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UNIT 4

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READING FOR INFORMATION

TEXT 2. EXPORT INCENTIVES

There are several Customs procedures, contained in the International Convention on the Simplification and Harmonization of Customs Procedures (the Kyoto convention), which when incorporated in national legislation enable countries to provide Customs facilities to, neutralize the cost-raising effects of tariffs and other controls on export industries which require imported production inputs, thereby enabling national enterprises to offer their products or services on foreign markets at competitive prices. Consequently, more employment opportunities are provided for the national labour force, scarce foreign capital is attracted to generate more economic activity and net inflows of foreign exchange are evinced.

A brief description of the Customs procedures which provide these incentives is given below.

Outright exportation is the Customs procedure applicable to goods which, being in free circulation (goods which may be disposed of without Customs restriction), leave the Customs territory and are intended to remain permanently outside it, excluding goods exported or with repayment of import duties and taxes.

Customs warehousing is the Customs procedure under which imported goods are stored under Customs control in a designated place (a Customs warehouse) without payment of import duties and taxes.

Drawback is the Customs procedure which provides, when goods are exported, for a refund (total or partial) to be made in respect of the import duties and taxes charged on the goods, or on materials contained in them or used up in their production.

Temporary admission of goods is the procedure under which certain goods can be brought into a Customs territory conditionally relieved from payment of

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