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Domestic administration of tariffs

1. Valuation
   • Art. 7 of GATT: "actual value" defined as the "price at which ... such or like merchandise is sold or offered for sale in the ordinary course of trade under fully competitive conditions".
   • Brussels Definition of Value (BDV) adopted by many countries including EU and Japan starting in the 1950s, though rejected by USA and Canada. Under this method, a normal market price, defined as “the price that a good would fetch in an open market between a buyer and seller independent of each other,” was determined for each product, according to which the duty was assessed.
   • Customs Valuation Code (1979, 1994). Basic Principle: Transaction value
     Method 1 — Transaction value
     Method 2 — Transaction value of identical goods
     Method 3 — Transaction value of similar goods
     Method 4 — Deductive method
     Method 5 — Computed method
     Method 6 — Fall-back method
     

     Thorough information on Customs Valuation you can find in WTO website.

   
   

   The 13 INCOTERMS EXW - Ex Works -- Title and risk pass to buyer including payment of all transportation and insurance cost from the seller's door. Used for any mode of transportation. International Carriage NOT Paid by Seller FCA - Free Carrier -- Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier.Seller is obligated to load the goods on the Buyer's collecting vehicle; it is the Buyer's obligation to recieve the Seller's arriving vehicle unloaded. FAS - Free Alongside Ship -- Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller. FOB - Free On Board -- Title and risk pass to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. Used for sea or inland waterway transportation. International Carriage Paid by the Seller CFR - Cost and Freight -- Title, risk and insurance cost pass to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation. CIF - Cost, Insurance and Freight -- Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation. CPT - Carriage Paid To -- Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination. Used for any mode of transportation. CIP - Carriage and Insurance Paid To -- Title and risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation. Arrival At Stated Destination DAF - Delivered at Frontier -- Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation. DES - Delivered Ex Ship -- Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation. DEQ - Delivered Ex Quay (Duty Paid) -- Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation. DDU - Delivered Duty Unpaid -- Title, risk and responsibility of import clearance pass to buyer when seller delivers goods to named destination point in the country of importation. Used for any mode of transportation. Buyer is obligated for import clearance. DDP - Delivered Duty Paid -- Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation. Detailed information on INCOTERMS you can find in International Chamber of Commerce website.

   
   
2. Classification
   • Brussels Nomenclature,
   • Harmonized System.
   
   
3. Rules of Origin
   • Goods being wholly obtained in one country,
   • Last substantial transformation.
     

     Thorough information on Rules of Origin you can find in WTO website.

4. Customs fees (art. 8).