# Usage: curl -sSL https://seed.show/supply.chain.trade | bash -s <install-path>
# <install-path> is the directory where the file should land.

set -euo pipefail
[ -z "${1:-}" ] && {
  echo "install requires a path: curl -sSL https://seed.show/supply.chain.trade | bash -s <install-path>" >&2
  exit 1
}
TARGET="$1"
mkdir -p "$TARGET"
DEST="$TARGET/seed-fold.BL5rjM.folded.md"

cat > "$DEST" <<'PORTDOWN_B62CB8F6'
<!--
This is a `.folded.md` archive — a directory packed into one markdown
file. The markers below are load-bearing; don't edit them directly.

To unpack (requires bash — if you have no shell, tell the user):
  1. curl -sSLf https://fold.dom.vin/skill | bash -s <INSTALL_DIR>
  2. <INSTALL_DIR>/fold/scripts/unfold <this-file>
     (or: unfold <this-file>  if fold/scripts is on your PATH)
-->

---
fold: true
marker: 32485e
at: 2026-05-07T16:16:25Z
root: seed-pack.KrguHK
---

<!--fold:32485e@file path="README.md" mode="644"-->
# supply.chain.trade

International supply chain and trade context for agents. What to know before advising on any cross-border shipment, import, or export.

**Level:** Professional practitioner context — for agents advising importers, exporters, customs brokers, freight forwarders, and trade compliance teams.

**Do not hallucinate:** Tariff rates, active sanctions designations, Section 301 exclusion status, and country-specific restrictions change frequently. Always surface current rates from sources.md before quoting duty figures. Specific percentages in this file are illustrative examples, not authoritative current rates.

---

## Mental model

A supply chain is a sequence of **ownership transfers** and **risk transfers**. Each transfer point is governed by a contract term (Incoterms) and a regulatory regime (customs, export controls, sanctions). The three systems that govern these transfers must all be in place simultaneously:

**Commercial terms (Incoterms 2020)** define who bears risk and cost at each transfer point. Eleven terms, each a precise allocation of freight, insurance, customs clearance, and delivery obligation.

**Customs classification (HS / HTS codes)** determine the duty rate applied at import. The Harmonized System is a 6-digit international framework; the US extends it to 10 digits (HTS). Classification follows from the product's essential character at import time, determined by General Rules of Interpretation — not from the product's name or intended use. Duty rates change; classification methodology is stable.

**Trade compliance (sanctions, export controls, origin rules)** governs whether the transaction is legal at all, regardless of commercial terms or duty rate. Compliance checks precede shipment; they are not a post-clearance formality.

Missing any one layer produces expensive errors — misdirected liability, unexpected duty bills, or regulatory violations that result in seizure, fines, or criminal exposure.

---

## What agents get wrong

**1. DDP as the default Incoterm.**
Delivered Duty Paid sounds like the simplest term for a buyer, so agents recommend it as the customer-friendly option. The problem: DDP requires the seller to be the importer of record in the destination country, which requires a customs bond, a local fiscal representative in many jurisdictions, and full liability for the destination country's import duties and VAT. Most sellers cannot or should not accept DDP obligations. The correct alternatives are DAP (Delivered at Place — seller handles freight and export clearance, buyer handles import duties and entry) for door delivery where buyer controls import, or FOB / CIF for ocean shipments where the buyer manages the full import leg. Recommend DDP only when the seller has confirmed they have importer-of-record infrastructure and a customs bond in the destination country.

**2. HTS lookup by product name rather than GRI methodology.**
Agents search the HTS database for the product's common name and take the first plausible result. Classification is determined by the General Rules of Interpretation (GRI): Rule 1 (specific heading governs), Rule 3 (when multiple headings apply — most specific heading first, then essential character, then last in numerical order), Rule 6 (same rules apply at the subheading level). A "smart speaker" is not classified as "speaker" — it may classify as an automatic data processing machine under Chapter 84 depending on its essential character. Misclassification is a CBP violation even if unintentional, and carries retroactive liability. For high-value or high-volume goods, obtain a Binding Ruling from CBP before committing to a classification. Never quote a single HTS code as definitive without noting that a ruling may be warranted.

