PUBLIC VERSION DOC Investigation Nos. A-489-839 ITC Investigation Nos. 701-TA-_-_ and 731-TA- Total No. ofPages: 101 AD/CVD Operations Petitioners' Business Proprietary Information for Which Proprietary Treatment Has Been Requested Deleted at Exhibits AD-TR-l, Att. 1, AD-TR-I, Att.2, AD-TR-l, Att. 5, AD-TR-l, Att.7, AD-TR-2, and AD- TR-3 PUBLIC VERSION BEFORE THE INTERNATIONAL TRADE ADMINISTRATION OF' THE U.S. DEPARTMENT OF COMMERCE AND THE U.S. INTERNATIONAL TRADE COMMISSION ANTIDUMPING DUTY PETITION VOLUME XIX TURKEY COMMON ALLOY ALT]MINUM SHEET F'ROM BAHRAIN, BRAZIL, CROATIA, EGYPT, GERMANY, GREECE, INDIA, INDONESIA, ITALY, KOREA, OMAN, ROMANIA, SERBIA, SLOVENIA, SOUTH AFRICA, SPAIN, TAIWAN, AND TURKEY PETITIONERS: THE ALUMINUM ASSOCIATION COMMON ALLOY ALUMINUM SHEET TRADE ENFORCEMENT WORKING GROUP AND ITS INDIVIDUAL MEMBERS W. BRAD HUDGENS WILLIAM H. CROW II EMILY R. MALOOF NEREUS JOUBERT VLADIMIR VARBANOV GEORGETOWN ECONOMIC SERVICES OLLC 3050 K Street, N.W. \ilashington, D.C. 20007 (202) 94s-6660 JOHN M. HERRMANN PAUL C. ROSENTHAL KATHLEEN W. CANNON R. ALAN LUBERDA BROOKE M. R]NGEL DAVID C. SMITH GRACE W. KIM MELISSA M. BRE\ryER JOSHUA R. MOREY MATTHEW G. PEREIRA KELLEY DRYE & WARREN LLP 3050 K Street, N.W., Suite 400 Washington, DC 20007 (202) 342-8400 March 9,2020 Counsel to Petitioners
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PUBLIC VERSION
DOC Investigation Nos. A-489-839ITC Investigation Nos. 701-TA-_-_ and 731-TA-
Total No. ofPages: 101AD/CVD OperationsPetitioners' Business Proprietary Information forWhich Proprietary Treatment Has Been RequestedDeleted at Exhibits AD-TR-l, Att. 1, AD-TR-I, Att.2,AD-TR-l, Att. 5, AD-TR-l, Att.7, AD-TR-2, and AD-TR-3PUBLIC VERSION
BEFORE THEINTERNATIONAL TRADE ADMINISTRATION OF' THE
U.S. DEPARTMENT OF COMMERCEAND THE
U.S. INTERNATIONAL TRADE COMMISSION
ANTIDUMPING DUTY PETITIONVOLUME XIX
TURKEY
COMMON ALLOY ALT]MINUM SHEET F'ROMBAHRAIN, BRAZIL, CROATIA, EGYPT, GERMANY, GREECE, INDIA, INDONESIA, ITALY,KOREA, OMAN, ROMANIA, SERBIA, SLOVENIA, SOUTH AFRICA, SPAIN, TAIWAN, AND
TURKEY
PETITIONERS:THE ALUMINUM ASSOCIATION COMMON ALLOY ALUMINUM SHEET TRADE
ENFORCEMENT WORKING GROUP AND ITS INDIVIDUAL MEMBERS
W. BRAD HUDGENSWILLIAM H. CROW IIEMILY R. MALOOFNEREUS JOUBERTVLADIMIR VARBANOV
GEORGETOWN ECONOMICSERVICES OLLC3050 K Street, N.W.\ilashington, D.C. 20007(202) 94s-6660
JOHN M. HERRMANNPAUL C. ROSENTHALKATHLEEN W. CANNONR. ALAN LUBERDABROOKE M. R]NGEL
DAVID C. SMITHGRACE W. KIMMELISSA M. BRE\ryERJOSHUA R. MOREYMATTHEW G. PEREIRA
KELLEY DRYE & WARREN LLP3050 K Street, N.W., Suite 400Washington, DC 20007(202) 342-8400
March 9,2020Counsel to Petitioners
PUBLIC VERSION
Table of Contents
I. COMMON ALLOY ALUMINUM SHEET FROM TURKEY IS BEING
SOLD OR OFFERED FOR SALE AT LESS THAN FAIR VALUE
A. Introduction ....
B. Producers in Turkey..
C. Export Price or Constructed Export Price
1. Sources of U.S. Pricing......
2. Adjustments to U.S. Pricing..
Page
I
1
1
')
2
2
J
J
4
4
D. Normal Value .
1. Normal Value Based on Home Market Prices..'.....
E. Antidumping Duty Margin Calculations.............."
II. CONCLUSION AND REQUEST FOR INVESTIGATION ............
PUBLIC VERSION
L COMMON ALLOY ALUMINUM SHEET FROM TURI(EY IS BEING SOLD OR
OF'FERE D F'OR SALE AT ,RSS THAN F'AIR VAI,IIE
A. Introduction
This Petition volume contains information regarding sales at less than fair value in the
United States of common alloy aluminum sheet ("CAAS") from Turkey. This volume presents
information reasonably available to Petitioners demonstrating that CAAS from Turkey is being
sold in the United States at less than fair value within the meaning of section 73 1 of the Tariff Act
of 1930, as amended ("the Act"). See 19 U.S.C. $ 1673. As discussed below, application of the
standard antidumping methodology used by the U.S. Department of Commerce ("the
Department") demonstrates that producers and exporters in Turkey have sold, or offered for sale,
CAAS in the United States for less than fair value.
The general and injury information required by section 351.202 of the Department's
regulations, 19 C.F.R. $ 351 .202, and section 207 .11 of the regulations of the U.S. International
Trade Commission ('.ITC" or "the Commission"), 19 C.F.R. $ 207.11, can be found in Volume I
of this Petition. Based on information reasonably available to Petitioners contained in this volume,
the Department should initiate an investigation of sales at less than fair value of CAAS from
Turkey and should impose antidumping duties in an amount that is equal to the amount by which
the normal value exceeds the export price or constructed export price'
B. Producers in TurkeY
To the best of Petitioners' knowledge, CAAS is produced in Turkey and exported to the
United States by the following companies during the proposed period of investigation ("POI"):
o ASAS Aluminyumo Assan Aluminyum. Teknik Aluminyumo PMS Aluminyum
PUBLIC VERSION
pursuant to 19 C.F.R. $ 35 L202(b)(7)(iXA), the fult names and addresses of all known
producers and exporters of CAAS in all of the subject countries (including Turkey) are provided
in Volume I. See Petition Volume I, Exhibit GEN-6 and Exhibit GEN-15. Although
information about the proportion of total exports to the United States accounted for by each listed
company is not reasonably available to Petitioners, Petitioners believe based on experience in the
marketplace that merchandise produced by the identified companies accounts for most or all U.S.
imports of CAAS during the proposed POI.r
C. Export Price or Constructed Export Price
Petitioners have reason to believe or suspect that producers in Turkey are selling CAAS in
the United States at less than fair value, with sales of the subject merchandise occuruing either
before or after importation to the United States.
1. Sources of U.S. Pricins
petitioners calculated U.S. pricing for CAAS from Turkey based on information Petitioners
obtained from confidential sources concerning sales or offers for sale during the proposed POI.
See Exhibit AD-TR-I.
