Transcript CHAPTER I INTRODUCTION Classical Theories of International

CHAPTER XX
U.S. GOVERNMENT’S IMPORT
RESTRICTIONS
 Agricultural Commodities
 Arms, Ammunition & Radioactive Materials
 Consumer Products
 Electronic Products
 Foods, Drugs, Cosmetics, Medical Devices, and
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Biologics
Gold, Silver, Currency & Stamps
Pesticides, Toxic & Hazardous Substances
Textile, Wool & Fur Products
Trademarks, Trade Names & Copyrights
Wildlife and Pets
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CHAPTER XX
U.S. GOVERNMENT’S IMPORT
RESTRICTIONS
 Obscene, Immoral & Seditious Matter
 Petroleum & Petroleum Products
 Products of Convict or Forced Labor
 Products of Unfair Competition
 Artifacts & Cultural Property
 Foreign Assets Control Regulations
 Alcoholic Beverages
 Motor Vehicles & Vehicle Equipment
 Boats & Boat Equipment
 Penalties for Violation of Trade Laws
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U.S. GOVERNMENT’S IMPORT
RESTRICTIONS
 In general, import licenses are not required to
import the goods into the United States
 Purposes for Prohibiting and Restricting certain
Articles
 To protect the economy and security of the U.S.
 To safeguard consumer health and well-being
 To preserve domestic plant and animal life
 To enforce an import quota or a restraint under
bilateral trade agreements
 Customs clearance is given only if all Customs
and other U.S. agencies' requirements are met
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Agricultural Commodities
(1) Cheese, Milk and Dairy Products
 Subject to requirements of FDA and
USDA
 Need import license
 Subject to quota of USDA
(2) Fruits, Vegetables, and Nuts
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Quarantine inspection by USDA's
Animal & Plant Health Inspection
Service
Pesticide inspection by FDA: Some
fruits & vegetables: Inspection of
grade, size, quality and maturity by
USDA‘s Food Safety and Inspection
Service
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Agricultural Commodities
(3) Insects
 Live insects and eggs injurious to crops and
trees are prohibited entry
 Live insects and eggs not injurious : Import
permit by APHIS of USDA
(4) Live stock, Animals, Animal By-Products,
and Hay and Straw
 APHIS's inspection and quarantine certificate,
Import permit
 Health certificate: Must be accompanied
 Entry restricted to certain ports
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Agricultural Commodities
(5) Meat, Poultry, & Egg Products
 Inspection by APHIS and FSIS of USDA
(6) Plant and Plant Products
 Import permit
 Quarantine inspection by APHIS of USDA
(7) Seeds
 Import permit by Agricultural Marketing
Service of USDA
 Shipments detained pending testing of
samples
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Agricultural Commodities
(8) Wood Packaging Materials
 Requirements APHIS of USDA
 Enforced by U.S. CBP
 Pallets, crates, boxes, dunnage
 Must be treated to kill harmful insects &
marked with International Plant Protection
Convention (IPPC) logo (IPPC Stamp)
 Noncompliance, subject to reexportation
with accompanying cargo
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Agricultural Commodities
 Tobacco and Tobacco-related Products
– Import permit from Alcohol & Tobacco Tax &
Trade Bureau (TTB) of USDT
– Pay federal excise tax
– Cigarettes manufactured in the U.S. and labeled and
exported cannot be reimported into the U.S. except
by original manufacturer
– Notice on the package “U.S. Tax-exempt. For Use
Outside the U.S.”
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Arms, Ammunition & Radioactive
Materials
(1) Arms, Ammunition, Explosives, &
Implements of War
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License by Bureau of Alcohol, Tobacco
and Firearms of US Dept of Justice
(2) Radioactive Materials and Nuclear
Reactors
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Approval by Nuclear Regulatory
Commission
For medical use: subject to approval of
FDA
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Consumer Products
(1) Household Appliances
 Energy Policy and Conservation Act
 Required to comply with energy standards by
USD of Energy and labeling requirements by
Federal Trade Commission
• Refrigerators & Freezers
• Room air conditioners
• Central air conditioners
• Water heaters
• Furnaces
• Dishwashers
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Consumer Products
(1) Household Appliances (continued)
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Clothes washers
Clothes dryers
Direct heating equipment
Kitchen rangers and ovens
Pool heaters
Humidifiers and dehumidifiers
Fluorescent lamp ballasts
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Consumer Products
(2) Flammable Fabrics
 Wearing apparel, children’s sleepwear
and interior furnishing; mattresses,
carpets, rugs
 Required to conforms to flammability
standards by U.S. Consumer Product
Safety Commission
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Consumer Products
(3) Toys & Children’s Articles
 Must comply with the Child Safety
Protection Act & Federal Hazardous
Substances Act
 Articles for under 3-year olds: No small
parts presenting choking hazards
 3 to 6- year olds: Warning label on small
parts
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Consumer Products
(4) Lead in Paint
 Banned if consumers goods, furniture and
toy contain more than 0.06% lead
(5) Bicycles and Bicycle Helmets
 Must meet mandatory safety standards by
USCPSC. Helmet must have a Certificate of
Compliance
(6) Fireworks
 Must meet labeling requirements and
technical specification for consumer
fireworks. Large fireworks banned for
consumer use.