**3. Treating base HTS duty rate as total landed cost.**
The column 1 (General/MFN) rate is the statutory starting point — not the total duty for many products. Additional tariff layers — Section 301 (Trade Act of 1974, origin-specific), Section 232 (Trade Expansion Act of 1962, steel and aluminum), and antidumping / countervailing duty (ADD/CVD) orders — stack on top of the base rate. These rates change, have exclusion processes, and are actively litigated. Always check the current Section 301 and Section 232 status for the specific HTS code and country of origin before quoting any duty figure. Point to USITC HTS Online and the USTR/Commerce exclusion databases (sources.md) rather than stating a rate as current fact.

**4. Invoice price as dutiable value.**
CBP calculates duties on transaction value, defined in 19 U.S.C. § 1401a as the price paid or payable for goods when sold for export to the United States, plus: assists (materials, tooling, or work provided free or at reduced cost by the buyer to the seller), royalties and license fees the buyer must pay as a condition of sale, and proceeds of subsequent resale that accrue to the seller. A buyer who provides the seller with components free of charge must add the value of those assists to the dutiable value even though they don't appear on the commercial invoice. "First sale" valuation — using the manufacturer's price to the middleman rather than the middleman's price to the importer — is available under specific conditions but requires documentation and CBP acceptance. Agents who use invoice price alone will understate dutiable value.

**5. Skipping export control screening for international sales.**
The Export Administration Regulations (EAR), administered by BIS, control dual-use items — commercial goods and technology with potential military application. Items carry an Export Control Classification Number (ECCN); items not listed are classified EAR99. Even EAR99 items cannot export to sanctioned countries, denied parties, or prohibited end-uses. ITAR (International Traffic in Arms Regulations), administered by State Department's DDTC, controls defense articles and services on the US Munitions List (USML). ITAR has no EAR99 equivalent — if an item is on the USML, a license is required for virtually any export. Advising on any international sale of hardware, software, or technical data requires: check the ECCN, screen against the Consolidated Screening List (Denied Persons List, Entity List, Unverified List, Debarred Parties), confirm end-user and end-use. These checks precede the transaction, not the shipment.

**6. Conflating C-TPAT membership with ISF compliance.**
C-TPAT (Customs-Trade Partnership Against Terrorism) is a voluntary CBP partnership program that grants expedited processing benefits to certified importers, carriers, and brokers. ISF (Importer Security Filing, 10+2) is a mandatory pre-shipment filing requirement: importers must file 10 data elements with CBP at least 24 hours before a vessel departs a foreign port for the US. These are separate obligations. C-TPAT membership does not satisfy ISF requirements. ISF non-compliance carries liquidated damages of up to $5,000 per violation.

**7. Country of origin by last-touch manufacture.**
Country of origin is not where the final assembly or last manufacturing step occurred. For US customs purposes, origin is determined by the substantial transformation test: a product is considered a product of a country when it undergoes a substantial transformation — a change in name, character, or use — in that country. The NAFTA/USMCA framework uses tariff classification change rules plus regional value content (RVC) thresholds; other FTAs have their own rules of origin. Marking origin incorrectly triggers ADD/CVD liability, false marking penalties, and denial of FTA preference. For products with complex supply chains, origin determination is a legal analysis, not a logistics observation.

---

## Stable facts

### Incoterms 2020 — the eleven terms

Risk transfer point and scope for each term:

