Import and Export Regulation

This chapter explains how goods enter into countries through customs supervision, and how certain kinds of goods are regulated for exportation. It begins with a brief history of import regulation, explaining how customs law has served taxation, national security, and foreign policy goals. It then walks readers step-by-step through the process of customs importation and determining whether and how much customs duties are owed, using real examples. In the process, it discusses the international treaties harmonizing customs classification, valuation, country-of-origin determinations, and marking. It then summarizes the various means by which importers can delay or avoid customs duties, such as the use of foreign trade zones or customs drawback. This chapter also discusses the history of export regulation and the major international regimes coordinating state regulation of exports for national security and foreign policy reasons. It walks readers step-by-step through the process of determining whether an export license is required for general (“dual-use†) goods and technologies; for military goods, services, and technologies; and for countries and consignees subject to trade or economic sanctions. Finally, it discusses the concept of trade boycotts, and introduces the antiboycott measures adopted by the United States, as well as legislation adopted in Europe and Canada in reaction to U.S. sanctions. It concludes with practice essays and multiple choice questions.