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The Philippines' simple average Most Favored Nation (MFN) applied tariff rate was 6.1% in 2022. The Philippines' simple average MFN applied tariff rate was 9.8% for agricultural products and 5.5% for non-agricultural products in 2022.

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The Philippines' simple average Most Favored Nation (MFN) applied tariff rate was 6.1% in 2022. The Philippines' simple average MFN applied tariff rate was 9.8% for agricultural products and 5.5% for non-agricultural products in 2022.

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Source: https://www.trade.gov/

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Liquor liability insurance is a commercial policy that pays for certain damages arising from selling, serving, or furnishing alcoholic beverages.

This coverage most commonly protects businesses when they overserve a customer, and that customer subsequently injures or kills themself or someone else due to their intoxication, usually in the form of a car accident.

Source:https://www.landesblosch.com/blog/liquor-liability-insurance-everything-you-should-know

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Liquor Liability Insurance: Everything You Should Know | LandesBlosch

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Liquor liability insurance is a commercial policy that pays for certain damages arising from selling, serving, or furnishing alcoholic beverages.

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A subsidy is any financial aid provided by a government to a producer or seller of a good or service that is designed to increase the competitiveness of a particular industry firm or entire industry. For example, agricultural products are frequently subsidized by national governments in an effort to increase domestically grown and raised food stock

Source: https://www.curtis.com/glossary/international-trade/subsidies

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Curtis, Mallet-Prevost, Colt & Mosle LLP

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Subsidies in International Trade | Government Subsidization

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Curtis Appellate lawyers understand the needs of international clients pursuing appellate litigation in the US and worldwide. Learn more today.

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Packages insurance they cover whether it's coverage for your building, equipment, they alsocover auto liability coverage, Medical payments, Comprehensive coverage, Collision coverage, Uninsured and underinsured motorist coverage, Coverage for autos you borrow or rent and Coverage for employees using their cars for the business. They commonly covers the drivers, business owner that work or join forces with them that experiences the accident.

Source:https://www.wtins.com/commercial-insurance#businessauto

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Wallace & Turner offers comprehensive commercial insurance protection for business owners. Click below to learn more about our Ohio business insurance coverage options.

Business Auto Insurance

If your employees are driving company-owned vehicles or using their own cars for work without sufficient personal liability coverage, you need commercial auto insurance to protect your business in the case of an accident.

Get the Best Commercial Auto Insurance in Ohio

Wallace & Turner's business auto policies can insure vans, trucks or other commercial vehicles and offer the following:

Contact our agents to obtain a commercial car insurance quote and protect your company vehicles.

Business Owners Policy

A business owner's policy combines all major property and business liability risks in one package. It covers things like fire, theft, lawsuits and loss of income.

Standard Ohio business owner's policies include coverage for:

Commercial property: buildings and contents owned, leased or rented by your company, as well as coverage for loss of accounts receivable and valuable papers and records

General liability: your company's legal responsibility for harm as a result of things you and your employees do or fail to do in your business operations, such as bodily injury or property damage due to defective products, faulty installations and errors in services provided (This can also cover the cost of your legal defense if you're sued.)

Business income: the loss of income resulting from a fire or other unexpected event that causes a suspension in the operation of the business (This can also include the extra expense of operating out of a temporary location, as well as other financial obligations like rent or payroll.)

Set Up Broad Protection with an Ohio Business Owner's Policy

You should consider obtaining a business owner's policy if you have a physical location, you have the potential to be sued or you have assets that could be stolen or damaged. Wallace & Turner is ready to help you determine the right business owner's policy for your company.

Commercial General Liability

As a business owner, being properly insured is critical to protecting your company. A commercial general liability policy provides coverage for customer injuries, customer property damage and legal costs related to lawsuits:

Third-party injuries and property damage: If a customer is hurt on your property, general liability insurance can help pay for their immediate medical expenses or your legal expenses if they sue. If you damage customer property, general liability insurance can help pay to repair or replace it. Both are in the instance of non-professional negligent acts. Mental and emotional distress can be considered injuries even if there is no physical harm.

Product liability: If your product hurts someone or damages their property, general liability insurance can help pay for your legal expenses.

Advertising injuries: If someone sues you for libel, slander, false arrest, copyright infringement, malicious prosecution or use of another's advertising idea, commercial general liability insurance can help pay for lawsuit expenses.

Shield Your Business with an Ohio Commercial General Liability Policy

Lawsuits can have a tremendous negative impact on business operations. Have a commercial general liability policy in place to protect your business and leave you to focus on what's important: running your company successfully.

Commercial Package Policy

If your company is growing in size or complexity and is facing specialized risks, Wallace & Turner's commercial package policies allow you to customize and bundle two or more coverages into a single policy. This flexibility lets you select which insurance coverage you need to properly protect your business. We can design a policy to provide insurance for just about any type of commercial risk.

Pick the Perfect Commercial Insurance Package

Your business is unique, so it needs a custom insurance policy to fully cover it. Call us to discuss your particular needs with one of our insurance professionals.

Commercial Umbrella Insurance

Commercial umbrella insurance extends liability coverage to help businesses with the cost of lawsuits and to further protect business assets in the instance of a catastrophic loss. This can include legal fees, medical bills and damage expenses that exceed the limits of underlying primary business coverage. This policy is written over various primary liability policies but can only be applied to a claim under the following circumstances:

Complete Your Coverage with Ohio Commercial Umbrella Insurance

Wallace & Turner can tailor commercial umbrella policies to the needs of all kinds of businesses. Talk with us about your options if you feel your primary policy doesn't provide enough protection.

Crime Insurance

Crime insurance will protect your business in the event of damage to your property or the loss of money, securities or other assets due to dishonesty, theft or fraud by an employee, intern or consultant. Crime-related losses aren't covered by commercial property insurance, so this type of coverage helps you minimize risk, helping you and your clients feel secure.

Areas not covered by crime insurance include the following:

Build a Safety Net for Your Business with Ohio Crime Insurance

If a loss related to crime does occur, Wallace & Turner can help resolve your claim quickly. Call us to discuss a crime insurance policy and obtain advice in preventing crimes against your company.

Errors and Omissions (E&O) / Professional Liability Insurance

If you're providing a service to clients for a fee, consider errors and omissions (E&O) insurance to protect your business and staff against claims made by a client for inadequate work or negligent actions. Also known as professional liability insurance, this type of policy generally covers financial losses rather than liability for bodily injury or property damage.

Find an Ohio E&O Policy That's Tailored to Your Needs

E&O policies are written to reflect inherent risks and common exposures particular to different types of businesses and professions. We regularly work with the following to develop tailored professional liability insurance policies:

Wallace & Turner can help minimize financial hardship for claims of professional negligence, error or omission. Contact us today to learn more.

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) provides coverage to employers against claims made by employees alleging discrimination (based on sex, race, age or disability, for example), wrongful termination, harassment and other employment-related issues.

Employee lawsuits are becoming much more common in both small and large businesses. The negative financial impact of employee lawsuits can be drastic and involve devastating legal costs if you don't carry EPLI insurance.

The cost of an EPLI policy is based on a number of factors, including how many people you employ, employee turnover, past lawsuits and whether you have standard employee practices and handbooks in place.

Ensure Your Business' Future with an Ohio EPLI Policy

Wallace & Turner is dedicated to helping protect employers. Our EPLI coverage can safeguard you in the instance of a wrongful lawsuit for the following:

Our independent commercial insurance agents can pair your business with the ideal EPLI policy. Reach out today with no risk and no obligation.

Tools & Equipment Insurance

Commercial inland marine insurance protects your property from hazards while it is in transit via land or sea. This policy covers property regardless of its location, providing it is within the policy territory. Commercial inland marine policies can be written on a scheduled basis, a blanket basis or combination of the two.

Choose the Best Commercial Inland Marine Insurance in Ohio

Wallace & Turner regularly develops inland marine policies for the following industries:

Talk with one of our agents to discuss safeguarding your transportable property.

Liquor Liability Insurance

Any establishment that sells, serves or assists in the purchase or use of alcohol is at risk of a lawsuit. If an intoxicated patron causes injury or property damage from a fight, careless behavior or even an automobile accident, liability ensues. Restaurants, bars and nightclubs may face massive court and defense fees even if the suit is ultimately dropped. Liquor liability insurance will cover these fees as well.

You may also consider a one-time liquor liability policy if you're hosting an event, such as a wedding or reunion, and the venue or catering company does not offer liquor liability coverage.

Dodge Liability with Ohio Liquor Liability Insurance

Plenty can go wrong when alcohol is involved. Be realistic about your risk and plan accordingly. Talk to Wallace & Turner about your policy options.

Contact a Commercial Insurance Services Agent

You've built your business with blood and sweat. Now, protect it with smart planning. Our Ohio commercial insurance agency has the policy you need to ensure a healthy future for your business. To find it, reach out to Wallace & Turner. Give us a call at (937) 324-8492 or reach out to us online .

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Ohio Insurance Policies | Wallace & Turner

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You've worked hard to build your business. Protect what you've built. Talk to the Ohio commercial insurance agents at Wallace & Turner.

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China has pursued a “going-out” investment policy. At first, the PRC encouraged SOEs to invest overseas, but in recent years, China’s overseas investments have diversified with both state and private enterprises investing in nearly all industries and economic sectors.

China’s government created “encouraged,” “restricted,” and “prohibited” outbound investment categories to suppress significant capital outflow pressure in 2016 and to guide PRC investors to more “strategic sectors.

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China - United States Department of State

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Although inbound FDI slowed in 2022, the People's Republic of China (PRC) remained the number two Foreign Direct Investment (FDI) destination in the world, behind the United States.

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Another commercial policy that countries can use to regulate trade is dumping laws. Dumping laws are used to prevent foreign companies from selling products in a country at prices lower than what they charge in their home market. This is done to protect domestic producers from unfair competition and to prevent the foreign company from driving domestic producers out of business.

For example, the US government has imposed dumping laws on Chinese solar panel manufacturers. The US government claims that these manufacturers are selling their products in the US at prices lower than what they charge in China, which is hurting US solar panel manufacturers. The US government has imposed tariffs on these products to make them more expensive and less competitive.

References:

https://www.iedunote.com/commercial-policy. https://www.tariffcommission.gov.ph/anti-dumping-duty. https://www.trade.gov/country-commercial-guides/philippines-trade-barriers. . https://learn.saylor.org/mod/book/view.php?id=51276. https://ecac.emb.gov.ph/?page_id=47.

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The Philippines maintains a two-tiered tariff policy for sensitive agricultural products, including rice, corn, pork, chicken meat, sugar, and coffee.  These products are subject to a tariff-rate quota (TRQ), and all imports outside the minimum access volume are taxed at a higher out-of-quota rate.  In-quota and out-of-quota tariff rates averaged 36.5% and 41.2%, respectively, and have not changed since 2005.

Feeling the pressure of rising prices and rice being a political crop, President Ferdinand Marcos, Jr. signed Executive Order (EO) No. 39, Series of 2023 on August 31, 2023.  EO No.39 mandated price ceilings on rice: PHP41 ($0.72) per kg for regular-milled rice and PHP45 ($0.79) per kg on well-milled rice.  These two categories make up approximately 90 percent of the rice market and the ceiling is well below market prices earlier this week. Republic Act No. 7581 or The Price Act, was cited as the basis for the EO.

Reference: https://www.trade.gov/country-commercial-guides/philippines-trade-barriers

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International Trade Administration | Trade.gov

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The Philippines maintains a two-tiered tariff policy for sensitive agricultural products, including rice, corn, pork, chicken meat, sugar, and coffee. These products are subject to a tariff-rate quota (TRQ), and all imports outside the minimum access volume are taxed at a higher out-of-quota rate. In-quota and out-of-quota tariff rates averaged 36.5% and 41.2%, respectively, and have not changed since 2005.

Feeling the pressure of rising prices and rice being a political crop, President Ferdinand Marcos, Jr. signed Executive Order (EO) No. 39, Series of 2023 on August 31, 2023. EO No.39 mandated price ceilings on rice: PHP41 ($0.72) per kg for regular-milled rice and PHP45 ($0.79) per kg on well-milled rice. These two categories make up approximately 90 percent of the rice market and the ceiling is well below market prices earlier this week. Republic Act No. 7581 or The Price Act, was cited as the basis for the EO.

On February 14, 2019, former President Rodrigo Duterte signed into law the Republic Act (RA) No. 11203 or "An Act liberalizing the importation, exportation, and trading of rice, lifting for the purpose the quantitative import restriction on rice, and for other purposes." The law amends RA No. 8178 or the Agricultural Tariffication Act of 1996, replacing quantitative restrictions (QR) on rice imports with tariffs.

President Ferdinand Marcos, Jr. signed Executive Order 13 on January 13, 2023 extending the Most Favored Nation (MFN) tariff rates for mechanically deboned or separated meat of chicken and turkey (MDM) of 5 percent through December 31, 2024. EO 13 cites the need to maintain the reduced tariffs of MDM to ensure the continued supply of essential food at affordable prices, diversify the country's sources, and help businesses recover and sustain their operations.

On December 29, 2022, President Marcos, Jr. signed Executive Order 10, series of 2022, extending lowered tariffs for corn, pork imports, and for rice imports to maintain affordable prices, ensure food security, help augment the supply of basic agricultural commodities, and diversify the country's market sources. Under the order, the tariff for fresh, chilled, or frozen pork will be 15 percent in-quota and 25 percent out-quota. For corn, the tariff will be 5 percent in-quota and 15 percent out-quota. For rice, the tariff will be 35 percent both in-quota and out-quota. The order is set to expire December 31, 2023, at which time the tariffs would revert to their previous higher rates unless they are again extended by executive order.

At present, a few TRQ products have achieved unified in-quota and out-of-quota tariff rates, including chicken, frozen or chilled (40%); turkey livers, frozen or chilled (40%); potatoes, fresh and chilled (40%); and roasted coffee beans (40%). Currently, an additional special safeguard duty is in place for chicken meat, which effectively doubles the rate of out-of-quota tariff protection. Administrative Order (A.O.) 9 of 1996, as amended by A.O. 8 of 1997 and A.O. 1 of 1998, established rules for implementing TRQs and allocating import licenses.

For further assistance, kindly contact AgManila@usda.gov .

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Includes the barriers (tariff and non-tariff) that U.S. companies face when exporting to this country.

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Australia's foreign investment policy aims to strike a balance between attracting foreign investment and safeguarding the national interest. The policy is administered by the Australian Government Department of Foreign Affairs and Trade (DFAT) and the Foreign Investment Review Board (FIRB).

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Australia's foreign investment policy aims to strike a balance between attracting foreign investment and safeguarding the national interest. The policy is administered by the Australian Government Department of Foreign Affairs and Trade (DFAT) and the Foreign Investment Review Board (FIRB).

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Source:

Australia’s foreign investment policy. (2021). Australian Government Department of Foreign Affairs and Trade. https://www.dfat.gov.au/trade/investment/australias-foreign-investment-policy

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With years of experience in cyber insurance, Allianz Commercial is at the forefront of protecting businesses from the ever-evolving landscape of cyber crime and digital threats. Our extensive expertise allows us to offer a wide range of cyber insurance products that provide you with comprehensive cover tailored to your specific needs.

Whether you need stand-alone cyber insurance or prefer to have cyber risk coverage integrated into your traditional property and liability policies, we have the right solution for you. Our solutions are designed to give you the peace of mind that comes from knowing you are protected against potential financial loss from cyber incidents.

Our cyber insurance covers a wide range of risks, including both first-party and third-party losses. For first-party losses, we protect your business from disruption with business interruption, recovery and crisis communications cover. On the other hand, our third party insurance covers critical areas such as data breaches, network disruptions and notification costs.

At Allianz Commercial, our commitment goes beyond financial compensation. We understand that true cyber resilience requires proactive measures and rapid response capabilities. That's why we offer our clients invaluable prevention and response services through our global network of partners. With our support, your organisation gains access to a wide range of critical services, including round-the-clock IT forensic experts, legal advice and crisis communications support.

At the heart of our cyber insurance services is the Allianz Cyber Centre of Competence. This dedicated centre is an integral part of Allianz Commercial and serves as a hub for coordinating and aligning cyber risk and underwriting across the Allianz Group. This ensures that our corporate and commercial insurance segments benefit from the collective knowledge and insights of our experts.

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With years of experience in cyber insurance, Allianz Commercial is at the forefront of protecting businesses from the ever-evolving landscape of cyber crime and digital threats. Our extensive expertise allows us to offer a wide range of cyber insurance products that provide you with comprehensive cover tailored to your specific needs.

Whether you need stand-alone cyber insurance or prefer to have cyber risk coverage integrated into your traditional property and liability policies, we have the right solution for you. Our solutions are designed to give you the peace of mind that comes from knowing you are protected against potential financial loss from cyber incidents.

Our cyber insurance covers a wide range of risks, including both first-party and third-party losses. For first-party losses, we protect your business from disruption with business interruption, recovery and crisis communications cover. On the other hand, our third party insurance covers critical areas such as data breaches, network disruptions and notification costs.