2. Adiustments to U.S. Pricine
petitioners believe that exporters sell CAAS both directly to end users in the United States,
as well as through trading companies or affiliated sales agents in the United States, including:
o Kibar Americas Inc.o Sinobec Resources LLCo Empire Resources Inc.o Century Metals & SupPlies
o Cleveland Metal Exchange
r Consistent with the Department's practice, Petitioners have treated the four calendar quarters
prior to the month in which the petition has been filed, January 1,20t9 - Decembet 31,2019, as
the proposed POI.
-2-
PUBLIC VERSION
o Mandel Metals lnc.o Hadco Metal Trading Co. LLC. Medalco Metals Inc.o All Metal Sales Inc.o Metals of Honor LLCo New Process Steelo Midwest Metals Inc.
See Petition Volume I, Exhibit GEN-8.
In order to calculate ex-factory pricing for the U.S. sales, pursuant to 19 U.S.C. $
t677a(c)(2), (19 C.F.R. $$ 24.23(bXlXA) and24.24(a)), Petitioners have deducted from the U.S.
pricing, where applicable, the following charges and expenses:
ADJUSTMENT SOURCE EXHIBIT
Foreign inland freight Doing Business in Turkey AD-TR-l, Att.4
Foreign brokerage and handling Doing Business in TurkeY AD-TR-l, Att.4
U.S. inland freightDoing Business in the UnitedStates
AD-TR-l,Aff. 6
Mark-up imposed bydistributor/importer
U,S, Producers' Experience AD-TR-l, Att.2
These adjustments and Petitioners' calculation of net export pricing are provided at Exhibit AD-
TR-l.
D. Normal Value
1. Normal Value Based on Home Market Prices
The preferred method for determining the normal value of imported products is to examine
sales or offers for sale of the identical or similar product in the home market of the exporting
a-J-
PUBLIC VERSION
country. See 19 C.F.R. $ 351.403. Petitioners were able to obtain pricing information in Turkey
based on confidential market research' See Exhibit AD-TR-2'
E. Antidumpins Dutv Marsin Calculations
Petitioners deducted the exportprice or constructed export price from normal value -- using
foreign market pricing as normal value -- to determine the dumping margin for the U.S. sales. This
comparison results in a dumping margin of 42.45 percent, ad valorem. See Exhibit AD-TR-3.
II. CONCLUSION AND REOUEST FOR INVESTIGATION
As demonstrated in this volume, CAAS from Turkey is being sold in the United States at
less than fair value. Accordingly, Petitioners respectfully request that the Department initiate an
antidumping investigation of CAAS from Turkey.
-4-
PUBLIC VERSION
EXHIBIT LIST
Export Prices and AdjustmentsAD.TR.1
Atr. 1 Net price calculation
Supporting documents for net priceAtt.2
Harbor maintenance and merchandise procgssing feeArt.3
HM movement chargesAtt,4
Art.5 Transportation distances
US movement chargesAft.6
Ocean freight and marine insuranceAtt.7
Aft.8 US import duties
US interest ratesAft. 9
Normal ValueAD-TR.2
Antidumping Duty Margin CalculationAD-TR.3
EXHIBIT AD.TR-1
Export Prices andAdjustments
Attachment 1
Summary of Export Pricesand Adjustments
Ranged Data PUBLIC VERSION
Export Price
TurkeY
Common Alloy Aluminum SheetFormula Attachment
Date
Seller
Form
Alloy
Temper
Gauge
width
Length
Fabrication (if quoted)
LME (if quoted)
LME month used
Price ($/pound)
Sale Type (EP or CEP)
Delivery Terms
Foreign Freight Rate
Distance: Factoryto Foreign Port
Foreign lnland Freight
Foreign Brokerage
Ocean Freight
Marine lnsurance
HM/MPF Rate
Harbor Maint./MPF
U.S. Duty Rate - Regular Dut¡es
U.S. Duty Rate - Section 232
U;S. Duty
U.S, Brokerage
U.S. Freight Rate
Distance: U.S. Port to Customer
U,S. lnland Fre¡ght
Distributor / lmporter Mark-UP
Distr¡butor / lmPorter Mark-UP
Ex-Factory Price
$/pound
$/pound
$/pound
Coil
0.0001 2
o.ot0.01 189
0.470h
10o/o
0,00832
0.00004
o.o34.00%
ç=1¡+b)
d
e
f=d*e
sh
I = c*lnsurance rate
j
k=c-(c/(1+i)
I
m
n=c-(c/(1+l+m)
op
q
r=p*q
s
t=c-(c/(1+s))
=c-sum(f, g,h,¡, k, n,o,r,t)
Source
Declaration
Declaration
Declaration
Declaration
Declaration
Declaration
Declaration
Declaration
Declarat¡on
LME
Declaration
Doing Business
Map
Doing Bus¡ness
Maersk
PAF
c.F.R.
Doing Business
Doing Business
Map
Declaration
ah
2
2
2
2
2
2
2
2
2
2
EP
t$/pound/km
kmt$/pound t
$/poundg/pound tg/pound t
o/o
$/pound to/o to/o
$/pound t$/pound
$/pound/km
kmt$/pound t
o/o
II HTS
HTS
2
4
5
4
7
7
o
IÕ
6
5
2
$/pound
$/pound
Attachment 2
U.S. Pricing Documentation
I,I
PUBLIC VERSION
DECLARATION CONCERNING U.S. PRICINGFOR COMMON ALLOY ALUMINUM SHEET FROM TURKEY
], declare that the following information is true and acourate:
Iamthet lproduces Common Alloy Aluminum Sheet ("CAAS") in the United States. I have been
employed at rny company for [ ] and I have worked in the aluminumindustry for [ ] years. My company's headquarters and associated production facilities are
at the following locations:
1
2 My company produces and sells CAAS I1.
3. As a regular part of my responsibilities, I I
I in connection with the sale of CAAS in the U,S, market.
4 Pricing for CAAS may be quoted as a single amount or as a fabrication (or "fab") componentplus a metal component that is based on average pricing on the London Metal Exchange("LME") for a specifred month, such as the month 30 days prior to sale or 30 days prior to the
anticipated shipment.
In the U.S. market, imports of CAAS are usually sold by intermediaries acting as tradingcompanies or agents. Such intermediaries may be affiliated with a foreign mill or operating
independently. During 2019,related intermediaries actively supporting imports of CAAS on
behalf of foreign mills included MT Metal Trading, GARMCO USA Inc., OARC USA Inc.,
and Novelis USA, Other intermediaries included trading companies AA Metals, MetalExchange and Sinobec. Based on my experience and knowledge of the CAAS market, Iestimate that prices quoted or offered by an affiliated or unaffiliated intermediary include a
mark-up of between 3 and 5 percent of total gross price in order to cover the cost of operationsin the United States.
5
6 On [ ],I negotiated with I
commercial quantities, for delivery in I], for a potential sale of CAAS, in normal
1.
t I t I
t I t ì
t I t I
t I I ì
4831-9596-179lv.2
PUBLIC VERSION
'7. This contact informed me of an offer for imported CAAS from Turkey with the following
terms
Date/Period of / Offer IForeisn MillAsent/Reseller (if aPPlicable)
Form
T/ Thickness
width
Fab Price (if applicable)LME Month ifLME Price if cable
Total PriceTerms
Del LocationPayment Terms
CERTIFICATION
This declaration is made in accordance with 28 U.S'C. ç 1746' I declare under penalty of perjury under
the laws of the United States of America that the foregoing statements are true and correct to the best of
my information and belief.
