from partial damage whenever the damage exceeds 3 percent (or some other percentage).

Without Reserve

A term indicating that a shipper’s agent or representative is empowered to make definitive decisions and adjustments abroad without approval of the group or individual represented. Compare: Advisory Capacity.

World Bank Group

An integrated group of international institutions that provides financial and technical assistance to developing countries. The group includes the International Bank for Reconstruction and Development, the International Development Association, and the International Finance Corporation.

World Intellectual Property Organization

WIPO, a specialized agency, is a part of the United Nations system or organizations. Located in Geneva, WIPO promotes protection of intellectual property around the world through cooperation among states, and administers various “Unions,” each founded on a multilateral treaty and dealing with the legal and administrative aspects of intellectual property.

World Trade Organization (WTO)

The WTO is the only global international organization dealing with the rules of trade between nations. At its heart are the WTP agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments.

World Traders Data Reports

WTDRs is an International Trade Administration fee-based service which provides a background report on a specific foreign firm, prepared by commercial officers overseas. WTDRs provide information about the type of organization, year established, relative size, number of employees, general reputation, territory covered, language preferred, product lines handled, principal owners, financial references, and trade references. WTDRs include narrative information about the reliability of the foreign firm.

Zangger Committee

The Zangger Committee of the Nonproliferation Treaty Exporters examines controls enacted pursuant to the Nuclear Nonproliferation Treaty by refining the list of items requiring nuclear safeguards. The Zangger Committee consists of 23 Nuclear Non-Proliferation Treaty (NPT) nuclear supplier nations which includes all nuclear weapons states except France and China. Through a series of consultations in the early 1 970s, the countries of the Zangger Committee compiled a “trigger list” of nuclear materials and equipment. The shipment of any item on the list to a non-nuclear weapons state “triggers” the requirement of International Atomic Energy Agency (IAEA) safeguards. Since the Zangger Committee is associated with the NPT, its members are obligated to treat all non-nuclear weapons parties to the treaty alike. For fear of discrediting the NPT, the Zangger countries cannot target strict nuclear controls toward certain nations with questionable proliferation credentials; the NPT binds them to assist non-nuclear weapons states with peaceful atomic energy projects.

Trade Adjustment Assistance

TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by Commerce; TAA for workers is administered by Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm’s workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm’s sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports.

Trade Adjustment Assistance Centers

TAACs are nonprofit, non-government organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the Commerce Department as a primary source of technical assistance to certified firms.

Trade and Development Agency

The TDA started within the Agency for International Development but was spun off as an independent agency in 1981. TDA offers tied aid and resembles Japan’s tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services.

Trade Balance. See: Balance of Payments

Trade Barriers

The United States Trade Representative classifies trade barriers into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector).

Trade Concordance

Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard Industrial Trade Classification (SITC) system. The Bureau of the Census, the United Nations, as well as individual Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data.

Trade Mission

Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. ITA trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. hA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies.

Trade Opportunities Program

The Trade Opportunities Program, TOPS, is an International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including as specifications, quantities, end use, and delivery deadlines. TOPs are telexed to Washington and listed on the Commerce Department’s Economic Bulletin Board and redistributed by the private sector.

Trade Policy Committee

The TPC is a cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the USTR) to provide broad guidance on trade issues. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and th~ other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. The Trade Policy Review Group (TPRG) is a subcabinet group which meets about once a week. The TPRG is an ad hoc creation that was not established by law. TPRG membership is fairly fluid, so that agencies which want to participate in a particular discussion can sit at the table. The Trade Policy Staff Committee (TPSC) has met approximately once a year since 1988. TPSC was established by law to obtain advice from the private sector on topics such as retaliation; it generally serves as a paper clearance structure. Beneath the TPSC is a large number (between 60-to-100) of TPSC subcommittees. Subcommittees are not independent; they are established ad referendum, to deal with topics of interim interest and are sometimes no more than phone and fax lists of interested parties on a given issue.

Trade Promotion Coordinating Committee

The President established the TPCC in May 1990 to unify and streamline the government’s decentralized approach to export promotion. TPCC members include Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the 0MB, the USTR, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration.

Tramp Steamer

A ship not operating on regular routes or schedules.

Transit Zone

A port of entry in a coastal country that is established as a storage and distribution center for the convenience of a neighboring country lacking adequate port facilities or access to the sea. A zone is administered so that goods in transit to and from the neighboring country are not subject to the customs duties, import controls or many of the entry and exit formalities of the host country. A transit zone is a more limited facility than a free trade zone or a free port.

Transmittal Letter

A list of the particulars of the shipment and a record of the documents being transmitted together with instructions for disposition of documents. Any special instructions are also included.

Transparency

The extent to which laws, regulations, agreements, and practices affecting international trade are open, clear, measurable, and verifiable.

Trigger Price Mechanism

The TPM is an antidumping mechanism designed to protect U.S. industries from underpriced imports. First used in 1978 to protect the steel industry, the TPM is the price of the lowest cost foreign producer. Imports priced below the trigger price are assessed a duty equal to the difference between their price and the trigger price.

Trust Receipt

Release of merchandise by a bank to a buyer in which the bank retains the title to the merchandise. The buyer, who obtains the goods for manufacturing or sales purposes, is obligated to maintain the goods (or the proceeds from their sale) distinct from the remainder of his/her assets and to hold them ready for repossession by the bank.

Ultimate Consignee

The ultimate consignee is the person located abroad who is the true principal party in interest, receiving the export or reexport for the designated end-use.

Unfair Trade Practice

This term refers to any act, policy, or practice of a foreign government that: (a) violates, is inconsistent with, or otherwise denies benefits to the U.S. under any trade agreement to which the United Statesis a party; (b)is unjustifiable, unreasonable, or discriminatory and burdens or restricts United States commerce; or (c) is otherwise inconsistent with a favorable section 301 determination by the U.S. Trade Representative.

United Nations Conference on Trade and Development

UNCTAD was set up in December 1964 as a permanent organ of the UN General Assembly. UNCTAD promotes international trade and seeks to increase trade between developing countries and countries with different social and economic systems. UNCTAD also examines problems of economic development within the context of principles and policies of international trade and seeks to harmonize trade, development, and regional economic policies.

United States International Trade Commission. See: International Trade

Commission.

United States Price

In the context of dumping investigations, this term refers to the price at which goods are sold in the U.S. compared to their foreign market value. The comparisons are used in the process of determining whether imported merchandise is sold at less than fair value.

U.S. Principal Party In Interest (USPPI)

The person in the United States that receives the primary benefit monetary or otherwise of the export transaction.