At Allianz Commercial, our commitment goes beyond financial compensation. We understand that true cyber resilience requires proactive measures and rapid response capabilities. That's why we offer our clients invaluable prevention and response services through our global network of partners. With our support, your organisation gains access to a wide range of critical services, including round-the-clock IT forensic experts, legal advice and crisis communications support.

At the heart of our cyber insurance services is the Allianz Cyber Centre of Competence. This dedicated centre is an integral part of Allianz Commercial and serves as a hub for coordinating and aligning cyber risk and underwriting across the Allianz Group. This ensures that our corporate and commercial insurance segments benefit from the collective knowledge and insights of our experts.

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Explore Cyber Insurance | Allianz Commercial

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Stay protected in the digital age with Cyber Insurance. Safeguard your business against cyber threats ➤ Get the right coverage

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Developing a robust pricing policy for a small business may seem daunting initially, but it plays a crucial role in shaping customer perceptions and ensuring business transparency. The absence of a well-defined pricing strategy can create doubts about consistency and fairness.

Crafting a clear pricing policy streamlines decision-making processes and builds trust with customers. Businesses with transparent pricing practices are more likely to establish lasting relationships with their clientele.

Investing time and effort in creating a comprehensive pricing policy pays off by providing a foundation for confident decision-making. It minimizes the risk of misunderstandings that could impact both finances and reputation.

Detailing the factors influencing pricing, such as production costs or market trends, contributes to transparency and positions the business as reliable and customer-centric. A well-crafted pricing policy is an investment in sustainable growth, protecting business interests and enhancing the overall customer experience.

https://pay.com/blog/return-policy-for-small-businesses#:~:text=If%20you%20are%20unhappy%20with,packaging%20with%20all%20tags%20attached

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The main aim of deciding how a company is financed, known as its capital structure, is to find the best mix of debt and equity that maximizes the company's value or minimizes its overall cost of funds.

In a theory without considering taxes by Modigliani and Miller, the way a company is financed doesn't affect its value. However, when taxes are involved, the deductibility of interest lowers the cost of debt and the overall cost of capital for the company.

The choice between debt and equity depends on factors like a company's credit rating goals, its historical capital structure, business risks, and corporate governance quality, which can affect agency costs.

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Two ways to enjoy this Refresher Reading

Available to members only. Login required.
Access the Full Reading in the Learning Ecosystem Download the full reading (PDF)

Introduction

The most important decision a company makes in pursuit of maximizing its value is typically the decision concerning what products to manufacture and/or what services to offer. The decision on how to finance investments (e.g., in factories and equipment), the so-called capital structure decision, is often seen as less important, even secondary. As we will see in this reading, the importance of the capital structure decision depends on the assumptions one makes about capital markets and the agents operating in it.

Under the most restrictive set of assumptions, the capital structure decision-the choice between how much debt and how much equity a company uses in financing its investments-is irrelevant. That is, any level of debt is as good as any other. The capital structure decision is not only secondary but also irrelevant. However, as some of the underlying assumptions are relaxed, the choice of how much debt to have in the capital structure becomes meaningful. Under a particular set of assumptions, it is even possible to have an optimal level of debt in the capital structure-that is, a level of debt at which company value is maximized.

In this reading, we first discuss the capital structure decision and the assumptions and theories that lead to alternative capital structures. We then present important practical issues for the analyst, such as differences in capital structure policies arising from country-specific factors. We conclude with a summary of key points from the reading.

Learning Outcomes

The member should be able to:

1. explain the Modigliani-Miller propositions regarding capital structure;

2. explain the effects on costs of capital and capital structure decisions of taxes, financial distress, agency costs, and asymmetric information;

3. explain factors an analyst should consider in evaluating the effect of capital structure policy on valuation;

4. describe international differences in the use of financial leverage, factors that explain these differences, and implications of these differences for investment analysis.

Summary

In this reading, we have reviewed theories of capital structure and considered practical aspects that an analyst should examine when making investment decisions.

The goal of the capital structure decision is to determine the financial leverage that maximizes the value of the company (or minimizes the weighted average cost of capital).

In the Modigliani and Miller theory developed without taxes, capital structure is irrelevant and has no effect on company value.

The deductibility of interest lowers the cost of debt and the cost of capital for the company as a whole. Adding the tax shield provided by debt to the Modigliani and Miller framework suggests that the optimal capital structure is all debt.

In the Modigliani and Miller propositions with and without taxes, increasing a company's relative use of debt in the capital structure increases the risk for equity providers and, hence, the cost of equity capital.

When there are bankruptcy costs, a high debt ratio increases the risk of bankruptcy.

Using more debt in a company's capital structure reduces the net agency costs of equity.

The costs of asymmetric information increase as more equity is used versus debt, suggesting the pecking order theory of leverage in which new equity issuance is the least preferred method of raising capital.

According to the static trade-off theory of capital structure, in choosing a capital structure, a company balances the value of the tax benefit from deductibility of interest with the present value of the costs of financial distress. At the optimal target capital structure, the incremental tax shield benefit is exactly offset by the incremental costs of financial distress.

A company may identify its target capital structure, but its capital structure at any point in time may not be equal to its target for many reasons.

Many companies have goals for maintaining a certain credit rating, and these goals are influenced by the relative costs of debt financing among the different rating classes.

In evaluating a company's capital structure, the financial analyst must look at such factors as the capital structure of the company over time, the business risk of the company, the capital structure of competitors that have similar business risk, and company-specific factors (e.g., the quality of corporate governance, which may affect agency costs).

Good corporate governance and accounting transparency should lower the net agency costs of equity.

When comparing capital structures of companies in different countries, an analyst must consider a variety of characteristics that might differ and affect both the typical capital structure and the debt maturity structure. The major characteristics fall into three categories: institutional and legal environment, financial markets and banking sector, and macroeconomic environment.

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In this Refresher Reading learn about the Modigliani-Miller propositions, including the impact of leverage and taxes and learn about target capital structures and the financial impact of a company's capital structure policy.

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Expansionary Fiscal Policy

Expansionary fiscal policy are policies enacted by a government that often increases or decreases the money supply to make changes to the economy. In other words, governments can directly give money to individuals, businesses, or taxpayers. Alternatively, to slow the economy, it can take it away.

During expansionary periods, governments can increase spending on infrastructure projects, social programs, and other initiatives to boost demand and stimulate economic growth. They may also enact tax cuts to reduce taxes, which puts more money in consumers' pockets and stimulates spending. Governments can also increase transfer payments such as welfare, unemployment, or other benefits to increase household income.

Expansionary monetary policy works by expanding the money supply faster than usual or lowering short-term interest rates. It is enacted by central banks and comes about through open market operations, reserve requirements, and setting interest rates. The U.S. Federal Reserve employs expansionary policies whenever it lowers the benchmark federal funds rate or discount rate, decreases required reserves for banks or buys Treasury bonds on the open market. Quantitative Easing, or QE, is another form of expansionary monetary policy.

For example, when the benchmark federal funds rate is lowered, the cost of borrowing from the central bank decreases, giving banks greater access to cash that can be lent in the market. When reserve requirements decline, it allows banks to lend a higher proportion of their capital to consumers and businesses. When the central bank purchases debt instruments, it injects capital directly into the economy.

https://www.investopedia.com/terms/e/expansionary_policy.asp#:~:text=Expansionary%20fiscal%20policy%20are%20policies,it%20can%20take%20it%20away.

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North American Free Trade Agreement (NAFTA): Established in 1994 between the United States, Canada, and Mexico, promoting free trade and eliminating tariffs on most goods traded between the three countries.

https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/agreement-between

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Japan's Ministry of Economy, Trade and Industry (METI)

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Japan's Ministry of Economy, Trade and Industry (METI)

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Japan is leading the charge to create high-level, equitable, and free trade regulations. The cornerstones of Japan's trade policy are fostering economic ties and increasing free trade. For the nation to grow, it is thought to be crucial to build a global network of economic alliances to take advantage of the enormous markets and rapid expansion in the Asia Pacific area.

Japan's Ministry of Economy, Trade, and Industry (METI) is divided into numerous bureaus and agencies that have the responsibility of developing and implementing a broad range of trade, industrial, and economic policies to advance Japan's foreign investment and trade while creating an environment that is favorable to business and sustaining Japan's economic growth.

The Trade Policy Bureau of METI is divided into sections based on their respective functions and geographic locations. Its main duties include managing Japan's involvement in international organizations and managing bilateral trade agreements with the nation's trading partners.

https://research.hktdc.com/en/article/MzM0NTcxMjg4#:~:text=Japan's%20Ministry%20of%20Economy%2C%20Trade,business%20environment%20to%20sustain%20Japan's

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Tariffs play a significant role in commercial policy and international marketing. 

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Tariffs play a significant role in commercial policy and international marketing. 

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A tariff is a tax imposed by a government on imported or exported goods, and it can have various effects on international trade and business strategies. Here's how tariffs impact commercial policy in international marketing:

Cost Implications:

Tariffs increase the cost of imported goods, making them more expensive for consumers in the importing country. This can affect the pricing strategy of international marketers, who may need to adjust prices to remain competitive in the target market.

Competitive Landscape:

Higher tariffs can make locally produced goods more competitive compared to imports. International marketers must consider the impact of tariffs on the competitive landscape and adjust their market positioning accordingly.

Market Access and Entry Strategies:

Tariffs can act as barriers to market entry. International marketers need to carefully assess tariff structures in target markets and develop entry strategies that account for these costs. This may involve seeking tariff reductions through trade negotiations or exploring partnerships with local entities.

Product Adaptation and Localization:

Tariffs may influence decisions related to product adaptation and localization. To mitigate the impact of tariffs, international marketers might consider modifying products to meet local preferences or establishing local production facilities to avoid or reduce import duties.

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The Employment Act, Employment Regulations, Workmen's Compensation Act, and Non-Discrimination Act are the main legislation governing employment in the Maldives. The Employment Act covers employment contracts, working hours, wages, leave entitlements, termination procedures, employee benefits, and protection against unfair treatment. The Workmen's Compensation Act outlines regulations for compensating workers for injuries, disabilities, or death from occupational accidents or diseases. The Non-Discrimination Act prohibits discrimination based on factors such as gender, race, religion, disability, or political affiliation. Non-compliance can result in fines, legal consequences, and penalties for breaching these laws. Employers may also be required to rectify breaches and provide appropriate remedies to affected employees.

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International Trade Council - Solving trade-related issues

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Compliance with employment rules and regulations in Maldives is crucial for employers and employees to maintain a fair and equitable working environment. The relevant legislation and website links provided in this article serve as a comprehensive guide to ensure compliance with the established framework. It is important for individuals and businesses operating in Maldives to stay updated on any amendments to the existing laws and seek legal advice to navigate the employment regulations effectively. By adhering to these regulations, employers can create a positive work environment while protecting the rights and well-being of their employees. Likewise, employees can have confidence in their rights and benefits, ensuring fair treatment, job security, and a safe working environment.

Relevant Legislation

Employment Act: The Employment Act (Law No. 2/2008) serves as the primary legislation governing employment relationships in Maldives. It covers various aspects, including employment contracts, working hours, wages, leave entitlements, termination procedures, employee benefits, and protection against unfair treatment and dismissal.

Employment Regulations: The Employment Regulations provide additional guidelines and details on various employment-related matters, including recruitment procedures, employee records, disciplinary measures, and dispute resolution mechanisms.

Workmen's Compensation Act: The Workmen's Compensation Act (Law No. 10/2013) establishes regulations for compensating workers in case of injuries, disabilities, or death resulting from occupational accidents or diseases. It outlines the responsibilities of employers in providing compensation and support to affected workers.

Non-Discrimination Act: The Non-Discrimination Act (Law No. 5/2016) prohibits discrimination in employment based on factors such as gender, race, religion, disability, or political affiliation. It promotes equal opportunities and fair treatment in the workplace.

Website Links

The following websites provide useful information and resources related to employment rules and regulations in Maldives:

Penalties for Non-Compliance

Non-compliance with employment rules and regulations in Maldives can lead to penalties and legal consequences. The severity of penalties may vary depending on the nature and extent of the violation. Here are some examples:

Breach of Employment Act: Employers found guilty of breaching the Employment Act may face fines ranging from MVR 1,000 to MVR 100,000 (Maldivian Rufiyaa) per violation. Repeated or severe violations may result in higher fines, compensation payments to affected employees, or legal action.

Non-Compliance with Workmen's Compensation Act: Failure to comply with the regulations outlined in the Workmen's Compensation Act can result in fines ranging from MVR 5,000 to MVR 100,000 per violation. Employers may also be required to provide compensation and support to affected workers.

Violation of Non-Discrimination Act: Employers who engage in discriminatory practices may face fines ranging from MVR 5,000 to MVR 50,000 per offense. They may also be required to provide compensation to affected individuals and take corrective measures to eliminate discrimination.

Failure to Comply with Employment Regulations: Non-compliance with the Employment Regulations may result in fines ranging from MVR 1,000 to MVR 50,000 per violation. Employers may also be required to rectify any breaches and provide appropriate remedies to affected employees.

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Employment Rules and Regulations in Maldives - International Trade Council

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Compliance with employment rules and regulations in Maldives is crucial for employers and employees to maintain a fair and equitable working environment. The relevant legislation and website links provided in this article serve as a comprehensive guide to ensure compliance with the established framework.

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Customs Tariffs in the European Union (EU)

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Customs Tariffs in the European Union (EU)

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The EU, as a customs union, enforces a common external tariff on goods entering its territory. This policy aims to create a level playing field for member states and protect EU industries from unfair competition.

source: European Commission - Customs Union

Taxation and Customs Union - European Commission (europa.eu)

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Directorate-General for Taxation and Customs Union

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HKA are committed to carrying on business in accordance with the highest ethical standards. Read our global sanctions policy here.

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Pool of Examples- Financial Environment 

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Pool of Examples- Financial Environment 

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PhaLa Ram Lun

Commercial policies refer to the strategies and guidelines adopted by businesses to manage various aspects of their operations.

Pricing Policy

This policy outlines how a company sets prices for its products or services. It may include strategies such as cost-plus pricing, competitive pricing, or value-based pricing.

Credit and Payment Policy

This policy governs how a company extends credit to customers, including credit terms, credit limits, and conditions for payment. It helps manage cash flow and minimize the risk of late payments or defaults.

Inventory Management Policy

This policy defines how a company manages its inventory levels. It includes guidelines on stock levels, reorder points, and inventory turnover to ensure optimal supply chain efficiency.

Advertising and Promotion Policy

This policy outlines the guidelines for advertising and promotional activities. It may cover aspects such as advertising channels, promotional budgets and the use of specific messaging or branding.

Customer Service Policy

This policy focuses on how a company interacts with and serves its customers. It may cover criteria for selecting suppliers, negotiating practices and expectations for quality and delivery.

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AML Country Guide / Anti-Money Laundering (AML) in United Kingdom

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AML Country Guide / Anti-Money Laundering (AML) in United Kingdom

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The Anti-Money Laundering (AML) framework in the UK is crucial due to its status as a global financial hub. It addresses the country's economic conditions while countering financial crime risks. The UK's strong economy and skilled workforce are balanced by vulnerabilities linked to its financial center status. The AML framework involves legal and regulatory measures, with an increasing number of Suspicious Activity Reports (SARs) filed by regulated sectors. These reports help prevent money laundering and concealment of criminal activity. Defence Against Money Laundering (DAML) requests have also denied significant funds to suspected criminals. Money laundering risks include cash-intensive businesses, the property market, and corporate structure abuse. UK businesses face AML compliance challenges such as customer due diligence, transaction monitoring, and reporting. Real-life case studies underscore the importance of AML compliance to avoid legal and reputational consequences. Key elements of an effective AML compliance program include risk assessments, policies, training, and audits. The UK's AML regulations will continue evolving to address changing money laundering risks. Businesses need to stay updated and implement robust AML compliance programs to meet legal requirements and maintain their reputation.

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The Anti-Money Laundering (AML) framework in the UK is crucial due to its status as a global financial hub. It addresses the country's economic conditions while countering financial crime risks. The UK's strong economy and skilled workforce are balanced by vulnerabilities linked to its financial center status. The AML framework involves legal and regulatory measures, with an increasing number of Suspicious Activity Reports (SARs) filed by regulated sectors. These reports help prevent money laundering and concealment of criminal activity. Defence Against Money Laundering (DAML) requests have also denied significant funds to suspected criminals. Money laundering risks include cash-intensive businesses, the property market, and corporate structure abuse. UK businesses face AML compliance challenges such as customer due diligence, transaction monitoring, and reporting. Real-life case studies underscore the importance of AML compliance to avoid legal and reputational consequences. Key elements of an effective AML compliance program include risk assessments, policies, training, and audits. The UK's AML regulations will continue evolving to address changing money laundering risks. Businesses need to stay updated and implement robust AML compliance programs to meet legal requirements and maintain their reputation.

Key UK Legislation and Regulations

The UK's Anti-Money Laundering (AML) legal framework encompasses a range of legislation and regulations to ensure compliance and combat financial crimes. This framework includes requirements for reporting suspicious transactions, conducting customer due diligence, and establishing effective AML policies. Designed to prevent money laundering, terrorist financing, and fraud, the UK's AML legal structure is pivotal in maintaining the country's financial integrity. The following key pieces of legislation and regulations form the foundation of the UK's AML legal framework:

Anti-Terrorism, Crime and Security Act 2001: Introduced measures to counter terrorism and serious crime, emphasizing the sharing of financial information and investigating money laundering.