Dated: FebruarY 20, 2020
-2-4831-9596-1781v.2
Average LME Aluminium Official prices USS per tonneand conversion to U.S. standard
U.S. Harbor Maintenance Fee andMerchandise Processing Fee
United States
Merchandise Processing Fee and Harbor Maintenance Fee
Source: 19 C.F.R. 24.23(b)(l) and 24.24(al
Merchandise Processing Fee (%) 0.3464% a
Harbor Maintenance Fee (%) 0.1250o/o b
Total Port Charges O.4714o/o a + b
etllßf{Â(ril / /ì{r.i, tÍdütL\\rs!. l-lt
fii1{l'ÃlÀrN ' -,,stq/)./
U.S. Cuslomt qnd Bordol Plolectlon, DHS; Ttèos' s 24.23
to â,ny foo loqulroil to bs p&ld undorthls seotlo¡'
(2) turlsdlct ott Sor þurposss of dotol'-mintng thô ,urlsdlotton of Â,ny ôourt orosono,i of t'hs Unttstl Stttos, ûny fooolovldeat for undsr thle seoülon wlll bsireatod a¡ if nuoh fso l8 ê ougtomeduty.
(4) Foe unalor père8iro,P}1 (tt) of thtusoòúlon (rallroad ce¡'s): for oÈch lndl'vlduol arrlval (unalo¡ the mont'hlv p4y-
mont and sttlt8mont flllng p¡'oooduro).
olasi oo¿o 409: fol lroÞo,ymonü of thômaximum c&¡onde¡'yoo,r foo' olaås oo'loStis, rayment tooêtlon: for lndlvldualorrtvole (monthly pa,ymonü o,ntl steüo'meni fllùs), s6o ps,r&gre,I,h (ûX4)(ll) ofthlg tôotlon; for Þrepøyment' soo pa.¡e-graPh (dXg) of thtß 6ootlon:- ff1 ¡'oo uratôr þÀra,gra,ph (ô) of th{F
soòttott (prlvats vossolð and al¡orefb)lior prtvaús voÊBols, olaeg cotie 0041 fornriväto olroraft, cla,88 oodo 494' Pay-ñàài iocatlon: fort of orrtval fo¡ eaohinaivtauat arrlv:al (foo to bo oollooto'lby OBP at ùhs tl¡no of arrlva,l) or pro-pännont ln aocorda,nco with paregreph(ôXg) of thls ôeoflon;' rol Foo unalor Da'regr&ph (Ð of thtesoàtton (dutlâbto mall): olaaa ooa¡o {gB,
fovmoni looatlon: soe Baragroph (f) ofthls s€otlon:
It) Rolðasod unalsr e spoolol pormltroi immeatlate dollver'y undor 19 U.B.o.144û(b);--ãn'i¡nteroa or',r'slöa?ot, from 0ÐPouìtôov unrter' l0 u. S;0.' f 4t{(e,)(1X¡d); or
(3) De;rcss aonslnnment cúri,er |øallllu,¡ì ã¡lr?as conslaiment cdftler ldntut! lse seoarats or sho,rod sDeolå,ltzgd faotltüyippiovod by ühg port dl¡'eotor Eololy fortñó sxemlnatlon and roloêtè ot oxpraseoonslginment ðhlpmonüs, ss provldod forln paib 128 of übtE oheptor on Julv 80,
1900,ø\ Montttl en?u or releøse,
^$V rct'
orànco to E ,natil,øl formol or lnformelonb¡'v or rolo&Be muBt not lnolualo:
(1) Any forma'] oi tnform¿l ontry orrsioaao fllstt by an lmDortsr 0r brokorwho is oper'¿tlonol for oargo rolsaootÌ¡rougb tho Àutomatstl Brokor lutsrqfaoo (ABI) o! bho OBP Aütoma.totl oom-mer.oial Syptem (AOs) et any Portwlthln tbo Unltscl Fltetos¡
(tt) Àny form&l or lnformô¡ ônüly orroloâso lltôd eù e port wner€ oargo ås-tecttvlty tÈ not fi¡Ily lmplsmonToal It
tlled bv ån lmportol or brokor who lsopor¿tlonal for.{DI ontry Eumm&ry¡ or
(llt) A.ny lnformal ontry or &ny LlnoRslsaee ü!6al &t 0, perb whðro oÛrgo ß0-ìocùlvlty ls firuy lmpls¡nontod.lf fllstlþy ¿n lmporter or broker who 16 op6r-atlonal for.4BIentrY summa,rY, .. .
(6) ^fnøll ølra:q¡6 or othîr ÍQollltu' .Asniall altport ot:olher,føc,rfúv ls 'dny- elr-porù or oühor faolllüy whtoÞ-.h&s b0-0n
ãeetgnated as t uBor feB fq.otllüy un'ls!'19 u-,g.o. 68b enal &t whtoh moro then,6,000 tnforTnal gntrlos woro proooBBotr
ori¡lng Ûhs pruood{ng fleoel yôa'r'(b) 'È'e¿s-(l) Fotmal øftW ot reloa¿e-
(ti ,la ualorein Íee-(Ll Gsnsro'l' E:¡oeptàri nrovlded ln para8raph (o) ol thl¡ soo-tloir, merohandl6o tb¿t ls folmâl¡y on-tsreil or relea¡oú ts Éubtooü to ths Dev-msnt to OBP of 4n od uøloren¡ feo of
\L 0,s1t8ldûroo$t¡,flho 0.${0{ ad oa'ld}¡rtl r0o-*+-. ffiiGãññffi*¿t¡o to.QsF bv i'lro lm-portsr of ro¡oid ol tho morohlndlBo. et[rrô-itmo of prosontetlqn of tlro sntrvsümt"irv anã ts bosod on üho v-qlue-oflfre mo¡or¡andlto tF dotormlnod unde¡
t9 crR ch. I (4-l-1s Edlllon)
entororl or roloassd la eubJsot to bhe
pa,ymont to QBP of a fso of:(f) $? U ths sntrY ol roloo,so ts Àuto-
màúed a.na not pl'opa,roal by OBP pôr'-
eonnel¡(ft) $8 tf tho ontly or rolôe,Bo ts men-
uoì ánO not prop&¡od bv oBP porsonttol;or
(tlt) $9 tf tho onùry or rolðe,8s, wuoth-er'ouïomsted or manual, ls preparod byOBF porsonnol,
(g) Slno¿l ølraort or othel |o.c'llltv' Wlb}rrs¡psot to tho prooos8lng of ]ottors'tlooumsnùs. reoords, shlpments' mer-oh¿ntllso. oi snv other ftsm thot ls val-ued at ia,6Oo ôr loss' or anY hlsherimount progorlbetl for purporos of ln-formol entrv tn 014S,21 of thls ohapter,e ¡mnlt alrport ôr otbor f¡ollltv mu¡tpay to OBP-tn *mounb ogua,l to tho r€-l¡n'þursemsnü (lnoludlng ovortlme),itrlotr ttre faofltdy ls roqulrod to makedì¡dng tl¡ö lloool yoar uniler $14.1?.