| Term | Risk transfers when… | Seller pays freight? | Seller insures? | Sea only? |
|------|---------------------|---------------------|-----------------|-----------|
| EXW (Ex Works) | Goods available at seller's premises | No | No | No |
| FCA (Free Carrier) | Delivered to carrier at named place | No | No | No |
| CPT (Carriage Paid To) | Handed to first carrier | Yes, to destination | No | No |
| CIP (Carriage and Insurance Paid To) | Handed to first carrier | Yes, to destination | Yes (ICC A) | No |
| DAP (Delivered at Place) | Arrived at named destination, unloaded not included | Yes, to destination | No | No |
| DPU (Delivered at Place Unloaded) | Unloaded at destination | Yes, to destination | No | No |
| DDP (Delivered Duty Paid) | Goods at disposal of buyer, import duties paid | Yes, all-in | No | No |
| FAS (Free Alongside Ship) | Placed alongside vessel at port | No | No | Yes |
| FOB (Free On Board) | Loaded on board vessel | No | No | Yes |
| CFR (Cost and Freight) | Loaded on board vessel | Yes, to destination port | No | Yes |
| CIF (Cost, Insurance and Freight) | Loaded on board vessel | Yes, to destination port | Yes (ICC C) | Yes |

Key Incoterms 2020 changes from 2010: CIP insurance upgraded from ICC C (basic) to ICC A (all-risk). FCA added option for bill of lading to show on-board notation — resolves the letter-of-credit conflict where LCs require on-board BL but risk under FCA transfers at the seller's dock. DAT renamed DPU. EXW and DDP remain problematic for cross-border use (seller has no control at destination; buyer has no control at origin).

### HTS / HS classification structure

The Harmonized System (HS) is maintained by the World Customs Organization. Structure: 2-digit chapter → 4-digit heading → 6-digit subheading (internationally standardized). The US HTS adds 4 more digits to reach 10 digits. The additional digits are US-specific: 8-digit statistical suffix, 10-digit statistical reporting number.

Classification decisions are made under the six General Rules of Interpretation. A Binding Ruling from CBP is the only way to get legal certainty on a classification before import. Rulings are searchable at CBP's CROSS database. Ruling letter outcomes bind CBP at the port of entry.

### Trade document requirements for a US import

A standard formal entry (>$2,500) requires:
- Commercial invoice (parties, description, value, country of origin, Incoterms)
- Packing list
- Bill of lading or airway bill
- Arrival notice / delivery order
- CBP Form 3461 (Entry/Immediate Delivery) or 7501 (Entry Summary)
- Customs bond (continuous bond covers all entries; single-transaction bond covers one)
- ISF 10+2 filing (ocean shipments, 24 hours before vessel departure from foreign port)

For FDA-regulated goods: Prior Notice (food), device listing, drug registration. For USDA-regulated goods: phytosanitary or veterinary certificates. For goods subject to quotas or ADD/CVD orders: additional documentation requirements.

### Customs bond types

**Continuous bond:** Covers all entries filed at all US ports during the bond period (typically 12 months). Required for importers with annual duty liability exceeding $10,000 or importing goods subject to other federal agency requirements. Bond amount is set at 10% of duties, taxes, and fees paid in the prior year, minimum $50,000.

**Single transaction bond (STB):** Covers one entry. Bond amount equals the value of the shipment plus estimated duties. Used for infrequent importers or when a continuous bond is not in place.

Both bond types make the importer and surety jointly liable for all duties, taxes, fees, and penalties.

### Duty drawback

Drawback (19 U.S.C. § 1313) allows importers to recover up to 99% of duties paid on imported goods that are subsequently exported or destroyed. Three types:

- **Manufacturing drawback (§ 1313(a)/(b)):** Duties on imported materials used in US manufacturing of exported articles.
- **Unused merchandise drawback (§ 1313(j)):** Duties on imported goods exported unused in the same or commercially interchangeable condition.
- **Rejected merchandise drawback (§ 1313(c)):** Duties on goods that fail to conform to sample or specifications.

Drawback claims must be filed within 5 years of import. Substitution drawback allows substitution of fungible domestic merchandise for the imported article under certain conditions.

### Free Trade Agreement mechanics

FTAs eliminate or reduce duties on qualifying goods. "Qualifying" requires origin in an FTA partner country under the FTA's specific rules of origin — not mere last-touch manufacture. US FTAs in force include USMCA (Canada, Mexico), agreements with Korea, EU-adjacent bilateral agreements (Israel, Jordan, Singapore, Chile, Australia, Bahrain, Morocco, Oman, Peru, Colombia, Panama, Dominican Republic-CAFTA), and others. Each FTA has its own rules of origin, tariff phase-out schedules, and documentation requirements (Certificate of Origin or Origin Declaration).

