1. ARE THE RISKS OF A
BINDING RULING GREATER
THAN THE REWARDS?
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2. The binding ruling program allows importers to request a decision from US
Customs and Border Protection (CBP) on prospective merchandise prior to
importation.
While importers may know about CBP’s binding ruling program, many are
unsure whether they should seek a binding ruling or make a determination on
their own.
Customs related determinations can often be made by an importer without
requesting a binding ruling, through exercising due diligence, researching
Customs laws and regulations and seeking help from a qualified Licensed
Broker.
3. When a reasonable determination cannot be made after exercising reasonable care, the best
next step may be to request a binding ruling from CBP. Requests can help an importer to:
• Argue for an HTS classification that could result in a lower duty rate, particularly with
products that fall into a “grey” area (i.e. is the item classified as sleepwear or loungewear?)
• Provide cost certainty when developing a new product line
• Understand proper country of origin marking, especially when manufacturing processes
take place in more than one location
• Argue for qualification under a Free Trade Agreement
• Value merchandise properly, including how to declare possible assists
• Avoid delays at time of importation with trademarked or copyrighted merchandise
• Determine if a transaction qualifies for drawback
4. What are the risks?
If CBP rules in your favor, a ruling can be great because it is binding. If
CBP rules unfavorably, it can result in higher than expected costs with
respect to duty, labeling expenses, etc.
Importing a product non-compliantly and not exercising due
diligence, however, increases risks of fines and penalties from CBP
should they conduct a review, along with potentially owing back
duties on past imports if a full audit is conducted.
5. For helpful information on how to request a CBP binding ruling, the
below publications from US Customs are a great place to start:
• ICP - US Customs & Border Protection Rulings Program:
https://www.cbp.gov/sites/default/files/documents/cbp_rulings_prog
_3.pdf
• Where should I send binding ruling requests:
https://www.cbp.gov/sites/default/files/documents/cbp_rulings_prog
_3.pdf
6. IF YOU WOULD LIKE HELP WITH MAKING A DETERMINATION ON YOUR
PRODUCT, INCLUDING STEPPING THROUGH THE PROS AND CONS OF
REQUESTING A CBP BINDING RULING WITH A TEAM OF EXPERIENCED
LICENSED BROKERS, PLEASE REACH OUT TO KERRI HAWLEY, NEW
ENGLAND DIVISION STATION MANAGER AT JANEL GROUP, INC., AT
KHAWLEY@JANELGROUP.COM OR 401-727-1776, EXT. 126.
WE LOOK FORWARD TO WORKING WITH YOU!
