Incoterms, short for International Commercial Terms that were developed by the International Chamber of Commerce (ICC), are currently being revised. Last updated in 2000, the new Incoterms are expected to be more user-friendly by expanding the explanation of each Incoterm – something we are sure anyone importing and exporting agrees needs to be done.
Did you realize that the manufacturing sector of the US employs roughly 12 million Americans, representing 12% of the GDP and producing 60% of the nation’s exports? The US Manufacturing Enhancement Act of 2010, passed by President Obama, is expected to boost this current output by $4.6 billion and create 90,000 jobs through a reduction or temporary elimination of tariffs on a range of materials used by US companies that are imported from other countries.
At the beginning of July 2010, Canada’s Goods and Services Tax (GST) and Provincial Sales Tax (PST) were combined into a single sales tax – the Harmonized Sales Tax (HST). The creation of the HST is an attempt by the Canadian Government to build a more efficient tax system while not increasing sales tax revenues. Some of the Canadian territories have already complied with the new ruling – Ontario implemented the HST at the rate of 13%, British Columbia at 12%, and Nova Scotia increased their HST from 13% to 15%.
The export community will have the opportunity to hear from senior US Government officials at the annual Update Conference on Export Controls and Policy. At the conference, coming up August 31 – September 2, 2010, officials will cover current issues and trends in export control policies, regulations and practices.
Many US importers who are highly compliant with Importer Security Filing (10+2) have already realized the benefits (better visibility into their global supply chains, earlier identification of non-standard shipments, fewer delays at destination, more visibility and improvement in data availability and accuracy), but the ISF subcommittee of the Advisory Committee on Commercial Operations of the US CBP (COAC) is recommending that CBP provide additional benefits.
If you haven’t already participated in the Aberdeen Global Trade Management survey, now is the time to do so. This annual survey gives companies a way to measure their current GTM practices against other members of the trade.
Recently published private ruling letters issued by US Customs and Border Protection (CBP) concerning related-party transactions have been under scrutiny from importers. The letters, which examine the potential impact of related-party transactions from a compliance perspective, have been analyzed by KPMG LLP to show the effect they will have on customs compliance.
If customs valuation is something with which you are tasked in your company or something you have been trying to figure out, make sure to attend the free, educational webcast taking place this week on Thursday, August 19th at 2:00 p.m. EST.
The following blog post has been provided by Karen Lobdell, Director, Trade Security & Supply Chain Services at Drinker Biddle & Reath LLP.
Is your company facing challenges regarding customs valuation rules? Are you having issues in applying transfer pricing regulations? If these questions are being asked in your company, then you will want to register for a free, educational webcast on customs valuation rules. The webcast will take place on Thursday, August 19, 2010 at 2:00 p.m. EST.