USMCA rules of origin use tariff classification change (TCC) tests and/or regional value content (RVC) thresholds. For automotive goods, additional steel/aluminum content requirements apply. Self-certification is permitted — no third-party certification authority required.

---

## What AI is changing

**Demand forecasting:** ML models trained on historical sales, weather, events, and macroeconomic signals now outperform statistical baselines (ARIMA, Holt-Winters) for short-horizon forecasting at the SKU level. Tools like o9 Solutions, Kinaxis, and Blue Yonder embed these models in planning workflows. What stays human: black swan events (port strikes, pandemics, geopolitical disruptions) that have no training data analog. Models will confidently extrapolate into conditions they have not seen.

**Supplier risk scoring:** Real-time monitoring platforms (Resilinc, Riskmethods, Everstream Analytics) aggregate news, financial filings, satellite imagery, and logistics data to score supplier financial health and operational risk. What stays human: relationship decisions — when to exit a supplier relationship, how to communicate a risk concern without destroying a 10-year partnership, how to negotiate allocation priority during a shortage. Risk scores inform; they don't substitute for supplier relationship management.

**Customs classification automation:** AI tools (Flexport's Tariff Classification, Zonos, WiseTech's TradeWindow) use large language models and product descriptions to suggest HTS codes at scale. Classification throughput has increased substantially. What stays human: the binding ruling decision (legal certainty requires human sign-off), product descriptions where the essential character is genuinely ambiguous, and goods near chapter boundary disputes. AI-suggested classifications require human validation for high-duty or high-volume lines.

**Trade compliance monitoring:** Continuous screening tools monitor sanctions lists, denied party lists, and trade restriction changes in real time and flag transactions requiring human review. What stays human: sanctions screening judgment — whether an apparent match is the same person/entity, whether a transaction falls within a general license or requires a specific license, and voluntary self-disclosure decisions when violations are discovered. OFAC SDN matches have false positive rates; human judgment is mandatory before blocking a transaction.

**Documentation generation:** AI drafts commercial invoices, packing lists, certificates of origin, and entry documents from structured data. Reduces manual data entry errors. What stays human: verifying that AI-generated values (origin, classification, value) are legally accurate — errors in trade documents carry civil and criminal liability regardless of whether a human or AI made them. The importer of record is always liable.

---

## Sources

Fetch sources.md before quoting any current tariff rate, sanctions status, or trade restriction. This file contains stable structural knowledge; rates and restrictions are live data.
<!--fold:32485e@file path="glossary.md" mode="644"-->
# glossary

Key trade terms. Definitions reflect stable regulatory meaning, not common usage (which often differs).

---

## Incoterms 2020

The eleven terms are grouped by transport mode. The first seven apply to any mode; the last four are sea and inland waterway only.

**EXW — Ex Works:** The seller's minimum obligation. Goods are made available at the seller's named premises; the buyer bears all costs and risks from that point, including loading, export clearance, and import clearance. EXW is often problematic in practice: the seller cannot always give the buyer access to export documentation, and "free on board" export formalities legally require the shipper of record to be the exporter — not the buyer standing on the seller's dock.

**FCA — Free Carrier:** Seller delivers to the carrier or nominated party at the seller's premises or another named place. Risk transfers at delivery to the carrier. The Incoterms 2020 revision added an option for the bill of lading to note on-board status at the buyer's request — resolves the letter-of-credit problem where LCs require an on-board BL but FCA risk transfers at the dock. FCA is the recommended replacement for FOB in multimodal and containerized shipments.

**CPT — Carriage Paid To:** Seller contracts for and pays freight to the named destination, but risk transfers to the buyer when goods are handed to the first carrier at origin. The seller pays freight but does not bear the risk of transit loss.

