ITA Utilizes Free Trade Agreement to Ensure Proper Customs Valuation and Appeal Procedures in Chile
April 26, 2013
(ITA)
The Department of Commerce’s International Trade Administration (ITA) worked
with Epson Chile (Epson), a wholly-owned subsidiary of Epson America Inc., based
in Long Beach, CA, to ensure that Chile’s customs valuation methods and appeal
procedures complied with the World Trade Organization’s (WTO) Customs Valuation
Agreement and the U.S.-Chile Free Trade Agreement (FTA).
Why it Matters
If the U.S. government (USG) had not ensured Chile’s adherence to the relevant
provisions under the WTO Customs Valuation Agreement and the U.S.-Chile FTA, the
additional costs that Epson faced would have significantly impacted the
competitiveness of its exports to the Chilean market. Inconsistent customs
valuation procedures can cause uncertain business transactions and reduce the
confidence of U.S. companies seeking to export to new markets.
The Problem
In February 2008, Epson reported to that Chile’s respective customs agency had
accused the company of undervaluing its imports of ink cartridges and other
printing supplies. Epson maintained that it had not undervalued its goods and
that it should not be subject to over $4 million in potential penalties and
fines.
The Solution
Advocating on behalf of Epson, ITA officials, along with other USG agencies,
supported Epson by raising its concerns with the Chilean government and pressing
the importance of transparent customs valuation procedures and predictable
appeal mechanisms consistent with its trade agreement obligations. In early
2012, the Chilean Customs’ administrative review system found that Epson was not
guilty of undervaluing its products, in turn demonstrating the value of the WTO
Customs Valuation Agreement and the U.S.-Chile FTA.
Working closely with U.S. companies, ITA creates, expands and defends market
access for U.S. goods and services overseas through the Trade Agreements
Compliance Program. “We promote policy that develops a more favorable business
climate for U.S. companies in global markets; we employ commercial diplomacy to
resolve trade barriers; and we leverage our bilateral and multilateral trade
agreements to ensure our trading partners live up to their commitments so that
our businesses can compete on a level-playing field.” - Assistant Secretary for
Market Access and Compliance, Michael C. Camuñez.
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