U.S.

Customs Procedures
C.B.S.A.
Reports to Dept. Of Public Safety & Emergency Preparedness Customs Entry “B3” Duty and Taxes collected Compliance and Security Civil Servants

U.S. Customs “CBP”
Report to Dept. of Homeland Security Customs Entry “7501” Duties and other “fees”. No tax.

U.S. Customs Procedures.

Importing into Canada is a right Importing into the United States is a privilege

U.S. Customs Procedures.

The Major responsibility of the U.S. Customs Service was to administer the Tariff Act of 1930. Also has responsibility for enforcing over 400 laws and regulations on international traffic and trade for 40 other government agencies.

U.S. Customs Procedures.

Mission: Protect the nation’s revenue Protecting the American consumer and environment Protecting domestic industry and labour against unfair foreign competition Detecting and stopping smuggling

U.S. Customs Procedures.

-Organization consists of 20
Management centers (CMC’s) - each CMC is subdivided into service ports, area ports, and ports of entry. - There is a CMC director, service and area port directors, and port directors. - Import transactions are conducted at service ports, area ports, and ports of

U.S. Customs Procedures.

Customs Management Centers: East Great Lakes : Buffalo West Great Lakes: Detroit

Conveyance Arrives in USA with freight onboard…….

U.S. Customs Procedures.

U.S. Customs Procedures.

Carrier must have a signed “Carriers Certificate” Certifies that the carrier has the right to carry the goods into the United States

Freight is offloaded to a Bonded Warehouse

Or the conveyance waits for Customs Clearance.

U.S. Customs Procedures.

Carrier goes to visit a US Customs Broker, or sends the paperwork to a US Customs Broker In order for the Customs Broker to legally be allowed to clear a company’s freight, a U.S. Customs Power of Attorney must be completed and on file with Customs and the Customs Broker.

U.S. Customs Procedures.

“Right To Make Entry”

Owner or Purchaser Of The Goods Licensed US Customs Broker who has a signed Power of Attorney with the importer.

U.S. Customs Procedures.
Imported goods not entered within 5 calendar days of arrival is sent to a General Order warehouse. Importer is responsible for all storage charges at this warehouse If the goods are unclaimed at the end of a calendar year, the merchandise is sold at auction or destryoed

U.S. Customs Procedures.

Entered For Consumption Intent is to physically bring the goods into the USA

U.S. Customs Procedures.
Entering goods into Customs is a two part exercise (1) Filing the documents necessary to determine whether merchandise may be physically released from Customs custody (2) Filing documents that contain information for Accounting of goods to Customs.(duty assessment and statistical information).

Customs Entry Timeline

Within 5 days

Within 10 days

Arrival Of Goods

Release

Entry Summary 7501

Release Method Types
Border Cargo Selectivity (BCS)
Standard release method Carrier visits Customs Broker who prepares the paperwork for release to Customs

Release Method Types.
Entry Documents: - Inward Cargo Manifest Form 7533 - Bill of lading, Airway bill etc - Evidence of Right to make entry - Commercial Invoice or Pro-forma invoice. - Packing Lists - Any other documents necessary to determine merchandise admissibility.

Release Method Types
Line Release
-Expedited release method -Importer through their Customs broker submits a Line Release application for each of their products they wish to clear via line release. -If accepted by US Customs importer attaches a Line Release Bar code to their invoices.

Release Method Types
Line Release
-When truck shipment arrives at US Border the Customs Officer wands the bar code into the US Customs system, and reviews the documents. -If all is well, shipment is released.

Release Method Types
Pre-Arrival Processing System (PAPS)
All release information is sent to the Customs Broker and then to US Customs prior to the physical arrival of the goods at the border. A formatted bar –code pro-bill number is attached to the documents being sent to Customs. Upon arrival Customs Officer wands the bar code on drivers copy of paperwork, and if the entry is in the systems the officer makes a release decision.

Release Method Types.
Customs checks the paperwork to see if any “Flags” are against the importer, or the shipment.

The shipment may be examined, or examination may be waived. The shipment is then released.

Entry Summary.
“Entry Summary Documentation” is filed and within 10 working days of the entry of the merchandise and estimated duties are deposited. Entry summary documentation consists of: Entry package as filed to release goods. Entry Summary 7501 Any other invoices and documents necessary to assess duties and taxes.

U.S. Customs Procedures.

Types Of Entries.
Informal (Consumption) Entry
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Personal shipments, commercial shipments and mail shipments that are valued less than $2000.00 USD or less. Some exceptions exist such as textiles, footwear, and other goods requiring inspection and/or input from government departments other than US Customs.

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Types Of Entries

Formal (Consumption) Entry Most commercial shipments eventually used in US Commerce. Shipments must be supported by a Surety Bond by the importer.

Types Of Entries

Temporary Importation Bond Entry Goods entering USA on a Temporary Basis. Shipments must be supported by a Temporary Importation Bond held by the importer.

Customs Entry Timeline

Within 5 days

Within 10 days

Arrival Of Goods

Release

Entry Summary 7501

Liquidation
314 days

Liquidation

Final step in entry process 314 days after entry summary was filed. If US Customs is satisfied with the entry (duties, value) the entry is liquidated. Liquidation means the shipment can no longer be altered and is final.

U.S. Customs Procedures.
Besides Duty Other Fees are charged: Merchandise Processing Fee: 0.21% of Shipments Value. Min. $25.00 Max. $485.00

Monies are used to pay for U.S. Customs Expenses Waived if the goods qualify for NAFTA

U.S. Customs Procedures.

Harbor Maintenance Fee: 0.125% of shipments value.

Monies are used to maintain and repair U.S. Port Harbors

Levied and Ocean Imports.

Waived if the goods qualify for NAFTA

U.S. Customs Procedures.

In Canada the Customs Broker is the party that holds the Customs Bond. In the United States, the importer posts bond. Two types of Surety Bonds for Customs Consumption Entries