CHAPTER XIII CUSTOMS CLEARANCE

1
CHAPTER XIII CUSTOMS CLEARANCE

• Entry Process of Goods, Types of Entry
• Evidence of Right to Make Entry
• Entry Documents , Surety
• Entry Summary Payment of Duties
• Automated Commercial Environment (ACE)
• Immediate Delivery Application prior to Arrival
• Entry for Bonded Warehouse
• Unentered Goods
• Informal Entry of Goods, Mail Entries
• Examination of Goods Entry Documents
• Classification, Liquidation
• Protest and Litigation

2
Entry Process of Imported Goods

• Entry means filing required documents with US
  Customs
• Goods are legally entered when
• Shipment has arrived within port of entry
• Release of goods is authorized by Customs
• Estimated duties have been paid
• Articles subject to approval or acceptance by
  other government agency Its approval must be
  obtained first prior to release of articles by
  Customs

3
Types of Entry

1. Consumption entry For resale after importation
2. Transportation entry To interior destination for
   customs clearance under bond
3. Warehouse entry To enter Customs-bonded
   warehouse. Maximum 5 years. No explosives
   perishables
4. Warehouse withdrawal entry To pay duties and
   withdraw from warehouse
5. Immediate export entry To reroute goods via US
   port to foreign country
6. Baggage declaration and entry By a traveler

4
Evidence of Right to Make Entry

• 1. Documents for ownership
• Original Bill of Lading, Air Waybill, Sea Waybill
  
• Carriers Certificate
• 2. Person who has a right to make entry
• 1) Owner
• 2) Purchaser
• 3) Licensed customs broker with a power of
  attorney

5
Entry Documents

• Within 15 calendar days of arrival of shipments
• Entry/Immediate Delivery Form 3461
• Evidence of right to make entry
• Commercial Invoice or Pro forma invoice
• Packing list if appropriate
• Customs bond (Surety)
• Other documents required for particular shipments
  
• Identification of a new buyer, if sold during
  transit

6
Customs Bond (Surety)

• Guarantee to U.S. Customs by a surety company
• Must be posted with Customs at the time of entry
  to cover potential duties, taxes, and penalties
• Single transaction bond for one time importation
  
• Continuous bond During a bond period, one year

7
Entry Summary Payment of Duties

• Within 10 working days of entry of imported
  goods,
• Entry summary (Customs Form 7501) must be filed
  and estimated duties must be paid.
• Duties are personal debts
• Checks made payable to U.S. Customs Border
  Protection" rather than to "Customs broker."

8
Automated Commercial Environment (ACE)

• Primary import and export data collection
  sharing system as the Single Window
• All entry and associated entry summaries must be
  filed via ACE Secure Data Portal (ACE Portal)
  using Electronic Data Interchange (EDI)
• ACE Portal A free, web-based access point to
  connect CBP, trade partners(filers), Partner
  Government Agencies (PGAs)
• EDI Electronic communication framework that
  provides standards for exchanging data
  electronically

9
Automated Commercial Environment (ACE)

• Filings transmitted through EDI link to all
  systems of CBP and Partner Government Agencies
  (PGAs). No double filing with other agencies.
• Created by Executive order Streamlining the
  Export/Import Process for Americas Business
  singed by Pres. Obama in February 2014

10
Immediate Delivery Application prior to Arrival

• Entry/Immediate Delivery Form 3461 Customs bond
  must be filed prior to arrival of merchandise
• Entry summary and estimate duty Within 10
  working days of release
• Limited to
• Goods from Canada or Mexico
• Fresh fruits and vegetables from Canada or Mexico
  
• Goods for U.S. Government
• Goods for trade fair
• Tariff-rate Quota goods
• Goods specially authorized by Customs HQ

11
Entry for Bonded Warehouse

• Enter Customs-bonded warehouse for future release
• Maximum 5 years
• Goods may be manipulated by cleaning, sorting,
  repacking or other processes, but not
  manufacturing
• Perishable goods, explosives or prohibited
  articles are not allowed

12
Unenterd Goods

• If entry documents not filed within 15 calendar
  days after arrival, goods may be placed in a
  general order(G.O) warehouse.
• Carriers, not port directors, are required to
  notify bonded warehouse of unentered merchandise
• If not entered in 6 months, goods are sold at
  public auction
• CBP has authorized CWS Marketing Group to
  auction off them

13
Mail Entries

• If shipment value not exceeding 2,000, CBP
  officer prepares entry form duties are
  collected by postman plus 5 processing fee by
  CBP.
• If over 2,000, commercial invoice required for a
  formal entry
• Some sundry products limited to 250
• Packages whose declared value is under 200 (100
  if being sent as a gift to someone other than the
  purchaser) are generally cleared without any
  additional paperwork prepared by CBP

14
Examination of Goods and Entry Documents

• In order to determine
• Value of goods and their dutiable status
• Whether country of origin is properly marked
• Whether contains prohibited articles
• Whether correctly invoiced
• Whether excess or shortage of invoiced quantity
• Whether contains illegal narcotics

15
Classification

• All products are classified either of
• By items that name them
• By general description
• By component materials
• By actual or principal use

16
Liquidation

• Duties paid at the time of entry are estimated
  duties.
• Customs final determination of exact amount of
  duty owed on the shipment after reviewing the
  classification and appraisement
• Post Notice of Liquidation on a public bulletin
  board
• Send Courtesy Notice of Liquidation (Form4333A)
• Deemed liquidated, if not liquidated within one
  year unless extended for another year. Total four
  years

17
Protest and Litigation

• Appraised value of goods
• Classification, rate and amount of duty
• All charges
• Exclusion of goods from entry
• Liquidation or any modification
• Refusal to pay a drawback claims
• Refusal to reliquidate an entry
• Protest Within 180 days after liquidation on CBP
  Form 19
• Litigation Within 180 days after denial of
  protest with U.S. Court of International Trade