Money Laundering Regulations (MLRs) 2017: Detailed requirements for AML compliance across sectors like banking, accountancy, and legal services. Businesses are mandated to have robust AML policies, perform customer due diligence, and report suspicious transactions.

Serious Crime Act 2015: Equipped law enforcement agencies with enhanced powers to combat serious crime, enabling the seizure of criminal assets and targeting money laundering activities.

Criminal Finances Act 2017: Introduced fresh measures against money laundering and terrorist financing, including Unexplained Wealth Orders and broadening the Suspicious Activity Report (SAR) regime to encompass money laundering offenses.

Sanctions and Anti-Money Laundering Act 2018: Established a new framework for imposing sanctions and battling money laundering and terrorist financing.

Economic Crime (Transparency and Enforcement ) Act 2022: A recent addition aimed at bolstering the enforcement of economic crime offenses, including money laundering.

This legal framework underscores the UK's commitment to tackling financial crimes through stringent regulations, proactive reporting mechanisms, and targeted measures against money laundering and related activities. Businesses operating within the UK's financial landscape must adhere to these laws to prevent legal and reputational repercussions.

UK Regulators and Agencies

HM Revenue & Customs (HMRC): As the UK's tax authority, HMRC plays a vital role in enforcing AML laws and regulations. It has the authority to investigate and prosecute cases of money laundering and terrorist financing. HMRC offers guidance to businesses and individuals regarding their obligations under the Money Laundering Regulations. It also provides training to law enforcement agencies to enhance their ability to detect financial crimes. HMRC supervises the compliance of high-value dealers, money service businesses, and trust and company service providers with AML regulations. Additionally, HMRC conducts risk assessments to identify and evaluate the risk of money laundering and terrorist financing in various sectors.

National Crime Agency (NCA): The NCA is the primary agency in the UK responsible for combating serious and organized crime, including money laundering and terrorist financing. It receives and analyzes suspicious activity reports (SARs) submitted by businesses and individuals. The NCA disseminates financial intelligence to law enforcement agencies both within the UK and internationally. With extensive powers, the NCA investigates and prosecutes cases related to money laundering and terrorist financing. It collaborates closely with other government agencies and international partners to uncover and disrupt criminal networks. The NCA also offers guidance to businesses on AML compliance.

Financial Conduct Authority (FCA): The FCA serves as the UK's financial regulator, overseeing the compliance of most financial institutions with the Money Laundering Regulations. The FCA holds the authority to investigate and take enforcement action against firms found to be in breach of AML regulations. Providing guidance and training to businesses is also part of its responsibilities to help them meet AML requirements. The FCA conducts risk assessments to identify and assess the risk of money laundering and terrorist financing across different sectors. It collaborates closely with other government agencies and international partners to combat financial crime.

AML Compliance Program Requirements

The UK's AML regime is governed by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). The regulations apply to a wide range of firms, including banks, credit institutions, financial institutions, accountants, and lawyers.

The key elements of an effective AML compliance program in the UK include:

Risk assessment: Firms must assess the risks of money laundering and terrorist financing associated with their business. This includes identifying the types of customers they deal with, the products and services they offer, and the geographic areas in which they operate.

Customer due diligence (CDD): Firms must conduct CDD on all new customers to understand their identity, source of funds, and purpose of the relationship. This may involve verifying the customer's identity, obtaining information about their business activities, and understanding the beneficial ownership of the customer.

Ongoing monitoring: Firms must monitor all customer relationships on an ongoing basis to identify and report suspicious activity. This may involve scrutinizing transactions, reviewing customer records, and keeping track of changes in customer behavior.

AML screening: Firms must screen customers against various watchlists to identify potential financial crime risks. This includes screening against sanctions lists, PEP lists, and high-risk country lists.

Training and awareness: Firms must train their staff on AML compliance requirements and procedures. This training should be ongoing and should be tailored to the specific roles and responsibilities of each employee.

Record keeping: Firms must keep records of their AML compliance program, including risk assessments, CDD, and suspicious activity reports. These records must be kept for at least five years.

Independent audit: Firms should have their AML compliance program independently audited on a regular basis to ensure that it is effective and compliant with the regulations.

The UK has a robust AML framework that plays a crucial role in combating money laundering and terrorist financing. However, the country still faces significant money laundering risks, and businesses need to implement robust AML compliance programs to reduce their exposure to these risks.

The future outlook for AML regulations and compliance in the UK is one of continued evolution and enhancement. The UK is likely to continue to work with other countries to share information and best practices, and financial institutions are likely to leverage technology to detect and prevent money laundering.

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Anti-Money Laundering (AML) in United Kingdom

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UK has identified money laundering crimes by AML laws and has made it clear that money laundering should be prevented.

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Special Economic Zones(SEZs) in the Philippines

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Special Economic Zones(SEZs) in the Philippines

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In the field of commercial policy, the Philippines has implemented Special Economic Zones (SEZs) as a strategic initiative to entice foreign direct investments (FDIs) and promote economic development in designated regions. These zones provide various incentives, such as tax advantages, streamlined regulatory procedures, and infrastructure assistance, with the goal of cultivating a favorable setting for enterprises. The overall objective is to promote business growth, facilitate employment opportunities, and drive technological progress within specific industries.

https://www.peza.gov.ph/

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One example of a commercial policy is a credit policy. Credit policy is a firm-specific framework, designed by management, to standardize lending decisions in accordance with the firm’s risk appetite. This policy outlines the terms and conditions under which a company extends credit to its customers. It includes factors such as credit limits, payment terms, and procedures for evaluating creditworthiness. A well-defined credit policy helps manage cash flow, reduce the risk of bad debts, and maintain healthy customer relationships.

Source: Lip, G. (2023, September 27). Credit policy. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/commercial-lending/credit-policy/

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Policies that encourage foreign and domestic investments in specific industries, often providing tax incentives or favorable conditions for businesses.

Crucial aspect of economic policy, serving as a strategic tool for governments to attract and retain investments in key industries. By offering tax incentives and favorable conditions, countries like the Philippines aim to create a competitive environment that encourages both foreign and domestic businesses to contribute to economic growth.

Example: Tax Holidays: Businesses operating within SEZs (Special Economic Zone) located in Clark Free Port Zone and here in Baguio City in Loakan focuses on the IT-BPO industry, these areas may enjoy income tax holidays, during which they are exempted from paying corporate income tax for a specific period, typically ranging from 4 to 8 years.

https://www.officialgazette.gov.ph/1967/09/16/republic-act-no-5186/

Killip, Angelyca R.

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After a long era of trade liberalization, US trade policy under the Trump and Biden administrations has returned to “managed trade” measures, including tariffs, and a less discussed but no less interesting tool: quotas.

In 2018, the Trump administration imposed 25% tariffs on specified steel imports and 10% tariffs on specified aluminum imports under Section 232 of the Trade Expansion Act of 1962. South Korea and Brazil agreed to apply absolute quotas to their steel exports in lieu of the Section 232 tariffs while Argentina agreed to absolute quotas on steel and aluminum exports.

Although the US has not imposed absolute quotas since then, US negotiators have pursued other managed trade measures to reduce quantities of imports, including tariff-rate quotas (TRQs). In 2021 and 2022, the Biden administration negotiated agreements with the EU4, Japan5, and the UK6 granting exemptions from the tariffs in favor of TRQs. Unlike the absolute quotas, under the TRQs, steel, and aluminum imports can enter the US over the quota amount subject to Section 232 tariff rates, while in-quota imports enter duty-free.

https://www.hinrichfoundation.com/research/article/trade-distortion-and-protectionism/quotas-return/

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Trade distortion and protectionism

Quotas and tariffs are both used to protect domestic industries by artificially raising import prices in the domestic market. Their administration and effects, however, differ in specific ways. Although quotas are less discussed than tariffs, they can be much more complicated and costly to implement.

After a long era of trade liberalization, US trade policy under the Trump and Biden administrations has returned to "managed trade" measures, including tariffs, and a less discussed but no less interesting tool: quotas.

In 2018, the Trump administration imposed 25% tariffs on specified steel imports and 10% tariffs on specified aluminum imports under Section 232 of the Trade Expansion Act of 1962. South Korea ¹ and Brazil agreed to apply absolute quotas to their steel exports in lieu of the Section 232 tariffs while Argentina ² agreed to absolute quotas on steel and aluminum exports. ³

Although the US has not imposed absolute quotas since then, US negotiators have pursued other managed trade measures to reduce quantities of imports, including tariff-rate quotas (TRQs). In 2021 and 2022, the Biden administration negotiated agreements with the EU ⁴, Japan ⁵, and the UK ⁶ granting exemptions from the tariffs in favor of TRQs. Unlike the absolute quotas, under the TRQs, steel, and aluminum imports can enter the US over the quota amount subject to Section 232 tariff rates, while in-quota imports enter duty-free.

The difference between quotas and tariffs

Quotas and tariffs are both used to protect domestic industries by artificially raising prices in the domestic market. Their administration and effects, however, differ in specific ways.

Quotas restrict the quantity of a good imported from another country, with absolute quotas setting hard limits on imports.

Tariffs, or duties, are taxes or charges levied on goods imported from another country.

TRQs, or tariff quotas, are a combination of tariffs and quotas, in which imports under the quota enjoy a lower tariff rate than imports over the quota, with no absolute quantitative restriction.

Under TRQs, if the over-quota tariff rate is high enough, the TRQ may be a de facto quantitative import restriction much like absolute quotas. ⁷

Quotas can be much more complicated to administer than tariffs. Tariffs are collected by a customs authority as goods enter a country. With quotas, customs authorities must either monitor imports directly to ensure that no goods above the quota amount are imported, or for TRQs, that duties are applied to goods imported over the quota. Alternatively, customs authorities can award licenses to specific companies, giving them the right to import the amount allowed under the quota. Quotas can also take the form of a voluntary export restraint (VER), where the exporting country administers the quota.

While tariffs generate revenue that is paid to the importing country's treasury, the value of a quota (quota rents) generally goes to foreign exporters, who can sell goods subject to the quota at higher prices and collect higher per-unit revenue. In both cases, domestic consumers in the importing country pay the costs of tariffs and quota rents. But with quotas, the importing country's government receives no revenue.

The cost of quotas

Costs and pricing under tariffs are more transparent and predictable than quotas. For example, if a good is subject to a 10% tariff, then the good should cost about 10% more. With a quota, the price of that same good can increase as long as demand for the good continues and supply remains constrained. This means that quota rents are ultimately more costly to domestic consumers than tariffs. Quotas may incentivize foreign producers to upgrade the quality of their exports, leading to more direct competition with domestic producers and a higher-price product mix for consumers.

However, if foreign producers export low-quality goods under a quota regime, prices, and profits for both foreign and domestic producers of low-quality goods will increase because of quotas, while domestic consumers will pay more for the lower-quality goods.

World Trade Organization (WTO) consistency

General Agreement on Tariffs and Trade (GATT) Article XI prohibits quotas and other quantitative restrictions as are overly distortive compared to duties, taxes, and TRQs. In fact, on December 9, 2022, a WTO dispute panel decided against the US, holding that its imposition of quotas on South Korea, Brazil, and Argentina is inconsistent with Article XI and that Section 232 tariffs and quotas on steel and aluminum do not fall under the "security exception". ⁸

Tricky to administer

South Korea, Brazil, and Argentina each agreed to product-specific absolute quotas on 54 separate steel articles based on each country's average annual import volumes from 2015 through 2017. Argentina also accepted product-specific absolute quotas on two aluminum product categories.

These quotas are administered to give exporters the least possible flexibility and demonstrate how complicated quota regimes can be. Some of the quotas are absolute. Once the quota is reached, no additional amount can enter the US for any price unless an exclusion is granted. Some quotas apply to the full calendar year but in practice may fill the minute the quota takes effect, while others are subject to quarterly limitations. Once a quota is filled in each quarter, importers must wait until the next quarter to bring the product into the United States. Moreover, imports count against the quota even if later granted an exclusion. This rule also applies to the TRQ regimes for the UK and Japan.

Under the EU TRQs, duty-free imports are subject to quotas allocated amongst all EU member states to goods that also must be melted and poured into the member state. Unused quotas can be rolled over to subsequent quarters to a limited degree.

The true cost in practice

For South Korea, Brazil, and Argentina, quotas have reduced export volumes to the US, particularly due to the reduction in South Korea's exports in line with the limitations imposed by the quota regime.

According to US Department of Commerce data, the overall quantity of steel South Korea, Brazil, and Argentina exported to the United States from 2018 to 2022 has dropped compared to the annual level of imports during the previous five-year period. ⁹

Upside for US steel producers

For US steel and primary aluminum producers, Section 232 tariffs, and to a limited extent quotas, are accomplishing their goal of bolstering US manufacturing capacity and creating conditions for US manufacturers to expand production and enjoy higher prices.

A 2023 US International Trade Commission (ITC) study examines the economic impact of Section 232 tariffs, broadly accounting for quotas. According to the study ¹⁰, Section 232 restrictions reduced steel and aluminum imports by about 24% and 31.1% while US production increased by 1.9% and 3.6%, respectively, from 2018 to 2021. Tariffs may have increased the average price of US steel and aluminum by 2.4% and 1.6%, respectively.

Though some proponents of the Section 232 protections do not advocate for quotas, others argue that quotas are a necessary component of the Section 232 program. Here's why.

First, for industries seeking protection, quotas arguably provide greater certainty than tariffs that imports will be limited. Under tariffs, if importers can bear the costs, or exporters can reduce their prices, imports will continue to flow in, and competition will remain high.

Second, steel and aluminum manufacturers argue that without quotas, "countries that have exemptions [to tariffs] would likely redirect their metals exports to the US to take advantage of higher prices there, undermining the purpose of the tariffs." ¹¹

Downside for downstream industries

It's a different story for US downstream manufacturers, who say quotas have entailed "severe supply constraints" and "created even more business uncertainty than tariffs". ¹²

Importers may no longer guarantee that their goods can enter under the quota, or at all. They may encounter unanticipated costs if the quota is filled while goods are in transit or unpredictably higher prices for goods subject to a quota. They may have to find new suppliers and bear all the costs of negotiating new contracts, building new relationships, and shipping from a new location. The exclusion process may provide some relief for importers under supply pressure, though its application may also introduce more uncertainty.

More generally, downstream manufacturers argue that Section 232 quotas and tariffs raise prices inhibiting their competitiveness, and have a chilling effect on growth, employment, and investment. Although many businesses have been buoyed by the strong US economy, they say that employment and sales in their industries would have increased even more were it not for tariffs and quotas raising prices. Moreover, downstream industries using steel and aluminum products employ more Americans than steel and primary aluminum manufacturers.

In fact, the 2023 ITC study found that for downstream industries, the impact of Section 232 tariffs was largely negative. ¹³

Addressing global excess capacity is key

Though in general, the Biden administration has embraced the Section 232 quotas ¹⁴ and tariffs, ¹⁵ in late 2021 and early 2022, the Biden administration negotiated agreements with the EU, Japan, and the UK to lift Section 232 tariffs in favor of TRQs.

As part of its negotiations with the EU, the Biden administration has also proposed a Carbon-Based Sectoral Arrangement on Steel and Aluminum Trade. ¹⁶ While promoting the trade of steel and aluminum produced with fewer carbon emissions, the arrangement would establish barriers to goods produced with higher carbon emissions, an effort that also targets excess capacity in steel and aluminum production. ¹⁷

Though they are not fully liberalizing, these agreements represent a stepping away from more restrictive tariffs and absolute quotas and lifting retaliatory tariffs while focusing on the underlying cause of US industry distress-global excess capacity. ¹⁸

Though tariffs and quotas may provide short-term relief, solving underlying global excess capacity problems is critical to addressing US industries' long-term challenges. Any long-term solution will require more than the mere application of protectionist measures. The United States will have to work closely and creatively with its trading partners to address this challenge directly and to persuade the world's largest producers, including China, to reduce global excess capacity.
Holly Smith is a lawyer and consultant. From 2009 to 2015, she served in the Office of the United States Trade Representative as a Director for Intellectual Property and Innovation, a Director for China Affairs, and a senior policy advisor to the Deputy U.S. Trade Representative.