(4) Ecptsso consllnment cwrlet ønd'
oøniratl¿àd lwb loclrtles, Elaoh oorrlsr o¡oDor&tor üotnß a,n oxpross ooltslgnmontãi¡¡tor faotltüi or e oontrellzod hub fo-ollltv must r¿Y to OBP & fôo fn t'hoÀmounù of Sl:00 por lndlvldual alr wov-blll o¡ lndlvtdua¡ blll of tadlns for thonrooegslns of qfrr.va,y blllo for ahlp-lüonte aritvlng tn the U,$' In adalltion'lf m€rchandlgo ls formellv ontored a'nd
laluào et $3,600 or loes, tho lmportsr olrooo¡d musü pây to OBP i}l,:o ad vøloreûiee sneoUted ln Daregrepb (bxl) of thls¡ooùt,on, tf.epDltoable. Àn lndlvldual atrwlvOtti oÉ lidtvtcuat bltl of l¿itlng lst¡ó tndtvldu*¡ tlooumonü lsauod Þy tåooerr'lot o! oDs¡øtor for trensporùln8enrvor trsoklng en lndlvldual ltom' lot"tor. !eok&co, onvolope, rooortl, doou-moit. or fhlBmonü. An lndlvldu¿l alrwøvbtll lð tbs blll ot the lowo¡t lsvol'anð ls not a mastor blll or othol oon-solldatod ðoourltont, Aû lnaltvlduel elrwavblll or blll of ledlng ls o blll rop'rogsntl¡rg en lndlvldua.l ¡hlpmont thsbha6 lts ìwn untquo blll numbor sndtrêoktng numbsr, whoro tho rhlpment'ls s¡glsnod to a stnglo ultlm&ts oon-stcnoo, and no lowor blll unlt 6xlst8'Põvmént muÉi þo mado üo üBP on aquã¡tsrly Þo¡ls and muaü oovor tho ln-(ttvl.duat foss for etl subjoct trens'aotlonB th8,t oocurl'od dur,l¡g a ae,loûderouBrtor. Tho followlng eddltlonel ro-<iut¡smenüs &nô oonctltlone .opply to
rg U.S.O. l40l¿. In tho
tlon,(8) Møîtmum ønd mlflhnum /¿et, guì'
teòt to übo DrovtofonB of tterogrepb8inÍiXttl ¿no (ã) of thl¡ nootlon rolatlngto tho surohalgo e¡id to egg¡ogetlon ortho ad velorom foo rerpootlúoly, úh6 å4vãioiãni ioo olorFe¿ undsr Dar¿graph&XlXlXA) of thl8 Fooùlon muBü not 0x-òoãì{imìl ind mu¡ü not bo ls¡s than $?8.
ült Surohnrgs lot mønuel qnw ot te'l¿dsó. rn t¡o oa¡ó of env forma.l m*nuÊlonüry o! roleâlo of merohqnôlso, ï-9!I'õharge ot ¡t wlll þe assassotl ancl wlll botn säiltlon to enY âil Y8lorom..logö¡aisod urralor ¡,¿¡ràg¡apbs (ÞX1)(tXÀ)ancl (B) of thls ssotlon'
n\ hLlormol enttu ot rsle*s3' Exoopt tntnà-caäe of morohandlgô oovorðal bypÀr¿sraph (b)(3) or peregreph (bX4).ofthic sgctlon, and oxoopb es'othorw¡Fo¡rovldod ln DoreBraph (o) of thl¡ s6o--blon, ¡norohondlBo ühet lB lnforme¡ry
1
õ98
U.S. Cusloms ond Border Ptolecllon, DHs; Tfeos, s24,24
.Fe¿, Oommerolel loadod onffor! e
warehoueo for congumptlon, on or afborMaroh 16, 2012.
iotal vairis of suoh delly lmport&tlons.12) .fho f6os es determlned unds¡
poiásroph (dxl) of tblÊ õootton muoü boiatdlo Ósp at ths tlms of prosontotlonóf the month¡y ontry summarv. Intor'-ost wlll &oo¡'tro on ths foos psld mo¡lth--iy l¡t aoco¡d*noo wlth gooHon 6A2L o1birs Inüsrn¿l novonuø Ooale of 1906'
ß\ I'îe%trnent oI lees as oustoms dutv-ni Àd,mtfllsttqtlon onitr en{orcenvnt. un-ieis otherwtso spsotfto&l¡y Drovldod tn
thls chopto¡, all admhrlstrativs ond on'foroomonü provlslons under the oue'toms laws and rogulaülons' oühor th&nthoso l&wo and rogul*ùlone rolablng todra\ìíbÂok, w111 epÞly wlth loðpooü t0ûny f6o provl(lecl for unalor thl8 Bootton,onå wlüh rogpooj bo ery psrron 114þl-o
for the þaymãnt of Êuoh f€e, 4B lf 6uohfôs ls â ouBtoms tluby. For Þulposgs ofthis p¿rag¡aph, ¿¡y ponolty esse8sâ,blôln rslotlo¡ to o,n åmount of ouðtoms¿utv. whsthsf or not ony suoh duüy lsln idot tlu6 ancl payablo, v¡lll bs a¡-segssal ln tho sa'ms rra¡rno¡ wltb rsspootto aùy fos roqulr€at to bo p4tal undorüh{s Bocblon.
(Z) ,htrlsdlotlotl For purposos oÍ tlober-minlng tho Ju¡tsdtotlon of any ooutt 0ras:snoy of tbo Unlteal gtetos' sny foonrovttlsct for unctor thts soo0lon wtll beÈrsaterl as lf suol¡ fos ls o oustoms duty,
doos noü lnoludo ohonnelg or l¡a¡'bor¡dss,utho¡'¡zocl þy I'sde¡al law bsfore1985. Â oomploto llot of tho ports suÞloot to ths harþor melntsnanos loo l¡sêl forüh bolowr
601
Attachment 4
Movement Charges in the HomeMarket
TurkeyDoing Business in Turkey 2020
Movement Charge Calculations
I a¡;l E'ra
Location I Location 2 Average
cost $350 $350 a p. 51
90 90 b þ.51
of 15,000 c p. 48
Cost $0.02333 d:alc USD/ke
Cost $0.01059 0.454 * d USD/Ib
Cost kilometer $0.00026 d/b USD/Ks/km
kilometer $0.00012 0.454 * dlb USD/Lb/km
Location 1 Location 2 Àverage
cost $450 $450 a p.51
Distance 280 280 b p.51
Total of 15"000 c p. 48
$0,03000 d:alc USD/Ke
$0.01362 0.454 * d USD/Ib
kilometerCost$0.0001I dlb USDiKS/km
Cost kilometer $0.00005 0.454', dlb USD/Lbikm
AveraqeLocation 2Location 1p.49e$338$33 8Cost to Borderþ.49f$55$55Cost to g:e+f$0 $393$393Total
h p. 4815,000Total of
USD/Ksslh$0.02620USD/Lb0.454 * plh$0.01 189
Cost to Border
Location I Location 2 Average
$46 $46 e2 p.49
Cost to $ss $55 f2 p.49
otal $101 $o $101 P,2:e2+n
of 15,000 h2 p. 48
Cost$0.00673 s.zlh2 USD/Ke
Cost$0.00306 0.454 * e2lh2 USD/Lb
Page 1
Turkey
Starting a businoss
Economy Profile of TurkeY
Dolng Buslness 2020 lndicators(in order of appearance in the document)
Procedures, time, cost and paid-in mlnlmum capitãl to start a limlted liability company
Dsal¡ng with aonstructlon permits procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms ¡n the construction permittlng system
Getting olectriclty procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and
the trãnsparency of tariffs
Registerlng propêrty Procedures, time ând cost to transfer a property and the qual¡ty of the land admin¡stration system
Movable collateral laws and credit informatlon systemsGetting crodlt
Protocting minority ¡nvestors
Pay¡ng taxês
M¡nor¡ty shareholders' rlghts in related-party transactlons and in corporate governance
payments, tlme, total tâx and contributlon rate for a firm to comply with all tâx regulations as well as postfiling
procesSes
Trading across borders Time and cost to export the product of compar¿tlve ôdvantage and import auto parts
Time and cost to resolve a commerclal dispute and the quâlity of ¡udicial processesEnforc¡ng contracts
Besolving insolvency Time, cost, outcome and recovery rate for â commercial insolvency and the strength of the legal framewo¡k for
insolvency
Employlng workôrs Flexibility in employment regulation and redundancy cost
Pãge 2
About Doing Business
The Doing Business proJect provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnâtional and
regional level.
