Canadian Construction Association


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Canadian Construction Association

  1. 1. Canadian Construction Association Annual Conference 2004 Matthew Parrott, LCB Branch Manager, Buffalo, NY
  2. 2. Customs and Border Protection Reasonable Care Commercial Invoice Requirements Customs Entries Harmonized Tariff Coding System Other Government Agencies
  3. 3. Mission Statement <ul><li>To expedite the legal clearance of your goods to ensure proper and on-time delivery to your customers. </li></ul><ul><li>We, as U.S. Customhouse Brokers, uphold the laws of the United States, safeguard the revenue, and foster lawful international trade. </li></ul>
  4. 4. Customs and Border Protection <ul><li>NAFTA </li></ul><ul><li>PAPS </li></ul><ul><li>C-TPAT </li></ul><ul><li>FAST </li></ul><ul><li>FDA Bioterrorism Act </li></ul>
  5. 5. NAFTA North American Free Trade Agreement <ul><li>Allows preferential duty treatment for qualifying goods from qualifying countries. </li></ul><ul><li>Not everything from Canada, Mexico, and the U.S. is NAFTA eligible. </li></ul><ul><li>Work with a qualified expert to complete your NAFTA Certificate of Origin. </li></ul><ul><li>Incorrect Certificates can lead to fines, penalties and prison time. </li></ul>
  6. 6. C-TPAT Customs Trade Partnership against Terrorism <ul><li>A voluntary government/industry partnership initiative to strengthen overall supply chain and border security. </li></ul><ul><li>Industry Commitment </li></ul><ul><li>Conduct a self assessment of supply chain security. </li></ul><ul><li>Submit a supply chain security profile questionnaire </li></ul><ul><li>Develop and implement a program </li></ul>
  7. 7. C-TPAT ( con’t ) <ul><li>Benefits to participating in C-TPAT </li></ul><ul><li>Reduced number of inspections </li></ul><ul><li>An assigned account manager </li></ul><ul><li>Access to C-TPAT membership lists </li></ul><ul><li>Eligibility for account based processes </li></ul><ul><li>An emphasis on self-policing, not Customs verification </li></ul>
  8. 8. FAST - Fast and Secure Trade <ul><li>Facilitate pre-approved low risk trade between the U.S. and Canada over land borders </li></ul><ul><li>FAST will allow importers on the U.S./Canada border to obtain expedited release for qualifying commercial shipments </li></ul><ul><li>CTPAT FAST approved driver/qualifying goods/approved CTPAT importer </li></ul><ul><li>Greater speed at the border </li></ul><ul><li>Reduced cost of compliance </li></ul><ul><li>Strong and ongoing partnership with Canadian and U.S. Customs </li></ul>
  9. 9. FDA Bioterrorism Act <ul><li>New legislation designed to protect the food supply of the United States. </li></ul><ul><li>Takes effect December 12, 2003 </li></ul><ul><li>Do not ship food or drink of any type, not even a gift. </li></ul>
  10. 10. Reasonable Care <ul><li>The importer of record is responsible for knowing what they import and the terms of the transaction. </li></ul><ul><li>The importer of record bears the legal responsibility for using reasonable care to correctly enter the merchandise. </li></ul><ul><li>In order to meet this legal responsibility an importer may utilize one or more experts to assist him. </li></ul>
  11. 11. Commercial Invoice Requirements <ul><li>CFR 19 141.86 </li></ul><ul><li>The port of entry which the merchandise is destined. </li></ul><ul><li>The shipper, consignee, buyer (if other then consignee) and any other parties to the transaction. </li></ul><ul><li>A detailed description of the merchandise, including name, quality, grade, and any marks or numbers on the goods. </li></ul>
  12. 12. Commercial Invoice Requirements Cont. <ul><li>The quantities and weight of the merchandise. </li></ul><ul><li>The purchase price or value, if not a sale, of each item in the currency of purchase. </li></ul><ul><li>The kind and country of currency whether gold, silver, or paper. </li></ul><ul><li>Any other items the shipper incurred for the goods for example: packing, freight, insurance, etc. </li></ul>
