GENERAL INTRODUCTION :

The U.S.A. is India's leading trade partner. The principal exports of India to the U.S. are textile made-ups, silk fabrics, readymade garments, carpets, cashew nuts, coffee, spices, leather and leather manufactures, diamonds, precious and semi-precious stones, chemicals and petroleum products. On the other hand, fertilizers, specialised industrial machinery, metalliferous ores, metal scrap, vegetable oils, organic & inorganic chemicals, pulp & waste paper, photographic and optical goods, synthetic resin, rubber and plastic materials constitute the list of imports of U.S.A. to India.

With an area of approximately, 9,373,000 sq. kilometers (including Alaska and Hawaii), the U.S. is the fourth largest country in the world, or nearly 40 times bigger than U.K. Mainland U.S.A. (excluding Alaska), called the 48 Conterminous states, stretches for 3,000 miles from the Atlantic to the Pacific and for some 1,200 miles from the Canadian border to the Gulf of Mexico. Hawaii, the 50th State, is situated in the Pacific Ocean, some 2,500 miles to the South West. The United States also possesses the Virgin Islands, Guam, Puerto Rico, and the American Samoa. The U.S. has a population of 249,224,000 inhabitants of which 83% are Whites, 12% Blacks, 1% Indians and 4% of other races.

ECONOMY :

United States is the World's leading economic power. The natural resources of U.S.A. in variety and quantity probably exceed those of every other nation. Agriculture accounts for only 5% of employment but for over 20% of exports. The Country is very rich in mineral resources and produces oil, coal, copper, iron, uranium, silver and many other minerals. The tri-state area consisting of New York, New Jersey and Connecticut have been having its share of recession and unemployment. So far, these states have been giving special attention to the big companies and businesses but now find that special attention needs to be given to medium and small companies to generate jobs and revenues. It has also been noticed that some of the big companies in New York and adjoining areas have been making losses and as a result have decided to cut down their staff.

IMPORTING ENVIRONMENT :

U.S.A. follows a liberal trade policy. There are no restrictions on foreign payments except those imposed for security reason on transactions from China (main land), Cuba, North Korea, North Vietnam and Rhodesia.

A licence is not generally required for importing merchandise into U.S.A. except for some specific commodities.

The customs tarrifs of U.S.A. is based on schedule A, which is a statistical classification of commodities imported into U.S.A. and is not comparable to other international classifications. Import of all marchandise is subject to customs duty unless it has been specifically exempted from this duty.

Under its GSP offer, the U.S.A. is expected to allow imports of manufacturers and semi- manufactures from the developing countries free of duty excluding all textiles other than jute and coir, footwear and petroleum products.

Importing certain classes of merchandise may be prohibited or restricted to protect the economy and security of the United States, to safeguard consumer health and well being, or to preserve domestic plant and animal life. Many of these prohibitions and restrictions are subject to the law and regulations administered by other US government agencies with which customs cooperates in enforcement. These laws and regulations may prohibit entry, limit entry to certain ports; restrict routing storage or use or require treatment, labeling or processing as a condition of release.

Prohibited imports include certain narcotics obscene, immoral and seditious matter; merchandise produced by convicts or forced labour; and certain other items. Among imports subject to compulsory licensing are arms and ammunition; Krugerrands from South Africa and products of countries that are subject to trade restrictions imposed by the US Department of State, Office of Foreign Assets Control.

An accurate product description of an import is the primary determinant of its tariff classification. Based on this classification, a duty rate is assessed against the import's value. US customs will provide binding ruling on the likely duty rates and values of goods prior to their export. The most common yardstick used by customs to determine value is the actual sales price plus certain commission and other expenses (that is, the transaction value). However, an exporter must demonstrate that the declared transaction value results from a bonafide business transaction.

An exporter should be aware that US customs will provide binding ruling, prior to export, on the most likely duty rates and values of goods and therefore exporters should seek advice of knowledgeable US customs brokers or trade consultants prior to shipment. He should also be aware that the Antidumping and Countervailing duty laws are strictly enforced by US customs authorities.
The following organisations can offer advice on Commercial information :

I. Chamber of Commerce of the U.S.A.,
1615 H Street, NW, WASHINGTON, DC 20062-0001.
Tel : (202) 659 6000
Fax: (202) 463 5836
Telex:248302 CUS - UR.
N(ttional Foreign Trade Council Inc,
1270, Avenue of the Americans
New York, NY 10020.
Tel : (212) 399 7128