The Doing Businass project, launched in 2002, looks ãt domestic smâll and medium-size companies and measures the requlatlons applying to them through their llfe
cyclê.
Do¡ng Business captures several ¡mportant dimensions ofthe regulatory environment as it applies to local firms. lt provides quantitat¡ve indicators on regulation for
borderi, enforclng contracts and resolving ¡nsolvency. Dorng Eusmess also measures features of employing workers. Although Dolng Eusiness does not present rankings
of economies on the employing workers ¡ndicators or include the topic in the aggregate ease of doing business score or ranklng on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzlng comprehens¡ve quânt¡tative data to compare business regulation environments across economies and over time, Doing Bus¡ness encourages
eionomies to compete towards more efficient regulat¡on; offers measurable benchmarks for reform: and serves as a resource for academics, journalists, private sector
researchers and others lnterested in the business climate of each economy'
ln addition. Doing Busirlsss offers detailed subnational stud¡es, which exhaustively cover business regulation and reform in different cltles and reglons within a nation'
These stud¡es provide data on the ease of doing buslness, rank each location, and recommend reforms to improve performance ln each of the lnd¡cator areas' Selected
cities can compare their business regulations with other cities ln the economy or region and with the 190 economies that Doing Eusiloss has ranked.
The f¡rst Doing Bus,ness study, published in 2003, covered 5 ind¡cator sets and I33 economies. Thls year's study covers 11 indicator sets and 190 economies. Most
indlcator sets refer to a case scenario ln the largest buslness city of eâch economy, except for 1l economies that hãve a population of more than 100 million as of 2013
(Bangladesh, Brazil, Ch¡na, lndia, lndonesia,,lapan, Mexico, Nigeria, Paklstan, the Russlan Federation and the United States) where Dolng Bus¡hess also collected data
for the second largest buslness city. The data for these 1l economies are a population-weighted average for the 2 largest business cltles' The project has benefited from
feedback from governments, academics, practltioners and reviewers. The initial goal remains: to provide an objective basis for understand¡ng and improving the
regulatory envlronment for bus¡ness around the world.
To learn more about Dorng Business please visit doingbusiness'org
Pãge 3
&Trading across Borders
Do¡ng Busness records the time and cost associated with the Iogistical process of exporting ãnd importing goods. Dong Bus,laess measures the time and cost (excluding
tariffs) associated with three sets of procedures-documentary compliance, border compliance and domestic transport-within the overall process of exporting or
importing a shipment of goods. The most recent round of data collectlon for the proiect was completed in May 2019. See the methodology for more ¡nformation.
,.*i¡¡ii;i¡!iq¡. ;¡alã,rri1r.,¡;i,ti',,:i:, 1¡X¡¡
Documentary compliance
. obtaining, preparing and submitting documents dur¡ng
transport, clearance, inspections and port or border handling in
origin economy
' obtaining, preparing and submitting documents Íequired by
destination economy and any transit economies
. covers all documents required by law and in practice, including
electronic subm¡ssions of information
Border compliancè
. Customs clearance and inspections
' lnspections by other agencies (¡f applied to more than 20% of
shipments)
. Handling and inspections that take place at the economy's port
or border
Domestlc transport
. Loading or unloading of the shipment at the warehouse or
port/border
. Transport between warehouse and poruborder
' Traffic delays and road police checks while shipment is en
route
To make the data comparable across economies, a few assumptions are made about the traded
goods and the transactions:
T¡me: T¡me is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as
22x24=528 houß). lf customs clearance takes 7.5 hours, the data are recorded as is, Alternatively,
suppose documents are subm¡tted to a customs agency at 8:00a.m., are processed overnight and
can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as
24 hours because the actual procedure took 24 hours.
cost: lnsurance cost and informal päyments for which no receipt is issued are excluded from the
costs recorded. Costs are reported in U.S. dollars, Contributors are asked to convert local currency
into u.s. dollars based on the exchange rate prevailing on the day they answer the questionnaire.
contr¡butors are pr¡vate sector experts in international trade log¡stics and are informed about
exchange rates.
Assumpt¡ons of the casè study:- For all 190 economies covered by Do,ng Eusrness, it is assumed a shipment is in a warehouse in
the largest business c¡ty of the exporting economy and travels to a warehouse in the largest
business city of the importlng economy.
- lt is assumed each economy imports 15 metric tons of containerized auto parts (H5 8708) fÍom
its natural import partner-the economy from which ¡t imports the largest value (pr¡ce times
quantity) of auto parts. lt is assumed each economy exports the product of its comparat¡ve
advantage (defined by the largest export value) to its natural export partner-the economy that is
the largest purchaser of this product' Shipment value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export of import product and
the trading partner, as is the seaport or land border crossing.
- All electronic information submissions requested by any government agency in connection with
the shlpment are considered to be documents obtained, prepared and submitied during the export
or import process,
- A port or border is a place (seaport or land border crossing) where merchandise can enter or
leave an economy,- Relevant government agencies ¡nclude customs, port author¡ties, road police, border guards,
standardlzation agêncles, mlnlstries of departments of agriculture or industry, national secur¡ty
agencies and any other government authorities.
Page 48
Trading across Borders - Turkey
lndicator Turkey Europe & Central oEcD h¡gh Best Regulatoryincome PerformanceAsia
Note: The ranking of economies on the ease of trading across borders ¡s determined by sort¡ng their scores for trading across borders. These scores are the s¡mple
average of the scores for the time and cost for documentary compliance and border compliance to export and ¡mport.
Page 49
Turkey
- T¡me (hours) * Cost (USD)
12 400
350
300
250
200
150
100
50
0
10 338
e,qoEt:
6I
u4
Export
goi¿ercompliânce
Export
DocumentaryCompllance
lmport
BorderCompl¡ancè
lmport
Documentârycompllance
Page 50
Turkey
Characteristics
Trade partner
Export
France
lmport
Germany
D¡stance (km) 28090
Domest¡c trðnsport cost (USD) 450350
Time to Complete (hoursl Associated Costs (USD)
Export: Clearance and inspections required by
agencies other than customs
0.00.0
lmport: clearance and ¡nspections required by
customs author¡ties
lmport: Port or border handling
3.5 46.0
0.03.8
Page 5l
Turkey
Export lmport
Bill of lôding Packing list
lnvoice T-2 document
SOLAS cert¡ficate
Page 52
Attachment 5
Transport Distances for U.S.Movement Gharges
t
t
Ranged Data PUBLIC VERSION
HM DistancesProducer Name of Port Distance to Port
I
*
U.S, Distances
U.S. Customer Location Distance from Port
I
It
I
THE REMAII{DER OF THISBUSINESS PROPRIETARY
ATTACHMENT IS I{OTSUSCEPTIBLE TO SUMMARIZATIOI{AND THEREFORE IS NOT PROVIDET)
\ryITH THIS PUBLIC VERSION
Attachment 6
Movement Gharges in the U.S. Market
United StatesDoing Business in United States 2020
Movement Charge Calculations
U.S. Brokerage
New York Los Angeles Average
Cost to Import: Border Compliance (USD) $ 175 $ 175 $ 175 e pp. 82, 86
Cost to Import: Documentary Compliance (USD) $100 $ 100 $ 100 f pp. 82. 86
Total 9275 g:e+f
Total Vy'eieht of shipment (ks) 15,000 h p.8l
Cost per kilosram $0.01833 slh USD/Ke/km
Cost per pound $0.00832 0.454 * elh USD/Lb/km
U.S. Freight
New York Los Aneeles Average
Domestic transport cost (USD) s4,373 $ 1,93 I $3, I 52 a pp.84. 88
3.192 1,295 2,244 b oo.84. 88
Total Weieht of shipment (kg) 15.000 c p.81
Cost oer kiloeram $0.2 r 013 ú=-a/c USD/ke
Cost per kilosram per kilometer $0.00009 d/b USD/Ke/km
Cost per pound per kilometer $0.00004 0.454 * dlb USD/Lb/lon
Page I
united States
Start¡ng a businass
Doaling w¡th construction porm¡ts
Gott¡ng clectrlclty
Economy Profile of Un¡ted States
Dolng Eustness 2020 lndícators(in order of appearance in the document)
Procedures, time, cost and paid-in minlmum capital to start a limited llabllity compâny
procedures, time and cost to complete all formalities to build a warehouse and the quallty control and safety
mechanisms in the construction permitting system
procedures, time ând cost to get connected to the electr¡cal grid, ônd the reliability of the electricity supply and
the transparency of tariffs
Rag¡stcrlng property Procedures, time and cost to tfansfer a property and the quâl¡ty of the lånd administratlon system
Cetting crsdit Movable collateral laws and credit information systems
Protectíng m¡nor¡ty invostors
Paying taxês
Minor¡ty shareholders' rights ln related-parry transact¡ons and in corporãte governance
payments, t¡me. total tax and contr¡bution rate for a flrm to comply wlth all tax regulations as well as postfillng
processes
Trôd¡ng across bordêrs Time and cost to export the product of compantlve advântage and import auto parts
Enforclng contraEtg Time and cost to resolve a commercial dispute and the quali9 ofjudicial processes
Rosolving ¡nsolvèncy Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
¡nsolvency
Employ¡ng worksrs Flexlbil¡ty in employment regulatlon and redundancy cost
Page 2
United States
About Doing Business
The Doíng Business proiect provides objective measures of business regulations and their enforcement across 190 economies ônd selected cities at the subnational and
reglonal level,
The Doing Buslness project, launched ln 2002, looks at domestic small and medium-size companles and measures the regulations applying to them through their llfe
cycle.
