U.S. and Chile Free Trade Agreement

U.S. and Chile Free Trade Agreement The U.S.-Chile Free Trade Agreement (FTA) became effective on January 1, 2004. At that time, more than 85 percent of two-way trade in consumer and industrial goods became duty free. Duties on other products will gradually be phased out over a 12-year period. My next three articles will address how international corporations can benefit from complying with this new agreement.
Home New book offers assistance to the growing number of small companies involved in international trade "Eagan, MN—In July 1999, a New York company was fined $900,000 by the U.S. Department of Commerce and denied its export privileges for one year for failing to properly follow U.S. export regulations. And they were not alone. Every year, the U.S. governmen Exporters Can Avoid $100 Filing Fee for SEDs with Shipping Solutions 2000 Export Software "Eagan, MN—As of November 1, 2000, ocean carriers have begun charging $100 for each Shipper's Export Declaration (SED) submitted on paper with an export shipment. Exporters can easily avoid this charge by using Shipping Solutions 2000 export documentatio Companies can now file their export documents electronically using Shipping Solutions 2000 software "Eagan, MN—Due to a major initiative by the U.S. Census Bureau, U.S. companies that export will now be able to file their Shipper’s Export Declarations (SEDs) over the Internet absolutely free using InterMart’s Shipping Solutions 2000 export software." New on-line forum provides free help for international trade professionals "Eagan, MN—In its continuing efforts to serve the needs of small and mid-sized companies involved in international trade, InterMart, Inc. has created a free on-line forum to provide real-time answers to import-export questions. Forum participants can post New Software Eases the Burden of Export Paperwork "Eagan, MN—International trade professionals burdened by the mountain of export documents they must prepare can now find relief in a new software program from InterMart, Inc. The company’s Shipping Solutions 2000 export software dramatically reduces the InterMart unveils International Business Training division, web site "Eagan, MN—InterMart, Inc., developer of the popular Shipping Solutions export documentation software, has unveiled a new division concentrating on the educational needs of small and mid-sized U.S. companies involved in import and export. InterMart to introduce Shipping Solutions 3.0 at 1997 International Exporters-Importers Conference "Minneapolis, MN—InterMart, Inc. today announced the release of version 3.0 of its popular Shipping Solutions export documentation software. The upgrade includes a variety of new export forms and other enhancements designed to make the software even easie InterMart announces version 2.0 of its popular Shipping Solutions export documentation software "Minneapolis, MN—InterMart, Inc. today announced the release of version 2.0 of its Shipping Solutions™ export documentation software, a company spokesman announced today. The upgrade, which includes a variety of new export forms and other enhancements des InterMart releases a network version of its Shipping Solutions software "Minneapolis, MN—InterMart, Inc. today released a network version of its Shipping Solutions™ export documentation software that will allow a variety of desktop users to access the Shipping Solutions database, a company spokesman announced today." InterMart introduces Shipping Solutions international export documentation software "Minneapolis, MN—InterMart, Inc. today introduced an export shipping software that reduces the amount of time businesses need to devote to completing the myriad of export documents by up to 80 percent, a company spokesman announced today." Shipping Solutions software adds easy and affordable export compliance through partnership with NextLinx Corporation EAGAN, MN - Small and medium-sized companies will soon have an easy and affordable solution for ensuring that their international shipments comply with U.S. export regulations. Shipping Solutions is teaming up with NextLinx Corporation to offer NextLinx's Understanding the NAFTA Certificate of Origin - Part Two Last month’s article explained when a NAFTA Certificate of Origin is and isn’t required. This month’s article explains how to complete the form. Understanding the NAFTA Certificate of Origin - Part One The Certificate of Origin summarizes the importer’s claim that goods qualify as originating and should receive preferential tariff treatment. You Can Say That Again: Bridging the Language Gap Finalizing Your Sales Contract: Who's Paying for Shipping? The Letter of Credit Triangle Bureau of Industry & Security (BIS) Dual-Use Licensing A customer service representative recently approached me at a seminar and told me about a phone conversation she had with one of her U.S. customers who was looking to export a product they sell. Her customer asked if she had an ECCN for her product since The Top 10 Questions About NAFTA Over the past year of writing NAFTA articles, I have received many questions about NAFTA issues. I have compiled a list of the top 10 questions and wanted to share them. Can You Cut Costs By Eliminating Your Letters of Credit? When I first heard this question, I