Import

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Geigercars, which imports cars from North America to Europe is called an importer. Geigercars 1X7A7998.jpg
Geigercars, which imports cars from North America to Europe is called an importer.

An import is the receiving country in an export from the sending country. Importation and exportation are the defining financial transactions of international trade. [3]

Contents

In international trade, the importation and exportation of goods are limited by import quotas and mandates from the customs authority. The importing and exporting jurisdictions may impose a tariff (tax) on the goods. In addition, the importation and exportation of goods are subject to trade agreements between the importing and exporting jurisdictions.

History

Definition

"Imports" consist of transactions in goods and services to a resident of a jurisdiction (such as a nation) from non-residents. [4] The exact definition of imports in national accounts includes and excludes specific "borderline" cases. [5] Importation is the action of buying or acquiring products or services from another country or another market other than own. Imports are important for the economy because they allow a country to supply nonexistent, scarce, high cost, or low quality of certain products or services, to its market with products from other countries.

A general delimitation of imports in national accounts is given below:

Basic trade statistics often differ in terms of definition and coverage from the requirements in the national accounts:

Balance of trade

A country has demand for an import when the price of the good (or service) on the world market is less than the price on the domestic market.

The balance of trade, usually denoted , is the difference between the value of all the goods (and services) a country exports and the value of the goods the country imports. A trade deficit occurs when imports are larger than exports. Imports are impacted principally by a country's income and its productive resources. For example, the US imports oil from Canada even though the US has oil and Canada uses oil. However, consumers in the US are willing to pay more for the marginal barrel of oil than Canadian consumers are because there is more oil demanded in the US than there is oil produced. Also, if we talk about Indonesia, to export or import any good from Indonesia, you must need the proper information of the Indonesian buyers and sellers. Let suppose you need Import data of HS Code 29011000, for this, you can contact several companies like Seair Exim Solutions, Export Genius or Cybex.

In macroeconomic theory, the value of imports can be modeled as a function of domestic absorption (spending on everything, regardless of source) and the real exchange rate. These are the two most important factors affecting imports and they both affect imports positively. [6]

Types of import

There are two basic types of import:

1. Industrial and consumer goods

2. Intermediate goods and services

Companies import goods and services to supply to the domestic market at a cheaper price and better quality than competing goods manufactured in the domestic market. Companies import products that are not available in the local market.

There are three broad types of importers:

  1. Looking for any product around the world to import and sell.
  2. Looking for foreign sourcing to get their products at the cheapest price.
  3. Using foreign sourcing as part of their global supply chain.

Direct-import refers to a type of business importation involving a major retailer (e.g. Wal-Mart) and an overseas manufacturer. A retailer typically purchases products designed by local companies that can be manufactured overseas. In a direct-import program, the retailer bypasses the local supplier (colloquial middle-man) and buys the final product directly from the manufacturer, possibly saving in added cost data on the value of imports and their quantities often broken down by detailed lists of products are available in statistical collections on international trade published by the statistical services of intergovernmental organisations (e.g. UNSD, [7] FAOSTAT, OECD), supranational statistical institutes (e.g. Eurostat) and national statistical institutes. Industrial and consumer goods.

Import of goods

Importation and declaration and payment of customs duties is done by the importer of record, which may be the owner of the goods, the purchaser, or a licensed customs broker.

See also

Related Research Articles

International trade Exchanges across international borders

International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services.

Smuggling Illegal movement of goods or people

Smuggling is the illegal transportation of objects, substances, information or people, such as out of a house or buildings, into a prison, or across an international border, in violation of applicable laws or other regulations.

A tariff is a tax imposed by a government of a country or of a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic industry. Tariffs are among the most widely used instruments of protectionism, along with import and export quotas.

Customs Government agency which regulates the flow of goods and collects tariffs

Customs is an authority or agency in a country responsible for collecting tariffs and for controlling the flow of goods, including animals, transports, personal effects, and hazardous items, into and out of a country. Traditionally, customs has been considered as the fiscal subject that charges customs duties and other taxes on import and export. In recent decades, the views on the functions of customs have considerably expanded and now covers three basic issues: taxation, security, and trade facilitation.

A grey market or dark market is the trade of a commodity through distribution channels that are not authorized by the original manufacturer or trade mark proprietor. Grey market products are products traded outside the authorized manufacturer's channel.

Dumping, in economics, is a kind of injuring pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price below the normal price with an injuring effect. The objective of dumping is to increase market share in a foreign market by driving out competition and thereby create a monopoly situation where the exporter will be able to unilaterally dictate price and quality of the product.

Export A good produced in one country that is sold into another country


An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an exporter; the foreign buyer is an importer. Services that figure in international trade include financial, accounting and other professional services, tourism, education as well as intellectual property rights.

Non-tariff barriers to trade Type of trade barriers

Non-tariff barriers to trade are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs.

An open economy is a type of economy where not only domestic factors but also entities in other countries engage in trade of products. Trade can take the form of managerial exchange, technology transfers, and all kinds of goods and services.