ooing B¿,siness captures several lmportant d¡mensions ofthe regulatory environment as it applies to local firms. lt provides quantitative indlcators on regulation for
borders, enforclng contracts and resolving lnsolvency. Dolng Bøsrness also measures features of employing workers. Although Dorhg Business does not present rankings
of economies on the employing workers ùdicators or include the topic in the aggregate ease of doing business score or ranking on the ease of dolng business, it doês
present the data for these ind¡cators.
By gatherlng and analyzing comprehens¡ve quantitative data to compare business regulation environments across economies and over time, Doing Bus'ness encourages
economles to compete towards more eff¡clent regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, pfivate sector
researchers and others lnterested in the business climate of each economy'
ln additlon, Doing Eusiness offers detailed subnational studies, which exhaust¡vely cover business regulation and reform in different citles and regions within a nâtion'
These studles provide data on the ease of doing business, rank each locatíon, and recommend reforms to improve performance in each of the indicator areas' selected
cities can compare thelr buslness regulatlons wlth other c¡Hes in the economy or region and with the 190 economies that Do¡ng Eusiness has ranked.
The first Doing Busrhess study, publlshed in 2003, covered 5 indicator sets and 133 economies. This years study covers 1l ¡ndicator sets and 190 economies. Most
indlcator sets refer to a case scenarlo in the largest business city of each economy, except for l1 econom¡es that have a population of more than 100 mllllon as of 2013
(Bangladesh, Brazll, Ch¡na, lndia, lndonesla, Jalan, Mexlco, Nlgeria, Pak¡stan, the Russian Federat¡on ônd the United States) where Doing Businass also collected data
for the second largest business clty. The data f;r these ll econom¡es are a population-weighted average for the 2 largest business cltles' The prolect has benefited from
feedback from governments, academics, pfactltioners and revlewers. The inltial goal remains: to provide an objective basis for understandlng and lmproving the
regulatory env¡ronment for business around the world.
To learn more about Dorng Eusiness please vlslt dolngbusiness.org
Page 3
Unlted States
SbTrading across Borders
oo,ng Business Íecords the time and cost associated w¡th the logistical process of exporting and importlng goods' Dorng Business measures the time and cost (excluding
tar¡ffs) associated w¡th three sets of procedures-doctrmentary compliance, border compl¡ance and domest¡c transport-within the overall process of exporting or
importing a sh¡pment of goods. The most recent round of data collection for the project was complêted in May 2019. See the methodology for more information'
.. Whut th" lndl."tbrs measure :
.::¡ :-- -'-
Documentary compliance
. Obtaining, preparing and submitting documents during
transport, clearance, inspections and port or border handling in
origin economy
. obtôining, preparing and submitting documents required by
destination economy and any transit economies
. Covers all documents requ¡red by law and ¡n practice, including
electronic submissions of informat¡on
Border compliancè
. customs clearance and inspections
. lnspect¡ons by other agencies (if applied to more than 20% of
shipments)
. Hândl¡n9 and inspections that take place at the economy's p0rt
or border
Domestic transport
. Loading or unloading of the shipment at the warehouse or
porVborder
. Transport between warehouse and port/border
. Traffic delays and road police checks while shipment is ên
route
To make the data comparable across economies, a few assumptions are made about the traded
goods and the transactions:
T¡m€: T¡me is measured ¡n hours, and I day is 24 hours (for example, 22 days are recorded as
22x24=528 hours), lf customs clearance takes 7,5 hours, the datâ are recorded as ¡s. Alternatively
suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and
can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as
24 hours because the actual procedure took 24 hours.
Cost: lnsurance cost and informal payments for which no receipt is issued are excluded from the
costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency
into u.s, dollars based on the exchange rate prevailing on the day they answer the questionnaire.
contributors are private sectorexperts in lnternational trade logistics and are informed about
exchange rates.
Assumpt¡ons of the case study:- For all 190 economies covered by Doing Eusiness, it ls assumed a shipment is in a wafehouse in
the largest business city ofthe exporting economy and travels to a warehousè in the largest
business city of the importlng economy.
- tt is âssumed each economy imports 15 metric tons of container¡zed auto parts (HS 8708) from
its natural import partner-the economy from whlch it imports the largest value (price times
quantity) of auto parts. lt ls assumed each economy exports the product of its comparative
advantage (defined by the largest export value) to its natural export partner-the economy that is
the largest purchaser of thls product. Shipment value is assumed to be $50,000.
- The mode of transport is the one most widety used for the chosen export or import product and
the trading partner, as is the seaport or land border crossing.
- All elec.tronic information submissions requested by any government agency in connection with
the shipment are considered to be documents obtained, prepared and submitted during the export
or import process.
- A port or border is a place (seaport or land border crossing) where merchandise can enter or
leave an economY,
- Relevânt government agencies include customs, port authorities, road police, border guards,
standardlzatlon agencies, ministries or departments of agriculture or industry, national secur¡ty
agencies and ãny other government author¡t¡es.
Pâqe 81
Trading a0oss Borders - New York City
lndicator New York City OECD high income Eest Rêgulatory Performance
Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple
average of the scores for the tlme and cost for documentary compliance and border compliance to export and import.
