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Introduction to Foreign Trade - Coggle Diagram

- - - - Primary zone: It is the space of sea or land where the mobilization of merchandise takes place, which by effect of its jurisdiction is a customs area and in which the merchandise must be loaded, unloaded or received in order to comply with the other requirements and formalities established in a legal act of Import, Export, transit, transshipment, cabotage or any other customs regime or operation.
        
        Secondary Zone: The rest of the territory and territorial waters corresponding to each Customs Office in the distribution made by the Director General of Customs for the purposes of the competence and obligations of each one.
        
        Duty-free goods replacement regime. This regime allows importing goods in total exemption of import customs duties in a proportion equivalent to the goods that, having been nationalized, were transformed, processed or incorporated in goods destined for final export.
        
        Temporary admission regime for inward processing (Ritex) Under this regime, certain goods consisting of raw materials and intermediate goods may be received in the customs territory, with suspension of the payment of customs import duties, for their transformation and processing in a production process that generates final products to be re-exported.
        
        Customs transit regime: International Customs Transit is the customs regime that allows the transportation of goods, under customs control, from a Customs Office of Departure to a Customs Office of Destination, in a single operation in the course of which one or more international borders are crossed.
- - - - Customs brokers
        Customs brokers are those who are empowered by the customs authority to carry out formalities before Customs on behalf of shippers, consignees or persons entitled to dispose of the goods. Customs brokers are auxiliary agents of trade and customs service.
        
        Transport Agents.
        Transport Agents are persons authorized by the General Directorate of Customs to carry out Customs formalities related to means of transport and their cargoes, on behalf of the carriers.
        
        Tariff nomenclatures determine the tax exemptions and through which a great variety of objects and products may be registered under the same industrial category.
        For example, in the refrigeration industry, a company that is registered to manufacture refrigerators may alter the object and end up manufacturing cold rooms or air conditioning equipment.
        
        A nomenclature is a list of names, persons or things. Commodity Nomenclature is the descriptive and systematic, orderly and methodical numbering of goods, according to technical-legal rules and criteria, forming a complete system of classification. Function:
        Customs nomenclatures are intended for the application of levies and other basically fiscal purposes. They are oriented to be able to locate more easily certain position, to establish more quickly the relation between taxes and the products objects of the international trade.
        
        Harmonized System - International nomenclature established by the World Customs Organization, based on a classification of goods according to a 6-digit code system accepted by all participating countries. They may establish their own sub-classifications of more than 6 digits for tariff or other purposes.
- - - - Tariff measures are intended to increase tax revenues or to protect a domestic sector of activity against foreign competition, and are applied at the time products cross the border of a customs territory. These measures increase the costs of imports by a fixed percentage or amount, calculated respectively on the basis of value, in which case they are called ad valorem customs duties, or on the basis of physical quantity, in which case they are called specific duties.
        
        Para-tariff measures are other measures that increase the cost of imports in a manner similar to tariff measures, i.e. by a certain percentage or amount, calculated respectively on a value or quantity basis.
        
        Dumping allows a company, whether efficient or inefficient, to bankrupt its competitors and take over the market, if it has sufficient capital to finance sales at prices that contain a loss or lack of profit. Dumping also causes damage to national economies in general, since it leads to the elimination, unjustified in terms of competitiveness, of efficient companies that are the driving force behind employment and development.
        
        In international trade, subsidies cause effects similar to those of dumping, but more harmful. Subsidies are neutralized by a countervailing duty equivalent to their incidence. The proof of subsidies may be simpler than that of dumping, since it is usually contained in the laws and regulations governing the granting of subsidies by the official entities that grant them.
        
        Trade policy is the set of practices aimed at facilitating a country's foreign trade, both in terms of institutional organization and the implementation of actions to increase competitive capacity and achieve greater access to other markets through trade negotiations.