This section provides that only the “importer of record” has the right to make an entry.  The importer of record is defined as the 1) owner or 2) purchaser of the goods, or when designated by the owner, purchaser, consignee,3) a licensed Customs broker.

The term “owner” and “purchaser” include any party with a financial interest in a transaction, including but not limited to, the actual owner of the goods, the actual purchaser of the goods, a buying or selling agent, a person or firm who imports on consignment, a person or firm who imports under loan or lease, a person or firm who imports for exhibition at a trade fair, a person or firm who imports goods for repair or alteration or further fabrication, etc.  Any such owner or purchaser may make an entry on his own behalf or may designate a licensed Customs broker to make an entry on his behalf.  The terms “owner” or “purchaser” would not include a “nominal consignee”  who effectively possesses no other right, title, or interest in the goods except as he possessed under a bill of lading, air way bill, or other shipping document.

The principal purpose of current section 484, tariff act of 1930 is to prevent mere nominal consignees, other than licensed Customs brokers from filing entries and engaging in the transaction of customs business without a license.

But why is so important this concept?  As your custom broker expert advising many clients on these issues, it can be narrow down to:

Security and legitimate transactions, with the threat of identity theft anyone can be an importer of record by fraudulently or illegally assuming other identity, or by fraudulently or illegally utilizing an importer of record information for other importer goods.   Criminals are taking advantage by creating schemes with the sole purpose of avoiding CBP detection by ways of smuggling, counterfeit goods; avoid duties or quotas, restrictions, ect.

A new Way of doing business by unauthorized party, which It has become a more common practice and conducting customs business without a license.

Customs and Border Protection and importers are aware of these practices and have begun aggressively pursuing it.

As you custom broker expert, do you have the right to make an entry?

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As an importer you have the right to file this formal response (CBP Form 19) within 180 days date of liquidation or reliquidation or the date of the decision, involving neither a liquidation nor reliquidation, as to which the protest is made. You may protest per 19 CFR 174.11, the following instances:

The appraised value of merchandise:

The classification and rate and amount of duties

All charges or exactions of whatever character including the accrual of interest within the jurisdiction of the Secretary of the Treasury;

Exclusion of merchandise from entry or delivery under any provision of the Customs law;

The liquidation or reliquidation of an entry, or any modification thereof;

The refusal to pay a claim for drawback; and The refusal to reliquidate an entry under section 520(c), Tariff Act of 1930, as amended (19 U.S.C. 1520(c)).

My advice as your custom broker expert is to seek all options available and continue gathering all pertain information throughout you company. A word of caution this is the last opportunity to challenge US Customs and Border Protection without going to court.

In my experience as a custom broker expert no single individual or department has all the information.  Read carefully U.S. Customs and Border Protection response to really understand what papers were not included, incomplete or missing with your previous responses or what are they looking for.

In my experience as a custom broker in assisting my clients to properly and correctly respond to this form, must be treated as a company wide team effort and have it approved by your legal department.   In addition, read previously published articles “ CBP Form 28 Request for Information” and  “CBP Form 29 Notice of Action.”

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As an importer you have 20 days to respond to this formal response (CBP Form 29), if you disagree with proposed action, or action taken such as: rate advance, value advance excess weight or quantity or other.

My advice as your custom broker expert is to seek all options available and continue gathering all pertain information throughout you company. In my experience as a custom broker expert no single individual or department has all the information. Look within finance, manufacturing, legal or other departments that might have information that does not comes to you mind but is crucial to correctly respond to this request.

In my experience as a custom broker in assisting my clients to properly and correctly respond to this form, must be treated as a company wide team effort and have it approved by your legal department.   In addition, read previously published “ CBP Form 28 Request for Information.”

The more information you can obtain, the better the chances to obtain a favorable decision.

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This CBP Form 28 is a formal request by CBP to obtain additional information on merchandise which has been release. The purpose of this form is to obtain additional or more specific information about this entry to properly classified or determine correct value or for import compliance of this merchandise. This formal request based upon 19CFR 151.11 and your response is required in accordance with section 509(a), Tariff Act of 1930, as amended (19 U.S.C. 1509).

