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Import Regulatory Process: Port Arrival and Unloading

Learn about the import regulatory process for goods arriving at ports and airports, including filing the manifest, customs clearance, and domestic transportation. Explore the entry process, required documentation, and import regulations.

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Import Regulatory Process: Port Arrival and Unloading

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  1. IMPORT REGULATORY PROCESS On the water In the air CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  2. IMPORT REGULATORY PROCESS Port arrival Airport arrival CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  3. IMPORT REGULATORY PROCESS Unloading, Customs Clearance and Domestic Transportation CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  4. IMPORT REGULATORY PROCESS In 5 steps: • Filing the manifest (by the carrier) • Review of the manifest (by Customs) • Permit to unlade issued by Customs • Filing of the entry (to Customs by importer) and review (by Customs) • Examination of merchandise (by Customs, if needed) CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  5. WHAT IS AN ENTRY ?

  6. ENTRY • Filing an Entry IMPORT IS ON THE WAY! REQUEST CLEARANCE! • Presenting* required documentation to Customs for cargo clearance • Entry Documents (or Entry docs) HERE IS THE DATA AND INFORMATION! • Commercial Invoice, Packing List, Bill of Lading or Air Waybill • Customs Import Declaration Form * Within 15 calendar days of arrival of vessel CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  7. WHO CAN MAKE AN ENTRY ?

  8. WHO CAN MAKE AN ENTRY? ENTITIES: • OWNER OR PURCHASER • Having a financial interest, right, title or interest • Becomes Importer of Record • LICENSED CUSTOMS BROKER • Appointed by owner, purchaser or consignee • They can also become importer of record • NOMINAL CONSIGNEE • No financial interest, right, title or interest • They cannot become Importer of Record CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  9. ENTRY PROCESS FOR IMPORTING INTO THAILAND Importation • File a Customs Import Declaration or ENTRY (Electronic Document) • Prepare Supporting Documents ENTRY DOCS for submission to customs Declaration and Clearance Process • Transmission and submission of import declaration or ENTRY • Customs validation, verification and issuance of declaration • Payment of Import Duties and Taxes • Cargo Inspection and Release - Cargo data screened prior to release (green lane) or inspection (red lane) CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  10. WORLDWIDE IMPORT REGULATIONS Legal Requirements 1. RULES OF ORIGIN Determining country of origin 2. PRODUCT CLASSIFICATION Harmonized System (HS) and its objectives 3. VALUATION Assessment of imported goods 4. MARKINGS Origin marks 5. DOCUMENTATION Customs Entry Entry Documentation CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  11. RULES OF ORIGIN Under AFTA When Goods meet the “origin” criteria CRITERIA A B C Tariffs are eliminated CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  12. RULES OF ORIGIN (A) Wholly procured WHEN The article is “wholly obtained or produced” entirely in the territory of one or more AFTA countries • “wholly obtained or produced” means mined, grown or harvested. Example: Rice grown in Thailand, shrimps caught in Thai waters, ceramic tile produced entirely from Thai clay materials. These articles are "wholly produced" in Thailand ORIGIN CRITERIA A CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  13. RULES OF ORIGIN (B) Tariff Shift The good is produced entirely in the territory of one or more AFTA parties and involves a tariff classification change. Example: A steel desk is produced in The Philippines from steel sheets imported from Brazil. The steel undergoes an ’essential character’ transformation thereby changing its Harmonized Schedule (HS) number. This is known as a tariff shift and so the desk is a product of The Philippines. ORIGIN CRITERIA B CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  14. RULES OF ORIGIN (C) Cost Basis The good is produced entirely in the territory of one or more AFTA parties from “originating materials.” • An originating material is one that is a manufactured product from non-originating materials that has become originating because the finished article meets the regional value content (RVC) of not less than 40% of cost price. Example: See next slide ORIGIN CRITERIA C CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  15. RULES OF ORIGIN CRITERIA C - Cost Basis Example 1 The total cost to produce a Hand Blender in Thailand is $3.90 which includes $2.00 worth of Taiwanese components. The Regional Value Content (RVC) under the net cost method is: (3.90-2.00) x 100 / 3.90 = 48.72%. The Hand Blender is considered originating (made in Thailand) , and AFTA eligible, since the Regional Value Content is 40% or more. CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  16. RULES OF ORIGIN CRITERIA C - Cost Basis Example 2 The total cost to produce a Ceiling Fan in Indonesia is $25.00 which includes the following costs: Motor from China $20.00 Fan blades from Thailand $ 4.00 Cable assembly, screws, etc. from Vietnam $ 1.00 Total cost $25.00 Value of Non-originating materials = $20.00 The Regional Value Content (RVC) under the cost method is: (25-20) x 100 / 25 = 20%. The Ceiling Fan is considered non-originating (made in China) and therefore not eligible for preferential tariff treatment underAFTA, since the Regional Value Content is less than 40%. CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  17. PRODUCT CLASSIFICATION HARMONIZED SCHEDULE (HS) Harmonized System is a nomenclature(numbering system) by which goods traded internationally are classified. This classification document has been created by the World Customs Organization (WCO). This unique coding system, or product classification, is used by more than 200 countries all over the world to facilitate international trade and to comply with customs regulations. WCO CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  18. Millions of products are traded internationally CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  19. But each product has its own unique code CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  20. HARMONIZED SCHEDULE (HS) HS codes are used for: - Determining rate of duty - Checking eligibility for preferential programs - Economic research and analysis - Monitoring controlled goods CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  21. HARMONIZED SCHEDULE (HS) HS codes are usually 6 to 11 digits in length First 6 digits is universal all over the world __ __ __ __ . __ __ . CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  22. HARMONIZED SCHEDULE (HS) These first 6 digits are derived from: 21 sections containing 97 chapters and more than 5000 headings and sub-headings. The first 2 digits is the number of the chapter. The next 2 digits define the chapter heading and the next 2 digits thereafter define the chapter sub-heading. So when we come across 4202.92, we know it is some kind of a bag anywhere in the world. __ __ __ __ . __ __ . Chapter (2) Heading (2) Sub-Heading (2) HTS CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  23. How to Classify Under General Rules of Interpretation (GRI) Steps in Classifying: • Name and Description • Use • Material composition • Functionality Power cable (GRI1) – Determine Classification according to the terms of the Heading CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  24. General Rules of Interpretation (GRI) Incomplete, unfinished articles are classified as finished articles (GRI2) Mixed or composite goods – classified according to specific use (GRI3a) CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  25. General Rules of Interpretation (GRI) If cannot be classified as above, then by whatever material or component that gives the product its essential character. (GRI3b) Sports kit CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  26. General Rules of Interpretation (GRI) Containers and cases specially shaped or fitted to contain a product will be classified with the product (GRI5) Presentation case for matched pistol Diamond studded iPhone case with iPhone But not when the container or case gives the whole its essential character CHULALONGKORN UNIVERSITY, BBA PROGRAM, INTERNATIONAL TRADE, SPRING 2019

  27. Did you know that electrical energy has a product classification and a duty rate? 2716.00 – 0% duty

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