Post on 27-Mar-2015
Dave McGuireDave McGuireSenior Manager, International TradeSenior Manager, International TradeGlobal LogisticsGlobal Logistics
Import Licensing for Information Import Licensing for Information Technology ProductsTechnology Products
July 16, 1999July 16, 1999
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Nortel NetworksGlobal Trade Activity
• Export to more than 160 Countries
— Many ITA Signatory Countries
• Manufacture in 10 Countries
• 1998 Revenues US$18b
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INFORMATION TECHNOLOGY AGREEMENTPHASE I
• Nortel Endorses the ITA— Encourage other Countries to Participate
• Duty Reduced to Zero by Year 2000
• Lower Costs to Importer and Consumers
• Encourage other Initiatives Intended to Ensure Smooth Delivery of Goods to Customers
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IMPORT LICENSING
• Required by some Countries prior to Import
• May be Reviewed by Many Government Departments Prior to Approval— Administrative Burden
— Adds to Delivery Time
— Clerical Errors Delay Delivery
• No value seen by Importer or Exporter
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IMPORT LICENSING
• Tariff Classification Required on License— H.S. Code based on Product Description
— Buyers Interpretation may be Different from Sellers Description
— Classification Interpretation not Consistent in all Countries– LAN/WAN Equipment
— Results in Delays if the is a Discrepancy– License must be amended– Goods remain in Storage ($)
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IMPORT LICENSING
• Product Descriptions— Marketing Brochure, Purchase Order, Engineering Description,
Customs Description, Import License Description.
— Inconsistent Description Leads to Misinterpretation and Delays
— Adds Costs not Value
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IMPORT LICENSING
• Customs Clearance— Seller may make Partial Shipment
— Delay in Release While Import License is Matched to other Customs Documents
— No Customs Release if License does not Match
— Storage Charges Incurred While License is Corrected
— Adds Cost not Value
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IMPORT LICENSINGRECOMMENDATION 1
• Eliminate Import License Requirement for ITA Eligible Goods
– Reduced Administrative Burden– Simplifies the Import Process– Demonstrates the spirit of the ITA
– Open Market for Technology Products
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IMPORT LICENSINGRECOMMENDATION 2
• Simplify Import License Requirement for ITA Eligible Goods
– Eliminate Multiple Department Review– Reduce the Number of Reporting Fields– Permit Flexibility in Modifying License to Correct Errors