Export/import procedures and documentation

607 Pages·2002·15.9 MB·English

by  Thomas E. Johnson

EXPORT/IMPORT
PROCEDURES
AND
DOCUMENTATION
FOURTH EDITION
This Page Intentionally Left Blank
EXPORT/IMPORT
PROCEDURES
AND
DOCUMENTATION
FOURTH EDITION
THOMAS E. JOHNSON
American Management Association
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LibraryofCongressCataloging-in-PublicationData
Johnson,ThomasE.,1948–
Export/importproceduresanddocumentation/ThomasE.
Johnson.—4thed.
p. cm.
Includesindex.
ISBN0-8144-0734-X(hardbound)
1.Exportmarketing—UnitedStates. 2.Exports—United
States—Forms. 3.Imports—UnitedStates—Forms. 4.Foreign
traderegulation. 5.Internationaltrade. I.Title.
HF1416.5.J64 2002
658.8(cid:1)48—dc21 2002023610
(cid:1)2002FourthEditionbyThomasE.Johnson.Previouseditions
(cid:1)1997,1994,1991AMACOM,adivisionofAmerican
ManagementAssociation.
Allrightsreserved.
PrintedintheUnitedStatesofAmerica.
Thispublicationmaynotbereproduced,storedinaretrieval
system,ortransmittedinwholeorinpart,inanyformorbyany
means,electronic,mechanical,photocopying,recording,or
otherwise,withoutthewrittenpermissionofAMACOM,adivision
ofAmericanManagementAssociation,1601Broadway,NewYork,
NY10019.
Printingnumber
10 9 8 7 6 5 4 3 2 1
Contents
List ofFigures xiii
ForewordbyEugeneJ.Schreiber xvii
Preface xix
Acknowledgments xxi
Part I
Organizing for Export and Import Operations 1
Chapter1. OrganizingforExportandImportOperations 3
A. ExportDepartment 3
B. ImportDepartment 4
C. CombinedExportandImportDepartments 4
D. ManualsofProceduresandDocumentation 8
E. Record-KeepingCompliance 9
F. Software 13
G. Federal,State,International,andForeignLaw 14
Part II
Exporting: Procedures and Documentation 15
Chapter2. Exporting:PreliminaryConsiderations 17
A. Products 17
B. Volume 18
C. CountryMarketandProductCompetitivenessResearch 18
D. IdentificationofCustomers:EndUsers,Distributors,andSalesAgents 18
E. ComplianceWithForeignLaw 19
1. IndustryStandards 20
2. ForeignCustomsLaws 20
3. GovernmentContracting 21
4. BuyAmericanEquivalentLaws 21
5. ExchangeControlsandImportLicenses 22
v
Contents
6. Value-AddedTaxes 22
7. SpecializedLaws 22
F. ExportControlsandLicenses 22
G. Patent,Trademark,andCopyrightRegistrationsandInfringements 23
H. ConfidentialityandNon-DisclosuresAgreements 23
I. AntiboycottCompliance 24
J. EmployeeSalesVisitstoForeignCountries—ImmigrationandCustoms
Compliance 24
K. UtilizationofFreightForwardersandForeignCustomsBrokers 28
L. ExportPackingandLabeling(HazardousMaterials) 30
M. TermsofSale 32
N. Consignments 36
O. Leases 36
P. MarineandAirCasualtyInsurance 37
Q. MethodsofTransportation;BookingTransportation 38
R. CountryofOriginMarking 45
S. ForeignWarehousingandFreeTradeZones 45
T. ExportFinancingandPaymentInsurance 45
U. TaxIncentives 46
V. ExportTradingCompanies,ExportTradeCertificatesofReview,andExport
ManagementCompanies 46
W. Translation 57
X. ForeignBranchOperations,Subsidiaries,JointVentures,andLicensing 57
Y. ElectronicCommerce 57
Chapter3. Exporting: SalesDocumentation 60
A. IsolatedSalesTransactions 60
1. ImportanceofWrittenAgreements 60
2. TelexorFacsimileOrders 61
3. TheFormationofSalesAgreements 61
4. CommonFormsfortheFormationofSalesAgreements 63
a. PriceLists 63
b. RequestsforQuotations 63
c. QuotationsandCostingSheets 65
d. PurchaseOrders 65
e. PurchaseOrderAcknowledgments,Acceptances,andSales
Confirmations 70
f. ProFormaInvoices 73
g. CommercialInvoices 81
h. ConflictingProvisionsinSellerandBuyerSalesDocumentation 81
i. SideAgreements 84
B. OngoingSalesTransactions 84
1. CorrelationWithDocumentationforIsolatedSalesTransactions 85
2. ImportantProvisionsinInternationalSalesAgreements 86
a. SellingandPurchasingEntities 86
b. Quantity 87
vi
Contents
c. Pricing 87
d. CurrencyFluctuations 90
e. PaymentMethods 90
f. ExportFinancing 92
g. SecurityInterest 95
h. PassageofTitle,Delivery,andRiskofLoss 95
i. WarrantiesandProductDefects 95
j. PreshipmentInspections 96
k. ExportLicenses 97
l. ImportLicensesandForeignGovernmentFilings 97