*** [1] Adjusting Imports of Steel Into the United States, Federal Register

[2] Adjusting Imports of Steel Into the United States, Federal Register
[3] Adjusting Imports of Aluminum Into the United States, Federal Register
[4] Announcement of Actions on EU Imports Under Section 232, USTR
[5] A Proclamation on Adjusting Imports of Steel into the United States, White House
[6] Ibid
[7] Economics of Tariff-Rate Quota Administration, ERS
[8] United States - Certain Measures on Steel and Aluminium Products, Report of the Panel, World Trade Organization
[9] Global Steel Trade, International Trade Administration
[10] Economic Impact of Section 232 and 301 Tariffs on U.S. Industries, USITC
[11] U.S. aluminum trade group calls on Trump to avoid quotas, Reuters
[12] Trade Letter: Tariffs Have Caused 'Significant Harm to Manufacturers', Industry Week
[13] Ibid
[14] U.S. not looking to renegotiate Trump-era steel quotas with S.Korea, says Raimondo, Reuters
[15] Lifting Tariffs on Goods May Make Sense, US Commerce Chief Says, Bloomberg
[16] FACT SHEET: The United States and European Union To Negotiate World's First Carbon-Based Sectoral Arrangement on Steel and Aluminum Trade, White House
[17] US Commerce chief says green steel pact would combat excess Chinese output, Reuters
[18] The problem with U.S. tariffs on steel and aluminum that no one is talking about, Hinrich Foundation

© The Hinrich Foundation. See our website Terms and conditions for our copyright and reprint policy. All statements of fact and the views, conclusions and recommendations expressed in this publication are the sole responsibility of the author(s).

Holly Smith is a lawyer and consultant. From 2009 to 2015, she served in the Office of the United States Trade Representative as a Director for Intellectual Property and Innovation, a Director for China Affairs, and a senior policy advisor to the Deputy U.S. Trade Representative.
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Quotas make a comeback in US trade policy | Articles | Hinrich Foundation

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Quotas and tariffs are both used to protect domestic industries by raising prices of imports. Their administration and effects, however, differ in specific ways.

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A quality control strategy is important for any business, even ones that don't make things. But your rules for quality control need to be reasonable in terms of money. On the one hand, giving people bad quality can cost you money in the form of returned goods, lost sales, and even fines. On the other hand, quality control doesn't make your goods more valuable. Quality must be met at all times. You need to think about how much quality control costs and how much it helps.

Source: https://smallbusiness.chron.com/quality-control-policy-70070.html

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IKEA’s  customers' safety is our top priority, and we look forward to building stunning houses with them. We back many of our products with guarantees since we know our selection is top-notch. We provide a fair return policy in case you change your mind. From time to time, we make the decision to issue product recalls or provide safety guidelines for the home. If we all pitch in, we can make our houses more pleasant places to live.

Sources: https://www.ikea.com/ph/en/customer-service/returns-claims/

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The European Union (EU) trade policy is a comprehensive approach that guides the EU's external economic relations with other countries and regions. The EU, as a customs union and a single market, has the authority to negotiate and conclude trade agreements on behalf of its member states in certain areas. The EU's trade policy aims to open markets globally, promote fair and rules-based trade, and contribute to economic growth and job creation.

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Finland and the other Member States promote their trade policy interests through the EU. EU trade policy (the common commercial policy of the EU) covers trade in goods and services, the commercial aspects of intellectual property, public procurement, and foreign direct investments.

The European Commission published a Communication on its Trade Policy Review(Link to another website.) in February 2021. The communication gives guidance and sets out objectives for EU trade policy in the coming years. Following debates on the communication among the Member States, Council Conclusions will be adopted in May 2021.

Decision-making process on EU trade policy

The direction of EU trade policy is defined in cooperation between the European Commission, the EU Member States (Council), and the European Parliament.

There is a decisive difference between trade policy and, for example, the EU's common security and defence policy in that trade policy falls almost wholly under the exclusive competence of the Union.

Exclusive competence in trade policy means that the European Commission makes initiatives and proposals on the common commercial policy and negotiates trade agreements with third countries.

The European Commission has a strong and visible position in trade policy, but its work is guided by the Member States. The Council of the European Union(Link to another website.) (Council of Ministers), which consists of representatives of the Member States' governments, decides on negotiation mandates and international agreements as well on various trade policy measures.

After the entry into force of the Treaty of Lisbon(Link to another website.) in 2009, the European Parliament has been more closely involved in trade policy. For example, free trade agreements and legislative measures related to trade policy require approval by not only the Council of Ministers but also by the European Parliament.

Questions concerning trade policy are dealt with in the Trade Policy Committee (TPC)(Link to another website.) , in which all Member States are represented.

The TPC meets regularly also in various expert level configurations (e.g. Services and Investments).

The EU's bilateral relations with such important trading partners as the United States, the Russian Federation, China, India, Brazil and Japan play a significant role in EU trade policy.

As a Member State of the EU, Finland promotes its trade policy interests through EU trade policy. The Ministry for Foreign Affairs is responsible for preparing and coordinating EU trade policy matters in Finland.

The European Commission is obligated to consult the Member States regularly. This means that when the content of EU trade policy is formulated, Member States, including Finland, play an active role at the different stages of preparation.

Finland's positions for the Trade Policy Committee are prepared in the EU2 sub-committee under the Committee for EU Affairs(Link to another website.) , which consists of representatives from various administrative branches. In addition to this restricted composition, the sub-committee meets in an extended composition, where various interest groups are also represented.

As required, Finland's positions are discussed in the Committee for EU Affairs, which consists of permanent secretaries or their representatives and, ultimately, in the Ministerial Committee on European Union Affairs. The Government is obligated to inform Parliament on significant trade policy issues, as Parliament ultimately confirms Finland's positions. Additionally, when decisions are made in trade negotiations involving sectors that fall under the competence of the Member States, approval by Parliament is required.

World Trade Organization WTO

Photo: WTO

The World Trade Organization (WTO) is an inter-governmental organization with 164 members, which was established in 1995. It is headquartered in Geneva. The WTO's new Director-General, Nigerian Ngozi Okonjo-Iweala, assumed her functions in March 2021. Her term will last until the end of August 2025.

Multilateral trade negotiations conducted within the WTO play a central role in Finland's trade policy. The European Commission represents the EU Member States in the WTO. In Finland, the Ministry for Foreign Affairs has principal responsibility for WTO negotiations.

The WTO's three main functions are to serve as a permanent forum for trade negotiations, to administer trade agreements, and to solve trade disputes. WTO members' trade accounts for approximately 98 per cent of world trade.

The Doha Development Agenda (DDA) was launched in 2001. It aims, for example, to facilitate market access in agriculture and services, to reduce trade barriers, and to modernise trade rules. A special objective has been to improve developing countries' opportunities to take part in international trade. To date, progress has been almost non-existent. In 2013, agreement was reached on the WTO Trade Facilitation Agreement. The Ministerial Conference in 2015 adopted an agreement on eliminating agricultural export subsidies. For now, these remain the only major results reached in WTO negotiations. The Doha Round is practically stalled.

The WTO has been in crisis for a long time. The majority of WTO rules date back to the 1980s and do not correspond to today's reality, the dispute settlement system does not function because the Appellate Body is paralysed, and there is room for improvement in the effectiveness of the WTO's regular work in the committees and of the monitoring of the implementation of commitments.

WTO reform is among the EU's central goals

In the Communication on a Trade Policy Review, published by the European Commission in February 2021, much attention is paid to the multilateral trading system and the WTO. The first priority is to restore a fully functioning WTO dispute settlement system. Another central priority is to strengthen the WTO's role in negotiations by updating the rules to reflect current realities. It is also important to explore opportunities for integrating plurilateral negotiations into the WTO system.

Due to the COVID-19 pandemic, the WTO also pays attention to trade and health, and sustainable development, as well as the organization's role in the post-pandemic economic recovery.

Finland supports the maintenance and strengthening of the multilateral, rules-based trading system. Finland considers that the objectives regarding the WTO reform, presented in the Commission's communication, are steps in the right direction and worthy of support.

The next WTO Ministerial Conference (MC12) will be held in November 2021. It would be important from the point of view of the credibility of the WTO and the multilateral trading system that the conference could make decisions on the WTO reform.

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Common Commercial Policy of the EU - Ministry for Foreign Affairs

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Finland and the other Member States promote their trade policy interests through the EU. EU trade policy (the common...

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Invisible Tariffs and Other Government Barriers

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Invisible Tariffs and Other Government Barriers

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Customs Documentation Requirement is important for commercial policies to know the tax to be applied to certain goods or resources. For example, in the Philippines, a luxury car( Bugatti Chiron) was spotted in the streets of Manila during the year 2023 that was considered illegally imported into the country because the documentation of the declared vehicle in the Bureau of Customs was a Toyota Tacoma in which there was no declared documentation in the Customs of the said luxury car, wherein the car was not taxed based on its market value which is Php 180,000,000+.

Another is Labeling Laws, an example of this is the Maple Syrup Labeling Regulations in which it is required for a certain company that markets the product to commercially declare how pure the maple syrup is if it is artificially flavored, or if it is 100% Pure Maple Syrup.

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Domestic Policies and International Trade

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Domestic Policies and International Trade

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Increasingly, at international forums where policymakers are discussing international trade issues, the topic of discussion is not what trade policies countries are using but rather what domestic policies are in place. The reason is that in our interconnected and globalized world, the domestic policies affecting energy, the environment, labor markets, health, and many other matters will affect not only what happens at home but also what, and how much, is traded and invested, and thus the outcomes for producers and consumers abroad. In short, domestic policies have international repercussions.

One of the most important distinctions between domestic policies and trade policies is the effect on prices. When a trade policy, such as a tariff, is implemented, a price wedge is driven between the domestic price and the foreign price of the good. The domestic producers of the product will receive a higher price for the goods they sell, and domestic consumers will pay the same higher price for the goods they purchase.

In the case of domestic policies, a wedge is driven between domestic prices for the good. For example, if a domestic production subsidy is implemented by a small country, it will raise the price producers receive when they sell their good (we’ll call this the producer price), but it will not affect the price paid by domestic consumers when they purchase the good (we’ll call this the consumer price). The foreign price would remain equal to the consumer price in the domestic country. Note that we can also call the consumer price the “market price” since this is the price that would appear on a price tag in the domestic market.

source:

https://saylordotorg.github.io/text_international-trade-theory-and-policy/s11-domestic-policies-and-internat.html

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Domestic Policies and International Trade

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Increasingly, at international forums where policymakers are discussing international trade issues, the topic of discussion is not what trade policies countries are using but rather what domestic policies are in place. The reason is that in our interconnected and globalized world, the domestic policies affecting energy, the environment, labor markets, health, and many other matters will affect not only what happens at home but also what, and how much, is traded and invested, and thus the outcomes for producers and consumers abroad. In short, domestic policies have international repercussions.

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Governments can enact commercial policies with a primary emphasis on enhancing cybersecurity within the financial sector. The objective of these regulations is to protect both financial institutions and their clientele from potential cyber threats, including instances of data breaches and fraudulent activities. Such policies may involve defining benchmarks for data protection, mandating periodic assessments of cybersecurity practices, and formulating guidelines for the reporting and handling of security incidents. These measures play a pivotal role in upholding the reliability of financial systems and securing confidential information.

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1. Tariffs and Import Quotas:

- Tariffs: Taxes imposed on imported goods, making them more expensive than locally produced goods, aimed at protecting domestic industries and encouraging local consumption.

- Import Quotas: Restrictions on the quantity of certain imported goods during a specific period, controlling supply and demand dynamics.

2. Subsidies:

- Financial assistance or support provided by governments to domestic industries to enhance their competitiveness in the global market. This can include direct payments, tax breaks, or reduced interest rates on loans.

3. Export Promotion:

- Government incentives to encourage exports, which may involve tax breaks, financial assistance, or the establishment of export-processing zones with favorable conditions for domestic businesses.

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Voluntary constraint is barrier where a country restricts or stops import products from coming inside the country. This type of barrier limits the impact of imports on local industries or goods by limiting the level of competition they may face. Additionally, it is a practice which set-ups minimum standards for businesses.

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Commercial Policy Meaning, Objectives and Instruments - Honable

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Commercial policy refers to a set of regulations and guidelines that govern trade. Every country has its policies for trade, which are…

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The Dual Currency system of Cuba was implemented in 1994 during the fall of the Soviet Union which tormented Cuba's economic status. Then 27 years later in 2021 the Dual Currency system was finally unified.

The Cuban currency consists of the Cuban Peso (CUP) and the Convertible Cuban Peso (CUC). The CUP is used for the daily financial transactions of the locals and has a lower value than CUC. In contrast, CUC is almost on par with the US Dollar which is mostly used in foreign transactions such as tourism activities, buying of imported goods, and some above-the-tier services.

Having a Dual Currency system in a country has adverse effects such as creating a two-tier economic system for the country. This implies that Cubans who have access to CUC are superior compared to locals who have CUP as their currency. Another effect is the distortion of pricing. Due to the dual currency system, some business owners priced their goods and services differently which creates inconvenience and equality for the Cubans.

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Day Zero: how and why Cuba unified its dual currency system | LSE Latin America and Caribbean

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With the pandemic raging and a global economic recession just beginning, the unification of the national peso and the convertible peso may alarm Cubans. But once the adjustment filters through the economy, and with the state’s promise that no one will be left behind, it could prove to be a vital step for the country’s development, writes our visiting fellow Helen Yaffe (University of Glasgow).

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Voluntary Export Restraints (VERs) is almost similar with export quota that restricts the quantity of a good that can be exported to another country. They both aim to prevent set mandatory restrictions by the importing country on the exporting country. Unlike an export quota, which is usually a government-imposed limit on the amount of goods that can be exported to other country within a specific period, a VERs is a self-imposed trade agreement or negotiation between the importing and exporting countries. In here, the exporting country voluntarily agrees to limit the number of goods in response to the request of the importing country. Through this, the exporting country can avoid facing trade restrictions from the importing country, enabling itself to exercise some degree of control over the restriction.

For instance, Japan agreed to imposed voluntary export restraints on the export of their Japanese manufactured cars to the U.S., as the U.S. government wanted to protect its automobile manufacturers, who were threatened by the affordable and more fuel-efficient Japanese automobiles.

Source: Voluntary Export Restraint (VER). Corporate Finance Institute. (2023b, October 18). https://corporatefinanceinstitute.com/resources/economics/voluntary-export-restraint-ver/

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Philippines extends tariff cuts on imported rice to fight inflation

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Philippines extends tariff cuts on imported rice to fight inflation

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President Marcos also approves keeping tax reduction on corn and pork.

Philippine President Ferdinand Marcos Jr. has approved the extension of reduced tariffs on rice and other food items until the end of 2024 to keep prices stable amid a threat of dry weather in the coming months, his office said on Tuesday.

The extension of the modified tariffs, Marcos said, is aimed at ensuring affordable prices of rice, corn and meat products with the looming effects of the El Nino dry weather phenomenon early next year and the continued threat of African Swine Fever.

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MANILA (Reuters) -- Philippine President Ferdinand Marcos Jr. has approved the extension of reduced tariffs on rice and other food items until the end of 2024 to keep prices stable amid a threat of dry weather in the coming months, his office said on Tuesday.

The modified rates first approved in 2021 had already been extended this year due to high inflation, and Marcos said another extension was needed until the end of next year.

"The present economic condition warrants the continued application of the reduced tariff rates on rice, corn and (pork) ... to maintain affordable prices for the purpose of ensuring food security," Marcos was quoted as saying in a statement.

Inflation stood at 4.1% in November, easing for a second month in a row, but has averaged 6.2% during the first 11 months of 2023, well outside the Philippine central bank's 2% to 4% target for the year.

The extension of the modified tariffs, Marcos said, is aimed at ensuring affordable prices of rice, corn and meat products with the looming effects of the El Nino dry weather phenomenon early next year and the continued threat of African Swine Fever.

The tariff rate for rice will remain at 35%, while import levies on corn will stay at 5% to 15% and 15% to 25% for pork products, according to the new executive order extending the modified tariff rates.

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Philippines extends tariff cuts on imported rice to fight inflation

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MANILA (Reuters) -- Philippine President Ferdinand Marcos Jr. has approved the extension of reduced tariffs on rice and other food items until the end

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Protects the physical assets of a business, such as buildings, inventory, equipment, and furniture, against perils like fire, theft, vandalism, and natural disasters.

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What Is Commercial Property Insurance?

Commercial property insurance is used to cover any commercial property. Commercial property insurance protects commercial property from such perils as fire, theft, and natural disaster. A variety of businesses, including manufacturers, retailers, service-oriented businesses, and not-for-profit organizations carry commercial property insurance. It is generally bundled together with other forms of insurance, such as commercial general liability insurance.

Understanding Commercial Property Insurance

Commercial property insurance can be a major expense for businesses that use equipment worth millions or billions of dollars, such as railroads and manufacturers. This insurance essentially provides the same kind of protection as property insurance for consumers. However, businesses can usually deduct the cost of commercial property insurance premiums as expenses. Commercial property insurance generally does not cover losses arising from tenants using the building.

When determining how much a company should pay for commercial property insurance, the value of a business' assets, including the building, is the primary factor. Before meeting with an agent to discuss coverage, a company should take an inventory of their physical assets located at their property. This information will help determine what exactly would be the replacement value and the level of coverage the business should get.

With an increase in the number of natural disasters, weather conditions in the area where the building is located have also become an important factor in determining the cost of commercial property insurance. Commercial insurance rates are generally higher for properties located in the vicinity or inside geographies with significant risk of weather-related catastrophes. For example, rates are higher for properties located near regions prone to wildfires in California.

Factors Considered in a Commercial Property Insurance

Location: Buildings in cities or towns with excellent fire protection typically cost less to insure than buildings outside a city or in areas with limited fire protection.