All information, documents, and samples must relate to the shipment of merchandise belonging to this importation. This information will be treated as confidential by CBP.

You have 30 days to respond to this request or an extension might granted if a good cause or reason is given to the issuing CBP Officer but if not response within time set CBP has the authority to issue liquidated damages in the amount of the value of the merchandise or up to three the value under 19 CFR141.113.

At first sight is looks like a simple, self explanatory form but out of response CBP will make determination such as higher duties, disqualification for preferential treatment, quota class merchandise, antidumping duties, redelivery of merchandise, request for additional information, etc..

My advice as your custom broker expert is to gather all pertain information throughout you company. In my experience as a custom broker expert, no single individual or department has all the information. Look within finance, manufacturing, legal or other departments that might have information that does not comes to you mind but is crucial to correctly respond to this request.

In my experience as a custom broker in assisting my clients to properly and correctly fill this form, this response must be treated as a company wide team effort and have it approved by your legal department.

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This will mark the last article on the Importer Security Filing series, as you have become aware of these requirements, thru my previous articles written. And if not as a custom broker expert I will do a small recapitulation of them.

Shipments which do not comply with Importer Security Filing requirements are subject to a $5,000 penalty per occurrence.

Since January 26, 2009 all ocean cargo bound for the United States are subject to an importer security filing requirement 24 hours prior to loading of the cargo container in the foreign port. This additional cargo information will assist CBP to screen and asses’ potential risks.

All importers and ocean carriers are required to provide U.S. Customs and Border Protection CBP with this advance notification for all ocean vessel shipments inbound to the United States. The new 10+2 importer will place the burden of compliance onto the importers and ocean carriers. Obviously this will impact the logistics of your supply chain. The importer will be solely responsible and liable for filing data elements in the importer security filing ISF. Importers may hire a third party (U.S. Customs Broker or Freight Forwarder) having access to U.S. Customs Automated Broker Interface (ABI) or Automated Manifest System (AMS) and with a duly authorized Power of Attorney to file the ISF on their behalf. an advice from your custom broker expert it is import to know that only Customs Brokers are bound by privacy requirements thru the Code of Federal regulations.

Well, time has arrived for the full compliance and penalty phase thus ending a 12-month flexible enforcement period during which CBP provided outreach to educate the trade community on the ISF requirements.

As the voluntary compliance and flexible enforcement period has ended, CBP guiding principle is to exercise the least punitive measures available to obtain full compliance. CBP wants to achieve a balance between maximum compliance with the least amount of disruption to the trade (who are in compliance) and to domestic port operations. By focusing on non compliant filers, CBP will apply a measured, common sense approach to enforcement. But it should be clear that this deliberative approach towards enforcement it is not a further extension of the structured review and flexible enforcement period.

CBP will  target its enforcement efforts on importers who are not in compliance with ISFs requirements for U.S.-bound shipments.

At least importers will experience delays in the release of their cargo while CBP asses the potential risk of the cargo.

As CBP’s enforcement escalates, non-compliant importers,  will be subject to the greater use of stricter enforcement measures.

CBP will evaluate instances of non-compliance on a case-by-case basis and will consider factors surrounding potential violations before applying enforcement actions.

Francisco Ramirez, Jr. helps businesses to flawlessly import or export merchandise across the US borders. He is a managing partner of Automated Customs Experts Group, Inc. in San Diego California. His upcoming book teaching importing, exporting and logistics teaches companies how to avoid the most frequent importing and exporting mistakes will be out in near future.

For more insights like these go visit his website at http://www.CustomsBrokersExperts.com or you can reach him for consultation at 619-710-4920



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As your Custom Broker Expert, I mentioned on previous published article “How to save $5,000.00 on your next importation” that for every ocean importation beginning January 26, 2009, ten data elements must be transmitted within 24 hours prior to lading container into the vessel with destination to any port in the USA.

If any changes occur in the original transmission or more accurate information has become available, updates can be done prior to the goods arriving within the limits of the destination port in the USA, but only in two elements.

A violation will trigger a penalty for; failure to file ISF, late filing or inaccurate data.  Any of these will carry a potential $5,000.00 penalty.  In the case of not file, CBP will withhold release or transfer the goods until ISF requirements has been fulfill.

