1. According to the U.S. International Trade Commission website, tariffs for footwear with open toes or open heels; footwear of the slip-on type that is held to the foot without the use of laces or buckles or other fasteners, valued over $3 per pair:
Cuba 66% (Official Harmonized Tariff Schedule of the United States)
Question 2. Technitrol desires to export chips to an importer in the Ukraine. The steps in the export process include:
The product quantity, price, shipment terms, shipment date, manner of shipment, and delivery date are negotiated
The terms of sale are discussed and agreed upon. Based on uncertainty about doing business with a company in the Ukraine, the exporter requires terms of Irrevocable Letter of Credit Confirmed by a U.S. bank.
Technitrol realizes that most export transactions do not require specific approval from the U.S. Government, but for certain export transactions to take place lawfully an export license is required. According to the Bureau of Export Administration website, generally speaking, licenses are required when the product intended for export affects or could affect:
Foreign policy initiatives initiated by the United States government,
Aid in the development of chemical and biological weapons,
Since PC chips might or may not be prohibited items for export to the Ukraine, Technitrol contacts the Bureau of Export Administration at the U.S. Department of Commerce to determine if an export license is required for this product after making certain their potential customer is not on the Commerce DepartmentÆs Denied PersonÆs list (Introduction to Commerce Department Export Controls).
According to an essay by John Dunlop published on line by AVG Letter of Credit Management LLC, the seller provides the buyer with instructions relating to the terms of the Letter of Credit. Specifically, the seller requires that the Letter of Credit include these terms:
That it be deno...