Understanding Noncontiguous Trade: Legal Insights and Implications

Definition & Meaning

Noncontiguous trade refers to the exchange of goods and services between the contiguous United States and certain territories, or between those territories themselves. Specifically, it involves:

  • Trade between one of the 48 contiguous states and Alaska, Hawaii, Puerto Rico, or any U.S. insular territory.
  • Trade occurring between two locations within Alaska, Hawaii, Puerto Rico, or any U.S. insular territory.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A shipping company transports goods from California (a contiguous state) to Hawaii. This transaction qualifies as noncontiguous trade.

Example 2: A business in Puerto Rico ships products to another business in Alaska. This also constitutes noncontiguous trade.

Comparison with related terms

Term Definition Key Differences
Contiguous Trade Trade occurring exclusively between the contiguous states. Excludes Alaska, Hawaii, Puerto Rico, and insular territories.
Interstate Trade Trade between two or more states within the U.S. May include only contiguous states, unlike noncontiguous trade.

What to do if this term applies to you

If you are involved in noncontiguous trade, consider the following steps:

  • Review shipping regulations that apply to your specific trade routes.
  • Utilize legal templates from US Legal Forms to draft necessary contracts or agreements.
  • If your situation is complex, consult a legal professional for tailored advice.

Quick facts

  • Jurisdiction: United States federal law
  • Key Statute: 46 USCS § 53501
  • Common Areas of Application: Shipping contracts, financial assistance programs

Key takeaways

Frequently asked questions

Noncontiguous trade refers to trade between the contiguous United States and territories like Alaska, Hawaii, and Puerto Rico.