dave mcguire senior manager, international trade global logistics import licensing for information...
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![Page 1: Dave McGuire Senior Manager, International Trade Global Logistics Import Licensing for Information Technology Products July 16, 1999](https://reader036.vdocuments.us/reader036/viewer/2022082805/55150578550346c77d8b4578/html5/thumbnails/1.jpg)
Dave McGuireDave McGuireSenior Manager, International TradeSenior Manager, International TradeGlobal LogisticsGlobal Logistics
Import Licensing for Information Import Licensing for Information Technology ProductsTechnology Products
July 16, 1999July 16, 1999
![Page 2: Dave McGuire Senior Manager, International Trade Global Logistics Import Licensing for Information Technology Products July 16, 1999](https://reader036.vdocuments.us/reader036/viewer/2022082805/55150578550346c77d8b4578/html5/thumbnails/2.jpg)
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Nortel NetworksGlobal Trade Activity
• Export to more than 160 Countries
— Many ITA Signatory Countries
• Manufacture in 10 Countries
• 1998 Revenues US$18b
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INFORMATION TECHNOLOGY AGREEMENTPHASE I
• Nortel Endorses the ITA— Encourage other Countries to Participate
• Duty Reduced to Zero by Year 2000
• Lower Costs to Importer and Consumers
• Encourage other Initiatives Intended to Ensure Smooth Delivery of Goods to Customers
![Page 4: Dave McGuire Senior Manager, International Trade Global Logistics Import Licensing for Information Technology Products July 16, 1999](https://reader036.vdocuments.us/reader036/viewer/2022082805/55150578550346c77d8b4578/html5/thumbnails/4.jpg)
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IMPORT LICENSING
• Required by some Countries prior to Import
• May be Reviewed by Many Government Departments Prior to Approval— Administrative Burden
— Adds to Delivery Time
— Clerical Errors Delay Delivery
• No value seen by Importer or Exporter
![Page 5: Dave McGuire Senior Manager, International Trade Global Logistics Import Licensing for Information Technology Products July 16, 1999](https://reader036.vdocuments.us/reader036/viewer/2022082805/55150578550346c77d8b4578/html5/thumbnails/5.jpg)
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IMPORT LICENSING
• Tariff Classification Required on License— H.S. Code based on Product Description
— Buyers Interpretation may be Different from Sellers Description
— Classification Interpretation not Consistent in all Countries– LAN/WAN Equipment
— Results in Delays if the is a Discrepancy– License must be amended– Goods remain in Storage ($)
![Page 6: Dave McGuire Senior Manager, International Trade Global Logistics Import Licensing for Information Technology Products July 16, 1999](https://reader036.vdocuments.us/reader036/viewer/2022082805/55150578550346c77d8b4578/html5/thumbnails/6.jpg)
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IMPORT LICENSING
• Product Descriptions— Marketing Brochure, Purchase Order, Engineering Description,
Customs Description, Import License Description.
— Inconsistent Description Leads to Misinterpretation and Delays
— Adds Costs not Value
![Page 7: Dave McGuire Senior Manager, International Trade Global Logistics Import Licensing for Information Technology Products July 16, 1999](https://reader036.vdocuments.us/reader036/viewer/2022082805/55150578550346c77d8b4578/html5/thumbnails/7.jpg)
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IMPORT LICENSING
• Customs Clearance— Seller may make Partial Shipment
— Delay in Release While Import License is Matched to other Customs Documents
— No Customs Release if License does not Match
— Storage Charges Incurred While License is Corrected
— Adds Cost not Value
![Page 8: Dave McGuire Senior Manager, International Trade Global Logistics Import Licensing for Information Technology Products July 16, 1999](https://reader036.vdocuments.us/reader036/viewer/2022082805/55150578550346c77d8b4578/html5/thumbnails/8.jpg)
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IMPORT LICENSINGRECOMMENDATION 1
• Eliminate Import License Requirement for ITA Eligible Goods
– Reduced Administrative Burden– Simplifies the Import Process– Demonstrates the spirit of the ITA
– Open Market for Technology Products
![Page 9: Dave McGuire Senior Manager, International Trade Global Logistics Import Licensing for Information Technology Products July 16, 1999](https://reader036.vdocuments.us/reader036/viewer/2022082805/55150578550346c77d8b4578/html5/thumbnails/9.jpg)
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IMPORT LICENSINGRECOMMENDATION 2
• Simplify Import License Requirement for ITA Eligible Goods
– Eliminate Multiple Department Review– Reduce the Number of Reporting Fields– Permit Flexibility in Modifying License to Correct Errors