Final answer:
A form to declare goods before entering a country is used to apply tariffs and nontariff barriers, which can affect costs and the value chain of imported products. Foreign firms must be aware of these when paying expenses in their home country with earnings from abroad, and tourists may also need to declare goods when traveling.
Step-by-step explanation:
When entering a country, individuals or entities may need to declare their possessions, particularly when carrying goods that are intended to be sold or used within that country. This declaration helps customs authorities apply the correct tariffs and nontariff barriers, which include taxes that governments place on imported goods or rules and paperwork that make it more costly or difficult to import products. For instance, a foreign firm that has sold imported goods in the United States and earned U.S. dollars might need to declare these transactions when trying to pay expenses incurred in its home country. Additionally, U.S. tourists leaving to visit other countries may face similar declarations.
Nontariff barriers can take many forms, such as safety standards, regulations, inspections, and rules-of-origin. These barriers can significantly impact the value chain, which describes how a good is produced in stages. When trying to evade import restrictions, a manufacturer may alter the production process so that the last substantial change happens in their own country, thus qualifying the product for certain benefits, like a “Made in the USA” label or the avoidance of certain tariffs.