Construction: Buildings made of potentially combustible materials will have higher premiums, while those made of fire-resistant materials could earn a discount. Additions to an existing structure might affect a fire rating, so it's a good idea to talk to an agent or insurance company before remodeling. Internal structural elements can also change a fire rating. Using wood partitions, floors, and stairways in an otherwise fire-resistant building will likely nullify any rate reduction. Fire-resistant interior walls, floors, and doors can help maintain a good fire rating.

Occupancy: A building's use also affects its fire rating. An office building will likely rate better than a restaurant or auto repair shop. In a building with multiple tenants, one hazardous occupant will negatively affect the fire rating of the entire building. If a business is in a building with a more hazardous tenant, premiums will be higher.

Fire and theft protection: How far are the nearest fire hydrant and fire station? Does the business have a fire alarm and sprinkler system? How about a security system?

Property to Consider for Commercial Property Insurance

Some particular places on your property to consider insuring include:

The building that houses your business, including if it is owned or rented

All office equipment, including computers, phone systems, and furniture, whether they're owned or leased

Accounting records and essential company documents

Manufacturing or processing equipment

Inventory kept in stock

Fence and landscaping

Signs and satellite dishes

Examples of Commercial Property Insurance

Commercial property insurance can be used to cover a variety of situations. For example, it can be used to claim damages if a fire destroys your office equipment. Commercial property insurance is also useful in case of a theft. It can also be used to make claims in case of a natural disaster. For example, Insurance Journal reported that Hurricane Maria's impact in Puerto Rico left insurers dealing with 279,000 claims.﻿﻿

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Commercial Property Insurance: What it is, How it Works, Examples

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Commercial property insurance is used to cover any type of commercial property against such perils as fire, theft, and natural disaster.

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It’s important to provide your employees with a safe and healthy work environment, especially since workplace health and safety violations can cause harm to your employees, cost your business money and damage your reputation.

Your business should be proactive and write a health and safety policy that is designed for each workplace. For example, you might specify what employees should do in case of office emergencies or how to handle unsafe materials. The Occupational Safety and Health Administration (OSHA) has guidelines on how to create a safe workplace and protect workers from occupational hazards that you can base your policy on.

https://www.indeed.com/recruitment/c/info/company-policies

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WHS requirements in your state or territory

Each state has its own WHS laws and a regulator to enforce them. The WHS framework for each state includes the:

Act - outlines your broad responsibilities.

Regulations - set out specific requirements for particular hazards and risks, such as noise, machinery, and manual handling.

Codes of practice - provide practical information on how you can meet the requirements in the Act and Regulations.

Regulating agency (regulator) - administers WHS laws, inspects workplaces, provides advice and enforces the laws. Check their website for WHS information and resources.

In some states there is a different regulator for workers' compensation.

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Work health and safety | business.gov.au

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WHS requirements in your state or territory Each state has its own WHS laws and a regulator to enforce them. The WHS framework for each state includes the: Act - outlines your broad responsibilities. Regulations - set out specific requirements for particular hazards and risks, such as noise, machinery, and manual handling.

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Currency hedging is like a shield that companies use when they're involved in international trade. In the constantly changing global market, the value of money in different countries can go up and down, creating uncertainty for businesses. To deal with this risk, companies use financial tools like futures or options. These tools help protect them from sudden changes in currency values that could affect the worth of their deals. Currency hedging is a way for businesses to make sure they have a certain level of financial safety, ensuring that the profits they make from international deals aren't hurt by unexpected changes in currency values. It's a smart way for companies to stay financially stable and feel more confident in the complicated world of international business.

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The EU and Israel

Trade relations between the EU and Israel are governed by a Free Trade Area that is part of the 2000 EU-Israel Association Agreement.

Negotiations to open up additional agricultural trade between the EU and Israel were concluded in 2008. That agreement has been in force since January 2010.

In 2012, the EU and Israel concluded an Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) in pharmaceuticals. It facilitates bilateral trade, removes trade barriers and provides mutual recognition of pharmaceutical certification.

Trade and economic relations between the EU and Israel are further enhanced by the Euro-Mediterranean Aviation Agreement (the so-called ‘Open Skies’ aviation agreement), which fully entered into force in 2018 and further opened EU-Israel air travel.

February 2021’s EU Trade Policy Review stated that the EU will propose a new sustainable investment initiative to interested partners in Africa and the EU’s Southern Neighbourhood. Fostering strategic interdependencies and enhancing the EU’s relations and economic integration with its Southern Neighbourhood is a strategic necessity for long-term regional stability.

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The legal basis for the EU's trade relations with Israel is the EU-Israel Association Agreement, which entered into force in June 2000. The agreement aims to provide an appropriate legal and institutional framework for political dialogue and economic cooperation between the EU and Israel.

Trade picture

Israel is the EU's 25th biggest trade partner, representing 0.8% of the EU's total trade in goods in 2022. It is also among the EU's main trading partners in the Mediterranean area.

The EU is Israel's biggest trade partner, accounting for 28.8% of its trade in goods in 2022. 31.9% of Israel's imports came from the EU, and 25.6% of the country's exports went to the EU.

Total trade in goods between the EU and Israel in 2022 amounted to €46.8 billion. The EU's imports from Israel were worth €17.5 billion and were led by machinery and transport equipment (€7.6 billion, 43.5%), chemicals (€3.5 billion, 20.1%), and other manufactured goods (€1.9 billion, 11.1%). The EU's exports to Israel amounted to €12.2 billion and were dominated by machinery and transport equipment (€12.3 billion, 41.9%), chemicals (€5.1 billion, 17.6%), and other manufactured goods (€3.5 billion, 12.1%).

Two-way trade in services between the EU and Israel amounted to €16.7 billion in 2021. EU imports of services represented €6.9 billion, while exports accounted for €9.8 billion.

The EU and Israel

Trade relations between the EU and Israel are governed by a Free Trade Area that is part of the 2000 EU-Israel Association Agreement.

Negotiations to open up additional agricultural trade between the EU and Israel were concluded in 2008. That agreement has been in force since January 2010.

In 2012, the EU and Israel concluded an Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) in pharmaceuticals. It facilitates bilateral trade, removes trade barriers and provides mutual recognition of pharmaceutical certification.

Trade and economic relations between the EU and Israel are further enhanced by the Euro-Mediterranean Aviation Agreement (the so-called 'Open Skies' aviation agreement), which fully entered into force in 2018 and further opened EU-Israel air travel.

February 2021's EU Trade Policy Review stated that the EU will propose a new sustainable investment initiative to interested partners in Africa and the EU's Southern Neighbourhood. Fostering strategic interdependencies and enhancing the EU's relations and economic integration with its Southern Neighbourhood is a strategic necessity for long-term regional stability.

Financial support

The European Neighbourhood Policy provides political and financial assistance to Israel. Due to Israel's advanced level of economic development, EU funds under the European Neighborhood Instrument (ENI) are mostly used for twinning and public administration (TAIEX) projects in the areas of education, telecommunication and water management. On average, this amounts to €1.8 million per year.

Under the EU's Multiannual Financial Framework for the period 2021-2027, the EU will adopt a broad new financial cooperation instrument: the Neighbourhood, Development and International Cooperation Instrument (NDICI). The NDICI will replace ENI and contribute to future EU-Israel cooperation.

More information on EU support is available from the Directorate-General for Neighbourhood and Enlargement Negotiations.

Israel in the Southern Neighbourhood

Israel is one of the partners of the EU's Southern Neighbourhood (Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine*, Syria and Tunisia). The EU established its privileged partnership with the countries of the Eastern and Southern shores of the Mediterranean back in 1995 with the launch of the Euro-Mediterranean Partnership at the Barcelona Conference, aiming to establish an area of peace, stability and economic prosperity that upholds democratic values and human rights.

The 25 th anniversary of the Barcelona Process in November 2020 was an opportunity to reflect on the strategic partnership with the region in light of the political, socioeconomic, financial and environmental challenges exacerbated by the Covid-19 pandemic, and to reassess the EU's partnership with Israel and other Southern Neighbourhood partner countries. Following consultations with partners, this reflection resulted in the Joint Communication by the European Commission and the High Representative of the Union for Foreign Affairs and Security Policy on ' A renewed partnership with the Southern Neighbourhood - A new Agenda for the Mediterranean' and the annexed ' Economic and Investment Plan for the Southern Neighbours ' in February 2021.
More information on the Southern Neighbourhood
The pan-Euro-Mediterranean cumulation and the PEM Convention on rules of origin

The pan-Euro-Mediterranean cumulation system of origin was created in 2005. It brings together the EU, Israel, and other partners in Europe and the Mediterranean to support regional integration by creating a common system of rules of origin. Rules of origin are technical criteria which determine whether a specific product qualifies for duty-free or other preferential access under a given trade agreement.

Cumulation of origin means a product coming from one partner country can be processed or added to a product of a second partner country and still be considered an 'originating product' of that second partner country for the purposes of a particular trade agreement.

The pan-Euro-Mediterranean system allows for diagonal cumulation (i.e. cumulation between two or more countries) between the EU, EFTA countries, Turkey, the Western Balkans, the Faroe Islands, Ukraine, Moldova, Georgia, and any country that signed the Barcelona Declaration of 1995. The system was originally based on a network of Free Trade Agreements with identical origin protocols.

These individual origin protocols are being progressively replaced by a reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), which was established in 2011 to provide a more unified framework for origin protocols. Israel signed the Regional Convention on 10 October 2013, and it has also ratified it.
More information on Mediterranean preferential Rules of Origin
Trading with Israel

* This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue.

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The inventory policy, refers to the set of guidelines and strategies that a business establishes to manage its inventory effectively. Inventory encompasses the goods and materials a company holds for production, resale, or other business purposes. The inventory policy outlines how the company will acquire, store, track, and manage its inventory to meet operational needs while optimizing costs and customer satisfaction.

https://supplybrain.ai/inventory-policies-and-procedures/

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Supply Brain - High-Performing Supply Chains

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Inventory policies are a way to determine what is the best way a product can flow through a supply chain. They are a set of rules establishing how much and when a product should be bought or produced.

What's concerns inventory policies?

First, inventory policies are important to manage time, demand and uncertainties in a supply chain. With a well-adjusted policy, companies can be more agile, efficient and profitable.

It's hard to predict every little detail that can go wrong in the process, therefore, these set of rules established by an inventory policy will, at the very least, help deal with those problems. Ideally, it will not only do that but also minimize those mistakes.

Those policies must take care of three main levels of inventory decisions. Primarily, they must deal with strategic decisions in the supply chain, like:

What are the potential alternatives to inventory?

How the product is designed?

For instance, it may make sense for a company investing in a faster transportation and therefore not have a lot of inventory. In other cases, with products that take more time to transport, it's possible that the best solution is to have a bigger stock.

Kinds of items for inventory policies

It's necessary to keep in mind how the product is designed to decide what kind of policy, the supply chain and inventory will follow. Two important aspects are the shipping and storing . Besides the strategic decisions in the supply chain level, there is the deployment questions, which we can consider more tactical in nature. They must deal with key aspects such as:

What items should be carried as inventory?

In what form should they be maintained?

How much should be held?

Where they should be held?

Chris Caplice, supply chain management professor on MIT, says that the place where you are going to store your product is especially important when you are launching a new product.

This happens because you should try to anticipate where the demand is going to materialize for the specific product. The result of doing that anticipation is a more efficient process that usually delivers items to customers in a faster way.

What Inventory Policy should I use?

Finally, the chosen inventory policy should take care of the operational decisions related to replenishment. Those are the decisions a company take everyday.

Operational decisions try to determine a safe quantity of stock and better moments to replenish. They deal with questions like:

How often inventory status must be determined?

When a replenishment decision be made?

How large should replenishment be?

All these questions define what we call inventory policy, and they are the key points of a supply chain. A great way to start optimizing your supply chain is answering the questions.

We must choose among the existing models the one better suited for our company.

Types of Inventory Policies

There are two types of inventory policy divided by the moment you must order. In a continuous review policy you can order at any time. On the other hand, in a periodic review policy, orders can only be made at specific times.

Continuous review policy

In the continuous review, as soon as the net inventory reaches the threshold, the policy dictates that the company should order a pre-determined numbers of units from the supplier.

However, when talking about stock, we need to consider units on different stages of the supply chain. For example:

On-hand inventory: those units available for clients to buy; products that are already in the warehouse.

Back-orders: when you don't have enough on-hand inventory but don't lose the order.

Net inventory: considers both on-hand inventory and those that are in-transit; therefore, units that are already on the warehouse and units on transportation.

In-transit: units that are on the way of the warehouse; goods ordered from the supplier but not yet available to clients.

These definitions give us a deeper understanding of how we should think about units in an inventory.

That said, with a continuous review policy, the elapsed time between two consecutives orders will vary, it will depend on how long it took the warehouse to be empty, among other things.

However, even with the elapsed time being different, the quantity will always stay the same. This option is safe when you assume you can make an order whenever you need.

This is a good policy when you deal with expensive items and need to monitor them closely. In the other hand, this model won't allow you to group into a single order different items with a single supplier.

Periodic review policy

The periodic review policy dictate that products mustbe ordered periodically, based on a fixed schedule, and always taking the stock back to it's full potential, in other words, it operates in an up-to level method.

Every cycle on the periodic review starts with an order that will bring enough products to the net inventory. But every cycle a different quantity will be necessary because it depends on how much inventory the company have at the time.

On the other hand, the moment to order is always the same, on a fixed schedule. That means that the elapsed time between two consecutive orders will always be the same.

The major advantage of this model is that it allows business to group their orders with each of their suppliers. Probably because of that it is the most common inventory policy.

The problem is, even though it gives the possibility to group the orders, this policy is usually riskier because it creates a blind spot on the impossibility of ordering in-between two cycles.

Why we need inventory policy after all?

We've seen the two most common inventory policies out there. Of course there are others like reorder point, fixed order, R,s,S policy or multi-sourcing. But getting to know these two is a good first step to start thinking of an inventory policy.

As the supply chain specialist Nicolas Vandeput affirms, inventory management is at the core of the supply chain dynamics. So, we have a lot of reasons to hold inventory, minimize costs of operations and deal uncertainties in demand.

One of the major problems supply chain professionals must deal when talking about inventory is excess inventory. It can lead to spoilage, obsolescence, and damage. Having a good inventory policy is the best way to deal with that problem.

Supply Brain's demand prediction and inventory optimization solution applies an automated inventory review methodology that prevents overages and stocking by helping to direct products to the correct locations. This maximizes the return on inventory investment.

With greater assertiveness we build more efficient simulations of the chain behavior, allowing the visualization of different scenarios for optimization and planning.

Do you want to define your stock policy and economic order? Let's talk!

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Inventory Policies and Procedures - Supply Brain

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What are inventory policies? How to utilize them? Learn with Supply Brain and make your business more active!

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Administrative Policies means those Administrative Policies and procedures of Green Shield, whether or not adopted in a manual, which define and create benefit plans, and which determine the administration and adjudication of claims for Eligible Services. In order to properly administer the benefit plans in which you are enrolled, you may be required to provide health information records. In addition, information will be retained in Green Shield records for the purpose of analysis.

https://www.lawinsider.com/dictionary/administrative-policies

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Administrative Policies Definition | Law Insider

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Define Administrative Policies. means the administrative policies and procedures adopted and amended from time to time by the Committee to administer the Plan.

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The United States limits the number of Chinese car imports to 3 million per year. The imposition of import quotas on foreign car products will help the domestic car manufacturing companies to increase their production and establish their footprint in the United States market with maximum profit.

Source:

https://www.wallstreetmojo.com/import-quotas/#:~:text=For%20instance%2C%20the%20United%20States,States%20market%20with%20maximum%20profit

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Through ASEAN, Malaysia has regional FTAs with China, Japan, Korea, India, Australia, and New Zealand and participates in the ASEAN Trade-In Goods Agreement (ATIGA). Other concluded trade agreements include the Trade Preferential System-Organization of Islamic Conference (TPS-OIC) and Developing Eight (D-8) Preferential Tariff Agreements (PTA). The ASEAN – Hong Kong, China Free Trade Agreement (AHKFTA) entered into force in June 2019. Under that agreement, Malaysia will eliminate customs duties on 85% of products traded with Hong Kong within ten years and reduce another 10% of tariff lines within 14 years.

Source:

https://www.trade.gov/country-commercial-guides/malaysia-trade-agreements

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International Trade Administration | Trade.gov

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Describes trade agreements this country is a party to. Includes resources where U.S. companies can get information on how to take advantage of these agreements.

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Japan’s foreign investment policy has been an important pillar supporting its overall policy toward the Third World. As early as the mid-1970s, Ozawa recognised that ‘overseas production is now emerging as an integral part of both Japan’s economic growth and strategy and her foreign economic policy’.¹ Tokyo has actively promoted foreign investment as a means of securing or reinforcing its existing trade power over strategic Third World markets, raw materials, energy sources, infrastructure and industries. The greater the amount of Japanese investments in a particular country, the greater the potential to use those investments to influence that country’s political elite to grant even greater economic concessions, which inevitably enhances Japan’s political power to extract even more economic power.

https://link.springer.com/chapter/10.1007/978-1-349-11678-2_4

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The European Union imposes tariff rate quotas (TRQs) on certain agricultural products like beef, sugar, and rice, restricting the quantity that can be imported at lower duty rates. For example, there is a TRQ for 60,000 tons of beef can be imported into EU at 20% duty.