0 t92,01
91.8:
Page 82
United States
* Time (hours) * Cost (USD)
.roo-------"
2
u
tr
of
U
200
150
100
50
Export
BorderCompliance
Export
Documentarycompl¡ance
lmport
gorderCompliance
lmport
Documentarycompllönce
Paqe 83
United States
Charactèrist¡cs
Trade partner
Export
Canada
lmport
Mexico
Distance (km) 600 3r.92
Domestic transport cost (USD) 1361 4373
T¡me to Complete (hours) Associated costs (UsDl
Export: Clearance and inspections required by
agencies other than customs
0.00.0
lmport: Clearance and ¡nspections required by
customs authorities
lmport: Port or border handling
1.5 175.0
0.00.5
Page 84
United States
Export lmport
Commercial lnvolce/ cargo control document NAFTA - Certificate of origin
Pâck¡ng Llst Packing List
Customs Entry Form 7501
Page 85
Trading across Borders - Los Ange¡es
lndicator Los Angeles OECD h¡gh ¡ncome Best Regulatory Performance
Note: The ranking of economies on the ease of trading âcross borders is determined by sorting the¡r scores for trading across borders. These scores are the s¡mple
average of the scores for the t¡me and cost for documentary compliance and border compliance to export and lmport'
l*92.0:
91.8:
Page 86
Un¡ted States
* Time (hours) -- Cost (USD)
200
150
100
50
9I7
6
4
3
2
1
0
" tla' 8
o
oU
G
Etr
..602
Export
BorderCompliance
Export
Documentarycompliance
lmport
BorderCompliance
lmport
DocumentaryCompliance
Pðge 87
Un¡ted States
Characteristics
Trade partner
Export
Canada
lmport
Mexico
D¡stance (km) 3670 1295
Domestic transport cost (USD) 601 7 1931"
Time to Complete (hours)
0.0
Associated Costs (U5D)
Export: Clearance and inspections required by
agencies other than customs
0.0
lmport: Clearance and inspectlons requlred by 1.5
customs ðuthor¡ties
lmport: Port or border handling 0.5
175.0
0.0
Page 88
United States
Export lmport
Commercial invoice/ cargo control document NAFTA - Certificate of or¡gin
Basic Goverage lnsurance Rates'for DOMESTTC Shipments (within USA & Canada)
Roles ols pêf $100 volug of Insufonce covêfog€
I
For ALL R¡sk Coverage please call 1-800'541'0700 for pricing.
OCEANCOMMODITY
0.66 ' 0.6New or Used
Goods
Fine
l.l3Steel Sh
Non
Frozen
risk
for INTERNATIONAL Shipments (Outside US & Canada)Rotos oto pêf $100 vqlue ol lnsuronce coverog€
Basic lnsurance Rates -
AIR
New or
Fine
0.87
7.00 for all
THE REMAII{DER OF THISBUSINESS PROPRIETARY
ATTACHMENT IS I{OTSUSCEPTIBLE TO SUMMARI ZATIONAND THEREFORE IS I{OT PROVIDEI)
\MITH THIS PUBLIC VERSIOI{
Attachment IU.S. lmport Duties
10%
L0%
1.O%
10%
to%
10%
!o%
1.O%
to%
to%
to%
!o%
70%
70%
10%
10%
10%
10%
to%
1.O%
6.50%
Free (A)
6.50%
6.so%
Free (A)
6.50%
1.3% (KR)
Free (A)
Free (A)
650%
650%
6.50%
Free (A)
6.5%
Free (A)
650%
Free (OM)
6s0%
Free (BH)
Free (A)
2.70%
2.70%
Free (A)
2.70%
2.70%
Free (A)
2.70%
Free (A)
Free (A)
2.70%
2.70%
2.70%
Free (A)
2.7%
Free (A)
2.70%
Free (OM)
2.70%
Free (BH)
Free (A)
3o/o
3%
Free (A)
3o/o
3%
Free (A)
Free (A)
Free (A)
3%
3%
3%
Free (A)
3%
0.6% (KR)
Free (BH)
Free (A)
3%
Free (A)
Free (OM)
3%
3%
Free (A*)
3%
3%
3%
3%
Free (A*)
3%
3%
3%
Free (A*)
Free (A*)
3%
Free (A*)
3%
Free (A*)
Free (OM)
3%
Free (BH)
3% (A*)
3%
3%
Free (A)
3%
Free (A)
3%
3%
3%
Free (A)
Free (A)
3%
3%
Free (A)
Free {A)
3%
Free (A)
3%
Free (OM)
3%
Free (BH)
Serbia
Rornania
Italy
Spain
Egypt
Slovenia
Croatia
South Korea
South Africa
Brazil
Greece
Taiwan
lndia (preJune 5, 2019)
fndia (June 5,2019 and after)
Turkey (pre-May L7, 2019)
(May 17,2019 and after)Turkey
Oman
Germany
Bahrain
lndonesia
United States
International Trade Commission
December 2019Publication Number: 5008
United States International Trade Commission
Commissioners
David S, Johanson, Chairman
Irving A. Williamson
Rhonda K. Schmidtlein
Jason E. Kearns
RandolPh J. StaYin
AmY A. KarPel
Catherine DeFiliPPo
Director, Office of OPerations
James R. Holbein
Director, Office of Tariff Affairs and Trade
Agreements
Address all communications to
United States International Trade Commission
Washington, DC 20436
United States International Trade Commission
Harmonized Tar¡ffSchedule of the UnitedStates 2019Revision 20
For Use in Classification of ImportedMerchandise for Rate of DutY andStatistical Purposes
United States International Trade Commission
Project Leader
Janet E. Freas, HTS Project Manager
PrinciPal Authors
Aru n Butcher, AttorneY-Advisor
Barba ra E. Elkins, Attorney-Advisor
Leticia Johnson, Program Support Specialist
Ryan Kane, lnternational Trade Analyst
Vanessa Lee, Nomenclature AnalYst
Manjola Mancka, Nomenclature Analyst
Linda Powell, Nomenclature Analyst
Donnette R. Rimmer, Nomenclature Analyst
Da niel P. Shepherdson, Attorney-Advisor
J a nis L. Summers, Attorney-Advisor
Cynthia S. Wilson, Nomenclature Analyst
Under the direction ofJames R. Holbein, Director
For further information see
https ://www. u sitc. gov/ta riff-affa i rs/hts-h el p
Harmonized Tariff Schedule of the United States (2019) Revision 20Annotated for Statlstlcal Reportlng Purposes
GN p.3
General Notes 2
2 Customs Territory of the United States. The term "customs lerritory ol the United States", as used in the tariff schedule, includes only
the Slales, the District of Columbia and Puerlo Rico.
3 Rates of Dutv. The rates ol duty in the "Rates of Duty" columns designated 1 ("General" and "Special") and 2 of the tariff schedule apply
to good. irported into the cusioms lerritory ol the Unlted States as hereinafter provided in this note:
(a) Rate ol Duty column 1
(i) Except as provided ln subparagraph (iv) of this paragraph, the rates of duty in column 1 are rates which are applicable lo all''
prodúcrs oiher than those of couniries enumerated ln paragraph (b) ol this note. column 1 is divided into two subcolumns,;'General" and "Special", which are applicable as provided below'
(ii) The "General" subcolumn sêts forth the general or normal trade relations (NTR) rates which are applicable lo products of those
countries deicribed in subparagraph (i)ãbove which are not entitled to special tarill treatment as set forth below.
(iii) The',special.subcolumn rellecls rates ol duty under one or more speclal tarilf treatment programs described in paragraph (c)
of this note and identilied in parentheses lmmediately following the duty rate specilied in such subcolumn. These rates apply
to those products which are þroperly classilied undei a provision fo¡ which a special rate is. indicated and for which all ol the
tegat requirements for eligibility ior suctr program or programs have been met. where a product is eligible for special treatment
under more lhan on" proéram, the lowest raie of duty piovided for any applicable program shall be.imposed. Where no special
rate of duty is frovioe'd fo-r a piovision, or where the country from which a product olherwise eligible for special treatment was
imported is noiJesgnated a's a beneiiciary country under a program appearing with the appropriate provision, the rates of
duiy in the "General" subcolumn of column 1 shall apply'
(iv) Products of lnsular Possessions.