really thought it was a trick question. Kind of like, “Who is buried in Grants tomb?” Isn’t the answer obvious? Of the four main payment options, the letter of credit (LC) is definitely the winner when it comes to high Bye, Bye SED; Hello AES If you haven’t yet made plans to file your Shipper’s Export Declarations (SEDs) electronically, you better start soon. Newly published export regulations and statements made by U.S. Census Bureau officials at recent public events make it clear that the pa Verifying NAFTA Origin Canada, Mexico and the United States agreed to establish a uniform Certificate of Origin to certify that goods imported into their territories qualify for preferential tariff treatment accorded by NAFTA. Only importers who possess a valid Certificate of O Shipping Solutions Upgrades Best Selling Software Solution For Export Documentation EAGAN, MN—Shipping Solutions announces the latest version of its best-selling software, Shipping Solutions Professional. The easy-to-use Shipping Solutions Professional guides novice and experienced exporters as they easily complete dozens of standard exp Does Your Product Require An Export License? There are some basic steps you will want to take once you make the commitment to sell your product internationally. You have the responsibility to seriously examine your products and your customers to assure that you comply the Export Administration Regul U.S. Census Bureau Announces New Shipper's Export Declaration (SED) The U.S Census Bureau has quietly announced a new version of the Shipper's Export Declaration (SED) that U.S. exporters must begin using on October 18, 2003. That is, of course, unless the exporter is shipping products that are on the Commerce Department’ My Checklist for Reviewing a Letter of Credit I know there are companies out there that never look at their letters of credit (LC) until they are ready to present documents to the bank. Once they’ve received one from their customer, they assume it’s as good as gold and immediately put it away for saf FAST Program Ensures Security Between U.S. and Canada The FAST program is a bilateral initiative between the United States and Canada designed to ensure security and safety while enhancing the economic prosperity of both countries. SED and AES: Changes Are Coming Your Way Many U.S. exporters continue to use the paper version of the Shipper’s Export Declaration (SED). Some use it as their primary method of filing, and others use it as a Shipper’s Letter of Instruction (SLI). In either case, it is now time to obtain the newe NAFTA Documentation: Commercial Invoice In my next series of articles, I will address what documents are required for NAFTA countries along with some helpful hints to smooth the entry process into Canada and Mexico. I’ll start this series with the commercial invoice. Changes to Export Regs Mean New Fines and Penalties for Errors on the SED I hate reading regulations. They are confusing and easily misinterpreted. But they are important. That’s why I’m paying attention to the changes in the Foreign Trade Statistical Regulations (FTSR) related to penalties. They are straightforward in at least Exporting to Canada: Steps to Smooth the Customs Process When exporting to Canada, Canadian Customs requires specific information. This article will address what information is required to smooth the Canadian Customs Process. Does the New Year Mean New Codes for Your Products? Exporters and importers should do some light housekeeping to make sure they remain in compliance with U.S. export and import regulations. By following a few simple steps at the beginning of every new year, you will ensure that your company meets the best Technology and Global Business: Videoconferencing Trim down the cost of business travel. Lessen the time needed for distant meetings. Conserve wear and tear on your body. Eliminate jet lag. Circumvent exposure to SARS and other perilous diseases. Reduce exposure to terrorist activities. Increase your sta The Canadian Customs Entry Process In 1989, the Canada – U.S. Free Trade Agreement went into effect, phasing out all tariffs and many non-tariff barriers to trade. The benefits of free trade are clear: two-way trade in goods and services between the two countries totaled $440 billion in 20 Negotiating for the Long Term In the international arena, those who are most successful in the long term are those whose negotiating skills consistently produce favorable outcomes for all sides. How to Register for the Automated Export System (AES) One of the most significant changes in U.S. export regulations is the move from the paper version of the Shipper’s Export Declaration (SED) to electronic filing of the information through the Automated Export System. If your company exports products that Delays in Rule-Making Process Push Back Implementation of Mandatory AES At some point in 2004 all U.S. exporters will be required to switch from providing paper copies of the Shipper's Export Declaration (SED) to filing the information electronically through the Automated Export System (AES). It's just not going to happen as U.S.—Chile FTA Rules of Origin Exporters familiar with the North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico will recognize some aspects of the U.S.