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Consumer Products
(7) Art Materials
 Must meet labeling requirement of Hazardous
Art Materials Act
(8) Cigarette & Multi-purpose Lighters
 Disposable and novelty cigarette lighters
must be made child resistant. A Certificate of
Compliance must accompany each shipping
unit
(9) Matches and Knives
Phosphorus matches (strike-anywhere matches)
& switchblade knives (automatic knives)
prohibited from importing into the U.S.
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Electronic Products
(1) Radiation Producing Products
 Must meet radiation performance standards:
FDA
 Television receivers, microwave ovens,
diagnostic X-ray equipment, laser products,
ultrasound physical therapy equipment,
sunlamps, CD-ROMs, cellular and cordless
telephones
 Must be accompanied by an Electronic
Product Declaration (FDA Form 2877)
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Electronic Products
(2) Radio Frequency Devices
 Must meet radio emission standards by
Federal Communications Commission
 FCC Declaration (Form FCC 740) required to
import
 Radio, tape recorders, stereos, televisions
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Foods, Drugs, Cosmetics,
Medical Devices, & Biologics
(1) Foods, Drugs, Cosmetics, & Medical
Devices
 FDA samples and inspects foods, drugs,
cosmetics, and medical devices, when
imported, to assure that they meet the same
standards as domestic products. Feed and
drugs for animals also under FDA control
 Must pass inspection at the time of entry
 Rejected shipments: Be brought into
compliance or destroyed or reexported
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Foods, Drugs, Cosmetics, Medical
Devices, Biologics
(1) Foods, Drugs, Cosmetics, Medical
Devices (continued)
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Public Health Security & Bioterrorism
Preparedness & Response Act of 2002
(Bioterrorism Act)
Registration of Food Facilities
Prior Notice of Imported Foods
• 2 hours before arrival by road
• 4 hours before arrival by air or by rail
• 8 hours before arrival by water
(2) Biological Drugs
 Regulated by FDA for human consumption
and by USDA for animals
 Manufacturing plant and products need a
license
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Foods, Drugs, Cosmetics, Medical
Devices, Biologics
(3) Biological Materials and Vectors
 Importation of Virus, therapeutic serum, toxin,
antitoxin
 Import permit from U.S. Public Health Service
(4) Narcotics Drugs and Derivatives
 Import permit from Drug Enforcement Agency
of US Dept of Justice
(5) Drug Paraphernalia
 Prohibited from importation or exportation
 Possession is also unlawful
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Gold, Silver, Currency & Stamps
(1) Gold and Silver
 Bretton Woods Agreement of 1944: US dollars
convertible to gold at a fixed change rate of
$35 an ounce
 Pres. Richard Nixon closed US gold window on
8/15/1971.
 All restrictions were removed December 31,
1974. Now subject to usual Customs entry
requirement
 Strict tolerance on fineness: For Gold one-half
carat divergence and for Silver minimum 0.925
of pure silver with 0.004 divergence allowed
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Gold, Silver, Currency & Stamps
(1) Gold and Silver (cont.)
 Bans on importation of South African and
Soviet gold coins were lifted July 1991 and
March 1992
(2) Counterfeit Articles
 Facsimiles or replicas of coins or securities of
any government, and plates or dies are
prohibited importation
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Gold, Silver, Currency & Stamps
(3) Monetary Instruments
 Currency and Foreign Transactions Reporting
Act
 Knowingly transports more than $10,000 in
monetary instruments at one time to, through,
or from the United States or receives more
than $10,000 at one time from or through a
place outside the United States
 Must report on the Currency Report Form
(FinCen 105, formerly Customs Form 4790) to
U.S. Customs & Border Protection (CBP)
 FINCEN: Financial Crimes Enforcement Network
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Gold, Silver, Currency & Stamps
(3) Monetary Instruments (continued):
 U.S. or foreign coins, currency, traveler's
check, personal and cashier’s checks, and
money orders in bearer negotiable form or
endorsed without restriction, and stocks and
bonds in bearer form but
 Exclude bank checks and money orders made
payable to named person but not endorsed or
which bears a restrictive endorsement
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Pesticides, Toxic & Hazardous
Substances
(1) Pesticides
 Subject to Federal Insecticide, Fungicide and
Rodenticide Act of 1988
 Notice of Arrival prior to importation to U.S.