**CIP — Carriage and Insurance Paid To:** Like CPT, but the seller also procures cargo insurance. Incoterms 2020 upgraded CIP's minimum insurance requirement from Institute Cargo Clauses (C) to ICC (A) — all-risk coverage. Seller pays freight and insurance; risk still transfers to buyer at origin carrier hand-off.

**DAP — Delivered at Place:** Seller delivers goods at the named destination, ready for unloading, but does not unload. Buyer handles import clearance and duties. For most commercial transactions where the seller controls freight to door delivery but the buyer handles import formalities, DAP is the correct term.

**DPU — Delivered at Place Unloaded:** Like DAP, but the seller also performs unloading at the named destination. The only Incoterm where the seller unloads at destination. Renamed from DAT (Delivered at Terminal) in Incoterms 2020 — destination need not be a terminal.

**DDP — Delivered Duty Paid:** Seller's maximum obligation. Seller delivers with all duties paid, import clearance complete. Seller must be the importer of record in the destination country, hold a customs bond there, and absorb all import duties and VAT. Most sellers cannot operationally execute DDP internationally. When a client requests "all-inclusive" delivery, clarify whether they mean DAP (seller delivers, buyer pays duties) or DDP (seller pays duties too) — the liability and feasibility differ substantially.

**FAS — Free Alongside Ship:** Risk transfers when goods are placed alongside the vessel at the named port of loading. Buyer then arranges loading and all subsequent costs. Sea and inland waterway only. Appropriate for bulk cargo (grain, ore) where the seller delivers to the quay and the buyer loads using ship's gear.

**FOB — Free On Board:** Risk transfers when goods are loaded on board the vessel at the named port. Sea and inland waterway only. The most widely used ocean Incoterm; letters of credit typically specify FOB. Note: FOB is technically incorrect for containerized cargo (containers are loaded at the container yard, not on the vessel — FCA is the correct containerized equivalent), but commercial practice continues to use FOB loosely for container shipments.

**CFR — Cost and Freight:** Seller pays freight to destination port; risk transfers when goods are loaded on board at origin. Seller controls freight booking; buyer bears transit risk. Sea only.

**CIF — Cost, Insurance and Freight:** Like CFR but seller also procures cargo insurance to the destination port. Minimum insurance coverage is ICC (C) — basic named-perils coverage only (unlike CIP's ICC A). CIF is the traditional trade finance term; letters of credit on CIF basis are common. Sea only.

---

## Customs and classification

**HS code (Harmonized System code):** The internationally standardized 6-digit product classification code maintained by the World Customs Organization. The first two digits indicate the chapter; the next two the heading; the final two the subheading. All WCO member countries use the same first 6 digits, enabling standardized international trade statistics and tariff negotiations.

**HTS code (Harmonized Tariff Schedule code):** The US extension of the HS to 10 digits. Digits 7–8 form the rate line (US-specific duty rate), and digits 9–10 are statistical suffixes. The HTS is administered by the USITC and legally controls the duty rate at US ports of entry.

**GRI (General Rules of Interpretation):** The six rules governing how HTS classification decisions are made. Rule 1 gives primacy to the text of headings and notes. Rule 2 extends Rule 1 to incomplete articles and mixtures. Rule 3 resolves multiple plausible headings by specificity, essential character, then numerical order. Rule 4 is a catch-all. Rule 5 covers packaging and cases. Rule 6 applies Rules 1–5 at the subheading level. Classification is not naming — it is a structured legal analysis.

**Country of origin:** The country in which goods were produced or manufactured, determined by the **substantial transformation** test: a country is the origin country if the last substantial transformation occurred there — a change in name, character, or use. FTA rules of origin typically use tariff classification change (TCC) tests and/or regional value content (RVC) thresholds instead of substantial transformation. Origin determines: applicable duty rate, ADD/CVD exposure, FTA eligibility, trade remedy applicability, and marking requirements.

**Substantial transformation:** The US legal standard for determining country of origin (outside FTA contexts). An article is substantially transformed if a manufacturing process results in a new and different article of commerce with a distinctive name, character, and use. The test is fact-specific and has generated extensive case law. Contrast with FTA rules of origin, which use objective tariff-change or value-content tests.