-Chile Free Trade Agreement’s (FTA) Rules of Origin. The Chile and U.S. FTA is largely modeled on U.S.—Chile FTA Certificate of Origin U.S. exporters whose products qualify under the new U.S.-Chile Free Trade Agreement (FTA) Rules of Origin may provide their Chilean customers considerable savings. This article addresses the written declaration necessary for the Chilean buyer to claim fre U.S.—Chile Free Trade Agreement: Frequently Asked Questions Since the signing of the U.S.-Chile Free Trade Agreement (FTA), I have received questions from exporters asking how to qualify their products for preferential duty treatment. I have compiled a list of the top 10 questions and wanted to share them with you The U.S. Export Enforcement Program If you are exporting from the United States, you need to familiarize yourself with and understand the U. S. Bureau of Industry and Security. Known simply as the BIS, their primary mission is the accurate, consistent and timely evaluation and processing of Terms of Trade: Uniform Commercial Code and INOCOTERMS 2000—Part 1 The goal of this series of articles is to provide a basic understanding and working knowledge of what are known as terms of sale. Perhaps the most familiar of these terms is FOB; however, there are several others. Such terms are also known as trade terms Ocean Shipping Problems for Cargo Owners Shipping goods in ocean vessels invokes special problems for importers and exporters that must be addressed through education and training in transportation laws. Failure to understand the intricate terms and conditions of ocean bills of lading and tariff Shipping Solutions Upgrades Best-Selling Export Documentation and Compliance Software EAGAN, MN – Shipping Solutions announces version 7.1 of its best-selling software, Shipping Solutions Professional. This easy-to-use export software guides novice and experienced exporters as they complete and print export forms, file their shipments elec Terms of Trade: Uniform Commercial Codes and INCOTERMS 2000—Part 2 The goal of this series of articles is to provide a basic understanding and working knowledge of what are known as terms of sale for international transactions. The Uniform Commercial Code, Article 2 defines the terms that have been adopted for use in the New Regulations for Transporting Hazardous Goods Affect IATA Dangerous Goods Form Recent changes to the IATA Dangerous Goods Regulations include revisions to the IATA Shipper's Declaration for Dangerous Goods. COGSA’s Gotcha's Every law governing the carriage of goods contains many exculpatory clauses and “traps for the unwary.” The Carriage of Goods by Sea Act (COGSA) is no exception. The Shipper's Export Declaration: Will the Paper Version Disappear in 2005? The Shipper's Export Declaration (SED) is still accepted for most export shipments by the U.S. Census Bureau and U.S. Customs & Border Protection as described in the Foreign Trade Statistical Regulations (FTSR). (The exception is for products that require How to File Through AES with Shipping Solutions Export Documentation Software Shipping Solutions export documentation and compliance software makes it easy to file your Shipper's Export Declaration (SED) information electronically through the Automated Export System (AES) while also producing more than a dozen different export docu SED Cannot Be Provided to Foreign Governments According to the U.S. Census Bureau's website, there have been many requests by foreign governments for copies of the Shipper's Export Declaration (SED) for exports from the United States. However, the information contained on the SED is confidential. Finding a Bank for a Back-To-Back Letter of Credit May Be Difficult If you ever want to send a chill down the spine of your banker in the United States, just mention the phrase “back-to-back letters of credit.” U.S. and Jordan Free Trade Agreement On January 1, 2002, the United States and Jordan entered into a free trade agreement. This agreement was designed to strengthen the bonds of friendship and economic relations and cooperation between them and to establish clear and mutually advantageous ru Free Trade with Singapore On December 30, 2003, President Bush issued a proclamation regarding implementation of the U.S.-Singapore Free Trade Agreement, which entered into force on January 1, 2004. The proclamation authorized changes in the U.S. Harmonized Tariff Schedule and Rul Nextlinx Launches New Restricted Party Screening Service ROCKVILLE, MD - Cost-efficient Service Affords Small Businesses Opportunity to Screen Customers, Suppliers Against Restricted Party Lists Mandatory AES Update U.S. exporters should see the Final Rule requiring mandatory filing of all SED information electronically through the Automated Export System (AES) published this fall in the Federal Register, according to the U.S. Census Bureau's AES Newsletter. Once the When Does Carrier Liability Begin and End? - Part 1 Disputes often occur in the distribution cycle over which party must bear the loss of a shipment due to a contention that the carrier had not yet taken control of the shipment or had made a “delivery” according to the bill of lading. U.S. Domestic Terms of Sale and Incoterms 2000 Incoterms 2000 provide a common reference that parties in different countries use in determining their contractual