FEDERAL TAX PROVISIONS Legislation (PL 92–178) permits U.S. firms to set up Domestic International Sales Corporations (DISCs) which are entitled to defer federal tax on up to 50% of export income. Section 922 of the Internal Revenue Code provides a fourteen percentage point deduction in taxable income for domestic corporations which qualify as Western Hemisphere Trade Corporations (WHTCs). In order to qualify as a WHTC, a corporation must limit its conduct of business to the countries of the Western Hemisphere, and must meet two additional basic tests; (1) at least 90% of its gross income must be derived from the active conduct of a trade or business, and (2) at least 95% of gross income must be from sources outside the United States. Use of the WHTC deduction can result in tax savings of almost 30% on qualifying income. For further details on DISCS or WHTCs, write to the Foreign Business Practices Division, Bureau of International Commerce, U.S. Department of Commerce, Washington, D.C. 20230. United States Government Export Controls All exports of commodities and technical data from the United States or its possessions to Sweden and reexports of such U.S. origin items from Sweden are subject to the rules and regulations of the Office of Export Administration, Bureau of East-West Trade, U.S. Department of Commerce, except for exports or reexports of arms, ammunition, and implements of war, and technical data related thereto, which are licensed by the U.S. Department of State; gold (except fabricated gold with a gold content value of 90% or less) licensed by the U.S. Department of the Treasury; tobacco plants and seeds licensed by the U.S. Department of Agriculture; narcotics licensed by the U.S. Department of Justice; vessels licensed by the U.S. Maritime Administration; natural gas and electric energy licensed by the Federal Power Commission; certain "by-product material," source material and facilities for the production or utilization of special nuclear material licensed by the Atomic Energy Commission; and U.S. endangered wild life species (including their dead bodies and parts thereof, whether or not incorporated into a finished product) licensed by the U.S. Department of Interior. The regulations concerning export control are set forth in the Export Administration Regulations, available for examination at the U.S. Department of Commerce or at any of its District Offices. The Export Administration Regulations and supplementary Export Administration Bulletins may be purchased from any of the U.S. Department of Commerce District Offices or from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, at a subscription rate of $35 ($8.75 additional for foreign mailings). Airmail service on the supplementary bulletins is available, to domestic subscribers only, at an additional cost of $10 a year. A Shipper's Export Declaration must be submitted to the exporting carrier for shipments requiring a validated export license and for most shipments under a general license. Information regarding the declaration may be obtained from the Foreign Trade Division, Bureau of the Census, U.S. Department of Commerce, Washington, D.C. 20230. A destination control statement is necessary on commercial invoices, bills of lading, and air way bills for all shipments requiring a validated export license and most shipments made under a general license. The major exceptions to the requirements for an appropriate statement are shipments intended for consumption in Canada; shipments to Puerto Rico, the Canal Zone, U.S. territories, dependencies, and possessicas; shipments transiting the United States that do not require a validated export license; and shipments of certain publications and unclassified technical data. Additional information concerning export control requirement for shipments to individual countries may be obtained directly from the Office of Export Administration, Bureau of East-West Trade, U.S. Department of Commerce, Washington, D.C. 20230, or from any of the Department's District Offices. Imports Information on United States import duties is obtainable from the Commissioner of Customs, U.S. Treasury Department, Washington, D.C. 20029, or from District Directors of Customs. All merchandise imported into the U.S. is subject to a customs duty (tax) unless it has been specifically exempted from this duty by law. The rates of duty vary according to the many different commodities included in the tariff schedules of the United States (TSUSA). A comprehensive description of the U.S. import requirements appears in Exporting to the United States, U.S. Treasury Department, Customs Service, 1973. (please type or print) FRANCHISING a major force in the economy The franchise method of distribution is a significant part of the nation's marketing system and sales are expected to reach $178 billion in 1974. The Consumer Goods and Services Division, Bureau of Domestic Commerce, has a continuing program which collects and publishes data on franchising by key business sectors. U.S. DEPARTMENT OF COMMERCE / Domestic and International Business Administration / Bureau of Domestic Commerce U.S. DEPARTMENT OF COMMERCE/ Domestic and International Business Administration Marketing in Supersedes OBRs 68-23, 68-42, and 69-4 Foreign Trade Outlook Principal Imports from the World Although the United Kingdom traditionally has been New Zealand's principal trading partner, New Zealand has attempted in recent years to lessen its dependence on the United Kingdom by developing and expanding markets in Western Europe, the Far East, and North America. This action has become especially vital since the United Kingdom's entry into the Common Market and the subsequent loss of guaranteed preferential access to the British market for most of New Zealand's major exports. New Zealand's principal imports from the world are shown in Table 1 for selected fiscal years ending in June. Principal Imports from the United States The United States's share of New Zealand's total imports amounted to US$294.9 million for the year ending September 1973, as compared with US$188 million and US$169.6 million for the corresponding periods of 1972 and 1971, respectively. The information supplied in this report is not intended to serve in lieu of legal counsel. Such advice may be obtained from attorneys in the United States who specialize in foreign law. A list of attorneys in New Zealand may be obtained from the Office of Export Development, Bureau of International Commerce, U.S. Department of Commerce, Washington, D.C. 20230, or from Department of Commerce District Offices located in 43 cities around the United States. Information on certain aspects of New Zealand is available in the Background Notes series of brochures prepared by the U.S. Department of State. These reports on individual countries describe history, government and political conditions, economy and foreign relations. An annual subscription, costing $14.50 is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. Single copies may be purchased for 25g from the GPO Bookstore, Department of State, Washington, D.C. 20520." OVERSEAS BUSINESS REPORTS; $28.50 a year ($7.25 additional for foreign mailing); 30 cents a copy. Order from any of the Department of Commerce district offices or from the Superintendent of Documents, U.S. Government Printing Office, Washington D.C. 20402. Single copies also available from the National Technical information Service, Springfield, Virginia 22151. |