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Aim of tariff rate quotas

Tariff rate quotas (TRQs) allow a pre-determined quantity of a product to be imported at lower import duty rates (in-quota duty) than the duty rate normally applicable to that product.

Agricultural tariff rate quotas

TRQs related to agricultural products are currently managed through two different methods.

"First-come, first-served" method

These TRQs are managed by the European Commission's department for taxation and customs union.

Current balances and further information on TRQ allocations are held in the tariff quota consultation database.

TRQs managed with agricultural licences - issuing of import or export licences

These TRQs are managed by the Commission's department for agriculture and rural development.

TRQ allocations are calculated based on the quantities available within the TRQ and the quantities applied for, as notified to the Commission by the competent national authorities.

Once the allocation coefficients for import and export TRQs are calculated and made public by the Commission, EU countries must issue import or export licences for the quantities applied for within the respective TRQs.

Information is also available on licences that have been suspended, withdrawn or reinstated.

Data on trade and quotas, including weekly reports and statistics on TRQ allocations, is published in the agri-food data portal.

Licence operator registration and identification system

The Commission has set up the licence operator registration and identification (LORI) electronic system to record information on operators interested in applying for TRQs that require prior compulsory registration (so called LORI TRQs).

In accordance with Commission Delegated Regulation (EU) 2020/760 and Commission Implementing Regulation (EU) 2020/761, operators applying for the following tariff quotas should register in the LORI system:

09.4285, 09.4067, 09.4068, 09.4069, 09.4211, 09.4212, 09.4213, 09.4214, 09.4215, 09.4216, 09.4251, 09.4254, 09.4255, 09.4260, 09.4263, 09.4273, 09.4410, 09.4411, 09.4412, 09.4420, 09.4422, 09.4268, 09.4269, 09.4289, 09.4290

The Commission has produced detailed guidelines on how to use the LORI electronic system.

Brexit TRQs apportionment as of 1 January 2021

The Commission has published a table covering the apportionment of tariff rate quotas for certain agricultural products included in the WTO schedule of the EU, following the end of the transition period concerning the United Kingdom's relationship with the EU. The table concerns the apportionment of TRQs whose quota period is ongoing on 1 January 2021 in accordance with Article 1(3) of Commission Implementing Regulation (EU) 2019/386 as amended by Commission Implementing Regulation (EU) 2020/2099.

The table published follows the methodology laid out in EU Regulation 2019/216, which provides that tariff rate quotas included in the EU's schedule of concessions and commitments, annexed to the General Agreement on Tariffs and Trade 1994, are to be apportioned between the EU and the United Kingdom. This apportionment is based on the EU27 share in the quota usage set out in the annex to that Regulation.

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Allocation coefficients and decisions

The file "Allocation coefficients for import tariff rate quotas" is best used in combination with the bookmarks panel. In case that panel does not open, please download this document.

The file "Allocation coefficients for import tariff rate quotas" indicates the available quantity for the next allocation in the TRQs table. In due course, this quantity might be updated with additional communicated unused quantities.

Legal basis

The legal basis governing the management of agricultural tariff rate quotas is contained in Regulation (EU) 1308/2013 and in different sectorial regulations.

As of 2021, the rules for the administration of tariff quotas for agricultural products managed with licences are laid down in Commission Delegated Regulation (EU) 2020/760 and Commission Implementing Regulation (EU) 2020/761.

As per OJ 2017/C 466/03 and from 1 January 2018 the results of import and export tariff rate quota allocations are published on the Commission website.

As of 2021, the rules for the administration of tariff rate quotas for agricultural products managed in accordance with the 'first come, first served' principle and with the legal basis in EU Regulation 1308/2013 are laid down in Commission Delegated Regulation (EU) 2020/1987 and Commission Implementing Regulation (EU) 2020/1988.

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Information on the allocation of import and export tariff rate quotas in the European Union.

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SOUTH AFRICA

Commercial Policy

Tariffs

Trade Agreements

World-wide There is duty-free trade between South Africa and the other four countries (Botswana, Lesotho, Namibia, and eSwatini) that comprise the Southern African Customs Union (SACU). The Southern African Development Community (SADC) Free Trade Agreement, as of 2012, allows duty-free trade among 12 of the 15 members. The European Union-South African Trade and Development Cooperation Agreement that came into effect in 2000, has as a progressive Free Trade Agreement (FTA) that has become the cornerstone of the regional trading landscape. South Africa has also negotiated agreements with the European Free Trade Association, the United Kingdom and Mercosur. South Africa, through SADC, has finalized negotiations on Phase I of the Tripartite Free Trade Agreement, which link SADC, the East Africa Community (EAC) and the Common Market of Eastern and Southern Africa (COMESA) into a free trade area. South Africa is also a member of the African Continental Free Trade Area (AfCFTA) which commenced trading in January 2021.

Source:

https://www.trade.gov/country-commercial-guides/south-africa-trade-agreements

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International Trade Administration | Trade.gov

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World-wide There is duty-free trade between South Africa and the other four countries (Botswana, Lesotho, Namibia, and eSwatini) that comprise the Southern African Customs Union (SACU). The Southern African Development Community (SADC) Free Trade Agreement, as of 2012, allows duty-free trade among 12 of the 15 members. The European Union-South African Trade and Development Cooperation Agreement that came into effect in 2000, has as a progressive Free Trade Agreement (FTA) that has become the cornerstone of the regional trading landscape. South Africa has also negotiated agreements with the European Free Trade Association, the United Kingdom and Mercosur. South Africa, through SADC, has finalized negotiations on Phase I of the Tripartite Free Trade Agreement, which link SADC, the East Africa Community (EAC) and the Common Market of Eastern and Southern Africa (COMESA) into a free trade area. South Africa is also a member of the African Continental Free Trade Area (AfCFTA) which commenced trading in January 2021

The South African Reserve Bank approves currency exchanges.

Imports The Department of Trade, Industry and Competition (DTIC) is empowered to regulate, prohibit, or ration imports to South Africa in the national interests, but most goods may be imported into South Africa without any restrictions.

As a matter of government policy, the South African Government is aiming to open its market further to increase trade and to develop more competitive domestic industries. However, in 2006, the South African Government made exceptions to this approach to protect the labor-intensive garment industry. During 2020, the South African authorities enacted emergency measure to restrict all movement of goods and persons due to the Covid-19 pandemic; these have since been lifted.

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Describes trade agreements this country is a party to. Includes resources where U.S. companies can get information on how to take advantage of these agreements.

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Product Liability Insurance - protects businesses that make, sell, or distribute products from financial losses if their products cause harm or injury to consumers. It covers legal costs, settlements, and judgments resulting from claims related to manufacturing defects, design flaws, or inadequate warnings. This insurance encourages businesses to prioritize product safety, and policies can be customized based on the specific products and industry. In essence, it serves as a financial safety net for businesses facing liability issues due to their products.

https://www.irmi.com/term/insurance-definitions/product-liability-insurance

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Pool of Examples - Financial Environment

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Commercial policies such as environmental and sustainability policies exist to set mandatory environmental standards for incorporating sustainability into government procurements and minimize the impact of government operations on the environment such as reducing carbon footprints and use of resources. An example is Australia’s Environmental-Sustainability Policy, which also includes accountabilities and actions to drive performance.

In their policy, it covered the management issues of energy use; greenhouse gas emissions and ozone-depleting substances; suppliers, products, and materials use; office waste, building waste, and resource recovery; potable water use, and water waste. Included in that policy is also a high commitment that all stakeholders of the government will comply with all legal obligations, strive to minimize pollution and   apply a systematic environmental management approach that is consistent with the international standard ISO 14001.

Source: https://www.servicesaustralia.gov.au/environmental-sustainability-policy?context=1#:~:text=There%20are%20a%20range%20of,incorporating%20sustainability%20into%20government%20procurements.

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PH pushes for bigger bite of Japan’s fruit market

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PH pushes for bigger bite of Japan’s fruit market

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The Philippines is seeking a larger piece of the pie in the Japanese food market as it explores additional avenues to export more locally produced agricultural products, especially mangoes and bananas, to the archipelago up north.

In a statement over the weekend, Agriculture Attaché Maria Alilia Maghirang of the Philippine Agriculture Office in Tokyo said the reentry of fresh Davao mangoes in Japan will spur “greater confidence to our exporters to continue supplying to” that country.

The Department of Agriculture (DA) said the export of mangoes to Japan has declined sharply since 2011 when Tokyo imposed stricter sanitary and phytosanitary standards.

Also, the DA is coordinating with the Department of Trade and Industry (DTI) about lowering Japan’s tariff rate on Philippine bananas, a staple among Japanese consumers.

For this reason, Agriculture Secretary Francisco Tiu Laurel Jr. said, the government is considering the review of the Japan-Philippines Economic Partnership Agreement.

In particular, Manila is considering to lodge an appeal for a preferential tariff rate on Philippine bananas bound for Japan.

The DA noted the country holds the largest share in terms of banana exports to Japan, but is under threat from Cambodia, Laos, Mexico and Vietnam which enjoy a zero tariff rate or preferential tariff.

Bananas from the Philippines account for 22 percent of Japan’s imports of the tropical fruit.

At present, the Philippine banana is levied a tariff rate of 8 percent from April 1 to Sept. 30 and then slapped with a higher tariff of 18 percent between Oct. 1 and March 31. INQ

Reference:

https://business.inquirer.net/439930/ph-pushes-for-bigger-bite-of-japans-fruit-market#ixzz8Q6wE124t

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Labeling requirements are rules made by the government to put necessary information on a products label before it is sold. These helps the customers to know what they are buying, what the products are made of, and is it safe for them to use.

For example, Mexican Food Labeling Requirements makes it necessary to put labels for food products. It shows what are the used ingredients for the food, warnings about high in saturated fat, sugar, calories, caffeine, etc.

Source:

Slator AG. (2023, January 27). Product labeling requirements: What you need to know. Slator. https://slator.com/product-labeling-requirements-what-you-need-to-know/

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India has the Customs Tariff Act, 1975, which provides for anti-dumping measures against dumped imports causing injury to domestic industries. The Directorate General of Trade Remedies (DGTR) investigates dumping claims and recommends anti-dumping duties to the Indian government.

For example, imagine a scenario where South Korea produces bicycles and sells them in their local market for Rs 10,000. Now, if they start exporting the same bicycles to India and sell them for Rs 6,000 while the local Indian manufacturers are selling similar bicycles for Rs 8,000, that’s dumping. South Korea is essentially “dumping” their bicycles into the Indian market at a price significantly lower than the local market rate. The purpose of Anti-Dumping Duty is to neutralise this unfair advantage and re-establish a level playing field, or in economic terms, to re-establish “fair trade.”

Source: https://nimbuspost.com/blog/anti-dumping-duty-what-it-is-how-it-works-examples/#:~:text=For%20example%2C%20imagine%20a%20scenario,for%20Rs%208%2C000%2C%20that's%20dumping.

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Tariffs are taxes that are levied on the sale of foreign goods in a home country.

Tariffs are just one element of commercial policy. Other policies that fall under the umbrella of commercial policy include import quotas, export constraints, and restrictions against foreign-owned companies operating domestically.

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What Is Commercial Policy?

"Commercial policy" is an umbrella term that describes the regulations and policies that dictate how companies and individuals in one country conduct commerce with companies and individuals in another country.

Commercial policy is sometimes referred to as "trade policy" or "international trade policy."

Understanding Commercial Policy

Commercial policy is one of the most fundamental purposes of a country's government. In the United States, the administration of commercial policy is a role that the federal government has assumed since the country's founding; tariffs on imported goods were the main source of funding for the federal government from America's beginning until the early twentieth century.

Tariffs are taxes that are levied on the sale of foreign goods in a home country. Tariffs are just one element of commercial policy. Other policies that fall under the umbrella of commercial policy include import quotas, export constraints, and restrictions against foreign-owned companies operating domestically.

Another major element of commercial policy is government-provided subsidies to domestic industries that enable those companies to better compete with their counterparts abroad.

Historical Commercial Policy

American policymakers have been concerned with commercial policy since before the founding of the United States. Historically, U.S. trade policy has been directed toward achieving three principal objectives: raising revenue for the government by levying duties on imports, restricting imports to protect domestic producers from foreign competition, and concluding reciprocity agreements to reduce trade barriers and expand exports.

Sometimes these goals are in conflict with each other. For example, it is impossible to both raise tariffs to protect domestic industries while also pursuing a policy of reciprocal lowering of trade barriers in an effort to increase exports.

Historically, there have always been constituencies within the U.S. that have advocated for a more robust commercial policy. However, for the first third of the country's history, the purpose of commercial policy was mainly directed towards raising revenue. From the Civil War through the Great Depression, the extent of commercial policy was largely directed at protecting domestic manufacturing industries. In the decades following World War II, there was a bipartisan consensus toward a reciprocal lowering of tariffs in an effort to open up foreign markets to American producers.

More Recent Commercial Policy

Former President Trump's administration shifted the purpose of commercial policy in an effort to protect U.S. industries through tariffs. The effects or efficacy of Trump's trade policies are largely controversial. However, with the world economy becoming more globalized, many companies and supply chains are distributed across borders, making the effects of new and higher tariffs difficult to ascertain.

President Biden's plans have offered a different vision, and have included moves to reduce or remove some of the Trump-era tariffs. President Biden's administration has also supported trade policy that incorporates various steps toward mitigation of scientific concerns around human-caused climate change.

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Commercial Policy: The Rules of Trade Between Countries

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The term "commercial policy" refers to the regulations and policies that determine how a country conducts trade with other countries.

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Examples of commercial policies include subsidies, licensing requirements, trade agreements, and anti-dumping measures. These policies are tools that governments use to regulate and influence international trade and commerce.

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An additional example of exchange control in commercial policy, in order to protect its own farmers, Japan may levy tariffs on imported rice and other agricultural products. Should Japan impose a 30% tariff on rice imports, importers would have to pay an extra 30% of the rice's declared value upon entering the nation. This tariff supports the regional agriculture industry and guarantees a steady supply of food while also serving strategic and economic objectives.

I advise you to examine official government trade sources or any recent trade agreements that Japan may have signed into since my last update for the most accurate and up-to-date information.

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Certainly! Debt management policies act as financial guides for businesses, resembling roadmaps for handling borrowed money. Let's break it down:

1. Appropriate Levels of Borrowing:

- Explanation: This aspect establishes boundaries on the amount a company should borrow, promoting a balanced approach to prevent excessive debt.

- Link: [Significance of Debt Levels](https://www.investopedia.com/terms/d/debtleverage.asp)

2. Interest Rates:

- Explanation: Companies engage in negotiations for interest rates when borrowing money. This policy outlines strategies for securing favorable rates and prudently managing interest expenses.

- Link: [Comprehending Interest Rates](https://www.thebalance.com/what-is-interest-315436)

3. Repayment Schedules:

- Explanation: Similar to personal loans, companies must repay borrowed funds. This part of the policy provides guidance on structuring repayments to ensure they are manageable and don't strain the company's finances.

- Link: [Importance of Repayment Schedules](https://www.investopedia.com/terms/a/amortization_schedule.asp)

Through well-defined debt management policies, companies can steer clear of financial pitfalls, maintaining a balanced approach to borrowing and repaying, thereby securing their long-term financial stability.

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China and Philippines Strengthen Trade Relations with RCEP tariffs

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China and Philippines Strengthen Trade Relations with RCEP tariffs

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China and the Philippines have implemented RCEP tariffs to strengthen trade relations. The Philippines ratified the RCEP pact, and China will change tariff rates for certain imports from the Philippines. This reflects their commitment to the RCEP, promoting closer economic ties among 15 Asia-Pacific member countries. Benefits include enhanced trade cooperation and opportunities for investors and businesses. The RCEP covers various sectors and provides market access for the Philippines. It also strengthens economic cooperation between China and the Philippines, expands the Philippines' export market, and offers opportunities for investment, especially in infrastructure development.

Source:
https://www.china-briefing.com/news/china-and-philippines-to-implement-rcep-tariffs-bolstering-trade-relations/

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An additional example of Non-tariff Barriers are Occupational Safety and Health Regulations which focuses on keeping workplaces safe for workers.

In Germany, companies must follow strict Occupational Safety and Health rules. They need to provide workers with protective equipments like helmets and gloves, as well as protective clothing. They also impose requirements which directs companies to include guidelines on workplace ergonomics and safety training to reduce the risk of accidents and ensure the well-being of workers.

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Micro, small and medium-sized enterprises are the top priority

In the face of triple pressures, stabilizing foreign trade has become an important support for stable growth. "Maintaining stability and improving quality of imports and exports" - this year's government work report put forward this expected goal, and made a series of arrangements to stabilize foreign trade.

Among them, the focus is on small, medium-sized and micro foreign trade enterprises: expand the coverage of export credit insurance for small, medium-sized and micro foreign trade enterprises, strengthen export credit support, optimize foreign exchange services, accelerate the progress of export tax rebates, and help foreign trade enterprises stabilize orders and production.