obligations and, in particular, the price at which merchandise will be exchanged and the responsibilities of each party to assure its transp When Does Carrier Liability Begin and End? — Part 2 Disputes often occur in the distribution cycle over which party must bear the loss of a shipment due to a contention that the carrier had not yet taken control of the shipment or had made a “delivery” according to the bill of lading. In my last article, I Report Details Nearly $15 million in Export Compliance Penalties in FY2005 A new report published this month by the Bureau of Industry & Security (BIS) lists nearly $15 million in criminal and civil penalties levied against exporters for violating U.S. Export Administration Regulations during the just completed 2005 fiscal year. Update on U.S. Domestic Terms of Sale and Incoterms 2000 There has been quite a bit discussion regarding the revision of the Uniform Commercial Code (UCC) Articles 2 and 2A during the past year that would delete the use of the term FOB in domestic transactions. The traditionally used term FOB or Free on Board w Deemed Exports: Exporting Without Shipping a Product Many exporters have never heard the phrase “Deemed Export.” This article will help answer potential questions about the topic. New release of Shipping Solutions adds new forms and compliance features to best-selling export software EAGAN, MN —Shipping Solutions is releasing version 7.2 of its Shipping Solutions Professional export documentation and compliance software. The software automates the process of creating the documents required for U.S. exports by up to 80% by eliminating U.S. and Morocco Free Trade Agreement On December 22, 2005, President Bush issued a proclamation adjusting tariffs on imports from Morocco and authorizing the U.S. Secretary of Commerce to take actions to support the implementation of the pact. When Is a Letter of Credit Amendment Not an Amendment? Once a letter of credit (LC) is issued and the beneficiary has had a chance to review the document, the need for an amendment may become apparent. Or perhaps the applicant realizes they made an error when they completed the application after the letter of Wood Packaging Certifications for Export and Import “Keeping out the bugs” has become the worldwide mantra for exporters and importers. The bug that gained everyone’s attention in the United States was the Asian Long Horn Beetle, while other countries are concerned with the Pine Worm Nematode. Negotiating Ocean Marine Contracts Negotiating ocean marine contracts requires a great deal of expertise and differs greatly from negotiating with other modes of carriage. However, there are a few issues and techniques that should be addressed during negotiations as these issues often resu Shipping Solutions Customers Give High Marks to Top-Selling Export Software According to a recent survey of Shipping Solutions export documentation and compliance software customers, the typical Shipping Solutions user works for a U.S. manufacturing company that exports to Canada, the United Kingdom, and Mexico and uses Shipping Should You Care About Country of Origin Impact? Imagine for a moment that the $95 dress shirt you are wearing today was actually produced for a large upscale retailer in the United States by a mega company based in Hong Kong (China). On further research you find that the shirt was actually manufactured Guess What. Mandatory AES is Delayed Again! If your company still prefers filing the Shipper’s Export Declaration (SED) the old fashioned way, you’re in luck. Objections raised by the Department of Homeland Security (DHS) to the proposed Census Bureau rule replacing the paper SED with mandatory use Export Compliance Questionnaire If you are an exporter, it’s time to measure your company's export procedures against the U.S. regulations, guidelines and documentation. Here’s a 10-second quiz for you and your export management team to help measure your company's compliance. The U. S. Export Enforcement Program If you are exporting from the Unites States, you need to familiarize yourself with and understand the U. S. Bureau of Industry and Security. Known simply as the BIS, their primary mission is the accurate, consistent and timely evaluation and processing of Cross-Cultural Communications: Paralanguage and Body Language—Part 1 It is said that it is easy to lie with words, more difficult to lie with the face, and even more difficult to do so with the body. If the spoken words relay only part of the message, a good part of the message is expressed through various other sounds and Is Global Branding Right For You? Welcome to the new world where global branding and positioning is being increasingly adopted in a world that Thomas Freidman considers to be “Flat.” Building local, regional or global brands with a clearly defined and understood target audience is a chall Shipping Solutions Launches Affordable Compliance Tools for Small and Medium-Sized Export Companies Small and medium-sized businesses that have found it difficult to meet their export compliance responsibilities now have an affordable online solution at their disposal. Shipping Solutions has just officially launched its collection of international trad Shipping Solutions® to Present Export Solutions Along with