1.3 Foreign Investment in the U.S.

In general, federal agencies define a direct foreign investment as a holding of more than 25% ownership of a US entity. Nevertheless, the Department of Commerce (DOC) sometimes uses a much lower threshold (10% ownership) to assess certain enterprises as being foreign-influenced. US professionals and others representing foreign official entities are required to register as agents of foreign governments.

Although the U.S. allow foreigners to have ownership of real estates (excluding land for agricultural use), it imposes a number of restrictions on foreign investment, as exemplified by the following:

A. Telecommunications:

The U.S. has promulgated laws prohibiting foreign-invested-enterprises (FlEs) from obtaining grants to engage in field of telecomununications (such as telephone network, radio & television stations).

B. Aviation:

Foreign investment in the operation of air transportation is under strict control. In most cases, aircraft registration is only granted to U.S. citizens.

C. Coastal and inland water transportation

D. Hydropower and nuclear power facilities:

Only U.S. citizens can engage in hydropower development projects or owning facilities using or producing atomic energy.

1.4 Foreign Trade Zones

Foreign Trade Zones (FTZS) are designated areas established under US jurisdiction, usually at a port of entry, where foreign goods are allowed to be imported or exported without liabilities of customs duties. One of the biggest advantages for U.S. firms involved in international trade is that they can bring foreign raw materials or semi-finished goods into an FTZ where domestic parts may be added or assembled, and re-export the new composite products without incurring any duties.

By the end of 1991, U.S. FTZs totaled over 180 or approximately 400 if the subzones are counted. The major FTZs in the U.S. include The New York FTZ, The San Francisco FTZ, The Miami FTZ, etc.

1.5 Import Elements

A. Import duties:

The rates of duty on imports may be affected by factors such as country of origin, the @ of products., and others. There are three types of duties:

1. ad valorem rate: the most common type, where tariffs are imposed upon commodities by fixing a certain percentage according to the value of the merchandise, such as 5% ad valorem,

2. specific rate: tariffs are imposed upon commodities per unit of weight or other 

3. mixed rate: a combination of as valorem rate and a specific rate. such as $0.58 per pound plus 8% ad valorem.

Tips: The web site address of U.S. customs is HTTP://CUSTOMS.USTREAS.GOV. To find out duty rates for various products, @ in the following:
HTTP://CUSTOMS.USTREAS.GOV/IW-EXP/RULINGS/HARMONIZE/INDEX.
For questions or more information, contact U.S. Customs Service: Tel: 202-927-6724, Fax: 202-927-1393

[ Next ] [ Up ]

Copyright (c)1999 theshipping.com  All rights reserved.