QUOTA-HOPPING IN-BOND DIVERSION.

We show that the U.S. in-bond system of imports may be used by firms to illegally avoid trade barriers, a practice known as in-bond diversion. The illicit scheme involves declaring Chinese exports bound for Mexico but diverting them to the U.S. market while in transit, thus creating a gap between Ch...

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Publicado en:Economic Inquiry Vol. 53; no. 1; pp. 34 - 49
Autores principales: Rotunno, Lorenzo, Vézina, Pierre ‐ Louis
Formato: Artículo
Publicado: Wiley-Blackwell Jan2015
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: QUOTA-HOPPING IN-BOND DIVERSION.
      aug:
        au:
          Rotunno, Lorenzo
          Vézina, Pierre ‐ Louis
        affil:
          Blavatnik School of Government, University of Oxford. Merton Street 10, Oxford OX1 4JJ United Kingdom
          Department of Economics, University of Oxford, Manor Road Building, Manor Road, Oxford OX1 3UQ United Kingdom
      su:
        China
        United States
        International trade
        Economics
        Law
        Offshore assembly industry
        Import quotas
        Exports
        Quotation
      sug:
        subj:
          International trade
          Economics
          Law
          China
          United States
          International Trade Financing
          Offshore assembly industry
          Import quotas
          Exports
          Quotation
      ab: We show that the U.S. in-bond system of imports may be used by firms to illegally avoid trade barriers, a practice known as in-bond diversion. The illicit scheme involves declaring Chinese exports bound for Mexico but diverting them to the U.S. market while in transit, thus creating a gap between Chinese and Mexican reports. Using the phaseout and removal of U.S. quotas at the end of the Multifiber Agreement as a policy experiment, as well as variation in quota bindingness across products, we show that quota-bound products were associated with larger trade gaps which shrunk following the quota removals. ( JEL F13, O17, O19)
      pubtype: Academic Journal
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    language: English
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