(A) Except as provided in additional U.S. note 5 ol chapter 91 and except as provided in additio¡al U.S. nole 2 of chapter
SO, an¿ exõepi ãs frovlCeO in secrion 423 of the Tãx Reform Act of 1 986, and additional U.S' note 3(e) ol chapter 71 '
goods imported lrom insular possesslons of the United States which are outside the customs territory of the United States
ur".rn¡ããitò1ne rates of duiy set forth in column 1 of the tarilf schedule, except lhat all such goods the growth or product
or uny Juðñ posiession, or manufactured or produced in any such possession lrom materials the growth, product or
runrf""turJoiãny .rrir possession or of thä customs tenit,ory of the United States, or of both' which do not contain
lore¡gn materials tó the vâlue ot more ihan 70 percent of their total value (or more than 50 percent of their total value with
respecri;ó;;¡s Jescrtbed in sectlon 21g(b) òf the Garibbean Basin Economic Recovery Act), coming to the cusloms
terr¡tory ãliñe Únlt.d st.t"r directly from àriy sucn possesslon, and all goods previously imported into the customs
tefrilory of the united states wirh páyment oíall applicable duties and laxes imposed upon or by reason ol impoftalion
wnicn riere sñióp"á fror the Unitèd'states, withoui remission, refund or drawback of such duties or taxes, directly to the
possesslon from which they are being returned by dlrect sh¡pment, are exempt lrom duty.
(B) ln determining whether goods produced or manufactured in any such insular possession contain loreign matelials to the
value of more than 70 percent, no material shall be considered foreign which either--
may be imported lnto the customs territory lrom a foreigncountry, and entered free of duty; except that no goods containing
mater¡ai iJwnrch (2) of this subparagrapî applies shãll be exempt from duty under subparagraph (A) unless adequate
documentation is ðupplied to show rñat the material has been incorporated into such goods during the 18-month period
after tho date on which such material is imported into the insular possession.
(C) Subject to the limitations imposed under seclions 503(a)(2), 503(aX3) and 503(c) of the Trade Act of 1974, goods
oesignåtej as ãl¡gible uncei sectlon so3 of such Act which are imported from an insular possession of the United Slales
shall receive duty-treatment no less favorable than the treatment allorded such goods imported lrom a beneficiary
developing counlry under title V of such Act'
(D) Subject to the provisions in seclion 213 of the Caribbean Basin Economic Recovery Act, goods which aÍe imported from
insutar posieì'sionsof the un¡ted states shall receive duty lreatmenl no less lavorable than the treatment afforded such
goods ùhen they are imported from a beneficiary country under such Act.
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General Note 3
(2)
(il) when not inctuded in the manufacturer's aclual cost lor the materials, the freight, insurance, packing and all
other costs incurred in transporting the materials lo the manufaclurers plant; "
(lll) the actual cost of waste or spoilage, less the value ol recoverable scrap; and
(lV) taxes or duties imposed on the materials by the West Bank, the Gaza Strip or a qualifying industrial zone, il
such laxes are nol remitted on exportation.
lf a material is provided to the manufaclurer withoul charge, or at less lhan fair market value, ils cost or value shall
be determined by computing the sum of--
(l) all expenses incurred in lhe growth, production or manulaclurer ol the material, including general expenses;
(3)
(E) (1)
(2)
(ll) an amounl lor profit; and
(lll) freight, insurance, packing and all other cosls incuned in lransporting the material to the manufacturer's plant.
lf the inlormation necessary to compute the cost or value of a material is not available' lhe Customs Service may
ascerfain or estimate the value thereof using all reasonable methods'
For purposes of this paragrap¡, ¡¡s'direct costs of processing operations perfgrmed in the west Bank' the Gaza
ôüttoi'à quatity¡ng ¡ñ¿ust-r¡ai zone" with respect to an article are those costs eilher directly incuned in, or which can
ñeasonablßlo""t"d to, fiãJñwth, production, manufaclure or assembly of that article. Such costs include' but
ãù nãt l¡r¡t"ã to, the fo¡owint iä tne eitent that they are includible in the appraised value of arlicles imported into
the United States:
(l) All actual labor cosls involved in the growth, produclion, manufacture or assembly of the article, including lringe
benefits, on-the-iob trainìng and cosis ol enþineering, supervisory, quality conlrol and similar personnel;
(ll) Dles, molds, tooling and depreciation on machinery and equipment which are allocable to such articles;
(lll) Research, development, design, engineering and blueprint cosls insolar as they are allocable to such articlesi
and
(lV) Costs of inspecting and testing such articles.
Those ilems that are not included as direct cosls of processing operations with respect to an arlicle are those which
"iãnót jii".tly attributable to the article or are nol costs of manulacluring the arlicle. Such items include' but are
not limited to--
(l) Profit; and
(ll) general expenses of doing business which are either not allocable to the article or are not related to the growth'
production, manulåcture ãr assembly of the art¡cle, such as administrative salaries, casualty and liability
inruran"e, advertlsing and salesmen's salaries, commissions or expenses.
(F) Whenever articles are entered with a claim for the duty exemption provided in this patagraph-
(1) the importer shall be deemed ro certify that such articles meet all of the conditions for duty exemption; and
(2) when requested by fhe Customs Service, the importer, manufaclurer_or exporter submils a declaratlon setling lorth
all pertinänt information with respecl to such articles, lncluding the following:
(l) A description ol such articles, quantities, numbers and marks of packages, invoice numbers and bills of lading;
(ll) A description of the operafions performed in the production ol such articles in the West Bank, the Gaza Strip'
a qualifyìng inãustrial'zone or lsrael and an identilication of the direct costs of processing operations;
HarmonizedTariff Schedule of the United States (2019) Revision 20Annotated for Statistlcal Reporllng Purposes
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General Note 3
(lll) A description of the materials used in the production of such articles which are wholly the growth' product or' manulailure of the West Bank, the Gaza Strip, a qualilylng industrial zone, lsrael or the Un¡ted States, and a
slatemenl as to the cosl or value ol such materials;
(lV) A description ol the operalions performed on, and a slatement as to the origin and cosl or value of, any foreign'
materiali used in such articles which are claimed to have been sulficiently processed in the West Bank, the
Gaza Strip, a qualifying industrial zone or lsrael so as lo be malerials produced in the West Bank' the Gaza
Strip, a qualifying industrial zone or lsrael; and
(V) A description of the origin and cost or value of any foreign materials used in the article which have not been'
substaniially lransforméd in the West Bank, the Gaza Slrip or a qualilying industrial zone'
(G) For the purposes ol this paragraph, a "qualifying industrial zone" means any area lhat--
(1) encompasses portions of the terrilory of lsrael and Jordan or lsrael and Egypt;
(2) has been designated by local âuthor¡ties as an enclave where merchandise may enter without payment ol duty or
excise taxes; and
(3) has been designaled by the United States Trade Represental¡ve in a nolice publlshèd in the Federal Register as a
qualifYing industrial zone.
(b) Rare ol Duty column 2. Norwithstanding any of the loregoing provisions of.this note, the rates of duty shown in column 2 shall apply
to products, wnetñer:impoiáJ oirectty õr inäirectly, of ñe fo'ilòwing countries and areas pursuant to section 401 ol the Tariff
(vii) anyagriculturalproductofchapterszthrough52,¡nclusive,thatissubiecttoatariftratequota,ifenteredinaquanlityinexcess' ot ine in-quota quantity for such product; and
(viii) any other arlicles which the President determines to be import-sensitlve in the contexl ol the GSP
Harmonized Tariff Schedule of the United States (2019) Revision 20Annotated for Statistical Reporting Purposes