"To support foreign trade enterprises, the top priority is small and medium-sized micro foreign trade enterprises. Stabilizing micro, small and medium-sized enterprises is crucial to stabilizing export growth and stabilizing the broader economy." Zhejiang Provincial finance Department director Yin Xuequn representative said.

Gao Rongkun, Commissioner of Shanghai Customs, said that considering the complexity of the external environment, it is not easy for foreign trade to continue to maintain rapid growth this year on a high base of more than 21% growth last year. The arrangements made in the Government Work report on maintaining stability and improving the quality of foreign trade will provide strong support for stabilizing foreign trade and stabilizing growth.

In the view of Liu Xiangdong, Vice minister of the Economic Research Department of the China International Economic Exchange Center, expanding the support of export credit insurance for small and medium-sized foreign trade enterprises is an important measure to do a good job in cross-cycle adjustment and further stabilize foreign trade. "We should give special play to the role of the policy financing 'white list' mechanism of export credit insurance institutions, and expand the coverage and underwriting scale of small, medium-sized and micro foreign trade enterprises."

Refer to：https://www.gov.cn/xinwen/2022-03/09/content_5678138.htm

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解读2022年稳外贸政策发力点_滚动新闻_中国政府网

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面对需求收缩、供给冲击、预期转弱三重压力，政府工作报告提出，"进出口保稳提质""多措并举稳定外贸"。稳外贸政策释放出哪些信号？怎样更好落地？企业应如何抓住机遇、开拓新局？记者采访了多位代表委员和专家。

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A cancellation policy is a written agreement between a service provider and their client that clearly defines consequences, typically a fee, if the client cancels the appointment. The fee is either a percentage of the total cost of service or a fixed amount. If you have a waiting list, a late cancellation is costing you money because the booked time slot could’ve been easily filled. Businesses use cancellation policies as an essential tool in recouping lost money from these canceled appointments.

Cancellation policies are meant to be firm but still extremely reasonable. You do not want to put your clients off before you get to work with them, so make sure the rules of your policy aren’t overly complex or unnecessarily strict. For example, a cancellation policy for an online subscription service

Customers may cancel their subscription at any time. To initiate a cancellation, please log in to your account and follow the cancellation instructions. Cancellations made before the next billing cycle will take effect immediately, and you will not be charged for the following cycle. No refunds will be provided for partial subscription periods. If you have any questions or encounter issues during the cancellation process, please contact our customer support for assistance. We reserve the right to modify or update this cancellation policy, and any changes will be

communicated to customers in advance."

https://timetap.com/blog/posts/writing-a-cancellation-policy#

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Venezuela implemented foreign exchange controls in response to the economic challenges they were facing at the time, including hyperinflation and a declining economy. The exchange controls featured a fixed official exchange rate and the government tightly regulated access to foreign currency.

Individuals and businesses encountered difficulties obtaining dollars at the official rate, leading to a flourishing black market where the Venezuelan currency value against the U.S. dollar was much lower.

Additionally, restrictions on the amount of foreign currency for travel or other purposes were imposed. The controls aimed to preserve foreign reserves, manage capital flight, and control currency flow to address economic issues, but they also resulted in various distortions, contributing to Venezuela's intricate economic situation.

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Individual - Other issues

Exchange control

In January 2003, the Venezuelan government and the Venezuelan Central Bank (VCB) restricted the free trade of foreign currency and established an Exchange Control Regime.

The Venezuelan Constitutional Assembly enacted new Exchange Agreement N° 1 on 7 September 2018. The Exchange Agreement provides for new mechanisms for the settlement of transactions of acquisition and sale of foreign currency for the public and private sectors and abrogates the Exchange Agreements issued under the previous regime.

The VCB and the Popular Power Finance Ministry are authorised to determine the actions for development of the foreign exchange policy in accordance with Exchanage Agreement N° 1:

The following three mechanisms of operations are provided for the private sector:

Acquisitions and sales of positions in foreign currency by persons of the private sectors and through the authorised exchange operators, presumably provided for high-value transactions.

Retail exchange transactions up to 8,500 euros (EUR) of the equivalent value in other foreign currency per transaction.

Negotiations in Venezuela currency of foreign currency-denominated securities issued by the private sector. In addition, special considerations are provided for export activities and tourism.

To date, regulations for implementation of the above-mentioned mechanisms, which are to be issued mainly by the VCB, have not been published. A new means of currency exchange was created by Resolution N°19-05-01 published in the official Gazette N°41.624 on 2 May 2019 whereby national banks sell to natural and legal persons through exchange tables.

Visas and permits

Visas must be obtained prior to entering Venezuela. In order to gain access to Venezuela, international assignees must have a valid visa issued by the Venezuelan Consulate. Obtaining a visa can take several months, so applications should be submitted well in advance. Please also note that visa applicants must have a valid passport that should not expire for at least six months from the application date.

The Venezuelan government issues various types of visas (in total 13 various types of visas); the most important are Transient Business Visa (TR-N), Transient Work Permit Visas (TR-L), Transient Family Visas (TR-F), and Resident Visas.

Do note that all of the documents to be submitted in Venezuela shall be filed in Spanish or translated by a certified translator, notarised and apostilled/legalised whenever it may apply.

Transient Business Visa (TR-N)

Business leaders, executives, representatives of companies or industries, and micro-entrepreneurs who are not willing to migrate but need to enter the country to carry out legal and lucrative matters related to their businesses, such as commercial, mercantile, and/or financial activities, must apply for a business visa (TR-N). This kind of visa is valid for one year, with multiple arrivals and departures, and will allow permanence of 180 days continuous or not, non-extendable. This visa does not allow the holder to work in Venezuela as a dependant.

The applicant (natural person or company) must formally file the request before a Venezuelan Consulate stating the purpose of the trip. As an independent body of the Venezuelan State, the Consul and/or the Consulate Officials are expressly authorised to request any supporting and personal document to the applicant like police certificate clearance, vaccines certificates, medical tests, professional resume, the company articles of incorporation, chamber or association recommendation or supporting letter, or any other they may deem necessary to check.

Transient Work Permit Visas (TR-L)

Companies wishing to hire a non-resident foreigner for work in a dependent relationship within the country must apply for a work visa (TR-L). This kind of visa may be granted for one year if a work permit is granted and can be locally extended for the same period. It may be also granted for three months without the need of a work permit, non-extendable. Both allows the applicant for multiple arrivals and departures and permanence for the same period. Further details are to be considered as drafted below.

To obtain the one-year TR-L visa, the hiring company shall start the visa request process, which comprehends:

Filing for a work permit, locally, before the Ministry of Labour, where several documents will be requested to prove the local company qualification, tax solvencies, foreigners quota (maximum 10% of total foreigners in local payroll), and foreigners payments total amount (no more than 20% paid to Venezuelans), applicant high qualification for the job being applied for, and any other situation they may deem necessary to check. These scenarios are usually proved by submitting:

Work Permit Request Form.

Letter of Intention with a brief reasoning of why the applicant is needed, the role he/she will be responsible with, physical job to be address in country, salary amount and details (net salary, bonuses, house/medical allocation if any, etc.), and the job description, along with a vow to train local employees to perform said role.

Copy of the company local complete payroll.

In the case of transfer of qualified personnel, a Letter of Transfer issued by the headquarters must be submitted. It must state the motive for the transfer.

In the case of direct contract of foreign personnel outside Venezuela, a document explaining the motives for contracting foreign personnel must be submitted.

Notarised employment offer.

Police clearance certificate.

Resume of the foreigner, including hours worked, broad experience, and academic/studies supporting documents.

Full face photograph of the foreigner.

Full copy of the passport of the applicant. If no more than two pages are empty, the request may be rejected.

Medical tests. Express qualification for the job to be performed may be requested.

Vaccines card certification for yellow fever and any other they may deem necessary to request.

Labour-related solvencies, such as Ministry of Labour, Social Security (IVSS), Training and Education (INCES), etc.

Power of Attorney issued by the employer to the person in charge of requesting the work permit.

Filing for the work visa issuance authorisation, locally, before the Ministry of Internal Affairs and Justice. The request should be filled with:

The request form indicating the Venezuelan consulate where the applicant will request the visa.

Original of the granted work permit.

Notarised employment offer.

Biometric/ID page of the applicant passport.

Power of Attorney issued by the employer to the person in charge of requesting the work visa issuance authorisation.

To obtain the three-months TR-L visa, the hiring company shall start the visa request directly before the Ministry of Internal Affairs and Justice with the very same requirements as stated in (2) above, except for the work permit, which is not necessary, and a specific employment offer, which shall state the three months threshold work timeframe.

Once the visa issuance authorisation is granted, the company should hand it over along with the work permit to the applicant for him/her to be able to formally request the visa before the Venezuelan consulate. Do notice that the consulate officials are authorised by law to request any other document they may deem necessary to grant the visa. If approved, the visa will be stamped in the applicant passport. If denied, a reasoned letter shall be sent by the consulate officials to the Venezuelan authorities.

Upon arrival, the one-year TR-L holder must request one's foreigner ID (not available for the three months visa holder). The law also requests foreigners to register before the 'Foreigners Registry' system of the Ministry of Interior and Justice, but, as of January 2023, said registry has not been enforced.

If the company aims the applicant to remain within the country for more than one year, the work permit should be renewed by formal request before the Ministry of Labour, as well as the visa before SAIME.

Transient Family Visas (TR-F)

The foreign employee with a TR-L visa can apply for a transient family visa (TR-F) for one's spouse, non-emancipated children under 18 years of age, parents, and in-laws upon certified proof of the family tie and economic dependency. One then must present the following documents:

Entry Application Form of the foreign family member.

Marriage licence of the spouse.

Birth certificates of the children.

Full face and profile photo of the applicant.

Passport copy of the family member.

Power of Attorney or authorisation issued to the person in charge of requesting the TR-F visa.

Tax stamps.

The TR-F visa is valid for one year, with multiple entries, and will allow permanence in the country for the same period. It can be extended in the country by the Ministry of Internal Affairs and Justice, for the same period, upon ratification of the work permit by the Ministry of Labour.

Resident visas

The foreigner who has remained in Venezuela for at least one uninterrupted year with a TR-L or TR-F visa may apply for residency with the Ministry of Internal Affairs and Justice. Resident visas are valid for five years and can be renewed every five years.

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Overview of other issues impacting individual taxpayers in Venezuela

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The banking system refers to the collection of a network of institutions that provides financial services to the people. That includes commercial banks, investment banks, and other financial institutions that offer services such as loans, mortgages, and investment products. The banking system plays a crucial role in the overall economy by providing capital for businesses and individuals.

The Philippine banking system sustained its solid footing amid the pandemic.

Pawnshops and Money Service Businesses (MSBs)

- Pawnshops and MSBs remain as major financial service access points in the country, particularly in providing immediate liquidity to borrowers, remittance services, and other financial services in the countryside.

https://www.bsp.gov.ph/Media_And_Research/Publications/ReportonRecentTrends2022-01.pdf

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Four years into the trade war, are the US and China decoupling?

SUBTITLE

US imports of some Chinese products have tanked. Others are higher than ever. Trump’s selective trade war continues to matter.

Chad P. Bown (PIIE)

DATE

October 20, 2022 5:00 AM

Photo Credit: REUTERS/Carlos Barria

Yilin Wang and Julieta Contreras provided outstanding data assistance, and Nia Kitchin, Melina Kolb, and Oliver Ward assisted with graphics.

View Sharing Options

BODY

For many decades China and the United States have been locked in such a tight economic embrace that it is challenging to quantify whether, how, or why the embrace may be weakening. Are the mounting tensions, bordering on hostility, between the two superpowers causing their economies to “decouple”?

Yes and no. On the one hand, US imports of certain products from China—including semiconductors, some IT hardware, and consumer electronics—have fallen dramatically. Even clothing, footwear, and furniture imports are down.

But on the other, imports from China of laptops and computer monitors, phones, video game consoles, and toys are higher than ever. Demand for these products surged in response to the COVID-19 pandemic. Stuck at home, Americans switched their spending away from services and toward many of these goods manufactured in China.

US and Chinese policymakers certainly seem determined to reduce the two countries’ economic interdependence, built over many decades but now buckling under the weight of their animosities. So far, the decoupling that is—and is not—occurring is partly the result of President Donald Trump’s trade war, the selective way it was waged, and the continuation of many of those policies under the Biden administration. A more recent motivating factor that may be spurring decoupling is the desire for increased diversification of imports to make supply chains for certain goods more resilient. Other drivers include human rights, democracy, and geopolitical concerns.

But the data also show something else. Even if policymakers foresee long-run benefits in disentangling the two economies, their choices come with immediate costs. These costs include product shortages, as supply chains struggle to adjust, as well as inflation, as companies find it expensive to establish new suppliers. Firms and ultimately consumers need to prepare to pay the price for the new policy-induced reality.

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Adhering to accounting standards and regulatory requirements.

Ensuring transparent and accurate financial reporting.

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One example of a commercial policy related to the financial environment is a "Credit Policy." A Credit Policy outlines the guidelines and procedures a business follows when extending credit to customers or clients. It includes terms and conditions regarding credit limits, payment terms, interest rates (if applicable), and the evaluation criteria for determining creditworthiness.

A well-defined Credit Policy helps manage the financial risks associated with providing credit, ensures consistent and fair practices, and contributes to maintaining a healthy cash flow. This policy is crucial in maintaining a balance between supporting sales through credit offerings and minimizing the potential impact of bad debts on the financial stability of the business.

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Vietnam implemented a one-price policy for tourists in 2014, aiming to eliminate overcharging and scams targeting foreigners. Businesses are required to display prices in both Vietnamese Dong and the currency most commonly used by tourists, and cannot charge different prices based on nationality.

Source- http://www.vietnam-tourism.com/

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Axa auto insurance covers your car details insuring that you will pay a certain percentage tentative to the cost of your car according to the deals they can offer within the company policies. This serves as a fair security to fortuitous events that may or may not happen in the future.https://www.axa.com.ph/products/car-insurance?utm_source=google&utm_medium=cpc&utm_campaign=lg-car-cpl-car-sem-bra-wmce2024004_20240111&utm_content=branded_kw_search_rsa_branded&gad_source=1&gclid=CjwKCAiA_OetBhAtEiwAPTeQZ1MJekAJId5Hbdv9ttYsZVYFVCLeuN5icWhDbuBtmwtEC1PJUJrx8BoCC-gQAvD_BwE

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Changing Commercial Policy in Japan During 1985–2010

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Changing Commercial Policy in Japan During 1985–2010

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Asian Development Bank Institute

Masahiro Kawai is the Dean of ADBI. Shujiro Urata is Professor of Economics, Graduate School of Asia-Pacific Studies, Waseda University. This paper is prepared for the Oxford Handbook on International Commercial Policy. The authors are grateful to Mordechai Kreinin and Michael Plummer for their comments on an earlier version of the paper and to Barnard Helman for his competent editorial assistance.

The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of ADBI, the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

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ADBI is a Tokyo-based think tank that helps build capacity, skills, and knowledge on poverty reduction and other areas that support long-term growth and competitiveness in developing economies in Asia and the Pacific.

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https://www.armscontrol.org/factsheets/UN-Security-Council-Resolutions-on-North-Korea

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https://getuplearn.com/blog/financial-environment/

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What is Financial Environment? Meaning, Types, Features, Functions

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Financial Environment: Meaning, Types, Features, Functions. The financial environment is an important part of an economy, where the major participants are the business firms, investors, and the market.

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Though ultimately unconvincing, many of the arguments against price controls command respect among mainstream economists and have thus found their way into conventional thinking about how the economy works. As libertarian economists like Friedrich Hayek have argued, the price system “economizes on knowledge” (Barry 2018). Prices communicate a lot of information to everyone in the marketplace. For example, the price of avocadoes might indicate that there is more demand for them than supply—either because elder millennials are earning (and eating) more, or because a drought in Mexico took a year’s crop out of circulation. The price mechanism has an easy solution for that: Sellers will demand a higher price, and some group of relatively well-off millennials will be willing to pay it while other, less well-off millennials will drop out of the market, switching instead to peanut butter. Over time, other producers in Mexico will see the higher price and start producing more avocadoes, allowing the price to drop down to a new equilibrium so that the peanut butter eaters can switch back. No one in Michoacán or Fort Greene needs to know anything about the factors behind these changing prices, but such price changes effectively communicate to buyers and sellers the relative scarcity—and thus market value—of products. The argument against price controls, therefore, is that putting the state in the middle frustrates the market’s ability to deliver this type of adjustment.1 There’s just one problem with this story about self-regulating markets: Price mechanisms perform their role best in a world of what economists call “perfect competition.” Perfectly competitive markets require many elements that are in fact rarely present in actually existing economic activities—near-zero profits, that all goods are alike, that trades don’t have any transaction costs, that buyers and sellers have access to the same information, that property rights are perfectly defined, that there are no government distortions in the market, that “bigger” firms don’t do any better than smaller ones, and so on (Tucker 2018). As economist John Kenneth Galbraith (1980) wrote in his book A Theory of Price Control, many industries are far from perfectly competitive. In sectors from steel to automobiles, a limited number of firms hold the lion’s share of production. In such oligopolistic or monopolistic industries, there are already price controls—they are just set by private actors rather than publicly accountable governments. Galbraith, who helped run the Office of Price Administration (OPA) under the Roosevelt administration, observed that it was relatively easy for producers to reach agreement within those highly concentrated industries. In contrast, in sectors that were not as concentrated at the time—such as second-hand machine tools, retail clothing, etc.—price controls were difficult to administer, and black markets in which sellers charged above the official prices were an ever-present risk.

