Customs Terms For International Trade

Implementation of a country at coastal, border or inland ports.

Customs

The customs value determined by the customs is also known as the customs valuation price.

After the import and export goods are declared to the Customs by the owner (or declarer), the customs shall examine the contents stipulated by the Customs Tariff Act, determine or assess the customs value.

The price of goods in international trade is varied. What kind of price is the basis of customs valuation? All countries have different regulations.

The most commonly used imported goods are based on the CIF price.

Some countries use FOB, producer price or export price, and some countries use the market price of import, the official price of importing country, or several prices at the same time.

The price as the basis of valuation is not equal to the duty paid price.

It is necessary to examine and adjust the price according to the state's valuation rules before it can be stipulated as dutiable value.

Because of the different contents of customs valuation, some countries can use the valuation to increase import tariff and form a non-tariff barrier other than tax rate.

Therefore, the international requirements for a unified valuation provisions, and have made great efforts to this end.

At present, the international customs valuation provisions mainly include "agreement on the implementation of the seventh GATT", also known as the "new valuation law" and the "Brussels valuation definition".

During the Uruguay round of multilateral trade negotiations, the MFN agreement and the arrangement group convened a number of informal consultations with the customs experts of the participating parties, and drafted a document on the authenticity and accuracy of the declaration of prices by the customs authorities on the agreement on the seventh customs tariff code of the GATT.

Reciprocity principle (Reciprocity)

Reciprocity is the mutual or corresponding pfer of interests or privileges.

It serves as a basis for establishing business relations between the two countries.

In international trade, reciprocity refers to the two countries giving each other trade preferential treatment.

The principle of reciprocity is one of the most important principles of GATT.

It has two meanings: on the one hand, it not only clarifies the basic position that each State Party should take in the tariff negotiation, but also contains a kind of trade relationship between the contracting parties; on the other hand, from the previous eight rounds of negotiations of GATT, the principle of reciprocity is the basis of negotiation, and its effect is realized on the basis of mutual benefit.

The GATT mutual benefit principle stipulates the negotiation of the twenty-eighth additional tariff negotiations, the first amendment of the subtraction table, and the accession of thirty-third new member states.

The principle of reciprocity enables every country to be economically secure in lowering its tariffs, because mutual reduction eliminates the risk of an international balance of payments deficit that is inevitable for unilateral cuts.

The principle of reciprocity also makes the reduction of tariffs politically feasible, because mutual tariff reductions are considered to be a compromise paction rather than a surrender to other countries, which usually does not generate political risk.

Par Value of Exchange

In the era of various countries adopting the gold standard system, the exchange parity price refers to the ratio of the gold parity of each country's currency, that is, the ratio of pure gold contained in the first unit of a country based currency with the pure gold amount in the first unit of the other country's standard currency.

The international monetary fund created after the Second World War, in order to seek the stability of foreign exchange rates, requires Member States to set the exchange parity of their own currencies. This parity should be expressed in terms of the exchange rate between the national currency and gold or the amount of pure gold contained in every dollar in July 1, 1974 (Si Chunjin equals 35 US dollars per ounce, that is, the US dollar is 0.888671 grams per unit), so it is also known as the International Monetary Fund parity.

Exchange tax (Exchange Tax)

It is also plated as foreign exchange tax.

Refers to the way in which the state controls foreign exchange.

According to the type of import trade, different foreign exchange tax is imposed on foreign exchange required to import, so as to limit the use of foreign exchange.

According to the general agreement on Tariffs and trade (GATT), "it is inappropriate to impose a foreign exchange tax or fees on a variety of exchange rates."

Currency (Money)

Money is a special commodity that acts as a general equivalent. It is an inevitable outcome of the development of commodity exchange and the development of value forms.

In the developed commodity economy, money performs five functions: value scale, circulation means, means of payment, means of storage and world currency.

In different regions, different commodity exchanges have been used as currency in history, and then money commodities have gradually changed into precious metals such as gold and silver.

With the development of commodity production and the expansion of exchange, the supply of commodity currencies (gold and silver) is increasingly unable to meet the growing demand for money, and gradually there are substitute currencies and credit currencies to make up for the lack of means of circulation.

In twentieth Century, gold and silver slowly withdrew from the monetary arena. Non cash notes and bank checks became the main means of circulation and payment procedures in various countries.

But the rule of currency movement is always the law of currency circulation revealed by Marx.

The concept of money in western economics was varied, initially defined by the function of money, and later formed a monetary definition as an economic variable or policy variable.

The definition of money is mainly the following: 1. the general acceptance of goods for the payment of Commodity services and the payment of debt.

2. acts as the goods of the exchange of media, value, storage, price standards, and deferred payment standards.

3. excess supply or demand will cause excess demand or supply of assets to other assets.

4. the temporary resting place of purchasing power.

5. no interest is payable as a liquid asset of public net wealth.

6. the most liquid assets related to national income and so on.

