business regulations tariffs, customs

3. You are employed as the customs broker for Honshu Motorized Vehicles, Inc., a Japanese corporation that manufactures and exports golf carts to the United States. The Board of Directors of Honshu has asked for your opinion on the following course of action.

Honshu is interested in exporting its latest golf cart, the Easy Rider, to the United States. However, it is very concerned about tariffs. The tariff upon golf carts imported into the United States is 2.5% ad valorem according to the Harmonized Tariff Schedule presently in effect. In response to these concerns, the Board of Directors of Honshu is considering separately exporting component parts of the Easy Rider to Honshu’s plant in Dhoogastan, assembling the golf carts at this plant and exporting them to the United States claiming that they are a product of Dhoogastan and are subject to duty-free treatment pursuant to the U.S.-Dhoogastan Free Trade Agreement.

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Based upon these facts, the Board of Directors has addressed the following question to you for resolution. Specifically, what would be the country of origin for the Easy Rider golf carts produced utilizing this scenario? Please explain your answer utilizing all of the elements discussed in class. (8 points) (Answer limited to one page)

4. Killem Chemicals is a U.S.-based manufacturer of agricultural chemicals. Killem recently sold two thousand gallons of Insta-Death, its most toxic weedicide, to Sahara Traders, a trading company acting as a middleman headquartered in the North African desert nation of Chad. Sahara Traders refused to disclose the use that it intended to make of the product and paid cash upon its delivery. Sahara ultimately shipped the Insta-Death to the Syrian government for use in its chemical weapons program. Is Killem liable for the ultimate transshipment of Insta-Death to Syria? What principle of law is applicable to this case? Please explain the application of this principle to this case. (8 points) (Answer limited to one page)

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