Classification and Value

 

29. Classification—Liquidation Classification

 

Classification, and, when ad valorem rates of duty are applicable, appraisement, are the two most important factors affecting dutiable status. Classification and valuation, whether or not they are pertinent because an ad valorem rate of duty applies, must be provided by commercial importers when an entry is filed. In addition, classifications under the statistical suffixes of the tariff schedules must also be furnished even though this information is not pertinent to dutiable status. Accordingly, classification is initially the responsibility of an importer, customs broker or other person preparing the entry papers. Section 637 of the Customs Modernization Act imposes the requirement that importers exercise reasonable care when classifying and appraising merchandise.

 

21. U.S.-Jordan Free Trade Area Agreement (JFTA)

 

21. U.S.-Jordan Free Trade Area Agreement (JFTA) 

 The United States-Jordan Free Trade Area agreement went into effect on December 17,  2001, and provides for the elimination of tariffs on almost all qualifying goods within 10 years. 

Eligible Items 

JFTA benefits apply to tariff items listed in the Harmonized Tariff Schedule and  identified by “JO” in the Special column. 

Eligibility Requirements, General 

27. Antidumping And Countervailing Duties

 

27. Antidumping And Countervailing Duties 

Antidumping (AD) and countervailing (CVD) duties are additional duties that  may be assessed on imported goods intended for sale in the United States at  abnormally low prices. These low prices are the result of unfair foreign trade practices  that give some imports an unearned advantage over competing U.S. goods. 

25. The U.S.-Chile Free Trade Agreement (US-CFTA)

 

25. The U.S.-Chile Free Trade Agreement (US-CFTA) 

The U.S.-Chile Free Trade Agreement (US-CFTA) took effect January 1, 2004, with the  enactment of the US-CFTA Implementation Act (P. L.108-77; 117 Stat. 909). (Presidential  Proclamation 7746, the official announcement of US-CFTA, incorporates by reference  Publication 3652 of the U.S. International Trade Commission. Publication 3652 amends the  Harmonized Tariff Schedule by adding General Note 26, which implements the duty provisions  of the US-CFTA. Title 19, Code of Federal Regulations is being amended to implement the US CFTA.) 

22. Compact of Free Association (FAS)

 

22. Compact of Free Association (FAS)

FAS is a program providing for the duty-free entry of certain merchandise from  designated freely associated states. (U.S. Pub. Law 99-239, Compact of Free Assoc. Act of 1985,  48 USC 1681 note. 59 Stat. 1031 and amended Dec. 17, 2003 by House Jt. Res. 63; U.S. Pub.  Law 180-188) 

The Compact of Free Association between the Federated States of Micronesia and the  United States was initialed by negotiators in 1980 and signed in 1982. The Compact was  approved by the citizens of the FSM in a plebiscite held in 1983. Legislation on the Compact  was adopted by the U.S. Congress in 1986, and signed into law on November 13, 1986. 

19. Andean Trade Preference Act (ATPA)/

 

19. Andean Trade Preference Act (ATPA)/ 

Andean Trade Promotion and Drug Eradication Act (ATPDEA) 

The Andean Trade Preference Act (ATPA) provides for the duty-free entry of certain  merchandise from designated beneficiary countries. The United States enacted ATPA into  law on December 4, 1991, and it expired on December 4, 2001. When the Trade Act of 2002  became law on December 4, 2001, it renewed ATPA through December 31, 2006, and  introduced the new Andean Trade Promotion and Drug Eradication Act (ATPDEA)  provision. ATPDEA expanded some trade benefits for textiles from ATPA beneficiary  countries. 

Beneficiary Countries 

18. Caribbean Basin Initiative (CBI) and the Caribbean Basin Economic Recovery Act (CBERA)

 

18. Caribbean Basin Initiative (CBI) and the Caribbean Basin Economic  Recovery Act (CBERA) 

The Caribbean Basin Initiative (CBI) is a program that allows duty-free entry of certain  merchandise from designated beneficiary countries or territories. This program was enacted by  the United States as the Caribbean Basin Economic Recovery Act, (CBERA) which became  effective January 1, 1984, and has no expiration date. 

Beneficiary Countries 

17. Generalized System Of Preferences (GSP)

 

17. Generalized System Of Preferences (GSP) 

The Generalized System of Preferences (GSP) is a preferential program that provides  duty-free treatment to products of beneficiary designated countries and territories. The program  was authorized by the Trade Act of 1974 (19 U.S.C. 2461 et seq.) as a means of promoting  economic development in the developing countries and was instituted on January 1, 1976. The  GSP periodically expires and must be renewed by Congress to remain in effect. CBP provides  the trade community with notification of these expirations and renewals. 

16. The North American Free Trade Agreement (NAFTA)

 

16. The North American Free Trade Agreement (NAFTA) 

The provisions of the North American Free Trade Agreement (NAFTA) were adopted by  the United States with enactment of the North American Free Trade Agreement Implementation  Act of 1993 (107 Stat. 2057, P.L. 103-182). Nineteen Code of Federal Regulation (19 CFR)  Parts 10, 12, 123, 134, 162, 174, 177, and 178 were amended, and new parts 102 and 181 of the  CBP Regulations were developed to implement NAFTA’s duty provisions.

NAFTA phased out tariffs on almost all “originating” goods traded between Canada  and the United States by January 1, 2003, and provides for an additional 5-year phase-out period  on certain sensitive commodities traded between Mexico and the United States. 

