C22u—Customs Entry Procedures and Enforcement
Subscriber price: $118.00, Non-subscriber price: $169.00
Estimated total study time: 9 hours 12 minutes
This course addresses the various types of U.S. Customs entries, Customs valuation and duty computation, finalization and post-entry handling of customs entries, country of origin and marking requirements, required record-keeping and how Customs and Border Protection (CBP) enforces its own and other U.S. import laws and regulations.
Although the operational particulars in which U.S. importation takes place varies with the transportation mode, this course is applicable to all operational environments.
Note: This course does not cover HTSUS classification. For an introduction to the tariff, not including the General or Additional Rules, see C6.1u—Introduction to U.S. Customs Tariff (HTSUS) Classification. For a comprehensive, more in-depth classification course please see CB5u—Intro to U.S. Customs Brokerage, Part 5: U.S. Customs Tariff (HTSUS) Classification.
Individuals wishing to learn more basics about U.S. Export and Import processes should also consider completing the following GISTnet courses:
Determining the Type of Customs Entry Based on Import Situation
This lesson explains the customs entry process and determining the type of entry needed depending on the import situation.
(Estimated study time: 1 hour 10 minutes)
- Introduction
- Customs Entry (Release) Procedures
- Customs Release Based on Partial Information
- Preview: Import Situations vs. Required Type of Entries
- Entry for Consumption
- Electronic vs. Paper Customs Entry Information
- Decision Tree for Type of Customs Entry to Prepare
Customs Entries for Temporary Importations and Other Special Entries
Goods which are to be in the the U.S. only temporarily, or are imported for exhibition only, are often entered under special provisions to avoid the payment of duty and/or simplify the import and re-export process. This lesson addresses these types of entries/procedures.
(Estimated study time: 1 hour 1 minute)
- Introduction
- Temporary Importations Under Carnet Procedures
- General — What Is a Carnet?
- ATA Carnet Operational Requirements
- Initial Carnet Activation
- U.S. Import Carnet Processing
- U.S. Export Carnet Processing
- Customs Broker Involvement with Importation under a Carnet
- Re-Export of Goods Imported under a Carnet
- Temporary Importations under a Temporary Import Bond (TIB)
- Permanent Exhibition Entry
- Other Special Types of Customs Entries
Transaction Value and the Invoice Price
There are 6 different methods that CBP uses to appraise the value of goods so that all importers are treated fairly. In this lesson we will present the basics of the invoice price paid or payable and currency conversion.
(Estimated study time: 1 hour 19 minutes)
- Introduction
- Valuation by Six Methods of Appraisement
- Conditions for Using Transaction Value
- What is the Invoice Price?
- The Invoice Price is the Price Actually Paid or Payable
- Indirect Payments are Dutiable
- Parts and Costs of Assembly Are Dutiable
- Currency Conversion of the Invoice Price
- Dutiable Charges: to be Added to the Invoice Price if Not Already Included
- Invoice Price Adjustments Added or Included
- Packing Costs as Part of the Dutiable Value
- Selling Commissions as Part of the Dutiable Value
- Assists as Part of the Dutiable Value
- Royalty and License Fees Paid by the Buyer as Part of the Dutiable Value
- Subsequent Sale Proceeds as Part of the Dutiable Value
- Quota Charges as Part of the Dutiable Value
- Nondutiable Charges (NDC): Subtract from the Invoice Price if Included
- Invoice Price Adjustments Subtracted or Deducted
- Allowable Discounts from the Invoice Price
- International Freight and Insurance Deducted from the Invoice Price
- Brokerage and Service Fees Deducted from the Invoice Price
- Duties and Taxes Deducted from the Invoice Price
- Instruments of International Traffic Deducted from the Invoice Price
- Cost of Assembly after Importation Deducted from the Invoice Price
Determination and Calculation of Duties, Fees and Taxes
In order to determine the proper duty rate it is important to be able to read all of the parts of the HTSUS. Different rates of duty columns mean different things. There are codes called special program indicator (SPI)s that increase or decrease normal trade relation (NTR) duty rates. It is also essential to understand certain circumstances where articles are exempted from duty or allowed to be commingled together. This lesson addresses all of these issues.
Duty rates come in many forms, some are based on a percentage of the net entered value and some are compound and complex. Taxes may apply to some types of goods like alcohol. Trade agreements affect the duty computation and there is special treatment based on importer and disposition of goods. These will all be demonstrated in this lesson.
