How to Import into the US

Question

Is there a good way to reduce the amount of paperwork involved in online contracts? My agreements are generally very simple and go out to overseas suppliers and vendors. Setting up a new vendor can cost us close to a hundred dollars in courier fees to get the dcouments signed.

Answer

My suggestion is to use an online service where you can create your contract and collect a digital signature. Digital signatures can be as legally enforceable as pen and ink signauters and they greatly reduce the amount of time and resources required for physical documents.

There are several pay services available if you require a high level of detail in your document’s language, but most of our transactions are less than paragraph in length. We use the free service at signatureconfirm.com to create a semi-formal record with our vendors that detail things like order quantities, shipping methods, and terms of sale.

Please note: This article is intended for informational purposes only and is not specific legal advice. As an importer, it is your responsibility to meet all the legal requirements for importing goods.

Normally when freight arrives in the US, a Customs entry is filed at the port of arrival. If it comes into Los Angeles, it is Customs cleared in Los Angeles (all import freight must be approved by US Customs before it can be released into the commerce of the US).

Sometimes however, it is beneficial for importers to move freight to another Customs port and to file a Customs entry there. In that case, Customs assigns an IT number to grant permission to the importing carrier to move the freight prior to clearance to another Customs approved, bonded warehouse in another port. IT numbers or (Inbond Transit) numbers come in several formats – they can be nine numerical digits, they can start with a V for ocean shipments, or they can be the same number used on an air shipment master bill.

The IT number must be properly reported to US Customs when the import broker files the entry. Freight said to be “moving on an IT” is traveling inbond from the port of entry to another port for clearance.

Importers bringing merchandise into the United States for consumption must place their goods in a bonded facility while entry is filed with Customs. Goods remaining in a bonded facility for fifteen calendar days without an entry filed will be moved to a Customs approved, GO (General Order) bonded warehouse. There the goods will remain for six months from the date of import. If after six months, the goods have not been documented and duties/fees paid, they will be sold at auction, donated to charity or retained by the Government. Bonded warehouses must notify Customs of un-entered goods not later than 20 calendar days from the date of arrival in the port of import. Warehouse/vessel operators failing to report un-entered merchandise are subject to a penalty of up to one thousand dollars per bill of lading.

Question

What’s the maximum amount of money Customs can fine a person for negligence in importing (if the circumstances were not disclosed beforehand to Customs)?

Answer

According to 19 CFR 162.73(a)(3)(ii), an importer can be penalized 20% of the dutiable value of the goods.

Question

Are fines with Customs set in stone? Do they have any room to work with importers for special circumstances?

Answer

Customs can work with penalties and mitigate fines at their discretion if

1. The importer is inexperienced, and the fine/penalty is a result of that inexperience
2. The importer in violation takes steps to correct the source of the penalty (remarking goods, repackaging, fumigation, etc.)
3. The importer has a long-standing history of violation-free imports.
4. An error was made by Customs.

Question

What would cause Customs to seize merchandise?

Answer

According to 19 CFR 171 Appendix B G, Customs decision to seize merchandise can be influenced if:

1. The commodity is prohibited for import.
2. There is an import restriction on the merchandise.
3. The importer has stopped paying required duties and taxes on their imported merchandise.
4. Customs believes they must seize an importer’s goods in order to ensure they receive payment.

Question

After making a verbal report to Customs about an import violation, how long do I have to provide a written statement?

Answer

According to 19 CFR 162.74(a)(2), an importer has 10 days from the time the oral report is made to provide a written statement to the Fines, Penalties and Forfeitures Officer.

Question

I’ve made an error with Customs in the amount of duty I have to pay and have been penalized, but Customs has agreed to a reduced amount to cover everything I owe. How can I make sure it’s official?

Answer

This is known as “an offer in compromise.” In order for it to be official, you must receive notification in writing from CBP that they received the offer.

Question

We imported a commodity that displayed a trademark which we do not own and Customs seized the shipment. The trademark owner gave us written permission to import the merchandise fourteen days after we were notified of the seizure. How long do we have to get the seizure and penalty reversed?

Answer

You have thirty days from the date the notice of seizure was mailed to petition for relief.

Please note: This article is intended for informational purposes only and is not specific legal advice. As an importer, it is your responsibility to meet all the legal requirements for importing goods.

The U.S. International Trade Commission (ITC) today released its report examining the export potential of, and trade barriers faced by, sub-Saharan African countries eligible for trade preferences under the African Growth and Opportunity Act (AGOA).