In fact, the latter 4 should be the functional definition of money.

These definitions do not scientifically grasp the essence of money, but they also have some advantages for monetary economic analysis.

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Restricted tax rate (Bound Rate)

The tariff rate fixed by the negotiated agreement is a binding tax rate.

According to GATT, the Contracting States should negotiate on the basis of mutual benefit through the choice of products, or the multilateral procedures accepted by the contracting parties concerned. The tax rate fixed on each country's tax commodity is bound to form a reduction schedule, which is put into effect as a subsidiary part of the GATT.

According to the GATT, there are 4 concessions in the negotiation of tariff concession to restrain the tariff rate: 1. reduce tariff and restrain the tariff level; 2. restrain the current tariff rate; 3. restrain a tariff level above the current tariff level; 4. restrain the tax exemption.

Autonomous tariff (Autonomous Tariff)

It is also known as "national tariff".

Laws and regulations that are made by a government independently and independently, including tariff rates and related tariffs.

A country with independent tariffs.

At the same time, agreement tariffs can be imposed on countries that have trade agreements and mutual tariff reductions on the basis of voluntary reciprocity.

The Most-favoured-nation Rate of Duty

The tariff rate enjoyed by a country from its most favored nation imports.

According to the most favored nation treatment principle, the MFN rate is generally not higher than the tariff rate enjoyed by the similar products of the third country now or in the future.

A legal principle of agreement, also known as the principle of non discriminatory treatment, refers to the preferential treatment granted by the contracting party to the first party of the Contracting State in terms of trade, navigation, customs and legal status of citizens. The specific provisions of the most favoured nation treatment are four forms: 1) one-sided (unilateral benefit); 2) mutual (mutual benefit); 3) conditional (such as a third country has or will make corresponding compensation for preferential benefits, and the parties concerned need to make the same compensation to enjoy such a special privilege); 4) unconditionally (when a new offer is offered to a third country, the parties shall automatically and unconditionally provide the other party to the contract). The so-called MFN principle refers to the conclusion of economic and trade treaties.

In the early days, most of them took unilateral form and belonged to unequal treaties.

European countries took the first unconditional form, and the United States took the first place in a conditional manner.

The general agreement on Tariffs and trade (GATT) stipulates in the first first model: "the interests, privileges, privileges or immunities granted by the Contracting States to products from or pported to other countries shall be conditionally granted to the same products from or to all other Contracting States."

That is, the principle of unconditional MFN treatment among the States parties to the general agreement on Tariffs and trade (GATT) will provide unconditional MFN rates to each other.

Preferential balance (Margin of Preference)

It refers to the absolute difference between the most favored nation tax rate and preferential tax rate of the same product, rather than the proportion of these tax rates. For example, (1) the most favored nation rate is 36% ad valorem tax, the preferential tax rate is 24%, the preferential balance is 12% of the ad valorem tax, not 1/3 of the most favored nation tax rate; (2) if the most favored nation rate is the ad valorem duty rate 30%, the preferential tax rate is 2/3 of the most favored nation tax rate, the preferential margin is 12%. (3) if the MFN tax rate is the 2 Franc per kilogram, the preferential tax rate is the 3 Franc per kilogram, the preferential balance is the kilogram of the franc per kilogram.

Preferential tax rate (Preferential Rate)

It is also known as preferential tariff (Preferential duty).

The tariff rate applicable to imported commodities from beneficiary countries or regions is lower than the general tariff rate, usually because of the preferential treatment granted to members of the same country group or due to political considerations.

For example, the benefits of mutual assistance, community preferences and generalized preferential tariff system (GSP) are all.

In GATT, preferential tax rate refers to the preferential treatment given to the other parties for a specific reason (e.g. GSP) below the MFN rate.

Effective protection rate (Effective Rate of Protection)

Refers to the effect of the entire tariff system (and effective protection measures) on the net value added of a product in its production process.

That is, the percentage of the increase in domestic value added caused by the entire tariff system compared with the value added part under free trade conditions.

Effective protection not only pays attention to the effect of tariff on the finished product price, but also pays attention to the increased price of the input material (raw material or intermediate product) due to the tariff collection. Therefore, the effective protection rate is calculated by the value-added ratio generated by the whole tariff system in a processing industry, which is the percentage of the value-added difference between the domestic and foreign products of a product and its value added abroad.

The formula can be expressed as follows: effective protection rate = (domestic processing value-added - foreign processing value-added) / foreign processing value-added *100%.

Most of the negotiations in the Uruguay round of tariff concessions remain concentrated among developed countries.

These countries need to import large quantities of raw materials and intermediate products to export final products.

Therefore, in the tariff negotiations, what products can be reduced and the extent of tax reduction is large. How to protect the manufacturing industry and achieve the goal of reducing tariff each other? How to improve the effective protection rate in the negotiation of tariff concession? This involves the strategy of negotiation.