**Importer of record (IOR):** The party legally responsible for the importation — files the customs entry, holds the customs bond, and is liable for all duties, taxes, fees, and penalties. The IOR need not be the buyer or the beneficial owner of the goods; it is the party named on the CBP entry. In DDP transactions, the seller must be the IOR in the destination country.

**Customs broker:** A licensed professional (CBP-licensed under 19 U.S.C. § 1641) who acts as agent for importers in preparing and filing customs entries, advising on classification and valuation, and managing CBP correspondence. The customs broker acts as agent for the IOR; the IOR remains liable for accuracy of the entry.

**Customs bond:** A surety instrument filed with CBP that guarantees payment of duties, taxes, and fees and performance of other obligations. Required for all formal entries and for certain programs (C-TPAT, ISF filing). Two types: continuous bond (covers all entries for 12 months, typically 10% of prior-year duties, minimum $50,000) and single transaction bond (covers one entry, amount equals shipment value plus estimated duties). The bond makes the importer and the surety company jointly liable.

**ISF 10+2 (Importer Security Filing):** A mandatory pre-shipment data filing required for all ocean cargo imported into the US. The "10" refers to 10 data elements the importer must file at least 24 hours before vessel departure from a foreign port: seller, buyer, importer of record, consignee, manufacturer/supplier, ship-to party, country of origin, HTS code (6-digit minimum), container stuffing location, and consolidator. The "+2" refers to 2 elements filed by the ocean carrier. Non-compliance carries liquidated damages of up to $5,000 per violation. ISF is separate from and does not substitute for the formal customs entry.

**C-TPAT (Customs-Trade Partnership Against Terrorism):** A voluntary CBP supply chain security program. Certified members (importers, carriers, brokers, freight forwarders, foreign manufacturers) implement specified security standards and receive benefits including reduced exam rates and priority processing. C-TPAT certification is an operational compliance program — it does not satisfy ISF requirements or substitute for customs bond obligations.

**First sale valuation:** An alternative to transaction value that allows the dutiable value to be based on the price paid in an earlier sale in the chain of commercial transactions (typically the manufacturer-to-middleman sale rather than the middleman-to-importer sale). Reduces dutiable value in multi-tier supply chains. Requires documentation that the first sale was a bona fide sale for export to the United States and that the first-sale price is otherwise acceptable under 19 U.S.C. § 1401a.

**Duty drawback (19 U.S.C. § 1313):** A refund mechanism that allows importers to recover up to 99% of duties, taxes, and fees paid on imported merchandise that is subsequently exported or destroyed under CBP supervision. Three main types: manufacturing drawback (imported materials used to make exported articles), unused merchandise drawback (goods exported in same or commercially interchangeable condition), and rejected merchandise drawback (nonconforming goods). Claims must be filed within 5 years of the import date.

---

## Export controls and sanctions

**ECCN (Export Control Classification Number):** A 5-character alphanumeric code (e.g., 3A001) that classifies items subject to US export controls under the Export Administration Regulations (EAR). The first digit indicates the category (0–9); the letter indicates the group (A=equipment/assemblies, B=test equipment, C=materials, D=software, E=technology). Items not on the Commerce Control List are classified EAR99.

**EAR99:** The classification for commercial items subject to EAR jurisdiction but not listed on the Commerce Control List. EAR99 items generally do not require an export license, but cannot be exported to sanctioned countries, denied parties, or prohibited end-uses (weapons of mass destruction, military intelligence end-uses). EAR99 is not a clearance — it is a default classification.

**ITAR (International Traffic in Arms Regulations):** State Department regulations (22 C.F.R. Parts 120–130) controlling the export, re-export, and transfer of defense articles and defense services on the US Munitions List (USML). ITAR has no EAR99 equivalent — any item on the USML requires a license for export regardless of its commercial sensitivity. ITAR violations carry criminal penalties of up to $1 million per violation and 20 years imprisonment.

