GHY Webinar: A “How To” Guide for Importing Into the U.S. Giving You Tips and Showing You the Risks.

1. About the Speaker
• Corie Koropatnicki is the Account Manager for GHY
USA, the US brokerage division of GHY International.
Corie brings 20 years of cross industry experience to all
her client engagements, with the last 14 years as a
Licensed Customs Broker.
• Her experience combined with her role at GHY USA
provides opportunity to create and cultivate lasting
relationships with importers across many industry
sectors, and with US Customs officials as well. A
combination that works well on behalf of the clients
she represents.

2. GHY University
Basics of Importing into the U.S.
March 11, 2015
Presented by Corie Koropatnicki

3. GHY International
• Our Vision
– Is to be a leader in providing innovative, tailor-
made solutions to North American importers and
exporters.
• Our Mission
– We are dedicated to providing the highest levels
of personalized professional international trade
services to our clients, whose needs shape all our
endeavours.

4. GHY Values
C A R E
• Clients are the reason we exist
• Associates matter
• Relentless pursuit of improvement
• Excellence in all we do

5. Importing Basics
• Admissibility and the Entry Process
• Tariff Classification
• Valuation
• Country of Origin
• Entry summary
• Post entry
• Liquidation
• Recordkeeping

6. The Entry Process

7. The Entry Process
• Importer of Record
– Owner
– Purchaser
– Party who has financial interest in the transaction
that brought the goods into the United States
• Evidence of Right to Make Entry
– Endorsed Bill of lading
– airway bill or carriers certificate
– Possession of the goods in some instances

8. The Entry Process cont’d
• Import Bonds - issued by Surety companies
– Bond amounts are based on established risk
guidelines set forth by CBP
– Annual continuous bonds - covers all shipments
within the given year and common for high value
or high volume importers
– Single Entry Bonds – covers just the entry of
merchandise connected to one entry and is more
common for infrequent importers

9. The Entry Process cont’d
• Customs Brokers
– In-house licensed customs brokers
– Outside customs brokerage service providers
– Brokers must hold a valid license to transact
customs business
– Power of attorney
– Important to note that the importer retains
ultimate liability for misstatements and mistakes
in the entry process, no matter the cause

10. The Entry Process cont’d
• Pre-Importation requirements
• Rail & Air - automated manifest system
• Truck
– ACE E-Manifest
– One hour prior to arrival at the port of entry
• Ocean
– Importer Security Filing is also known as ISF or 10+2
– 24 hours prior to the loading on board a vessel at a
foreign port

11. The Entry Process cont’d
• Entry Filing documents
– Entry manifest – submitted by the carrier
– Evidence of right to make entry (BOL)
– Evidence of a bond (single or continuous)
– Commercial or pro forma invoice
– Packing lists if appropriate for exam purposes
– Other product specific documents necessary to
determine admissibility by CBP or other
government agencies like FDA or USDA

12. Tariff Classification – aka HTS

13. Tariff Classification – aka HTS
• Harmonized Tariff Schedule (HTS)
• Rates of Duty
• Special Tariff Preferences
– NAFTA – North American Free Trade agreement
• Just because it’s made in Canada doesn’t mean it qualifies
for Nafta benefits.
• Special Tariff Provisions – 9801.00
– USGR– US manufactured goods returning
– Cannot be advanced in value or improved in condition
• Just because you purchased it in the US doesn’t mean it was
made there.

14. Valuation

15. Valuation
• Transaction Value –
– Is the most common and preferred method by CBP
– TV includes:
• Packing costs incurred by the buyer
• Selling commission incurred by the buyer
• Value of any assists (tooling, parts, or design work supplied
by the buyer to the seller free of charge)
– Freight and insurance are non-dutiable charges and
can be deducted if included in the invoice value
– Alternate Methods

16. Country of Origin Laws

17. Country of Origin Laws
• Importers must make accurate declarations as to
the country of origin of imported merchandise
• CBP regulations require a single origin
determination be made for imported
merchandise
• The origin of a product is used to confirm
– Admissibility
– Quota – tariff rate or absolute
– Eligibility for trade agreements

18. Country of Origin Laws
• Substantial transformation
– The name, character, and use of the imported article
and component materials
– The nature and manufacturing process that resulted in
the finished article
– The nature of the manufacturing process used to
produce the parts, components or materials in the
article.
– The value that is added by the manufacturing process.
– The “essential character” of the finished article.
– The change in tariff classification that resulted from
the manufacturing process

19. Country of Origin Marking

20. Country of Origin Marking
• U.S. law requires that all foreign goods be marked
with their country of origin “in a conspicuous
place as legibly, indelibly, and permanently as the
nature of the article (or container) will permit.”
• Additional duty of 10% of the value assessed for
failure to mark
• Delivery withheld until marked , duties deposited
or redelivery of the goods is ordered
• Penalties for removal, defacement, or alteration
of marking

21. Marking Exemptions

22. Marking Exemptions
• Articles substantially changed by manufacture
• Articles physically incapable of being marked
or would be damaged by marking
• Articles named in the “J” list (nuts, bolts,
buttons or eggs) but the outermost container
must be marked with country of origin
• Articles imported for use by the importer and
not intended for sale in their imported or any
other form

23. Entry Summary &
Entry Documentation

24. Entry Summary &
Entry Documentation
• Customs form 7501 or CF7501
• Must be filed with duty payment within 10
working days of release date
• Adjustments can be made within those 10
business days
• Most brokers file summaries less than the 10
day window

25. Post Entry

26. Post entry
• Post entry amendments – must be filed 20
days prior to liquidation
• NAFTA refunds aka 520(d) submissions can be
filed up to one year after date of import or
release from customs
• Refund or payment of duty must be $20 or
more

27. Liquidation

28. Liquidation
• On or about day 314 after import, the entry is
finalized or “liquidated”
• CBP’s final assessment of the admissibility and
calculation of duties owed
• Protest can be submitted if an importer
wishes to challenge CBP’s assessment of
duties
• Protests must be filed within 180 days of
liquidation.

29. Recordkeeping

30. Recordkeeping
• Entry records are required to be retained for
five years after entry
• CBP may request copies of the entry records
• Documents must be provided to CBP “within a
reasonable period of time after demand.”

31. QUESTIONS?
Corie Koropatnicki
corie@ghy.com
PH: 701-825-6474
WPG Direct: 204-957-7149
LinkedIn: Corie Koropatnicki, LCB