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Trade Barriers

Although Singapore has one of the most open trading policies in the world, American businesses nevertheless have to overcome a number of trade obstacles. It continues to impose a road fee based on engine capacity and a tiered motorcycle operator license system that negatively impacts American exports of large motorcycles. There is also a tiered system of additional registration fees, which serves as a de facto additional tax thus discouraging larger capacity motorcycle imports.

Import Tariffs

Singapore has an open economy and free port in general. Almost all of its tariff lines have a Most-Favored-Nation (MFN) zero-duty applied to them. Only a few lines have non-zero duties, and those are for specific alcoholic drinks. Singapore imposes high excise taxes on distilled alcohol and wine, tobacco goods, motor vehicles, and petroleum products because to social and/or environmental concerns. All U.S. exports to Singapore under the FTA are duty-free.

Singapore levies an 8.0% Goods and Services Tax (GST).  This will be raised to 9.0% from January 1, 2024.  For dutiable goods, the taxable value for GST is calculated based on the CIF (Cost, Insurance, and Freight) value, plus all duties and other charges.  In the case of non-dutiable goods, GST will be based on the CIF value plus any commission and other incidental charges whether shown on the invoice.  If the goods are dutiable, the GST will be collected simultaneously with the duties.  Special provisions pertain to goods stored in licensed warehouses and free trade zones.

Import Requirements and Documentation

Companies must make an inward declaration for all goods imported into Singapore.  All imports require an import permit although this is largely a statistical requirement for most goods. Bona Fide Trade Samples The import of trade samples that is below US$300 is not subject to payment of duty and/or GST.  In addition, no permit is required for their import.  Bona fide trade samples (excluding liquors and tobacco) may be imported for the following purposes: solely for soliciting orders for goods to be supplied from abroad; for demonstration in Singapore to enable manufacturers in Singapore to produce such articles to fulfill orders from abroad or by a manufacturer for copying; and for testing or experimenting before producing such articles in Singapore.

Labeling/Marking Requirements

The Singapore Food Agency (SFA) administers the Sale of Food Act and the Singapore Food Regulations to ensure that food for sale in Singapore are safe for consumption.  The SFA takes reference from the international food standards setting body, the Codex Alimentarius Commission.

U.S. Export Controls

Through the Export Administration Regulations (EAR) (15 CFR Parts 730 – 774), the US imposes export controls on dual-use and less sensitive military goods in order to advance foreign policy goals and safeguard national security interests. For such dual-use goods and less sensitive military goods, export regulations must be established, implemented, and enforced by the Bureau of Industry and Security (BIS). Export Administration (EA) and Export Enforcement (EE) are two departments within BIS that handle license applications, provide exporters with advice, design and publish amendments to the Export Administration Regulation (EAR), and oversee compliance and EAR enforcement.

Temporary Entry

For six months, goods may be temporarily imported under the Temporary Import Scheme without paying tax or GST for uses such stage performances, repairs, testing, auctions, displays, exhibitions, or other comparable events. The Temporary Import Scheme requires a banker's guarantee. Either a carnet or a customs inward permit cover the temporary imports. Temporarily imported goods must be re-exported using a Customs Outward permission within the allotted time frame. If the products are not later re-exported, GST is due.

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International Trade Administration | Trade.gov

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U.S. businesses looking to boost their bottom line by making new export sales are increasingly looking to Singapore as a place to do business. A gateway to Southeast Asia with a business-friendly environment, Singapore offers excellent opportunities for U.S. firms, including small and medium-sized companies.

As the United States' largest trading partner in Southeast Asia, Singapore has a proven track record as a welcoming center for business. The United States is the leading source of foreign direct investment (FDI) for Singapore, with $309.4 billion in FDI stock in 2022. Singapore is also a leading investor in the United States, with Singapore FDI stock in the United States was $36.9 billion in 2022.

Singapore is an important partner of the United States and has enjoyed a bilateral Free Trade Agreement (FTA) with Singapore since 2004. This was the first U.S. FTA signed in Asia. In 2022, the city-state was the United States' 12th largest export market, importing $80.5 billion worth of goods and services.

Singapore has one of the highest levels of GDP per capita in Asia (US$83,000). A small city-state roughly the physical size of New York City, Singapore's wealthy population is approximately 6 million people. Exporters will find proven market opportunities for a wide range of products and services, including consumer goods, high-tech business solutions and services, machinery, aerospace, medical instruments, environmental technologies, and sustainable smart city solutions. Electronics remains the most important manufacturing sector, followed by chemicals and biomedical sciences. The manufacturing and services sectors remain the two main pillars of Singapore's high-value-added economy. Singapore is the leading business and financial services hub in Southeast Asia and in 2022 was ranked as the world's largest transshipment port.

In 2022, Singapore's real GDP grew by 3.6%, and economists predict Singapore's economic growth in 2023 will be approximately 1.4% due to the global economic slowdown and inflationary pressures. This is exacerbated by the continuing Russian war in Ukraine. Singapore has set aside $2.8 billion to attract multinational investments. The aim is to expand and secure investments in growth sectors such as banking and finance, global trading, and key manufacturing sectors. Additionally, this fund hopes to strengthen the country's social compact, help local businesses transform and innovate, improve productivity, and equip workers with skills for the future economy.

U.S. companies should consider exporting to Singapore for the following reasons:

Singapore is the gateway to Southeast Asia

Major distribution, logistics, and financial hub

Transparency and lack of corruption

Business-friendly laws and regulations

Strong intellectual property protection

English speaking population

Political Environment

Visit State Department's website for background on the country's political and economic environment.

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Discusses key economic indicators and trade statistics, which countries are dominant in the market, and other issues that affect trade.

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U.S. Import Quotas on Sugar For decades, beginning in the 1930s, the United States imposed import quotas to protect local sugar producers from international competition. These quotas set a limit on the quantity of sugar that can be imported each year at a reduced tariff rate, making it more affordable for importers and encouraging them to buy domestic products.

When the amount of imported sugar exceeds this quota, significantly higher tariffs are applied, increasing the cost of foreign sugar. This system is designed to stabilize prices in the U.S. market and provide economic support to American sugar growers by limiting the influx of cheaper foreign sugar. The government regularly reviews these quotas to adapt to changes in domestic production and market demand.

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A Data Security and Privacy Policy is a crucial document for any organization that collects and processes personal data. It outlines how the organization handles sensitive information, ensuring transparency and compliance with relevant regulations. A comprehensive policy should address the following key aspects:

- Data Collection and Use: The policy should clearly state what personal data is collected, how it is collected, and for what purposes it is used. This may include information like names, addresses, email addresses, browsing history, and purchase data.

- Data Storage and Security: The policy should detail the security measures implemented to protect personal data from unauthorized access, use, disclosure, alteration, or destruction. This might include encryption, firewalls, access control measures, and regular security audits.

- Data Sharing and Disclosure: The policy should explain whether and how personal data is shared with third parties, including partners, service providers, or government agencies. It should also clarify the circumstances under which data might be disclosed, such as legal obligations or to prevent harm.

- User Rights: The policy should inform users about their rights regarding their personal data, such as the right to access, correct, or delete their data. It should also provide clear instructions on how users can exercise these rights.

- Data Retention: The policy should specify how long personal data is retained and the criteria for data deletion.

- Data Breaches: The policy should outline procedures for handling data breaches, including incident reporting, investigation, and notification to affected individuals and regulatory authorities.

- Cookies and Tracking Technologies: The policy should explain how cookies and other tracking technologies are used on the website, including the purpose of their use and how users can manage their cookie settings.

- Children's Privacy: If the website collects data from children, the policy should address compliance with relevant laws protecting children's privacy, such as the Children's Online Privacy Protection Act (COPPA) in the United States.

- Updates and Changes: The policy should state that it may be updated periodically to reflect changes in practices or regulations. Users should be notified of any significant changes to the policy.

https://data.gov/privacy-policy/?need_sec_link=1&sec_link_scene=im

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Although American exporters/companies are not required to appoint a local Saudi agent or distributor to sell to Saudi companies, we recommend that all new-to-market U.S. companies consider partnering with a local company for the purposes of monitoring business opportunities, navigating import and standards testing regulations, and identifying public sector sales and contract opportunities.  Increasingly, Saudi partners are seeking joint ventures with foreign firms versus serving as agents or distributors.  For complete information and regulations on registering a business in Saudi Arabia, please visit the website of the Ministry of Investment of Saudi Arabia.

The U.S. Department of Commerce in Saudi Arabia helps U.S. exporters to identify market opportunities and qualified business partners.  It also provides advocacy and commercial diplomacy services to U.S. firms and promotes greater transparency in commercial matters and public procurement by engaging Saudi regulatory and standards bodies and Saudi public institutions.

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International Trade Administration | Trade.gov

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International Trade Administration | Trade.gov

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Generalizes on the best strategy to enter the market, e.g., visiting the country; importance of relationships to finding a good partner; use of agents.

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The United States places export controls on hightech products that have military applications. This policy aims to protect national security but can limit the potential market for U.S. companies and affect their competitiveness globally.

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A cash payment policy is another example of a business policy in the financial world. This policy says that buyers must pay the entire price of a product or service when they buy it, not later. For instance, some small firms only accept cash or payment right away to prevent the danger of unpaid debts and to keep their cash flow consistent.

A policy that gives people a discount for paying early is another example. This policy says that firms will provide clients a little discount if they pay their invoices before the agreed-upon date. For example, a business might provide a 5% discount if the consumer pays within 10 days instead of the usual 30 days. This makes people pay faster and helps the company's cash flow.

These kinds of business policies assist companies keep track of their money better and make sure that all financial transactions go properly in the business world.

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Pool of Examples - Financial Environment BME 300

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Exchange control refers to various forms of controls imposed by a government on the purchase and sale of foreign currencies by residents, or on the purchase and sale of local currency by non-residents.

In simpler terms, it is a tool used by a country’s central bank or government to regulate the flow of money across its borders. By restricting how much foreign "hard currency" (like the U.S. Dollar or Euro) can be bought or sold, the government aims to stabilize the national economy, protect its own currency value, and manage its foreign exchange reserves.

This happens when a government limits how much foreign money (like Dollars or Euros) its citizens or businesses can buy. If you can’t get the foreign currency, you can’t pay the foreign supplier.

In a country like Argentina, the government might limit individuals to buying only $200 USD per month. If a local business wants to buy a $10,000 machine from Germany, they must apply for special government permission to exchange their local pesos for the necessary Euros.

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Import quotas are a type of trade restriction where a government sets a specific limit on the amount of certain agricultural products that can be imported within a given period. These are often used to protect domestic farmers from excessive foreign competition, especially when imported goods are cheaper or produced in larger quantities abroad. By controlling supply from other countries, import quotas help stabilize local market prices, ensure demand for locally produced goods, and support the growth and sustainability of the agricultural sector. However, they can also lead to higher prices for consumers and may limit product variety in the market.

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Foreign Exchange Control Policy – Singapore

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Foreign Exchange Control Policy – Singapore

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Foreign Exchange Control Policy – Singapore

The country of Singapore has a way of controlling the money exchange rates. This is done by the Monetary Authority of Singapore also known as the MAS. Singapore does things a bit differently than countries. Of using interest rates to control the economy Singapore uses the exchange rate of the Singapore dollar to keep prices stable and help the economy grow. This Foreign Exchange Control Policy helps to regulate trade with countries investments from other countries and the financial situation in Singapore.

The Foreign Exchange Control Policy is very important because it helps Singapore stay competitive when it comes to buying and selling things with countries. It also helps to keep prices from rising quickly. This policy affects the prices of things that Singapore buys and sells with countries investments from other countries and business deals with other countries.

For example the Monetary Authority of Singapore makes changes to the Foreign Exchange Control Policy from time, to time. This is done to make sure the economy of Singapore is stable and that Singapore can compete with countries. The Monetary Authority of Singapore adjusts the exchange rate of the Singapore dollar to keep the economy strong and to help Singapore do well in trade. Monetary Authority of Singapore (MAS):
https://www.mas.gov.sg/monetary-policy

International Monetary Fund:
https://www.imf.org

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The EU-Korea Free Trade Agreement (FTA) is widely considered the first of the "next-generation" trade deals. When it was provisionally applied, it was the most ambitious and comprehensive agreement the EU had ever negotiated with an Asian partner.

Its impact goes far beyond simple tariff cuts, fundamentally altering the financial landscape for international marketers in both regions.

1. The Tariff Elimination (The Cost Factor)

Before the FTA, international marketers faced high custom duties that artificially inflated retail prices.

The Mechanism: The agreement eliminated nearly 99% of all import duties within the first five years of its implementation.

The Marketing Shift: For European brands (especially in luxury fashion, automotive, and wine/spirits), this immediately reduced the Total Cost of Ownership (TCO) and landed import costs. Marketers could choose to either lower retail prices to capture mass-market share or maintain premium pricing while enjoying significantly higher profit margins.

2. Eliminating Non-Tariff Barriers (NTBs)

For many international brands, the real barriers to market entry aren't taxes, but regulations. The EU-Korea FTA specifically targeted "beyond-the-border" obstacles in highly regulated sectors:

Automobiles: South Korea accepted EU safety standards as equivalent to its own, meaning European automakers did not have to pay for duplicate testing or redesign cars specifically for the Korean market.

Pharmaceuticals and Medical Devices: The agreement introduced strict transparency rules on pricing and reimbursement, smoothing the supply chain path for global healthcare brands.

3. Protection of Intellectual Property (IPR)

A major risk in international marketing is brand dilution or counterfeiting. The FTA established robust legal frameworks for intellectual property rights, specifically protecting Geographical Indications (GIs). This ensured that unique regional products (like Champagne, Prosciutto di Parma, or Korean Ginseng) retained exclusive legal protection, preventing local copycats from undercutting authentic international brands.

4. Recent Evolution: The Digital Expansion (2026 Update)

Reflecting the modern financial environment, the agreement has continually adapted. In June 2026, the EU and South Korea signed a landmark Digital Trade Agreement (DTA) to complement the original FTA.

Why it matters: With over a third of their services trade already delivered digitally, this update legally validates electronic contracts, recognizes digital signatures, and facilitates seamless cross-border data flows. For modern e-commerce brands, it removes the bureaucratic friction of physical paper-trailing and unlocks massive agility for cross-border digital marketing.

The Bottom Line: By transforming a fragmented regulatory landscape into an integrated, zero-tariff pipeline, the agreement turned South Korea into the EU's eighth-largest trading partner, with bilateral goods trade scaling past €124 billion. For a brand strategist, it represents the ideal "sandbox" where administrative market entry costs are minimal, allowing budget to be redirected entirely toward consumer acquisition.

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Commercial Policy: Commercial General Liability (CGL) Insurance

Commercial General Liability Insurance is a policy that protects businesses from financial losses caused by third‑party claims involving bodily injury, property damage, or accidents that occur on business premises. It covers legal defense costs, settlements, and medical expenses, helping companies avoid major financial disruption when unexpected incidents happen. For example, if a customer slips and gets injured inside a store, CGL insurance helps the business pay for medical bills and legal fees. This policy is essential for maintaining financial stability and protecting companies from everyday operational risks.

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Trade Quotas – A country limits the amount of a certain product that can be imported, such as restricting the number of imported agricultural goods.

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Trade Quotas – A country limits the amount of a certain product that can be imported, such as restricting the number of imported agricultural goods.

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Toyota Company – Financial Environment Examples

Toyota operates within a financial environment that affects its business performance and decisions.

Financial Environment FactorToyota ExampleInterestToyota may borrow money from banks to build factories or develop new vehicles. Higher interest rates increase borrowing costs.ExchangeToyota exports cars worldwide. If the Japanese yen weakens against the U.S. dollar, Toyota's exports become more competitive.Banks and Financial InstitutionsToyota works with major Japanese banks such as MUFG and SMBC for loans and financial services.Stock MarketToyota raises capital through shares traded on the Tokyo Stock Exchange (TSE) and New York Stock Exchange (NYSE).Government PoliciesJapanese government regulations and tax policies affect Toyota's production and investment decisions.InflationRising costs of steel, batteries, and labor can increase Toyota's manufacturing expenses.EconomicDuring economic growth, consumers buy more vehicles. During recessions, car sales may decline.FinancialToyota invests in research and development for electric and hybrid vehicles using funds obtained from financial markets.

Short Example

Toyota's financial environment includes the Bank of Japan's interest rate policies, Japanese commercial banks, the Tokyo Stock Exchange, government regulations, exchange rate movements of the yen, inflation, and global economic conditions. These factors influence Toyota's costs, profits, investments, and vehicle sales.