C22u—Customs Entry Procedures and Enforcement

Subscriber price: $117.00, Non-subscriber price: $169.00
Estimated total study time: 11 hours 23 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 15 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 3 minutes)

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 25 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
- U.S. Customs Brokerage and Service Fees Deducted from the Invoice Price
- U.S. 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

Reading the Tariff Page

This lesson will examine the structure of the HTSUS number, which is 10 digits long and includes the global tariff number from the Harmonized System (HS). We will then delve into the various columns on the page, including headings/subheadings, statistical suffix, article description, unit of quantity and what they represent. Additionally, we will discuss the duty columns and how they indicate different rates of duty based on trade relations and special tariff treatment programs.

(Estimated study time: 1 hour 8 minutes)

Special Tariff Treatment and Duty Exemptions

In this lesson, we will discuss the duty exemptions outlined in HTSUS General Note 3(e), which specify certain articles that are not subject to customs duties. Additionally, we will cover the implications of commingling goods, the distinction between unconditionally free and conditionally free goods, and the special tariff treatment programs available.

We will also delve into the special treatment based on the importer and the disposition of goods. This includes understanding how certain articles, such as those exported and returned or temporarily imported under bond, are treated under U.S. Customs regulations which is a "condition" of them entering duty free. Furthermore, we will cover the exemptions for goods for personal use and commercial samples.

(Estimated study time: 1 hour 2 minutes)

Introduction
Most Commodities are Classifiable
Duty Exemptions
Commingling of Goods
Unconditionally Free Goods
Tariff Treatment for "Conditionally" Free or Reduced Duty
Special Treatment Based on Importer
Special Treatment Based on Disposition of Goods
Goods for Personal Use and Commercial Samples Exempt from Quota

Calculating Duties Fees and Taxes

This lesson provides an in-depth understanding of U.S. Customs duty on imports. The lesson covers the different types of duty rates, including ad valorem, specific, and compound duty rates, and explains how these rates are applied to imported goods. It also delves into the valuation of goods for customs entry purposes and the calculation of duties, including the treatment of user fees and agricultural commodities fees.

(Estimated study time: 59 minutes)

Introduction
Rates of Duty
Types of Duty Rates
- Ad Valorem Duty Rates
- Specific Duty Rates
- Compound Duty Rates
Valuation of Goods for Customs Entry Purposes
Calculation of Duty Included
Computation of User Fees that can be Deducted
Agriculture Commodity Fees are not Deducted
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 23 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
- Recordkeeping in the Automated Commercial Environment (ACE)
- 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: 58 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: 1 hour 9 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: 1 hour 0 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