Importing into the USA:A Foundation to Build OnU.S. Customs Clearance Guidelines

Whose Job Is It Anyway?Always:• Customs• Importer of Record• Customs Broker

Sometimes:• Accountants, engineers, buyers, partner government

agencies, labeling firms, freight forwarders, carriers, other specialists

U.S. Customs and Border Protection

Balanced approach to security and trade

Protecting borders from: • Terrorism• Human and drug smuggling• Agricultural pests

Facilitating trade to:• Assure compliance with laws• Inform trade community• Protect domestic economy and citizens• Collection of duties, anti-dumping and other

government fees

Importer of Record• Owner or purchaser (resident or non-resident)• Responsible for payment of duties and taxes• Make entry on imported goods• Responsible for compliance with U.S. regulations

Customs Broker• Licensed to transact customs business on importer’s

behalf• Provide guidance to importers• Calculate duties and taxes• File entry and arrange release of merchandise• Fiduciary accountability• Confidentiality

Processes and Documents• Power of Attorney• Customs Bond• Commercial Invoice• Packing List• eManifest / Bill of Lading

Harmonized Tariff Classification• International goods nomenclature• All products classifiable within tariff• 5000 heading descriptions = 17000 classifications• Progression from raw to complex to fully

manufactured article• Delineates duty rates• Clearly defined and legally binding methodology of

classification

Valuation and Appraisement• In order to determine appropriate duties, customs

must know the appraised value• Valuation is not always complex, but can be• Most goods are appraised based on Transaction

Value

Valuation and Appraisement• Price paid or payable for merchandise when sold for

export to the U.S.• Includes packing costs, selling commissions, assists,

royalties and other considerations• Be aware that the relationship between buyer and

seller may affect Transaction Value• All merchandise has a value• Not all goods can be appraised using Transaction

Value

Free Trade Agreements• Where grown, produced, manufactured or

assembled• Determines import duties, labeling requirements,

legality of sale• Duty-free status requires adherence to specific rules

of origin• Transformation of goods affect dutiability and

requires very specific accounting computation

Import Considerations• Can the importer finance an import program?• Can the product be legally imported?• Can the importer and supplier meet all of the

regulatory requirements of the import transaction?

Best Practices• Management commitment to compliance• Development of formal compliance policies• Establish and maintain training programs• Partner with your customs broker• Partner with Customs and Border Protection• View compliance as a competitive advantage, rather

than strictly as a cost center

Customs Audit• What is an audit?• What might customs be looking for?

Questions to ask yourself:1. What is your business’s track record with customs?2. Do you know whether your shipments are

considered high risk?3. Do you know how customs determines whether you

will be audited?

Resources19 CFR – Customs Dutieswww.ecfr.gov

Harmonized Tariff Schedule of United Stateswww.hts.usitc.gov

U.S. Customs and Border Protectionwww.cbp.gov

Importing into the United States Informed Compliance Publications

Pacific Customs Brokerswww.pcbusa.com