Introduction

Glenn Derbyshire – B.Adm, B.Comm,

Prof. Customs Broker

(416) 491-5050 ext 6619

Office: Room B3069

Glenn.Derbyshire@senecac.on.ca
 Export

Import
CANADA

INDIA Export

Import

=
Value$
World Trade Organization

• Established 1995 (G.A.T.T.)

• Creates multilateral trading system

• Legal ground rules for International trade

• Binds governments to keep their trade

policies within agreed limits
 Dispute Settlement

• Mapped out stage by stage settlement

procedure up to a panel of experts

• Also an appeal process

 Policy Review

• Review of trade policies of all countries to

understand their impact

• “Transparency”

• Member countries agree to not change their import

rules and tariffs unless agreed to by the WTO
 Tariffs

• Most Favoured Nation Tariff

• MFN ensures all members of the WTO treat each

other equally under the tariff.

• If two goods are being imported into a WTO

Country (1), the same trade rules apply to both
shipments, as long as the Origin countries (2) & (3)
are WTO members.

• The exception to this rule would be would occur if

Country (1) had a separately negotiated trade
agreement with one of the countries (2) or (3)
Intellectual Property

• Protecting :
– Copyrights
– Patents
– Trademarks
– Designs
– Trade secrets

When trade is involved

 Other Aspects of WTO

• Agriculture

• Textiles

• Anti-Dumping and Subsidization

 Customs Agencies
– Manage The Physical Movement of Goods,
people and Conveyances across borders and
frontiers

– Implement Government policies

– Collection of Duties and Taxes

– Protection of Society: Security

– Criminal
– Terrorist
Customs Agencies

– Environmental Protection
– Collection Of Statistical Information
– Trade Compliance
– Trade Facilitation
– Protection of Cultural Heritage
– Immigration
 Duty

– A levy ,payment, or tax imposed by law on

exported or imported goods

- Three types
- Specific
- ad valorem
- mixture
World Customs Organization

• Began in 1947
• 159 members (USA, Canada, Japan, China,
Germany, France, UK etc)
• Members represent 95% of all world trade
World Customs Organization

Promotes an honest, transparent & largely predictable

Customs environment through:

- Harmonization
- Co-operation
- Communication
Harmonization: Origin of Goods

• Rules are worldwide as opposed to regional

• Origin affects tariff treatment which affect duty

rates

• Trade agreements: Preferential Duty rates for

goods originating from parties of the agreement.
 Harmonization: Commodity Description
• Harmonized Commodity Description and Coding System
• Implemented Jan 01/88
• The goods, their description -> 6 digit subheading

• Chapter: First 2 digits

• Heading: First 4 digits
• Sub heading: First 6 digits

Example: Tomatoes
Harmonized Classification #:
2002.10
Chapter: 20
Heading: 2002
Subheading: 2002.10
 Harmonization: Commodity Description

Example: Disposable Lighters

Harmonized Classification #:
9613.10

Chapter: 96

Heading: 9613

Subheading: 9613.10
Harmonization: Valuation

• Transaction Value:

“The price actually paid or payable by the buyer

to the seller for the goods imported”
Harmonization: Valuation

• Transaction Value:

The amount of money going to the exporter from

the importer must match the value declared by the
importer to the Customs Authorities of the
importing country.