U.S. Importer-Based Certification Overview. David Dolan U.S. Customs and Border Protection (CBP)

Transcription

1 U.S. Importer-Based Certification Overview David Dolan U.S. Customs and Border Protection (CBP) 1

2 The U.S. Importer-Based System Reasons for U.S. importer-based system Importer-based Certification Process for Importing Goods into the United States Verification of Trade Preference Claims Recordkeeping Requirements Importer Certification/Declaration Supporting Documentation Key Advantages 2

3 Reasons for Importer-Based Self- Certification North American Free Trade Agreement (NAFTA) The Customs Modernization Act ( Mod Act ) 3

4 North American Free Trade Agreement (NAFTA) NAFTA: implemented in 1994 Uses self-certification, but is an exporter-focused agreement Requires NAFTA Certificate of Origin to be filled out by the exporter/producer 4

5 North American Free Trade Agreement (NAFTA) NAFTA Certificate of Origin must be signed, dated, and in the possession of the importer when the NAFTA claim is made Requires the importer to obtain the certificate of origin even if the importer has first-hand knowledge of the production process Presented upon request to CBP Under the terms of the NAFTA, preference claims can be denied even if the goods are originating if the certificate of origin was not properly executed 5

6 North American Free Trade Agreement (NAFTA) CBP must receive the certificate of origin from the importer before beginning a verification Verifications are with the exporter/producer that signed the certificate of origin Importers can receive notices that a preference claim was denied with a bill for duties owed, even though they were not part of the verification process 6

7 Customs Modernization Act Also known as the Mod Act Became effective on December 8, 1993 New concepts: Informed compliance Shared responsibility Result: Importers held liable for meeting all U.S. laws and regulations applying to importations 7

8 Importer-Based Certification Allows an importer to make a claim for trade preference based on: Importer knowledge of the production process Reliance on certification by the producer or exporter with knowledge of the production process 8

9 Process for Importing Goods CBPF 1302 CBPF 7509 CBPF 7533 CBPF 3461 / 3461ALT Contract Purchase Order Manufacture Transportation Manifest Arrival/ Importation Entry/ Immediate Delivery CBPF 7501 & $ $ $ Notice of Redelivery Import Specialist Team Review Entry Summary Selectivity Results Entry Summary + Collection Release Cargo Selectivity Results 1) Warehouse 2) Export 3) Destroy Liquidation This is where preference claim is made. Detention Examination PROTEST? RELIQ Seizure 9