  13. 13. Commercial Invoice Requirements Cont. <ul><li>All rebates, drawbacks, and bounties, if any separately itemized. </li></ul><ul><li>The country of origin (manufacture) of the merchandise and any assists given for the merchandise. </li></ul><ul><li>Invoice must be in English </li></ul><ul><li>A packing list should always accompany the invoice. </li></ul><ul><li>The HTS code of each item on the invoice. </li></ul>
  14. 14. Commercial Invoice Requirements Cont. <ul><li>The name of a responsible party from the shipper of the merchandise. </li></ul><ul><li>The Federal Tax I.D. number (A.K.A. IRS #, EIN # etc.) of the consignee or buyer (if U.S.) of the goods. </li></ul>
  15. 15. Customs Entries <ul><li>Consumption Entries (informal and formal) </li></ul><ul><li>Temporary Importation Bond (TIB) </li></ul><ul><li>Bonds (Transit, In-Transit, T&E) </li></ul><ul><li>Warehouse Entries/Consolidated Entries </li></ul><ul><li>Foreign Trade Zone (FTZ) </li></ul><ul><li>Section 321 </li></ul><ul><li>Section 10.41a </li></ul>
  16. 16. Formal Entries <ul><li>Merchandise valued in excess of $2000 USD or merchandise that is excluded from informal entry, (textiles ), or the Customs Inspector requires formal entry </li></ul><ul><li>Bond required </li></ul><ul><li>Broker’s services very beneficial </li></ul><ul><li>Duty plus minimum MPF of $25.00 USD </li></ul><ul><li>Entry review by Import Specialist </li></ul>
  17. 17. Informal Entries <ul><li>All goods valued at less than $2000 USD unless a Customs Inspector requires formal entry, or if textiles over $5.00 USD. </li></ul><ul><li>Broker’s services aren’t necessary, although highly recommended. </li></ul><ul><li>Entry is final ( liquidated )upon payment of duty. </li></ul>
  18. 18. Harmonized Tariff Coding System <ul><li>The Harmonized System </li></ul><ul><li>Reading the Numbering Hierarchy </li></ul><ul><li>General Rules of Interpretation </li></ul><ul><li>Binding Rulings </li></ul>
  19. 19. Harmonized Tariff System <ul><li>A numbering system currently used by over 145 countries that engage in International Trade for the purpose of counting imports, exports and applying duty rates </li></ul><ul><li>Individual rates of duty are politically and then legally driven, usually as a means of producing revenue, or to protect selected industries </li></ul><ul><li>The U.S. adopted the H.S. Coding System on Jan 1, 1989 </li></ul>
  20. 20. Numbering System <ul><li>10 digit system </li></ul><ul><li>1 - 2 Chapter </li></ul><ul><li>3 - 4 Heading </li></ul><ul><li>5 - 6 Subheading </li></ul><ul><li>7 - 8 U.S. Rate line </li></ul><ul><li>9 - 10 U.S. Statistical Line </li></ul>
  21. 21. General Rules of Interpretation <ul><li>The GRI are the six governing principles to be applied in the classification process. They are part of the legal test of the HTS tariff and are intended to be consulted and applied each time merchandise is classified. </li></ul>
  22. 22. Binding Rulings <ul><li>Importers may request, in advance of import, a ruling decision from U.S. Customs regarding the dutiable status of the merchandise. </li></ul><ul><li>CROSS - Customs Ruling Online Search System </li></ul><ul><li>95,757 rulings to date </li></ul>
  23. 23. Other Government Agencies <ul><li>Food & Drug Administration (FDA) </li></ul><ul><li>Federal Communications Commission (FCC) </li></ul><ul><li>Department of Transportation (DOT) </li></ul><ul><li>Environmental Protection Agency (EPA) </li></ul><ul><li>Alcohol Tobacco & Firearms (ATF) </li></ul><ul><li>U.S. Fish & Wildlife Service (FWS) </li></ul><ul><li>Department of Agriculture </li></ul><ul><li>Department of Energy </li></ul>
  24. 24. If you have further questions, please contact: Matthew J. Parrott A.N. Deringer Inc. 1010 Niagara Street Buffalo, NY 14213 Phone: 716-886-8101 Fax: 716-886-1840 [email_address] Thanks for your time!