The ITC, an independent, nonpartisan, factfinding federal agency, conducted the investigation at the request of the United States Trade Representative (USTR). The report, Export Opportunities and Barriers in African Growth and Opportunity Act-Eligible Countries, is intended to assist the President in conducting a study requested by Congress under the AGOA Acceleration Act. As requested by the USTR, the ITC’s study is limited to the 37 AGOA-eligible countries in sub-Saharan Africa. The report identifies, for each AGOA-eligible country, the major economic sectors with the greatest potential for growth in export sales and domestic and international barriers that impede trade growth in such sectors. Highlights of the report follow.

• Sectors or products exhibiting potential export growth include: existing exported products that a country could increase through improved productivity or product quality; products that reflect a country’s endowment strengths, but have not been exported in significant quantities; and products that represent downstream processing of existing export products. Export growth may also arise from increased export market diversification or increased penetration of existing markets.
• Barriers to increasing exports can arise from international or domestic policies, as well as geographic or regional trade-related features. ITC research in selected AGOA-eligible countries, especially interviews of company, association, and government representatives, as well as secondary sources, cited domestic impediments as the major barriers to increased exports. Hence, in the report, the examination of barriers that limit export growth focuses primarily on domestic barriers and impediments. International and domestic barriers are broadly defined to include impediments related directly to international transactions, as well as domestic factors within each AGOA-eligible country that impede export growth.
• The 37 AGOA-eligible countries have been categorized into nine country groups based on similar export patterns. The nine country groups are: petroleum-exporting countries (Angola, Cameroon, Gabon, Nigeria, and Republic of the Congo); predominantly mineral-exporting countries (Botswana, Democratic Republic of the Congo, Guinea, and Zambia); moderately mineral-exporting countries (Mozambique, Niger, Rwanda, Sierra Leone, and South Africa); cotton-exporting countries (Benin, Burkina Faso, Chad, and Mali); fish-exporting countries (The Gambia, Mauritania, Namibia, Senegal, Tanzania, and S o Tom and Principe); coffee, tea, and spice-exporting countries (Ethiopia, Kenya, and Uganda); other agriculture-exporting countries (Ghana, Guinea Bissau, Malawi, and Swaziland); apparel-exporting countries (Lesotho, Madagascar, and Mauritius); and transport services-exporting countries (Cape Verde, Djibouti, and Seychelles).
• Export Opportunities and Barriers in African Growth and Opportunity Act-Eligible Countries (Investigation No. 332-464, USITC Publication 3785, October 2005) will be available on the ITC’s Internet site at www.usitc.gov. A CD-ROM of the report may be requested by calling 202-205-1809 or by writing the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

ITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the Senate Committee on Finance, or the House Committee on Ways and Means. The resulting reports convey the Commission’s objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the ITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

This is the first time this dangerous Beetle has been found in the United States

MIAMI U.S. Customs and Border Protection (CBP) is responsible for ensuring that no intruders enter the United States undetected. This includes intruders of the six-legged variety. On March 1, 2006, CBP Agriculture Specialists were conducting an inspection of merchandise arriving from China, when they discovered a long-horned beetle, Rhytidodera bowringii, in a container of granite counter tops.
The live beetle was captured by a CBP Agriculture Specialist and sent to the USDA National Identification Service located in Washington, DC. Scientists there identified the beetle and verified that it was a first time interception in the United States.

The pest attacks mango trees, cashew and other trees by burrowing into trunks and branches, causing branch breakage, dieback, and eventually death. It has been reported that this pest is responsible for the destruction of more than 100 mango plantations on Hainan Island in China.

Florida is the number one producer of mangos in the United States. Over eighty percent of Florida mango production occurs in Miami-Dade County. Following an outbreak of citrus canker in Florida, and the ensuing destruction of millions of citrus trees throughout the state, many residents planted mango trees. The long-horned beetle poses a serious threat to Florida trees. CBP will continue to take the appropriate steps to keep this beetle and other agricultural pests that pose a threat out of the United States.

“This significant pest interception demonstrates the critical nature of the CBP mission, and the expertise of our highly trained CBP Agriculture Specialists,” stated Thomas S. Winkowski, CBP Director, Field Operations, Miami Field Office. “If this pest were to infest our mango trees, the results could be devastating to our local crops and could have significant economic impact on Florida farmers,” he added.

October 20, 2005, Washington, D.C. Today, United States Customs and Border Protection (CBP) Commissioner Robert C. Bonner and Canada Border Services Agency (CBSA) President Alain Jolicoeur signed a Container Security Initiative (CSI) partnership arrangement to move forward on the commitment of both countries to securing North American trade.

“The United States and Canada have implemented revolutionary initiatives to secure our countries borders, yet improve the flow of legitimate trade and people across our borders. Together, we have reinvented our mutual border and how we manage it,” said Commissioner Bonner. “The agreement we signed today represents a commitment between the U.S. and Canada to partner in one of the most revolutionary initiatives, CSI, to extend our mutual zones of security outward to foreign seaports.”

