12 steps to pre-shipment planning

Transcription

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2 12 steps to pre-shipment planning 1. Start at least 45 days before shipping. 2. Select a broker & transport company. 3. Register product with government agencies. 4. Plan a joint meeting with your broker and Customs. 5. Decide on marking and labeling. 6. Determine tariff classifications. 7. Determine & Free Trade Agreement qualifications. 8. Complete product valuation. 9. Purchase a continuous bond. 10. Review your documents with your broker. 11. Set up a recordkeeping program. 12. Document your processes.

3 Pre- Shipment Planning

4 Collect & Analyze Develop Sourcing Strategies Sourcing Process & Compliance Best Practices Evaluate & Select Suppliers Manage RFP & Auctions Profile Suppliers Implement Sourcing Agreements Continuous Improvement

5 ROLE OF YOUR BROKER

6 Your Customs Broker advises on import regulations prepares docs for Customs entry uses U.S. harmonized tariff system

7 Who is responsible for providing all of the correct information on an entry summary? a. forwarder b. Customs broker c. President Obama d. importer e. shipper

8 Who is responsible for providing all of the correct information on an entry summary? a. forwarder b. Customs broker c. President Obama d. importer e. shipper

9 When is reasonable care required?

10 reasonable care penalties 2x loss of revenue for negligence 4x loss of revenue for gross negligence 20% of entered value for negligent non-revenue loss 40% of entered value for grossly negligent non-revenue loss

11 8 steps to compliance tariff classification valuation free trade agreements marking

12 8 steps to compliance other agencies documentation recordkeeping procedures

13 COMPLIANCE!

14 U.S. harmonized tariff schedule aka HTSUS classify product HTSUS code HTSUS code duty rate

15 General Rules of Intepretation how to classify your products

16 BINDING RULINGS BEST TOOL FOR COMPLIANCE

17 methods of valuation transaction value deductive value computed value value if other values cannot be determined

18 common valuation pitfalls related parties non-dutiable charges assists selling commissions repairs royalties/licensing payments returns

19 free trade agreements your goods must... qualify before making claim have FTA declaration/nafta certificate to qualify

20 The penalty for an improper NAFTA claim is $ per transaction

21 The penalty for an improper NAFTA claim is $ 10,000 per transaction

22 ? Is a NAFTA certificate required for goods to enter a NAFTA country

23 Import Marking 19 CFR conspicuous place legible indelibly and permanent indicates origin to ultimate purchaser in the U.S includes name of country of origin

24 Bad marking?

25 Bad marking

26 What is the J-list? a. a list of the materials that U.S. Customs classifies as junk b. a list of exemptions from marking c. Jennifer Lopez s favorite ipod playlist

27 What is the J-list? a. a list of the materials that U.S. Customs classifies as junk b. a list of exemptions from marking c. Jennifer Lopez s favorite ipod playlist

28 CBP: Enforcer of 40+ agencies!

29 Documentation

30 Customs invoice errors make sure you're not missing these items... country of origin Incoterm tariff number value piece count ultimate consignee no. gov't agency docs description of goods CBP ruling number

31 Recordkeeping

32 What's a Customs bond?

33 Customs bond A guarantee (like an insurance policy) to ensure all financial/regulatory obligations will be met An importer may buy a single transaction or an annual continuous bond.

34 What is "liquidation"? a. when Customs melts or liquefies imported goods to test for illegal drug content b. the final review of a Customs entry, including final calculation of duties c. the process by which Customs destroys counterfeit merchandise

35 What is "liquidation"? a. when Customs melts or liquefies imported goods to test for illegal drug content b. the final review of a Customs entry, including final calculation of duties c. the process by which Customs destroys counterfeit merchandise

36 Do I need an import compliance manual?

37 Best Practices

38 12 steps to pre-shipment planning 1. Start at least 45 days before shipping. 2. Select a broker & transport company. 3. Register product with government agencies. 4. Plan a joint meeting with your broker and Customs. 5. Decide on marking and labeling. 6. Determine tariff classifications. 7. Determine & Free Trade Agreement qualifications. 8. Complete product valuation. 9. Purchase a continuous bond. 10. Review your documents with your broker. 11. Set up a recordkeeping program. 12. Document your processes.

39 ? what's the best way to control risk

40 work with 1 Customs broker

41 create and share your tariff database with your broker

42 schedule regular meetings with your broker

43 conduct post-entry audits disclose any errors

44 THANK YOU Sherie Cuddy Senior Advisor LCHB CCS Licensed U.S. Customs Broker Certified Customs Specialist