Your Broker Knows

For those that were unable to attend the U.S. Customs Compliance Seminar, presented by Pacific Customs Brokers on October 27, 2010, we have listed below the 5 MOST COMMON entry mistakes made by Importers at the Blaine Crossing, as identified by a guest speaker from U.S. Customs and Border Protection.

1. Classification Where it all starts…the first six (6) digits. These digits are critical and must be correct. The Harmonized Tariff Schedule determines the correct duty rate for your imported products. There are right ways and wrong ways to determine tariff classifications.
2. NAFTA Rules of Origin. Producers, Exporters and Importers all have a role to play in assuring the accuracy of a NAFTA claim. This correctly completed document assures duty free status of goods originating in Canada, the United States or Mexico.
3. Country of Origin marking.   Importers are required to ensure that goods are legibly, permanently and indelibly marked with their country of origin, which may not be the same as country of purchase. Importers should reference U.S. Customs Regulations (19 CFR 134) to ensure compliance regarding markings and J list exemptions. Please note that Importers must take care when reusing boxes — all previous markings must be eliminated to ensure that the correct country of origin markings are the only ones visible.
4. Value.   It is incumbent on the Importer of Record that the proper value of the imported goods be declared to Customs. There may be legitimate deductions or additions to be made to the bottom line for valuation purposes. These adjustments must be supported by proper documentation at the time of entry.
5. U.S. Goods Returned.   Importers must provide appropriate documentation that goods were manufactured in the U.S. in order to declare USGR on entry. Maintaining a close relationship with your U.S. vendors may be helpful when it comes time to request an affidavit of manufacture in order to avoid paying duties on goods made in the U.S.

Final Suggestions by CBP:

1. If you are in doubt of whether or not your good is NAFTA eligible, do not claim it as such, and ensure that your Customs Broker does the same.
2. If, after the fact, you find that you have made a mistake or a ‘false statement’, notify CBP as soon as possible in order to ensure that you do not get penalized.
3. Talk to your broker about the steps that you need to take in order to fully disclose the scope of the discovered discrepancy. Some discrepancies can be corrected very quickly, while others require more effort.

In closing, the representative from U.S. Customs & Border Protection stated “We do not want to be an impediment to doing business in the U.S.”