(Estimated study time: 1 hour 56 minutes)
- Introduction
- Tariff Treatment for "Conditionally" Free or Reduced Duty
- Special Treatment Based on Importer
- Special Treatment Based on Disposition of Goods
- HTSUS Duty Columns
- Special Tariff Treatment Programs
- Duty Exemptions
- Commingling of Goods
- Unit of Quantity
- Valuation of Goods for Customs Entry Purposes
- Calculating Duty, Fees and Taxes
- Types of Duty Rates
- Ad Valorem Duty Rates
- Specific Duty Rates
- Compound Duty Rates
- Calculation of Duty
- To get Net Entered Value
- Calculation of Duty Included
- Computation of User Fees
- Agriculture Commodities Fees
- Unconditionally Free Goods
- Goods Subject to I.R. Tax
Entry Finalization and Recordkeeping Requirements
What is the importer's responsibility to report errors? How does CBP make liquidation decisions and how do they tell the import what they've decided? What is the difference between estimated duties and liquidated duties? What is liquidation? How does CBP ask for information? What records need to be kept, by whom, and for how long? We will cover this and more in this lesson.
(Estimated study time: 1 hour 4 minutes)
- Introduction
- The Entry Summary is the Importers Declaration
- Importer's Responsibility for Discovering and Reporting Errors
- Customs and Border Protection Responsibility for reviewing and Making Liquidation Decisions
- Difference Between Estimated Duties and Liquidated Duties
- Liquidation and Finalization of the Entry Summary
- Customs and Border Protection Notification of Liquidation
- A Change in Liquidation Can Result in an Increase or Decrease
- General Information About Audit Reviews by Customs and Border Protection
- Post Entry Changes Made By Customs and Border Protection (CBP)
- Customs and Border Protection Forms in the Automated Commercial Environment
- CBP Form 28 Request for Information
- CBP Form 29 Notice of Action
- CBP Form 4647 Notice to Mark/Notice to Redeliver
- Post Summary Request for Documents
- CBP Authority to Re-liquidate 1501
- Recordkeeping Requirements and Procedures
- Parties Required to Keep Records
- Record Retention Period
- U.S. Customs Broker Records
- Customs Broker Records Storage
- Customs Broker Records Maintenance
- Customs Broker Records Retrieval
- Customs Broker Destruction of Records
- Customs Broker Records Security
- Customs Broker's Confidentiality of Records
Post Entry Remedies for Error Correction
This lesson gives a short overview to provide an understanding of the work involved in correcting entries that are not done right the first time. It also stresses the importance of reporting and correcting any errors that may be discovered.
(Estimated study time: 50 minutes)
- Introduction
- Post Summary Correction (PSC) in Automated Commercial Environment (ACE)
- Protest CBP Form 19
- Goods Qualifying under Free Trade Agreement Rules of Origin 19 USC 1520(d)
- Petitions and Supplemental Petitions for Relief of Liquidated Damages
- Mitigation or Cancellation of Claims for Liquidated Damages
- Offer in Compromise
- U.S. Customs Reconciliation Entry Program
- Prior Disclosure of a Violation
- Duty Drawback Claims
U.S. Country of Origin and Marking Requirements
Rules of origin are needed in order to determine the country of origin of an article. Once the proper country of origin is determined, it must be marked on the product. Improper country of origin markings or removal of these markings after the fact is punishable by fines and/or imprisonment. There are some exceptions to the marking rules and some country of origin markings are required to be designed and applied in a certain way to be acceptable. We will touch on these requirements which can cause problems at the time of customs release.
(Estimated study time: 59 minutes)
- Introduction
- Rules of Origin Determine the Country of Origin
- Goods Produced in a Single Country
- Goods Produced in Multiple Countries
- Rules of Origin for Preferential and Non-preferential Treatment
- Rules of Origin for Non-Preferential Duty Rates
- Preferential Rules of Origin
- Marking the Country of Origin on the Product
Customs and Border Protection (CBP) Enforcement Provisions
Different types of import violations and penalties will be discussed along with mitigation techniques.
(Estimated study time: 53 minutes)
- Introduction
- Types of Import Violations
- Smuggling
- Fraudulent Documents and Declarations
- Documents Fraudulent from the Outset
- Altered Documents
- Trade Facilitation and Trade Enforcement
- Trade Facilitation and Trade Enforcement Act of 2015
- Forced Labor Investigations
- Investigation of Antidumping or Countervailing Duty Evasion
- Enforcement of Intellectual Property Rights
- CBP Enforcement of Other Government Agency Regulations
- Fines, Penalties, Forfeiture, Liquidated Damages, Petitions and Mitigation
- Penalties for Fraud, Gross Negligence, and Negligence (19 USC 1592)
- Petitions for Relief of Liquidated Damages
- Supplemental Petition for Relief
- Offer in Compromise
- CBP Administrative and Criminal Sanctions
- Administrative Sanctions
- Criminal Sanctions