Fortunately, there are guidelines that will assist in the mitigation of these penalties.

First violation for late filing or inaccurate ISF or an inaccurate ISF updates, claim may be canceled upon payment of an amount between $1,000.00 and $2,000.00, depending on factors and if enforcement goals were not compromised.

Subsequent violations, claim may be canceled upon payment of an amount of not less of $2,500.00, if enforcement goals were not compromised.

No relief will be granted if CBP determines that law enforcement goals were compromised by the violation.

Factors: Mitigating and aggravating.

Mitigating factors

• Early implementation and participation during flexible enforcement period.
• Small percentage of violations.
• C-TPAT certified member under Tier 2 or Tier 3 criteria.
• Remedial action i.e. procedures to prevent future occurrences.
• Factors outside ISF Importer’s control.
• Inaccurate data received from another party.

Aggravating Factors

• Lack of Cooperation
• Evidence of smuggling or attempt to circumvent the law
• Multiple errors on the ISF
• Rising error rate.

As your Custom Broker Expert, there are simple steps you can take to reduce your exposure.

• Early adoption
• Implementation of procedures
• C-TPAT participation

The writer, Francisco Ramirez Jr. is the Managing Partner of Automated Customs Experts Group, Inc. in San Diego, CA. He is also in the process of publishing his first book of most frequent importing mistakes.  This will assist importers in developing procedures to avoid potential penalties.  You can contact Francisco Ramirez Jr at 619-710-4920 or framirez@acelogisticsgroup.com

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Since January 26, 2009 all ocean cargo bound for the United States are subject to an importer security filing requirement 24 hours prior to loading of the cargo container in the foreign port.   This additional cargo information will assist CBP to screen and asses’ potential risks.

All importers and ocean carriers are required to provide U.S. Customs and Border Protection CBP with this advance notification for all ocean vessel shipments inbound to the United States. The new 10+2 importer will place the burden of compliance onto the importers and ocean carriers.  Obviously this will impact the logistics of your supply chain. The importer will be solely responsible and liable for filing ten data elements in the importer security filing ISF.  Importers may hire a third party (U.S. Customs Broker or Freight Forwarder) having access to U.S. Customs Automated Broker Interface  (ABI) or Automated Manifest System (AMS) and with a duly authorized Power of Attorney to file the ISF on their behalf.    It is important to know that only Customs Brokers are bound by privacy requirements thru the Code of Federal regulations.

For Shipments with a U.S. destination (includes FTZ (Foreign Trade Zone) and IT (In-Transit)) the ten data elements required by importers report:

1. Manufacturer (or supplier) name and address
2. Seller (or owner) name and address
3. Buyer (or owner) name and address
4. Ship to name and address
5. Container stuffing location
6. Consolidator (container stuffer) name and address
7. Importer of record or Foreign Trade Zone applicant ID number
8. Consignee number(s)
9. Country of origin
10. Commodity Harmonized Tariff Schedule of the United States (HTSUS) number

For Transit of Foreign Cargo covering freight remaining on board the vessel (FROB), Immediate Exports (IE) and Transportation and Exportations (T & E), the five data elements required to report:

- Booking Party
- Foreign port of unlading
- Place of delivery
- Ship to party
- Commodity HTSUS number (minimum 6 digit level)

CBP has allowed a one-year period of “Flexible Enforcement” and thru informed compliance to smooth the learning curve for  importers and carriers  adapt to the new 10+2 regulations without the threat of fines. Unfortunately this one year period will be expiring on January 26, 2010.  Shipments which do not comply with ISF requirements are subject to a $5,000 penalty per occurrence.
To prepare for any potential fines, we strongly suggest that first consult your custom broker expert or logistics service provider  and consider implementing procedures that specifically address the ISF requirements. There are several ways to accomplished these requirement but your must make sure that it is address properly, taking into account the culture of your company.  Finally monitor compliance with ISF requirements.