m. GoverningLaw 97
n. DisputeResolution 99
o. Termination 101
C. ExportDistributorandSalesAgentAgreements 101
1. DistinctionBetweenDistributorandSalesAgent 101
2. ExportDistributorAgreements 103
a. TerritoryandExclusivity 103
b. Pricing 106
c. MinimumPurchaseQuantities 107
d. HandlingCompetingProducts 107
e. EffectiveDateandGovernmentReview 107
f. AppointmentofSubdistributors 107
g. UseofTradeNames,Trademarks,andCopyrights 108
h. WarrantiesandProductLiability 108
3. ExportSalesAgentAgreements 109
a. Commissions 109
b. Pricing 109
c. Shipment 112
d. Warranties 112
e. RelationshipoftheParties 112
D. ForeignCorruptPracticesActCompliance 112
Chapter4. Exporting:OtherExportDocumentation 114
A. FreightForwarder’sPowersofAttorney 114
B. Shipper’sLettersofInstructions 114
C. CommercialInvoices 116
D. BillsofLading 118
E. PackingLists 120
F. InspectionCertificates 120
G. MarineandAirCasualtyInsurancePoliciesandCertificates 120
H. DockandWarehouseReceipts 133
I. ConsularInvoices 133
J. CertificatesofOrigin 133
K. CertificatesofFreeSale 162
L. DeliveryInstructionsandDeliveryOrders 162
M. SpecialCustomsInvoices 162
vii
Contents
N. Shipper’sDeclarationsforDangerousGoods 169
O. PrecursorandEssentialChemicalExports 169
P. Animal,Plant,andFoodExportCertificates 169
Q. DraftsforPayment 175
R. LettersofCredit 175
S. Shipper’sExportDeclarations 181
T. FreightForwarder’sInvoices 195
Chapter5. ExportControls andLicenses 197
A. Introduction 197
B. ScopeoftheEAR 198
C. CommerceControlList 198
D. ExportDestinations 203
E. Customers,EndUsers,andEndUses 210
F. TenGeneralProhibitions 210
G. LicenseExemptionsandExceptions 212
H. LicenseApplicationsandProcedures 213
1. DocumentationFromBuyer 213
2. LicenseApplicationForm 215
3. Procedures 223
I. Re-Exports 223
J. ExportDocumentationandRecord-Keeping 223
K. SpecialComprehensiveLicenses 225
L. Technology,Software,andTechnicalAssistanceExports 230
M. ViolationsandPenalties 232
N. MunitionsandArmsExports 232
Part III
Importing: Procedures and Documentation 237
Chapter6. Importing:PreliminaryConsiderations 239
A. Products 239
B. Volume 240
C. CountrySourcing 240
D. IdentificationofSuppliers 241
E. ComplianceWithForeignLaw 242
1. ForeignExportControls 242
2. ExchangeControlLicenses 242
3. ExportQuotas 243
F. U.S.CustomsConsiderations 243
1. UtilizationofCustomsBrokers 243
2. ImportationBonds 244
3. Importer’sLiabilityandReasonableCare 250
4. ApplicationforImporter’sNumber 250
5. PortsofEntry 250
6. ImportQuotas 254
viii
Contents
7. Antidumping,Countervailing,andOtherSpecialDuties 255
8. Classification 256
9. Valuation 256
10. Duty-FreeandReducedDutyPrograms 257
11. Column2Imports 258
12. DeferredDutyPrograms(BondedWarehousingandForeignTrade
Zones) 258
13. TemporaryImportations 259
14. CountryofOrigin 260
15. Assists 260
16. SpecializedProducts 262
17. Record-KeepingRequirements 262
18. CustomsRulings 262
G. ImportPackingandLabeling 262
H. U.S.CommercialConsiderations 263
1. PrevailingMarketPrice 263
2. BuyAmericanPolicies 264
3. U.S.IndustryStandards 264
I. TermsofPurchase 264
J. Consignments 266
K. Leases 267
L. MarineandAirCasualtyInsurance 267
M. MethodofTransportation;BookingTransportation 268
N. ImportFinancing 268
O. Patent,Trademark,andCopyrightRegistrationsandInfringements 268
P. ConfidentialityandNon-DisclosureAgreements 269
Q. Payment 269
R. Translation 270
S. ForeignBranchOperations,Subsidiaries,JointVentures,andLicensing 270
T. ElectronicCommerce 276
Chapter7. Importing:PurchaseDocumentation 280
A. IsolatedPurchaseTransactions 280
1. ImportanceofWrittenAgreements 280
2. TelexorFacsimileOrders 281
3. TheFormationofPurchaseAgreements 281
4. CommonFormsfortheFormationofPurchaseAgreements 282
a. PriceLists 283
b. RequestsforQuotationsandOfferstoPurchase 283
c. Quotations 283
d. PurchaseOrders 284
e. PurchaseOrderAcknowledgments,Acceptances,andSales
Confirmations 284
f. CommercialInvoices 285
g. ConflictingProvisionsinSellerandBuyerSalesDocumentation 285
h. SideAgreements 286
ix