Environment Protection Agency
 Labeling and devices must bear producer’s
registered number with U.S. EPA.
(2) Toxic Substances
 Manufacturing, importation, processing,
distribution, and disposal regulated by
Environment Protection Agency (EPA)
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Pesticides, Toxic & Hazardous
Substances
(3) Hazardous Substances
 Importation of dangerous, caustic or corrosive
in packages suitable for household use is
regulated by Hazardous Substance Act,
Caustic Poison Act, Food, Drug and Cosmetic
Act, Consumer Product Safety Act
 Administered by the Office of Hazardous
Materials Enforcement of the U.S. Dept of
Transportation.
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Textile, Wool & Fur Products
(1) Textile Products

Labeling requirements under Textile
Fiber Products Identification Act
a. Generic names and percentages by weight of
fibers of 5 percent or higher
b. Name of manufacturer or name or registered
number (RN) of importer issued by Federal
Trade Commission
c. Name of country where processed or
manufactured
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Textile, Wool & Fur Products
(2) Wool Products
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Wool Products Labeling Act
a. Percentage of total fiber weight of 5 percent
or more
b. Name of manufacturer or name or RN of
importer
c. Name of country where processed or
manufactured
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Textile, Wool & Fur Products
(3) Fur Products

Fur Products Labeling Act
a. Name of manufacturer, or name or RN of
importer
b. Names of animals
c. Whether contains used or damaged fur
d. Bleached or dyed
e. In whole or in substantial part of paws, tails,
bellies or waste fur
f. Name of country of origin of any imported
fur
g. Name of country where processed or
manufactured
 Sale of any product consisting of dog fur,
cat fur prohibited.
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Trademarks, Trade Names &
Copyrights
(1) Trademarks and Trade Names
 Articles of counterfeit trademarks are
prohibited importation if a copy of U.S.
trademark registration with U.S. Patent &
Trademark Office is filed with Commissioner
of Customs
 Articles of genuine trademarks are prohibited
importation without permission of U.S.
trademark owner
 Unauthorized shipments of trade names
which are filed with Customs are prohibited
importation
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Trademarks, Trade Names &
Copyrights
(1) Trademarks and Trade Names
(continued)
 Counterfeit trademark: Spurious trademark
which is identical or substantially
indistinguishable from a registered trademark.
 Articles bearing a counterfeit trademark
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Seized by U.S. CBP and forfeited to U.S. government
Given to any Federal, State or local government
Given to a charitable organization
Sold at public auction after 1 year since forfeiture
Destroyed
Counterfeit marks & names must be removed before
being given away or sold
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Trademarks, Trade Names &
Copyrights
(2) Copyrights
 Articles imported without authorization of
copyright owner are seized and forfeited, and
destroyed, if the copyright is registered with
Customs. May be returned to country of export
if violation is not intentional
 For protection, register copyrights with the U.S.
Copyright Office and record its registration
with U.S. Customs & Border Protection (CBP)
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Wildlife and Pets
 License from Fish and Wildlife Service,
USDI
 Endangered species, any part and product
of wildlife (game animals, birds or plants)
generally prohibited importation
 All importations of African elephant ivory
and any products made from it are banned
 Importation of birds, cats, dogs, monkeys
and turtles is controlled by U.S. Public
Health Service and Animal & Plant Health
Inspection Service
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Obscene, Immoral & Seditious
Matter & Lottery Tickets
 Book, writing, advertisement, circular or
picture advocating treason or
insurrection against the U.S. or any
threat to any person in the U.S. is
banned
 Articles, immoral or obscene or drug or
medicine for causing unlawful abortion
are banned
 Lottery tickets are denied importation
into the U.S. unless printed in Canada
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Petroleum and Petroleum
Products
 No import license required
 Fees collected by U.S. Dept of
Energy
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Products of Convict or Forced
Labor & Child Labor
 Articles produced, mined or manufactured
by convict labor, forced labor or
indentured labor under penal sanctions or
forced or indentured child labor
 are prohibited importation,
 provided finding has been published that such
merchandise was either being imported or
likely to be imported.