The writer, Francisco Ramirez Jr. is the Managing Partner of Automated Customs Experts Group, Inc. in San Diego, CA. He is also in the process of publishing his first book of most frequent importing mistakes. This will assist importers in developing procedures to avoid potential penalties. You can contact Francisco Ramirez Jr at 619-710-4920 or framirez@acelogisticsgroup.com

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In my opinion as a custom broker the invoice is probably the most important document to import merchandise into any country.   Out of this document Customs officials must determine proper classification of the merchandise, what the value is, perform revenue collection through duties, fulfillment of required information by collecting trade information for statistics purposes (balance of trade), make a risk assessment for security purposes, determination of further inspections and enforcement of regulations from other agencies.
Also your custom broker/agent must classify, valuate, pay duties and transmit information to customs based upon this document. Additionally, the importer must comply with security programs in place by transmitting information prior to loading or stuffing container.

In describing the merchandise, the most relevant information pertaining to the article is much better than a generic description.  This will greatly assist customs officers and customs brokers to correctly determine classification and additional requirements if applicable.
Most countries have adopted the Harmonized Tariff Schedule under the umbrella of the World Customs Organization, such publication has description for all imaginable products.  My suggestion as custom broker expert is that if customs is relying on this system, it will facilitate the interpretation of the description by utilizing the same language.    Another suggestion based in my experience as customs broker is the utilization of incoterms, this will assist customs and your custom broker in correctly determining value of products by adding or deducting charges.   If any other considerations such as discounts, warranties, packing, packaging, royalties or licensing must be also included.

Under 19 Code of Federal Regulations provides customs brokers and importer with the guideline requirement of an invoice. This title also governs Customs duties and does include customs brokers’ activities;

141.86 describes contents of invoices and general requirements
(1) The port of entry to which the merchandise is destined;
(2) The time when, the place where, and the person by whom and the person
to whom the merchandise is sold or agreed to be sold, or if to be imported
otherwise than in pursuance of a purchase, the place from which shipped,
the time when and the person to whom and the person by whom it is shipped;
(3) A detailed description of the merchandise, including the name by which
each item is known, the grade or quality, and the marks, numbers, and symbols
under which sold by the seller or manufacturer to the trade in the country
of exportation, together with the marks and numbers of the packages in
which the merchandise is packed;
(4) The quantities in the weights and measures of the country or place from
which the merchandise is shipped, or in the weights and measures of the United
States;
(5) The purchase price of each item in the currency of the purchase, if the
merchandise is shipped in pursuance of a purchase or an agreement to purchase;
(6) If the merchandise is shipped otherwise than in pursuance of a purchase
or an agreement to purchase, the value for each item, in the currency in which
the transactions are usually made, or, in the absence of such value, the price
in such currency that the manufacturer, seller, shipper, or owner would
have received, or was willing to receive, for such merchandise if sold in
the ordinary course of trade and in the usual wholesale quantities in the country
of exportation;
(7) The kind of currency, whether gold, silver, or paper;
(8) All charges upon the merchandise itemized by name and amount, including
freight, insurance, commission, cases, containers, coverings, and cost
of packing; and if not included above, all charges, costs, and expenses incurred
in bringing the merchandise from alongside the carrier at the port of exportation in the country of exportation and placing it alongside the carrier at the first United States port of entry. The cost of packing, cases, containers, and inland freight to the port of exportation need not be itemized by amount if included in the invoice price, and so identified. Where the required information does not appear on the invoice as originally prepared, it shall be shown on an attachment to the invoice;
(9) All rebates, drawbacks, and bounties, separately itemized, allowed upon
the exportation of the merchandise;
(10) The country of origin of the merchandise; and,
(11) All goods or services furnished for the production of the merchandise
(e.g., assists such as dies, molds, tools, engineering work) not included in the
invoice price. However, goods or services furnished in the United States are
excluded. Annual reports for goods and services, when approved by the port director,
will be accepted as proof that the goods or services were provided.

In some countries customs will not release any shipment when a generic description is utilized.   It will only be release until a better description is provided. This is really important as lean inventory methods are becoming more commonly use and companies does not want to have resources tied in inventories.

In my experience as a customs broker, I am not trying to imply in any way, shape or form that if you follow these guidelines, it will guarantee an immediate release but it will avoid unnecessary delays or additional request for information by customs officials.

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