Risks, Liabilities & US Regulatory Compliance

1. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
Risks, Liabilities & US
Regulatory compliance
Bob Imbriani,Executive Vice President-International,TeamWorldwide

2. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
ROBERT P. IMBRIANI (Bob) has been in the international/domestic transportation
and logistics field for almost five decades. He has held various senior executive
positions with major U.S. Customs brokers/freight forwarders. He is currently
Executive Vice President, International for Team Worldwide & President of Team
Ocean Services, Team Worldwide, Ltd. (Canada) and Team International Trade
Services. Mr. Imbriani is a well-known speaker and educator in the areas of trade
compliance, contract negations, transportation, logistic/supply chain solutions,
customs brokerage, trade development, e-commerce, commercial terms and
financial services. He is an adjunct professor in these areas at Baruch College,
Pace University in New York. He has presented classes at The US Merchant Marine
Academy and The US Naval Academy. He is a Certified Global Professional &
instructor for NASBITE

3. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
• Team Worldwide is a full service global logistic provider, priding ourselves on
meeting and exceeding the needs and expectations of our clients, partnering
with them to support their future growth. Our services include international air
and ocean freight forwarding, consolidation services, domestic air and surface
transportation, warehousing and distribution, order fulfillment, customs
brokerage, ocean projects, letters of credit expediting, insurance and bonds,
compliance audits, consulting and training services.
• Our advanced computer technology, which includes “Team Trac”, provides
Internet access to tracking and tracing information, as well as standard and
customized management reports.
• You can obtain additional information by visiting our website at
www.teamww.com

4. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
E-Commerce - Risks, Liabilities & US Regulatory
compliance

5. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
By understanding the areas of risk and regulatory concerns and taking a
proactive approach, you can minimize the barriers to entering into e-commerce
There have always been inequities with how various regulations apply to
traditional Freight Forwarders/Customs Brokers and how they apply to
integrators, couriers and even postal services. This is especially prevalent in the
United States. These can be overcome through knowledge, training, being
proactive, coordination with the customer and adopting proper operating and
compliance procedures

6. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
There are many elements for a freight forwarder to consider as you
enter into e-commerce
• The following are a few of these items, which we will discuss:
 Who are the potential customers?
 IT Issues
 Freight Issues
 Export Regulatory Issues
 Import Regulatory Issues
 Liabilities

7. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
US Export Regulatory Issues
These will vary by country, but using the US as an example:
 Complying with security programs such as Known Shipper
 Who will be the USPPI/Exporter of record
 How will you determine the harmonized classification and value for each
item for export filings such as the EEI
 Who will be the shipper on the house bill
 Creating a proper manifest
 What will be used as the commercial invoice

8. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
US Export Regulatory Issues (cont’d)
 Certifying any goods as non restricted or Haz Mat
 Do any goods require export licensing or have any specific export control;
classification
 Do any of the items require special documentation
 Sales tax issues
 Does the seller know the goods will be exported and is there any possible
violation of distributor territories
 Other?

9. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
US Export Regulatory Issues (cont’d)
Some Options to consider:
 Have overseas customer set up a legal entity in the origin country
 Do you have proper powers of attorney/letter of authorization
 If you will be shown as the shipper, be sure to obtain proper
indemnification from the client
 Be sure to have cargo aircraft options
 Agree on classification and value procedures with the client in advance

10. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
US Export Regulatory Issues (cont’d)
Some Options to consider(cont’d):
 Have a regulatory person review cargo for classification and control issues
upon receipt of orders
 Create a list of commodities that may present concerns
 Know who the sellers are
 Establish your receiving location in a tax friendly area
 Other

11. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
US Import Regulatory Issues
These issues will again vary greatly by country but again we will focus on the
US:
 Who will be the importer of record
 Are the declared values correct
 What are the import rules for e-commerce shipments regarding
commodity, value, number of shipments/orders per receiver (IE: in the US
under Section 321, the value limit is USD$800.00)
 Are there any commodities that require other government agency release

12. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
US Import Regulatory Issues (cont’d)
 Who is responsible for any duties, taxes, inspection fees, etc.
 Are the goods properly classified
 Is the country of origin properly declared for each item
 Are there any import bond issues
 What are the procedures if goods are denied entry
 Copyright, Trade mark & related issues
 Other

13. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
US Import Regulatory Issues (cont’d)
Some options to consider are:
 Establish all procedures with the account prior to the first shipment
 Establish the client as a non-resident importer of record if possible in
advance or have them setup a legal entity in country to be the import of
record
 Setup a system for paying duties and fees to USCBP
 Be sure documents have proper value and countries of origins

14. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
US Import Regulatory Issues (cont’d)
Section 321 Clearances
Section 321 can be filed by Air AMS and E-Truck Manifest participants
as part of those types of filings. This means that a forwarder can
submit these filings and they do not have to be a customs broker.
Section 321s by brokers are not yet automated at CBP so this may be
an opportunity for forwarders to participate in the Section 321
clearances
The forwarder would have to be a CFS or ECCF to participate.

15. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
Some Regulatory Issues
Case Studies

16. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
Case Study #1
A shipment of bicycle racing rims was imported under section 321 with a declared
value of USD $ 795.00. This raised a “red flag” with USCBP who went to the buyer to
verify the value
The buyer produced an invoice that shown the purchase price of USD $ 3,500.00
which was well above the declared value
The buyer had no knowledge of what value was declared upon clearance
Case Study #2
A shipment of cosmetics was declared as nonhazardous upon inspection they were
fund to be alcohol based perfumes
Case Study #3
USCBP during the period of November /December 2017 seized over 2800 e-
commerce shipments for copyright/trademark infringement

17. WWW.WCAECOMMERCE.COM #WCAECOMMERCE
Conclusion
E-commerce is changing the freight world and there are tremendous
opportunities for the Freight Forwarder. The intent of this presentation was not
to be negative or discourage entering into the world of e-commerce. It is
intended to help identify some of the areas that will need to be addressed in
advance so that your entry into e-commerce will be successful and profitable.

18. Thank You !!!!
WWW.WCAECOMMERCE.COM #WCAECOMMERCE
For your attention
& participation!!!
Bob Imbriani
Bob.imbriani@teamww.com