CHAPTER XI CUSTOMS CLEARANCE 1 CONTENTS Entry Process

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CHAPTER XI CUSTOMS CLEARANCE 1

CHAPTER XI CUSTOMS CLEARANCE 1

CONTENTS ¨ ¨ ¨ ¨ Entry Process of Goods Types of Entry Evidence of

CONTENTS ¨ ¨ ¨ ¨ Entry Process of Goods Types of Entry Evidence of Right to Make Entry for Importations Entry Documents Surety Entry Summary & Payment of Duties Electronic Entry Filing Immediate Delivery Application prior to Arrival Entry for Bonded Warehouse Unentered Goods Mail Entries Examination of Goods & Entry Documents Classification Liquidation Protest and Litigation 2

1. Entry Process of Imported Goods ¨ Entry means filing required documentation with US

1. Entry Process of Imported Goods ¨ Entry means filing required documentation with US Customs to secure the release of imported merchandise ¨ Goods are legally entered when 1)Shipment has arrived within port of entry 2)Release of goods is authorized by Customs 3)Estimated duties have been paid ¨ Articles subject to approval or acceptance by other government agency: Its approval must be obtained first prior to release of articles by Customs 3

2. Types of Entry 1) Consumption entry: For resale after importation 2) Transportation entry:

2. Types of Entry 1) Consumption entry: For resale after importation 2) Transportation entry: To interior destination for customs clearance in bond 3) Warehouse entry: To enter Customs-bonded warehouse for 5 years maximum. No explosives & perishables 4) Warehouse withdrawal entry: To pay duty only on withdraw from Customs-bonded warehouse 5) Immediate export entry: To reroute goods via US port to foreign country 6) Baggage declaration and entry: By a traveler 4

3. Evidence of Right to Make Entry u Person who has a right to

3. Evidence of Right to Make Entry u Person who has a right to make entry 1) 2) 3) 4) Owner Purchaser Consignee Licensed customs broker with a power of attorney u Documents for ownership 1) Original Bill of Lading, Air Waybill, Sea Waybill 2) Carrier’s Certificate 5

4. Entry Documents Within 15 calendar days of arrival of shipments, the following entry

4. Entry Documents Within 15 calendar days of arrival of shipments, the following entry documents must be filed 1) 2) 3) 4) 5) 6) Entry/Immediate Delivery (CBP Form 3461) Evidence of right to make entry Commercial Invoice or Pro forma invoice Packing list if appropriate Customs bond (Surety) Other documents required for particular shipments 7) Identification of a new buyer, if sold during transit 6

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5. Surety (Customs Bond) ¨ Guarantee to U. S. Customs by a surety company

5. Surety (Customs Bond) ¨ Guarantee to U. S. Customs by a surety company ¨ Must be posted with Customs at the time of entry to cover potential duties, taxes, and penalties 1) Single transaction bond : for one time importation 2) Continuous bond : During a bond period, one year 8

6. Entry Summary & Payment of Duties ¨ Within 10 working days of the

6. Entry Summary & Payment of Duties ¨ Within 10 working days of the entry of imported goods, Entry summary (Customs Form 7501) must be filed and estimated duties must be paid. § Duties are personal debts § To make a check payable to U. S. Customs & Border Protection" rather than to "Customs broker. " 9

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7. Electronic Entry Filing ¨ Automated Commercial Environment (ACE) § U. S. Customs &

7. Electronic Entry Filing ¨ Automated Commercial Environment (ACE) § U. S. Customs & Border Protection (CBP)’s system designed to facilitate importing and exporting goods while enhancing border security § The single window for electronically filing import and export data with the CBP § Improves collection, sharing, and processing of information submitted to CBP and government agencies 11

8. Immediate Delivery Application prior to Arrival t t t Entry/Immediate Delivery (Form 3461)

8. Immediate Delivery Application prior to Arrival t t t Entry/Immediate Delivery (Form 3461) & Customs bond must be filed prior to arrival of merchandise Entry summary and estimate duty : Within 10 working days of release Limited to 1) Goods from Canada or Mexico 2) Fresh fruits and vegetables from Canada or Mexico 3) Goods for U. S. Government 4) Goods for trade fair 5) Tariff-rate Quota goods 6) Goods specially authorized by Customs headquarters 12

9. Entry for Bonded Warehouse t To be placed in Customs-bonded warehouse for future

9. Entry for Bonded Warehouse t To be placed in Customs-bonded warehouse for future release t The maximum period is 5 years from the date of importation t Goods may be manipulated by cleaning, sorting, repacking or other processes, but not manufacturing t Perishable goods, explosives or prohibited articles are not allowed 13

10. Unentered Goods t If entry documents not filed within 15 calendar days after

10. Unentered Goods t If entry documents not filed within 15 calendar days after arrival, goods may be placed in a general order(G. O) warehouse at the risk and expense of the importer. t Carriers, not port directors, are required to notify bonded warehouse of unentered merchandise t If not entered in 6 months, goods are sold at public auction § CBP has authorized EG&G/CWS Marketing & Rod Robertson Enterprises to auction off them 14

11. Mail Entries t If not exceeding $2, 000, duties are collected by postman.

11. Mail Entries t If not exceeding $2, 000, duties are collected by postman. No entry form required. $5 processing fee. t If over $2, 000, commercial invoice required for a formal entry t Some sundry products limited to $250 t Packages whose declared value is under $200 ($100 if being sent as a gift to someone other than the purchaser) are generally cleared without any additional paperwork prepared by CBP 15

12. Examination of Goods and Entry Documents t In order to determine, 1) The

12. Examination of Goods and Entry Documents t In order to determine, 1) The value of goods and their dutiable status 2) Whether country of origin is properly marked 3) Whether contains prohibited articles 4) Whether correctly invoiced 5) Whether excess or shortage of invoiced quantity 6) Whether contains illegal narcotics 16

13. Classification t Classification & appraisement are the two most important factors affecting dutiable

13. Classification t Classification & appraisement are the two most important factors affecting dutiable status of the imported goods t All products are classified either of 1) By items that name them 2) By general description 3) By component materials 4) By actual or principal use 17

14. Liquidation ¨ Duties paid at the time of entry are estimated duties. ¨

14. Liquidation ¨ Duties paid at the time of entry are estimated duties. ¨ Customs final determination of exact amount of duty owed on the shipment after reviewing the classification and appraisement ¨ Post Notice of Liquidation on a public bulletin board ¨ Send Courtesy Notice of Liquidation (Form 4333 A) ¨ The estimated duty paid is deemed liquidated, if not liquidated within one year unless extended for another year. Total four years from the date of entry 18

15. Protest and Litigation ¨ If the importer does not agree with the liquidation,

15. Protest and Litigation ¨ If the importer does not agree with the liquidation, he may file a protest to claim 1) 2) 3) 4) 5) 6) 7) Appraised value of goods Classification, rate and amount of duty All charges Exclusion of goods from entry Liquidation or any modification Refusal to pay a drawback claims Refusal to reliquidate an entry ¨ Protest: Within 180 days after liquidation on CBP Form 19 ¨ Litigation: Within 180 days after denial of protest with U. S. Court of International Trade 19