**SDN (Specially Designated National):** An individual, entity, or vessel designated by OFAC as subject to asset freezes and transaction prohibitions. US persons (including US companies and their foreign subsidiaries in most cases) are prohibited from any transactions with SDNs regardless of where the transaction occurs. The SDN list is maintained by OFAC and updated continuously.

**Denied party / Entity List:** BIS maintains the Entity List — foreign persons subject to license requirements for items subject to EAR. The Denied Persons List covers individuals and entities whose export privileges have been revoked. The Consolidated Screening List (CSL) from the Department of Commerce aggregates these and other government lists.

---

## Trade programs

**FTA (Free Trade Agreement):** A bilateral or multilateral treaty that reduces or eliminates tariffs and other trade barriers between participating countries. US goods qualify for FTA preferential rates when they meet the FTA's specific rules of origin (tariff classification change tests and/or RVC thresholds). FTA preference is not automatic — the importer must claim preference and have documentation to support origin.

**RVC (Regional Value Content):** An FTA rule-of-origin test that measures the percentage of a product's value that originates in the FTA region. Calculated using either the transaction value method or the net cost method. A product must meet or exceed the specified RVC threshold to qualify as originating.

**ADD/CVD (Antidumping and Countervailing Duty):** Import remedies applied to foreign goods sold in the US at less than fair value (antidumping) or benefiting from foreign government subsidies (countervailing duty). ADD/CVD orders specify duty rates by country of origin and producer/exporter; rates vary by company and are subject to annual administrative review. ADD/CVD orders stack on top of MFN and Section 301 rates and can reach several hundred percent.

**MFN rate (Most Favored Nation rate):** The standard WTO-bound duty rate applied to imports from WTO members under "normal trade relations." In the US, referred to as Column 1 (General) in the HTS. The MFN rate is the statutory baseline; FTA rates, GSP rates, and additional duty remedies (Section 301, 232, ADD/CVD) modify it up or down.
<!--fold:32485e@file path="sources.md" mode="644"-->
# sources

Fetch these at task time. Current tariff rates, sanctions designations, and trade restrictions are live data — always retrieve before advising. Ordered by importance.

## Classification and duty rates

1. **USITC HTS Online** — official US tariff schedule, 10-digit codes with current MFN duty rates, FTA rates, and duty suspension lists:
   https://hts.usitc.gov/

2. **CBP CROSS (Customs Rulings Online Search System)** — binding ruling database, searchable by HTS code, product description, or ruling number. Use to verify prior classification decisions and identify CBP's current position on a product:
   https://rulings.cbp.gov/

## Additional tariffs (check these before quoting any US import duty)

3. **USTR Section 301 tariff lists and exclusions** — China-origin goods subject to additional duties under Trade Act §301; current exclusion status by HTS code:
   https://ustr.gov/issue-areas/enforcement/section-301-investigations/search

4. **Commerce Section 232 exclusions database** — steel and aluminum tariff exclusions by product and company:
   https://www.bis.doc.gov/index.php/232-requests

5. **CBP ADD/CVD** — antidumping and countervailing duty orders, rates by country of origin and HTS code:
   https://www.cbp.gov/trade/priority-issues/adcvd/antidumping-and-countervailing-duty-orders-currently-in-force

## Export controls and sanctions

6. **OFAC Sanctions List Search** — SDN list and consolidated sanctions programs; search before any international transaction:
   https://sanctionssearch.ofac.treas.gov/

7. **Consolidated Screening List (CSL)** — BIS Denied Persons List, Entity List, and Unverified List; State DDTC Debarred Parties; OFAC SDN — all in one search:
   https://www.trade.gov/consolidated-screening-list

8. **BIS Export Administration Regulations (EAR)** — full regulatory text, ECCN lookup, country charts, and license exception guidance:
   https://www.bis.doc.gov/index.php/regulations/export-administration-regulations-ear

9. **State DDTC ITAR** — US Munitions List, ITAR regulations, and registration requirements:
   https://www.pmddtc.state.gov/ddtc_public