A parallel import is a non-counterfeit product imported from another country without the permission of the intellectual property owner. Parallel imports are often referred to as grey product and are implicated in issues of international trade, and intellectual property.

A common external tariff(CET) must be introduced when a group of countries forms a customs union. The same customs duties, import quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which country within the area they are entering. It is designed to end re-exportation; but it may also inhibit imports from countries outside the customs union and thereby diminish consumer choice and support protectionism of industries based within the customs union. The common external tariff is a mild form of economic union but may lead to further types of economic integration. In addition to having the same customs duties, the countries may have other common trade policies, such as having the same quotas, preferences or other non-tariff trade regulations apply to all goods entering the area, regardless of which country, within the area, they are entering.

Re-exportation Exporting of imported goods without alteration

Re-exportation, also called entrepot trade, is a form of international trade in which a country exports goods which it previously imported without altering them. One such example could be when one member of a free trade agreement charges lower tariffs to external nations to win trade, and then re-exports the same product to another partner in the trade agreement, but tariff-free. Re-exportation can be used to avoid sanctions by other nations.

A bonded warehouse, or bond, is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty. It may be managed by the state or by private enterprise. In the latter case a customs bond must be posted with the government. This system is widely used in developed countries throughout the world.

Market access Ability to sell goods and services across borders

In international trade, market access is a company's ability to enter a foreign market by selling its goods and services in another country. Market access is not the same as free trade, because market access is normally subject to conditions or requirements, whereas under ideal free trade conditions goods and services can circulate across borders without any barriers to trade. Expanding market access is therefore often a more achievable goal of trade negotiations than achieving free trade.

The U.S. Import and Export Price Indexes measure average changes in prices of goods and services that are imported to or exported from the U.S.. The indexes are produced monthly by the International Price Program (IPP) of the Bureau of Labor Statistics. The Import and Export Price Indexes were published quarterly starting in 1974 and monthly since 1989.

Taxation in Iran is levied and collected by the Iranian National Tax Administration under the Ministry of Finance and Economic Affairs of the Government of Iran. In 2008, about 55% of the government's budget came from oil and natural gas revenues, the rest from taxes and fees. An estimated 50% of Iran's GDP was exempt from taxes in FY 2004. There are virtually millions of people who do not pay taxes in Iran and hence operate outside the formal economy. The fiscal year begins on March 21 and ends on March 20 of the next year.

Certificate of origin International trade document

A Certificate of OriginDeclaration of Origin is a document widely used in international trade transactions which attests that the product listed therein has met certain criteria to be considered as originating in a particular country. A certificate of origin / declaration of origin is generally prepared and completed by the exporter or the manufacturer, and may be subject to official certification by an authorized third party. It is often submitted to a customs authority of the importing country to justify the product's eligibility for entry and/or its entitlement to preferential treatment. Guidelines for issuance of Certificates of Origin by chambers of commerce globally are issued by the International Chamber of Commerce.

Trade is a key factor of the economy of China. In the three decades following the Communist takeover in 1949, China's trade institutions developed into a partially modern but somewhat inefficient system. The drive to modernize the economy that began in 1978 required a sharp acceleration in commodity flows and greatly improved efficiency in economic transactions. In the ensuing years economic reforms were adopted by the government to develop a socialist market economy. This type of economy combined central planning with market mechanisms. The changes resulted in the decentralization and expansion of domestic and foreign trade institutions, as well as a greatly enlarged role for free market, s in the distribution of goods, and a prominent role for foreign trade and investment in economic development.

Illicit cigarette trade

The illicit cigarette trade is defined as “the production, import, export, purchase, sale, or possession of tobacco goods which fail to comply with legislation”. Illicit cigarette trade activities fall under 3 categories:

  1. Contraband: cigarettes smuggled from abroad without domestic duty paid;
  2. Counterfeit: cigarettes manufactured without authorization of the rightful owners, with intent to deceive consumers and to avoid paying duty;
  3. Illicit whites: brands manufactured legitimately in one country, but smuggled and sold in another without duties being paid.

A Customs declaration is a form that lists the details of goods that are being imported or exported when a citizen or visitor enters a customs territory . Most countries require travellers to complete a customs declaration form when bringing notified goods across international borders. Posting items via international mail also requires the sending party to complete a customs declaration form.

References

  1. Singh, Rakesh Mohan, (2009) International Business, Oxford University Press, New Delhi and New York ISBN   0-19-568909-7
  2. O'Sullivan, Arthur; Shjsnsbeffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River: Pearson Prentice Hall. p. 552. ISBN   0-13-063085-3.
  3. ICC Export/Import Certification
  4. Lequiller, F; Blades, D.: Understanding National Accounts, Paris: OECD 2006, pp. 139-143
  5. for example, see Eurostat: European System of Accounts - ESA 1995, §§ 3.128-3.146, Office for Official Publications of the European Communities, Luxembourg, 1996
  6. Burda, Wyplosz (2005): Macroeconomics: A European Text, Fourth Edition, Oxford University Press
  7. "United Nations Statistics Division". Unstats.un.org. Retrieved 2013-03-25.