15. Temporary Free Importations

 

15. Temporary Free Importations 

Temporary Importation Under Bond (TIB) 

Goods of the types enumerated below, when not imported for sale or for sale on  approval, may be admitted into the United States under bond, without the payment of  duty, for exportation within one year from the date of importation. Generally, the amount  of the bond is double the estimated duties. The one-year period for exportation may, upon  application to the port director, be extended for one or more further periods which, when  added to the initial one year, shall not exceed a total of three years. There is an exception  in the case of articles covered in item 14: the period of the bond may not exceed six  months and may not be extended. 

14. Containers or Holders

 

14. Containers or Holders 

CBP designates such items as lift vans, cargo vans, shipping tanks, pallets and  certain articles used to ship goods internationally as instruments of international traffic. So long as this designation applies, these articles are not subject to entry or duty when  they arrive, whether they are loaded or empty. Other classes of merchandise containers  may also be designated as instruments of international traffic upon application to the  Commissioner of CBP for such a designation. If any article so designated is diverted to  domestic use, however, it must be entered and duty paid, if applicable. 

ASSESSMENT OF DUTY

 

ASSESSMENT OF DUTY 

13. Dutiable Status Of Goods

Rates Of Duty 

All goods imported into the United States are subject to duty or duty-free entry in  accordance with their classification under the applicable items in the Harmonized Tariff  Schedule of the United States. An annotated loose-leaf edition of the tariff schedule may  be purchased from the U.S. Government Printing Office, Washington, DC 20402. (See 19  U.S.C. 1202.) 

When goods are dutiable, ad valorem, specific, or compound rates may be  assessed. An ad valorem rate, which is the type of rate most often applied, is a percentage  of the value of the merchandise, such as five percent ad valorem. A specific rate is a  specified amount per unit of weight or other quantity, such as 5.9 cents per dozen. A  compound rate is a combination of both an ad valorem rate and a specific rate, such as  0.7 cents per kilo plus 10 percent ad valorem. 

INVOICES

 

INVOICES 

10. Commercial Invoice 

A commercial invoice, signed by the seller or shipper, or his agent, is acceptable  for CBP purposes if it is prepared in accordance with Section 141.86 through 141.89 of  the CBP Regulations, and in the manner customary for a commercial transaction  involving goods of the kind covered by the invoice. Importers and brokers participating  in the Automated Broker Interface may elect to transmit invoice data via the Automated  Invoice Interface or EDIFACT and eliminate the paper document. The invoice must  provide the following information, as required by the Tariff Act: 

8. Compliance Assessment/Compliance Measurement

 

8. Compliance Assessment/Compliance Measurement 

Of primary interest to the trade community is the compliance assessment, which  is the systematic evaluation of an importer’s systems supporting his or her CBP-related  operations. The assessment includes testing import and financial transactions, reviewing

the adequacy of the importer’s internal controls, and determining the importer’s  compliance levels in key areas. Compliance assessments are conducted in accordance  with 19 U.S.C. 1509. 

7. Reasonable Care Checklists

 

7. Reasonable Care Checklists 

Reasonable care is an explicit responsibility on the part of the importer. Despite  its seemingly simple connotation, the term reasonable care defies easy explanation  because the facts and circumstances surrounding every import transaction differ, from the  experience of the importer to the nature of the imported articles. Consequently, neither  CBP nor the importing community can develop a reasonable care checklist capable of  covering every import transaction. 

CBP recommends that the import community examine the list of questions below.  These questions may suggest methods that importers may find useful in avoiding  compliance problems and in meeting the responsibilities of reasonable care. 

INFORMED COMPLIANCE

 

INFORMED COMPLIANCE 

6. Definition 

Informed compliance is a shared responsibility between CBP and the import  community wherein CBP effectively communicates its requirements to the trade, and the  people and businesses subject to those requirements conduct their regulated activities in  accordance with U.S. laws and regulations. A key component of informed compliance is  that the importer is expected to exercise reasonable care in his or her importing  operations. 

3. Right To Make Entry

 

3. Right To Make Entry 

Entry By Importer 

Merchandise arriving in the United States by commercial carrier must be entered  by the owner, purchaser, his or her authorized regular employee, or by the licensed  customs broker designated by the owner, purchaser, or consignee. U.S. CBP officers and  employees are not authorized to act as agents for importers or forwarders of imported  merchandise, although they may give all reasonable advice and assistance to  inexperienced importers. 

IMPORTANDO HACIA USA

INDICE  IMPORTANDO HACIA USA

CONTENTS

CHAPTER

GUIA
 

2 ENTRY OF GOODS

 

2 ENTRY OF GOODS 

Entry Process 

When a shipment reaches the United States, the importer of record (i.e., the  owner, purchaser, or licensed customs broker designated by the owner, purchaser, or  consignee) will file entry documents for the goods with the port director at the goods'  port of entry. Imported goods are not legally entered until after the shipment has arrived  within the port of entry, delivery of the merchandise has been authorized by CBP, and  estimated duties have been paid. It is the importer of record's responsibility to arrange for  examination and release of the goods. 

Pursuant to 19 U.S.C. 1484, the importer of record must use reasonable care in  making entry. 

SUGGESTIONS TO THE EXPORTER

 

SUGGESTIONS TO THE EXPORTER 

 

FOR FASTER CLEARANCE OF YOUR MERCHANDISE: