Basic Concepts
What is foreign trade?
This is the buying and selling of goods and services between countries.
What is an invoice?
This document is used by a seller to request payment from the buyer.
What is the Customs and Excise Department?
This government department collects customs duties.
Goods may arrive late because of this.
Long-distance transportation
This country is one of the world's best-known free ports.
Singapore
What are exports?
Goods that a country sells to another country
What is a packing list?
This document lists all the goods being shipped.
What is customs duty?
This tax is charged on imported or exported goods.
This makes communication between trading partners difficult.
Language difference
This Chinese city is famous for its Free Trade Zone (Special Economic Zone)
Shenzhen
What are imports?
Goods that a country buys from another country
What is a bill of lading?
This document proves ownership of goods transported by sea.
What are local industries?
One purpose of customs duty is to protect these businesses from foreign competition.
This happens when exchange rates between currencies change.
Currency fluctuation
Goods entering a free port usually pay little or no...
Customs duty
What is invisible trade?
This type of trade involves services such as tourism, banking, and insurance
What is a customs declaration?
This document allows goods to pass through customs.
Name one type of customs duty.
What is import duty, export duty, or transit duty?
Different countries have different rules on imported goods. These are called...
Import controls
A company imports electronic parts into a special area, assembles them into smartphones, and exports the finished products without paying import duties on the parts. What type of area is this?
Free Trade Zone
What is visible trade?
This type of trade involves buying and selling physical goods.
What is a debit note?
This document is prepared when goods are returned to the supplier.
What are illegal goods?
Besides collecting revenue, customs officers help prevent the smuggling of these.
Different countries may use different measurements such as kilograms and pounds. This is called...
Differences in standards of units
Name another example of a free trade zone besides Shenzhen.
Jebel Ali (UAE) or Batam (Indonesia)