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Importing into the United States - Indo-American Chamber Of ...

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cancellation of orders due to shipping delays<br />

after a favorable market has closed.<br />

Production of articles in zones by <strong>the</strong> combined<br />

use of domestic and foreign materials<br />

makes it unnecessary to send <strong>the</strong> domestic<br />

materials abroad for manufacture, or to pay<br />

duty or obtain a bond for foreign materials that<br />

have been imported for this purpose. Duties on<br />

<strong>the</strong> foreign goods involved in such processing<br />

or manufacture are payable only on <strong>the</strong> actual<br />

quantity of such foreign goods incorporated<br />

<strong>into</strong> merchandise transferred from a zone for<br />

entry <strong>into</strong> <strong>the</strong> commerce of <strong>the</strong> <strong>United</strong> <strong>States</strong>. If<br />

<strong>the</strong>re is any unrecoverable waste resulting from<br />

manufacture or manipulation, allowances are<br />

made for it, <strong>the</strong>reby eliminating payment of<br />

duty except on <strong>the</strong> articles that are actually<br />

entered. If <strong>the</strong>re is any recoverable waste, it is<br />

dutiable only in its condition as such and in <strong>the</strong><br />

quantity entered.<br />

The Foreign Trade Zones Act also authorizes<br />

<strong>the</strong> exhibiting of merchandise within a<br />

zone. Zone facilities may be utilized for <strong>the</strong> full<br />

exhibition of foreign merchandise without<br />

bond, for an unlimited length of time, and with<br />

no requirement of exportation or duty payment.<br />

Thus, <strong>the</strong> owner of goods in a zone may<br />

display <strong>the</strong> goods where <strong>the</strong>y are stored, establish<br />

showrooms of her own, or join with o<strong>the</strong>r<br />

importers in displaying his merchandise in a<br />

permanent exhibition established in <strong>the</strong> zone,<br />

and since <strong>the</strong> importer may also store and<br />

process merchandise in a zone, he is not limited<br />

to mere display of samples, but may sell from<br />

stock in wholesale quantities. Retail trade is<br />

prohibited in zones.<br />

Domestic merchandise may be taken <strong>into</strong><br />

a zone and, providing its identity is maintained<br />

in accordance with regulations, may be<br />

returned to customs territory free of quotas,<br />

duty, or tax, even though while in <strong>the</strong> zone it<br />

may have been combined with or made part of<br />

o<strong>the</strong>r articles. However, domestic distilled<br />

spirits, wine, and beer, and a limited number of<br />

o<strong>the</strong>r kinds of merchandise generally may not<br />

be processed while in <strong>the</strong> zone.<br />

ADVANTAGES<br />

Savings may result from manipulations<br />

and manufacture in a zone. For example, many<br />

products shipped to <strong>the</strong> zone in bulk can be<br />

dried, sorted, graded, or cleaned and bagged or<br />

packed, permitting savings of duties and taxes<br />

on moisture taken from content or on dirt<br />

removed and culls thrown out. From incoming<br />

shipments of packaged or bottled goods, damaged<br />

packages or broken bottles can be<br />

removed. Where evaporation results during<br />

shipment or while goods are stored in <strong>the</strong> zone,<br />

contents of barrels or o<strong>the</strong>r containers can be<br />

regauged and savings obtained, as no duties<br />

are payable on <strong>the</strong> portions lost or removed. In<br />

o<strong>the</strong>r words, barrels or o<strong>the</strong>r containers can be<br />

gauged at <strong>the</strong> time of transfer to customs territory<br />

to insure that duties will not be charged on<br />

any portion of <strong>the</strong>ir contents lost to evaporation,<br />

leakage, breakage, or o<strong>the</strong>rwise. These<br />

operations may also be conducted in bonded<br />

warehouses.<br />

Savings in shipping charges, duties, and<br />

taxes may result from such operations as shipping<br />

unassembled or disassembled furniture,<br />

machinery, etc., to <strong>the</strong> zone and assembling or<br />

reassembling it <strong>the</strong>re.<br />

Merchandise may be remarked or relabeled<br />

in <strong>the</strong> zone (or in a bonded warehouse)<br />

to conform to requirements for entry <strong>into</strong> <strong>the</strong><br />

commerce of <strong>the</strong> <strong>United</strong> <strong>States</strong> if it is o<strong>the</strong>rwise<br />

up to standard. Remarking or relabeling that<br />

would be misleading is not permitted in <strong>the</strong><br />

zone. Substandard foods and drugs may, in certain<br />

cases, be reconditioned to meet <strong>the</strong> requirements<br />

of <strong>the</strong> Food, Drug, and Cosmetic Act.<br />

There is no time limit as to how long foreign<br />

merchandise may be stored in a zone, or<br />

when it must be entered <strong>into</strong> customs territory,<br />

reexported, or destroyed.<br />

TRANSFER OF GOODS IN<br />

BONDED WAREHOUSES<br />

Foreign merchandise in Customs bonded<br />

warehouses may be transferred to <strong>the</strong> zone at<br />

any time before its retention date in <strong>the</strong> bonded<br />

warehouse expires, but such a transfer may be<br />

made only for <strong>the</strong> purpose of eventual exportation,<br />

destruction, or permanent storage.<br />

When foreign merchandise is transferred<br />

to <strong>the</strong> zone from Customs bonded warehouses,<br />

<strong>the</strong> bond is cancelled and all obligations<br />

IMPORTING INTO THE UNITED STATES<br />

95

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