The CSI partnership arrangement was signed during the 12th meeting since 9/11 under the U.S./Canada Accord on our Shared Border and Commissioner Bonner’s last as Commissioner of the U.S. Customs and Border Protection.

“The signing of this arrangement is yet another example of how Canada and the United States work closely together to ensure the safety, security, and prosperity of both our countries,” said President Jolicoeur. “CSI is a valuable program that will assist us to ensure that the North American perimeter remains secure while improving the flow of trade at our maritime ports.”

The United States and Canada continue to take significant steps forward in coordinated efforts to increase the overall effectiveness of the respective border security programs. Goals/accomplishments include:

U.S. Customs and Border Protection (CBP) has for many years allowed different parties to be identified as the Ultimate Consignee for shipments of imported merchandise. This is largely due to concerns expressed by some entry filers over the difficulty in obtaining the correct Ultimate Consignee identification number at the time of entry or release. The current policy was written prior to September 11, 2001, and does not reflect the current need for accurate and advanced Ultimate Consignee data so that arriving shipments can be effectively targeted for security and enforcement examinations.

The Ultimate Consignee at the time of entry or release is defined as the party in the United States, to whom the overseas shipper sold the imported merchandise. If at the time of entry or release the imported merchandise has not been sold, then the Ultimate Consignee at the time of entry or release is defined as the party in the United States to whom the overseas shipper consigned the imported merchandise. If the merchandise has not been sold or consigned to a U.S. party at the time of entry or release, then the Ultimate Consignee at the time of entry or release is defined as the proprietor of the U.S. premises to which the merchandise is to be delivered.

For entry release, the current Ultimate Consignee reporting policy is outlined in CBP Directive 3550-079A, which requires that the Ultimate Consignee on a formal entry be identified with its appropriate identification number or an ABI transmission of the Ultimate Consignees name and address.

For informal entries, the Ultimate Consignee can be identified by an ABI transmission of the Ultimate Consignees name and address, but may also be identified with any of several other optional identification methods that may identify a different party as the Ultimate Consignee. For both types of entries, this policy has resulted in inaccurate historical Ultimate Consignee data, which seriously undermines CBP efforts to manage the security related risks associated with arriving shipments of imported merchandise.

For entry summary, the current Ultimate Consignee reporting policy is outlined in CBP Directive 3550-061 (later amended by administrative message 92-0717) that identifies the Ultimate Consignee number as the Internal Revenue Service employer identification number, the social security number or the CBP assigned number.

Note: CBP Assigned numbers are issued to non-resident corporations or individuals and therefore should rarely be used as the Ultimate Consignee number. This policy applies to both formal and informal entries.

The purpose of this letter is to correct weaknesses in the current CBP policy pertaining to the identification of the Ultimate Consignee at the time of entry or release and to unify entry release and entry summary Ultimate Consignee procedures. This policy change will incorporate the following:

• Formal Entries: The Ultimate Consignee on a formal entry must be identified with an appropriate Ultimate Consignee identification number, and may not be identified with an ABI transmission of the Ultimate Consignees name and address. If the Ultimate Consignee has not been issued an appropriate identification number as listed above, he/she must obtain one before his/her entry can be processed by CBP. If the Ultimate Consignee identification number is not provided at the time of entry or release, entry of the merchandise shall be denied.

   

• Informal Entries: At a minimum, the Ultimate Consignee must be identified with the Ultimate Consignees name and address, which can be provided to CBP through either an ABI transmission or through other available means to include manual processing methods.

  Note: In most cases the address will be a U.S. address not a foreign one. If a name and address is provided for Ultimate Consignee, the entry will not be allowed to be paperless and entry documents will be required for release. The Ultimate Consignee may also be identified by an appropriate identification number (as noted above), if one is provided by the entry filer.

  If the Ultimate Consignee is not identified by either an appropriate identification number or a name and address at the time of entry or release, entry of the merchandise shall be denied.

   

• Consolidated Entries: Consolidated release and entry summary is used by shippers and importers for shipments that have multiple ultimate consignees arriving at the border in a single conveyance. The Ultimate Consignee for each portion of a consolidated entry that equals or exceeds $2,000 in value must be identified with an appropriate Ultimate Consignee identification number. If the Ultimate Consignee does not have an appropriate identification number, he/she must obtain one before his/her entry can be processed by CBP. If the Ultimate Consignee identification number is not provided at the time of entry or release, entry of the merchandise shall be denied.

  For portions of a consolidated entry that are valued at less than $2,000, the Ultimate Consignee must at a minimum be identified with the Ultimate Consignees name and address but may also be identified with an appropriate Ultimate Consignee identification number if provided by the entry filer. If the Ultimate Consignee is not identified with either the name and address or an appropriate identification number at the time of entry or release, entry of the merchandise shall be denied.