10 CBP Form Importing Carrier S.S. SANTA MARIA 12. B/L or AWB No. NOSU DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection ENTRY SUMMARY 9. Mode of Transportation Manufacturer ID TWFIGINC40TAI 1. Filer Code/Entry No Surety No Country of Origin TW 14. Exporting Country 16. I.T. No. 17. I.T. Date 18. Missing Docs 19. Foreign Port of Lading Location of Goods/G.O. No. L Ultimate Consignee Name and Address CVS Pharmacy Inc. One CVS Drive Attn: Import Department Woonsocket, Rhode Island City State Zip 22. Consignee No TW 23. Importer No. 2. Entry Type Bond Type 6. Port Code 1702 Form Approved OMB No Summary Date xx 7. Entry Date XX 11. Import Date XX 15. Export Date XX 20. U.S. Port of Unlading Reference No Importer of Record Name and Address CVS Pharmacy Inc. One CVS Drive Attn: Import Department Woonsocket, Rhode Island City State Zip Description of Merchandise 32. A. Entered Value 33. A HTSUS Rate 34. Duty and I.R. Tax B. CHGS B. AD/CVD Rate Line A HTSUS No. A Gross Weight Net Quantity in C. Relationship C IRC Rate Dollars No. B AD/CVD Case No B Manifest Only HTSUS Units D. Visa No CTN PVC DOLLS Cents The Special Program Indicator is placed before the Harmonized Tariff Schedule number on the CBP Form Dolls representing only human beings and parts and accessories thereof: Dolls, whether or not dressed Other KG 7,750 NO MERCHANDISE PROCESSING FEE $78,175 FREE 0.21% $0.00 $ Other Fee Summary for Block 39 MPF 449 $ HMF 501 $ Total Entered Value CBP USE ONLY TOTALS $ 78, Total Other Fees $ DECLARATION OF IMPORTER OF RECORD (OWNER OR PURCHASER) OR AUTHORIZED AGENT I declare that I am the Importer of record and that the actual owner, purchaser, or consignee for CBP purposes is as shown above. OR X owner A. LIQ CODE B. Ascertained Duty 37 Duty REASON CODE C. Ascertained Tax 38 Tax D. Ascertained Other 39 Other E. Ascertained Total 40. Total or purchaser or agent thereof. I further declare that the merchandise X was obtained pursuant to a purchase or agreement to purchase and that the prices set forth in the invoice are true, OR was not obtained pursuant to a purchase or agreement to purchase and the statements in the invoice as to value or price are true to the best of my knowledge and belief. I also declare that the statements in the documents herein filed fully disclose to the best of my knowledge and belief the true prices, values, quantities, rebates, drawbacks, fees, commissions and royalties and are true and correct, and that all goods or services provided to the seller of the merchandise either free or at reduced cost are fully disclosed. I will immediately furnish to the appropriate CBP officer any information showing a different state of facts. 41 DECLARANT NAME TITLE SIGNATURE DATE D. J. POWERS CHB President D.J.Powers XX 42. Broker/Filer Information (Name, address, phone number) 43 Broker/Importer File No /DJP For Paperwork Reduction Act Information click below. CBP Form 7501 (04/05)

11 Process for Importing Goods CBPF 1302 CBPF 7509 CBPF 7533 CBPF 3461 / 3461ALT Contract Purchase Order Manufacture Transportation Manifest Arrival/ Importation Entry/ Immediate Delivery CBPF 7501 & $ $ $ Notice of Redelivery Import Specialist Team Review Entry Summary Selectivity Results Entry Summary + Collection Release Cargo Selectivity Results 1) Warehouse 2) Export 3) Destroy This is where verifications take place. Liquidation This is where preference claim is made. Detention Examination PROTEST? RELIQ Seizure 11

12 Verification of Trade Preference Claims CBP verifies trade preference claims after goods are released Verification candidates chosen based on risk management principles Import specialist review: Records requested from importer Determination made and issued in writing by import specialist There is also a post-release audit process under which more exacting verifications may take place. Same rules apply 12

13 Recordkeeping Requirements Importers must have information available to substantiate their trade preference claim upon request by CBP Certification/Declaration Supporting documentation U.S. free trade agreements have a 5-year recordkeeping requirement for any party that certified that the good qualifies for a preference Exporter/producer must maintain records if he supplied a certification that goods qualify for the preference program. 13

14 Importer Certification/Declaration No set format required Does not need to be signed and in importer s possession at the time of the claim May apply to a single shipment of goods, or multiple shipments of identical goods within a specified period (up to one year in U.S. free trade agreements). 14

15 Importer Certification/Declaration Typical elements on an importer certification/declaration: Name and address of importer, exporter and producer Description of the good HS tariff classification number How the good qualifies for preference Commercial invoice number for single shipments Blanket period for multiple shipments of identical goods Certification Authorized signature of company representative with title, contact information, and date of certification 15

16 Supporting Documentation Supporting documentation requested by CBP depends on how a good qualifies for preference. Some examples of documents that may be requested include: Affidavits from growers (wholly obtained) Bill of materials showing classification, country of origin and value of all materials Invoices for the purchase of materials used to produce final good Affidavits from producers of qualifying materials Production records 16

17 Key Advantages Aligns importer obligations with benefits Reduces costs Provides greater flexibility to both importers and customs 17

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