1. Chapter 89 of the Harmonized System
Column 1
Column 2
Non-NTR
8903
Yachts and other vessels for
pleasure or sports; row boats
and canoes
30%
Inflatable
2.4%
Free
(A,E,IL,J,MX)a
0.4% (CA)
Valued over $500 15
With attached rigid hull……No 45
Other…..No 60
Other:
1.5%
(A,E,IL,J,MX)
0.3% (CA)
Sailboats, with or without
auxiliary motor
A, Generalized System of Preferences
E, Caribbean Basin Initiative (CBI) Preference
IL, Israel Free Trade Agreement (FTA) Preference
J, Andean Agreement Preference
MX,NAFTA Canada Preference
CA, NAFTA Mexico Preference

2. Seller (Exporter) Buyer (Importer) Exporter’s Bank
Contract
Seller ships goods
Seller sends documents to his bank
Importer applies for credit:
Credit Established
Bank informs exporter
Seller’s bank pays
Exporter’s bank sends documents
Importer’s
“issuing" bank
Exporter’s
Bank
Issuing bank pays
Importer’s bank confirms buyer has credit