  Due to ACS limitations, when consolidated entries are certified from summary data at the time of entry or release, the portion of the consolidated entry with the highest value must be included with the ABI transmission, while the Ultimate Consignees associated with the remaining portions of the consolidated entry must be identified on a separate list that must be attached to the entry package.

The policy for Ultimate Consignee number reporting format will be amended as follows:

• U.S.-Based Ultimate Consignees: The appropriate Ultimate Consignee identification number for U.S.-based ultimate consignees is defined as either an Internal Revenue Service employer identification number or a Social Security number. U.S.-based Ultimate Consignees are not to be identified with a CBP-issued Ultimate Consignee identification number.

  If a U.S.-based Ultimate Consignee does not have either an Internal Revenue Service employer identification number or a Social Security number, he/she must obtain one for any shipments that require the Ultimate Consignee to be identified with an appropriate Ultimate Consignee identification number. If the appropriate Ultimate Consignee identification number is not provided at the time of entry or release, entry of the merchandise shall be denied.

   

• Foreign-Based Ultimate Consignees: In the limited instances in which imported merchandise is consigned to an Ultimate Consignee that is not based in the United States, the Ultimate Consignee must be identified with a CBP-issued Ultimate Consignee identification number for formal entries, or in the case of informal entries, including consolidated entry lines with a value less than $2000, may be identified with either a CBP-issued Ultimate Consignee identification number or the name and address of the foreign-based Ultimate Consignee.

  CBP-issued Ultimate Consignee identification numbers are only to be used to identify foreign-based Ultimate Consignees and must be based on the name and address of the foreign-based Ultimate Consignee. If the foreign-based Ultimate Consignee does not have a CBP-issued Ultimate consignee number, he/she must obtain one before his/her entry can be processed by CBP. If the appropriate CBP-issued Ultimate Consignee identification number is not provided at the time of entry or release, entry of the merchandise shall be denied.

These reporting requirements will become effective October 1, 2004. A memorandum has been sent to the Directors, Field Operations that will serve as interim policy guidance until the current directives can be modified. Inspectors have been instructed to verify entry documentation to ensure that it conforms to the new Ultimate Consignee reporting policy. Non-compliant shipments will not be released. In addition, entry filers that violate the new policy may be subject to the issuance of penalties for failure to exercise due diligence.

I thank you for your assistance in disseminating this information to your members and for your efforts in assisting CBP in its mission of protecting the people of the United States from terrorism.

Sincerely,

Jayson P. Ahern
Assistant Commissioner
Office of Field Operations

In a final rule published in the Federal Register on September 16, 2004, the U.S. Department of Agriculture (USDA) amended its regulations with the goal of decreasing the risk of introducing plant pests into the United States. USDA has adopted the international standard for wood packaging material (WPM) that was approved by the International Plant Protection Convention (IPPC) on March 15, 2002. The IPPC standard calls for most WPM to be either heat treated or fumigated with methyl bromide in accordance with the Guidelines and marked with an approved international mark certifying that treatment. The final rule, which becomes effective on September 16, 2005, will affect all persons using wood packaging material in connection with importing goods into the United States.

Agriculture Specialists keep imported flowers free of insects, pests, and diseases

U.S. Customs and Border Protection (CBP) agriculture specialists are making sure that the bouquet of flowers you order for your sweetheart this Valentine’s Day is free from insects, pests and diseases that could harm the agricultural and floral industries in the United States.

Whether it’s rare orchids from Thailand or roses from Colombia, it is the job of the CBP agriculture specialist to carefully inspect them before they get to the florist, the grocery store or the sidewalk stand.
CBP agriculture specialists are specially trained in how to inspect cut flowers, plants and fresh herbs for signs of insects, pests or diseases. During the inspection, if an infested shipment is found, a sample of the insect, pest or disease is sent to a U.S. Department of Agriculture identifier.

If the sample is “actionable,” that is, not known to exist in the United States, or is an exotic invasive species detrimental to American agriculture, the shipment is ordered for fumigation, destruction, or reexport. If not actionable, the shipment is released to the importer or consignee.

The top three U.S. ports of entry that receive the most imported cut flowers are Miami, Los Angeles and New York. In a single shipment, CBP agriculture specialists working at any of these ports inspect samples representing up to 50 different varieties of cut flowers.

The top three imported cut flowers are roses, carnations and chrysanthemums. In 2005, more than 6,000 actionable insects or pests were intercepted at the port of Miami. The most common insects found were leaf miners, caterpillars and leaf bugs.

At international ports of entry, land borders, and international mail facilities, CBP agriculture specialists are the front line in the fight against the introduction of insects, pests and diseases into the United States.