CHAPTER XIII CUSTOMS CLEARANCE Entry Process of Goods

CHAPTER XIII CUSTOMS CLEARANCE ¨ ¨ ¨ Entry Process of Goods, Types of Entry Evidence of Right to Make Entry Documents , Surety Entry Summary & Payment of Duties Automated Commercial Environment (ACE) Immediate Delivery Application prior to Arrival Entry for Bonded Warehouse Unentered Goods Informal Entry of Goods, Mail Entries Examination of Goods & Entry Documents Classification, Liquidation Protest and Litigation 1

Entry Process of Imported Goods ¨ Entry means filing required documents with US Customs ¨ 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 2

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

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

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

Customs Bond (Surety) ¨ ¨ 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 6

Entry Summary & Payment of Duties ¨ Within 10 working days of entry of imported goods, § Entry summary (Customs Form 7501) must be filed and estimated duties must be paid. § Duties are personal debts § Checks made payable to : U. S. Customs & Border Protection" rather than to "Customs broker. " 7

Automated Commercial Environment (ACE) § Primary import and export data collection & sharing system as the Single Window § All entry and associated entry summaries must be filed via ACE Secure Data Portal (ACE Portal) using Electronic Data Interchange (EDI) § ACE Portal: A free, web-based access point to connect CBP, trade partners(filers), & Partner Government Agencies (PGAs) § EDI: Electronic communication framework that provides standards for exchanging data electronically 8

Automated Commercial Environment (ACE) § Filings transmitted through EDI link to all systems of CBP and Partner Government Agencies (PGAs). No double filing with other agencies. § Created by Executive order “Streamlining the Export/Import Process for America’s Business” singed by Pres. Obama in February 2014 9

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 HQ 10

Entry for Bonded Warehouse t t Enter Customs-bonded warehouse for future release Maximum 5 years Goods may be manipulated by cleaning, sorting, repacking or other processes, but not manufacturing Perishable goods, explosives or prohibited articles are not allowed 11

Unenterd Goods t t t If entry documents not filed within 15 calendar days after arrival, goods may be placed in a general order(G. O) warehouse. Carriers, not port directors, are required to notify bonded warehouse of unentered merchandise If not entered in 6 months, goods are sold at public auction t CBP has authorized CWS Marketing Group to auction off them 12

Mail Entries t If shipment value not exceeding $2, 000, CBP officer prepares entry form & duties are collected by postman plus $5 processing fee by CBP. 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 13

Examination of Goods and Entry Documents t In order to determine 1) 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 14

Classification t All products are classified either of 1) 2) 3) 4) By items that name them By general description By component materials By actual or principal use 15

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) ¨ Deemed liquidated, if not liquidated within one year unless extended for another year. Total four years 16

Protest and Litigation 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 17