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Commercial Traffic Basics - Coggle Diagram

- - - - Allow other natural or legal persons, national or foreign residents or non-residents, to carry out the same operations, activities, negotiations and transactions mentioned above.
        In general, all kinds of transactions, negotiations and activities related to or incidental to the establishment and operation of free international trade zones.
      - Merchandise exempt from the payment of taxes, levies and other fiscal contributions:
        All merchandise and other articles or commercial effects that enter the free trade areas owned or operated by the Colon Free Zone, will be exempt, at all times, from the payment of taxes, levies and other fiscal, provincial or any other contributions order.
- - - - Exports are not subject to special permits, however, the National Customs is in charge of guarding the shipments to the docks or to the airport in the respective customs facilities for their departure from the country.
        These forms must be duly signed or authorized in the Sept. Commercial of the Administration of the Colon Free Zone.
        For your authorization you must present a commercial invoice when n; duly detail the goods, bills of lading or air waybill depending on the type of shipment.
        
        Declaration of Transfers or Internal Movement: Transfers are internal procedures that are carried out between "the companies established in the area of the Colon Free Zone, it is yellow.
        The people who sign the International movement declarations. For the seller and for the buyer, they must have their authorized signatures in the Commercial Movement.
        
        • Movement of Goods within the area:
        The Security inspector covered by Decree Law 423 of September 7, 1953, can demand before any merchandise movement activity that is carried out in the area, that he shows that he crosses. such movement, whether by truck, forklift, packages on bicycles, etc.
        This responsibility would prevent auto theft, the purchase of merchandise stolen from other businesses within the area.
        
        • Transfer of Goods to France Field
        For the transfer of merchandise from the segregated area to the France Field area, the user must present a cargo manifest to the customs facility, the customs inspector puts a stamp on the truck, in this case it is not necessary to present the declaration of transfer, because the cargo manifest covers the internal movement.
        
        Declaration – Customs Settlement: This document covers purchases made in the Colon Free Zone to Panamanian territory, these merchandise must pay the. customs duty or import tax, which the merchandise pays in order to be introduced into Panamanian territory.
        Two signatures are required to process liquidations: the signature of the company that buys the merchandise and the signature of the company that sells it. The Commercial Movement verifies the description of the item, the quantity, value, weight, and the tax rate (%) to then proceed to sign it.
        
        TARIFFS
        All merchandise that enters the country must be taxed with a single import tax. The application of the appraisals is done through the Import Tariff Book of the Republic of Panama. (Decree Law No. 25 of 1967).
        Entry processing. The process to process an entry is very delicate and has certain variants depending on the shipping route.
        To remove merchandise from the dock:
        
        Documents run by the 1st Free Zone.
        
        Make sure that the B/.l has the "release" (delivery authorization) from the shipping company as an indication that the ship arrived at the port, represented by a seal, the ship's signature of arrival.
        
        Seal of the Port Authority.
- - - - INTERNATIONAL POSTERS
        So far we have studied cases in which a single country restricts its... foreign trade unilaterally in one way. however, countries can also restrict their trade multilaterally.
        Governments, or even corporations. private • located in different countries, they can form an international cartel, that is, they can effectively agree to restrict competition between them, and an effort to exploit their joint monopoly power.
        DUMPING
        It is international price discrimination and occurs when a monopolist (or imperfect competitor) charges a lower price to foreign buyers than they pay domestic buyers for the same (or comparable) good, (reverse dumping) occurs when foreign buyers pay a higher price than domestic buyers).
        
        CLASSES OF DUMPING
        
        Persistent Dumping: It arises from the search for profit maximization by a monopolist who realizes that the domestic and foreign markets are disconnected due to transportation costs, tariffs and other barriers to trade.
        
        Predatory or Predatory Dumping: It is generally classified as an unfair method of competition" and as the most harmful form of dumping. It takes place when the producer, in an effort to eliminate competitors and gain control of the foreign market, deliberately sells abroad at a reduced price for a short time.
        
        Sporadic Dumping: It is an occasional price discrimination by a product that turns out to have an occasional surplus due to overproduction (presumably due to excess capacity or unanticipated changes in market conditions, or simply due to a poor planning in production.
        
        ECONOMIC POLICY AGAINST DUMPING
        Dumping in all its forms violates Pareto optimality and for this reason is harmful to world welfare. On the one hand, a producer that practices: dumping raises prices above the marginal rate, (which is the basic evil of monopoly) and, on the other hand, charges discriminated prices to different consumers of course, sporadic dumping is only a temporary phenomenon and economists tend to regard its (possible) effects on economic welfare as a negligible nuisance.
- - - - Preferential Trade Club: Two or more countries form a preferential trade club, when they reduce their respective taxes on imports of all goods (except capital services) with each other, that is, when they exchange small tariff preferences.
        The member countries maintain their original tariffs against the rest of the world (historical case, the British Commonwealth of 48 countries).
        Free Trade Area or Associations: Two or more countries form a free trade area, when they eliminate all import duties (and all quantitative restrictions) on their mutual trade in all goods (except capital items), but they maintain their original tariffs against the rest of the world (USA - Canada Free Trade Area); When a group of countries form a free trade area, a control problem arises: imports from the rest of the world can enter a high-duty member country through a low-duty member country, thus avoiding paying the high tariffs. This phenomenon is known as trade diversion.
        
        DYNAMIC EFFECTS OF CUSTOMS UNIONS
        In addition to the static effects of trade creation and diversion, customs unions have some interesting dynamic effects, such as increased competition, encouragement of technical change, encouragement of investment, and economies of scale.