SCMT $3643$ Exam $1$ Study Guide

Lesson $3$: Special Topics in International Distribution

Video $3\mathrm{.}1$: Pre$-$Shipment Inspections $($PSIs$)$

Who require them? Governments of certain developing countries

Why? Protect local companies $($the buyers$)$ and consumers, against fraudulent practices in trade $($e$.$g$.$ overinvoicing and underinvoicing$)$

Where are PSIs conducted?

Who performs PSIs?

Who pays for PSIs?

What is included in the inspection: products, contract price, customs classification of products and tariff rates

Video $3\mathrm{.}2$: Gray Marketing

What is gray marketing? Sale of authentic goods in channels not originally authorized by manufacturers

Gray marketing impacts on manufacturers and consumers

Strategies for manufacturer to protect against gray marketing

Video $3\mathrm{.}3$: Foreign Trade Zones

What are FTZs$?$

What activities can be performed in the FTZ$?$

When are tariffs paid?

Advantages to countries?

General purpose zones and subzones

FTZs location in the US

Inverted tariff structure

FTZ program impact on US companies

Col$$n Free Trade Zone

Video $3\mathrm{.}4$: Countertrade

Countertrade definition and types $($barter$,$ switch trading, counter purchase, and buyback$)$