## Trade programs and procedures

10. **ICC Incoterms 2020** — official rule summaries for all eleven terms; authoritative text on risk transfer points and obligations:
    https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/

11. **CBP: Importing into the United States** — official importer's guide covering entry types, valuation methods, bonds, and customs broker requirements:
    https://www.cbp.gov/sites/default/files/assets/documents/2016-Jun/Importing%20into%20the%20United%20States.pdf

12. **CBP ACE Portal** — Automated Commercial Environment; importer and broker access to entry filing, drawback, and ISF submission:
    https://www.cbp.gov/trade/automated/getting-started

13. **CBP Duty Drawback** — regulations and procedures for recovering duties on exported or destroyed merchandise:
    https://www.cbp.gov/trade/basic-import-export/drawback

## FTA rules of origin

14. **USMCA rules of origin and tariff schedule** — product-specific rules, RVC thresholds, and automotive steel/aluminum content requirements:
    https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/usmca-tariff-tool

15. **US FTA tariff finder** — USTR's consolidated FTA tariff database covering all US FTA partners:
    https://ustr.gov/trade-agreements/free-trade-agreements
<!--fold:32485e@end-->
PORTDOWN_B62CB8F6

# ── post ──
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[ -z "$MARKER" ] && { echo "seed: archive has no marker — corrupt" >&2; exit 1; }
awk -v m="$MARKER" -v outdir="$TARGET" '
  BEGIN {
    # Match <!--fold:<m>@file path="X"--> with an optional mode attr after
    # the path (fold emits  mode="644"  on executables).
    file_re = "^<!--fold:" m "@file path=\"([^\"]+)\"( mode=\"[0-9]+\")?-->$"
    end_re  = "^<!--fold:" m "@end-->$"
  }
  $0 ~ end_re { if (current) close(current); exit }
  $0 ~ file_re {
    if (current) close(current)
    line = $0
    sub(/^<!--fold:[^@]+@file path="/, "", line); sub(/".*$/, "", line)
    current = outdir "/" line
    dir = current; sub(/\/[^\/]*$/, "", dir)
    if (dir != current) system("mkdir -p \"" dir "\"")
    printf "" > current
    next
  }
  current { print >> current }
' "$DEST"
SEED_EXTRACTED=$(find "$TARGET" -type f -not -path "$DEST" 2>/dev/null | wc -l)
if [ "$SEED_EXTRACTED" = "0" ]; then
  echo "seed: archive contained no files — refusing to delete the source" >&2
  echo "  archive preserved at: $DEST" >&2
  exit 1
fi
rm -f "$DEST"

echo "" >&2
echo "✓ seed unpacked → $TARGET ($SEED_EXTRACTED files)" >&2
find "$TARGET" -type f | sort | while IFS= read -r _sf; do
  echo "  ${_sf#${TARGET}/}" >&2
done
echo "" >&2
if [ -f "$TARGET/SKILL.md" ]; then
  echo "This seed contains a skill (SKILL.md). Install it in your agent's skills directory." >&2
  echo "" >&2
fi
echo "Install the seed skill if not already installed:" >&2
echo "  https://seed.show/skill" >&2
echo "" >&2
echo "Publisher prompt:" >&2
sed 's/^/  /' >&2 <<'__SEED_PROMPT_END_AC1F2B__'
You have professional-level international supply chain and trade context across three files. Read README.md first — it maps the mental model (supply chain as ownership and risk transfer sequence governed by Incoterms), what agents commonly get wrong (DDP defaults, GRI vs name lookup, base HTS vs total duty, invoice price vs dutiable value, ISF vs C-TPAT, country of origin by last-touch), stable structural facts (all eleven Incoterms 2020, classification methodology, document requirements, bond types, duty drawback, FTA mechanics), and what AI is and is not changing in trade compliance. Then read glossary.md for precise definitions of every key term. Fetch sources.md before quoting any tariff rate, sanctions status, or trade restriction — rates are live data, not stable knowledge. Ask what trade question to work through.
__SEED_PROMPT_END_AC1F2B__
exit 0