Maintaining compliance with U.S. Customs and Border Protection can seem daunting, especially if you are new to the international trade industry. But you’re not alone. Even experienced professionals within the industry are constantly refining their knowledge and approach to customs compliance.
To get started, use the following tips as a guide to ensure U.S. Customs compliance.
Get to know the product
This may seem like a no-brainer, but when it comes to compliance, it’s best to start with a good knowledge of the products you plan to import. For example, questions to consider when choosing products to import are:
- Are the products subject to regulation by partner government agencies?
- Are there any free trade agreements in place that apply to these products?
- Are the products potentially subject to anti-dumping/offset?
- Is forced labor used in the production of this product?
Make sure you’re using the correct HTSUS
Misclassification is a very common problem for importers and can result in companies paying additional money to U.S. Customs if an additional duty bill is issued. Importers typically rely on U.S. customs brokers to classify goods with the correct HTSUS code, but you should always check the description of that code. harmonized tariff schedule.
Ultimately, the importer who brings the product into the United States is responsible for correctly classifying the product and is also responsible for any penalties resulting from misclassification. You can request Binding Judgment from US Customs Not sure how to categorize your items?
Vet your suppliers
Before choosing an overseas supplier, you should thoroughly analyze the supplier’s business. You should also request a sample of the product before importing.
Anti-dumping/countervailing measures may vary by manufacturer, so please check in advance whether they apply to your chosen supplier. If the supplier charges lower rates than its domestic competitors, anti-dumping or offsets may be the reason.
Correct country of origin indication
Make sure you use the correct label when declaring the country of origin of your products. Note that this is the country where the item was manufactured, grown, or produced, not necessarily the country that directly imports it. If you are importing goods from a supplier in India, but the goods were originally produced in China, the country of origin will be China.
Keep records to demonstrate that reasonable care was taken
Keeping your own records of your entry into the United States will be very helpful if U.S. Customs requests further documentation for any part of your import activities. It is generally recommended that documents be kept on file for a minimum of five years, but if possible, companies should establish a system to keep at least an entry summary of each entry on file indefinitely. .
Records on file must demonstrate that your company exercised reasonable care in its dealings with U.S. Customs. Reasonable care is not directly defined by CBP, as it is ultimately up to CBP to determine what reasonable care is in a particular situation. For this reason, it is best for importers to maintain their own records and not rely on external service providers for record-keeping.
Have a written import compliance program in place
Outlining a formal, written import compliance program for your company will ensure that your internal team works together and is aware of the risks associated with importing into the United States. Performing a meaningful risk analysis should be part of this process and should involve the appropriate senior personnel responsible for overseeing the internal import compliance program.
Make sure your address is always up to date
Notices from U.S. Customs will be sent to your company through the U.S. Postal Service. Therefore, having your correct address on file with Customs will ensure that you receive all correspondence that CBP sends regarding your entry. Also, if your mail is returned to CBP due to an incorrect address, your deposit will be considered insufficient and you will not be able to complete it until this is corrected.
Clearly identify internal responsibilities
At some point during the import process, you will receive correspondence from CBP regarding the entries you have made or the charges you have issued. It’s important to establish a process for how these notifications are handled, and perhaps most importantly, who is responsible for handling these notifications within your company.
Notices from CBP typically arrive company-wide and not to any specific individual. This can lead to important notifications getting lost in the mail room or on someone else’s desk if it’s not clear who in the company should receive them.
Quick response to customs
If you receive a CF-28, CF-29, or U.S. Customs Bond claim, you should take immediate action. Interacting with CBP can be time-consuming, so starting the process as soon as possible can help ensure compliance and often reduce costs for your company over time.
Hold U.S. customs bond with sufficient bond amount
have Sufficient US customs deposit on file is a required part of the import process. If the bond is determined to be insufficient by CBP, CBP will allow a limited period of time to issue a bond with a sufficient bond amount before completely halting the import if this requirement is not met. Masu.
The best way to ensure this requirement is met is as follows: Work with a bond provider This clearly communicates the bond and tracks bond fulfillment over time. Monitoring your deposit sufficiency throughout the year will help you avoid the stress of receiving a deficiency notice.