Google, eBay and Others at “Web Revolution for Business” Conference David M. Noah, president and founder of InterMart, Inc., will be presenting his company’s Shipping Solutions export documentation and compliance software at the “Web Revolution for Business” conference in San Diego on August 14-15, 2007, at the Eleanor Ro Export Professional David Noah Joins SBTV.com with Exclusive Money-Saving Tips When it comes to exporting, small firms lead the way in the United States. Founder and president of Shipping Solutions, David Noah, joins SBTV.com in an exclusive podcast series to provide tips on keeping up in the fast-paced world of exporting. New Release of Shipping Solutions Professional Export Software Adds New Incoterms 2010; Currency Options for Invoices EAGAN, MN—Shipping Solutions is releasing version 7.50 of its Shipping Solutions Professional export documentation and compliance software. The software automates the process of creating the documents required for U.S. exports by up to 80% by eliminating	The U.S.-Chile Free Trade Agreement (FTA) became effective on January 1, 2004. At that time, more than 85 percent of two-way trade in consumer and industrial goods became duty free. Duties on other products will gradually be phased out over a 12-year period. My next three articles will address how international corporations can benefit from complying with this new agreement. To take advantage of the benefits for U.S. goods under this agreement, exporters will need to understand how to determine that their goods are originating or qualify for preferential duty treatment under the U.S.-Chile FTA Rules of Origin. Lower duty rates are not the only benefit provided by the U.S.-Chile Free Trade Agreement. The agreement also contains commitments by both countries on many non-tariff issues including intellectual property rights, services, investment, temporary entry of business/technical persons, and telecommunications. The U.S.-Chile FTA will eliminate tariffs on U.S. and Chilean goods over a 10-year period for industrial goods and a 12-year period for agricultural products. However, over 85 percent are duty-free as of January 1, 2004. To determine when your product can enter Chile duty-free: It is first necessary to obtain the appropriate HS number for your product (See my article, "The Role of the Harmonized System in NAFTA.") With this number it is possible to check the Chilean tariff schedule which is found in Annex 3.3 to Chapter Three of the FTA to find out at what rate the duties on your product will be reduced. This website provides the entire U.S.-Chilean Trade Agreement. The U.S.-Chile FTA tariff schedules code each line item with a letter, indicating the staging by which the current tariff for each item is reduced and ultimately eliminated. The schedules also note the base rate of customs duty, which is used to determine the starting point and interim rate at each stage of reduction for an item. For purposes of eliminating duties, interim stage rates shall be rounded down, at least to the nearest tenth of a percentage point. Staging Categories Except as otherwise noted in the Head Notes section to each tariff schedule, the codes are generally defined as follows: Category A: Goods are duty-free immediately. Category B: Duties will be eliminated in four equal annual stages January 1, 2004, and shall be duty-free effective January 1 of year four (2007). Category C: Duties will be eliminated in eight equal annual stages beginning January 1, 2004, and shall be duty-free effective January 1 of year eight (2011). Category D: Duties will be eliminated in 10 equal annual stages beginning January 1, 2004, and shall be duty-free effective January 1 of year 10 (2013). Category E: Duties will be eliminated in 12 equal annual stages beginning January 1, 2004, and shall be duty-free effective January 1 of year 12 (2015). Category F: Goods already receiving duty-free treatment shall continue to receive duty-free treatment under the FTA. Category G: Duties shall remain at their base rates during years one through four. Duties on these goods shall be reduced by 8.3 percent of the base rate on January 1 of year five, and by 8.3 percent of the base rate each year thereafter through year eight. Beginning January 1 of year nine, duties on these goods shall be reduced by 16.7 percent of the base rate annually through year 12, and shall be duty-free effective January 1 of year 12 (2015). Category H: Duties shall remain at their base rates during years one and two. Beginning January 1 of year three, duties on these goods shall be removed in eight equal stages, and such goods shall be duty-free effective January 1 of year 10 (2013). Categories J, K, L, M, and N are described in the Head Notes to the U.S. tariff schedule, located in Annex 3.3 of Chapter Three. Categories O, P, and V are described in the Head Notes to the Chilean tariff schedule, located in Annex 3.3 of Chapter Three. In order to take advantage of the benefits for U.S. goods under this agreement, exporters will need to understand how to determine that their goods are originating or qualify for preferential duty treatment under the U.S.-Chile Free Trade Agreement Rules of Origin. Next month’s article will address this issue.
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