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Products of Unfair Competition
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Merchandise is prohibited importation if
President finds unfair methods of
competition or unfair acts exist
 Commonly invoked in the case of patent
violation
 If International Trade Commission (ITC)
investigates and finds unfair methods of
competition or unfair acts, it issues an order.
 President has 60 days to take action. If no
action, ITC order becomes final
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Artifacts and Cultural Property
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Importation prohibited of pre-Columbian
monumental and architectural sculptures and
murals from Central and South America without
export permits from the country of origin.
Importation archeological and ethnographic
materials from Bolivia, Cambodia, Cyprus, El
Salvador, Guatemala, Honduras, Italy, Mali,
Nicaragua, Peru specifically restricted
Also prohibited archeological & ethnographic
materials, and articles of cultural property stolen
from museums or public monuments.
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Foreign Assets Control
Regulations’ Restrictions
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The Trading with Enemy Act (TWEA) of
1917
Office of Foreign Assets Control, U.S.
Dept of Treasury
Prohibited importation of goods
containing components originated from
Cuba, Iran, Myanmar, Sudan, North Korea
Iranian foodstuffs, carpets and other floor
coverings are allowed into the U.S.
Informational materials are allowed
importation such as pamphlets, books,
tapes, films or recordings.
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Foreign Assets Control
Regulations’ Restrictions
 Sanctions on individuals and entities involved
in:
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Illegal diamond trading
Terrorist activities
Narcotics trafficking
Proliferation of weapons of mass destruction
Acts of violence
Threatening international stabilization efforts
Crimes against humanity
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Alcoholic Beverages
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Must obtain first Importer's basic permit from
Bureau of Alcohol, Tobacco and Firearms (BATF)
Importer must have liquor wholesale license from
State government
Importation of alcoholic beverages in the mail is
prohibited
Metric system of measure except malt beverages
Each bottle, cask or other immediate container:
Country of origin of alcoholic beverages
contained therein
Labels affixed to bottles must be approved by
BATF & certificate of approval or copy must be
filed with U.S. Customs & Border Protection
(CBP).
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Alcoholic Beverages
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Also subject to requirements of FDA
Health warning:
 Do not drink alcoholic beverages during
pregnancy because of the risks of birth
defects & driving a car or operating
machinery
 Drinking impairs the ability to drive a
car or operate machinery, and may
cause health problems
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Motor Vehicles & Vehicle Equipment
(1) Safety and Bumper Standards
 Must meet Federal Motor Vehicle Safety
Standards and bumper standards in effect
when being manufactured.
 Manufacturer's certification affixed to
vehicle is accepted as compliance
 Noncertified or nonconforming vehicle: 150
percent bond & compliance within 120 days
by DOT registered shop
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Motor Vehicles & Vehicle Equipment
(2) Emission Standards

Must meet emission standards set by
U.S.EPA under Clean Air Act
a. U.S. Version Vehicles
• Have a label in the engine compartment
certifying that the vehicle conforms to
U.S. EPA emission requirements at the
time of manufacture
b. Non-U.S. Version Vehicles
• Individuals are not allowed to import
non-U.S. version vehicles
• Can be imported only by EPA-certified
Independent Commercial Importer (ICI)
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Boats and Boats Equipment
(1) Boat Safety Standards
 Subject to safety regulations and standards by
the U.S. Coast Guard
 Compliance certificate to be affixed to the
product
(2) Dutiability
 Vessels imported into the U.S. for use in trade
or commerce are not dutiable.
 Yachts or pleasure boats are dutiable.
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Boats and Boats Equipment
(3) Restrictions on Use
 Merchant Marine Act (Jones Act) of 1920
prohibits the use of foreign-built or foreign
flag vessels in the coastwise trade, i.e.,
transportation for merchandise or
passengers between points in the U.S.
including carrying fishing parties for hire.
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Penalties for Violation of Trade Laws
1. Civil Fraud Statute
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Entering merchandise into the U.S. by false
statements is subject to monetary penalty.
Merchandise may be seized to insure
payment of penalty
Violating Money Laundering Control Act:
Greater of $10,000 or value of transaction
Violation of the Trading With Enemy Act:
From $11,000 to $1 million
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Penalties for Violation of Trade Laws
2. Criminal Fraud Statute
 Presenting false information to U.S. Customs
officer: 2 years' imprisonment or a fine of
$5,000 or both
 Violation of Money Laundering Control Act &
Anti-Drug Abuse Act: 20 years’ imprisonment
or a fine of $500,000 or both
 Violation of the Trading with Enemy Act: 10 to
30 years imprisonment or a fine of $50,000$1,000,000 or both
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