Customs brokerage involves facilitating transactions with customs regarding importation of merchandise. A customs broker's license is required to conduct customs business. Some transactions not requiring a license include importing solely for personal use and transporting cargo. Various types of customs entries exist including formal consumption for permanent imports, informal consumption for low value shipments, and temporary import bonds for one year imports. Transportation entries allow cargo to be transported within or out of the customs port without duty. Warehouse entries provide temporary storage for up to five years. Foreign trade zones allow duty deferral and manufacturing of goods. Certain goods like American exports can be declared duty free on return. Low value and instruments of trade are exempt from entry. Ship spares can use transportation or

1. Customs
Brokerage

2. Customs Brokerage
“No person may conduct customs business unless that
person holds a valid Customs broker license.” 19 USC 1641
• “Customs business” is defined as those activities
involving transactions with Customs concerning the
entry and admissibility of merchandise, its
classification and valuation, the payment of duties,
taxes, or other charges assessed or collected by
Customs on merchandise by reasons of its
importation, and the refund, rebate, or drawback of
those duties, taxes, or other charges.
Offshore NAM 2

3. Transactions not
requiring a license
• An importer or exporter transacting customs business
solely on his own account
• A person transacting business in connection with
entry or clearance of vessels or other regulation of
vessels under the navigation laws.
• A carrier may file vessel entries and in-bond entries
for transportation of merchandise.
(19 CFR 111.2(a)(2))
Offshore NAM 3

4. Formal Entry
Formal Consumption Entry:
• Permanent Importation
• Single Transaction or Continuous Bond Required
• Duty Paid*
• Subject to OGA / Licensing requirements (if applicable)
• Subject to Harbor Maintenance fee (HMF), This is an ad valorem fee of 0.125
percent.
• Subject to Merchandise Processing fee( MPF), This is an valorem fee of 0.3464
percent.
• Consumption entries should be filed only for foreign material that will
permanently remain in the United States.
*Please note that if previously imported material is temporarily exported to the OCS
to be used in the exploration, extraction, or development of natural resources, can
be returned duty free under HTS heading 9801.00.65.
Offshore NAM 4

5. Informal Entry
Informal Consumption Entry
• Applicable to shipments valued under $2500
• Permanent Importation
• Duty Paid
• No Bond Required
• Subject to Other Governmental Agency (OGA) and licensing requirements (if
applicable)
• Subject to Harbor maintenance fee (HMF)
• Merchandise processing fee(MPF) assessed at flat rate of $2.00
Offshore NAM 5

6. Temporary Import Bond
(TIB)
Temporary Import Bond
• Temporary Importation – Must be re-exported within one year.
• Subject to OGA and Licensing Requirements (if applicable)
• No duty paid
• Material cannot undergo substantial transformation
• Subject to harbor maintenance fee (HMF)
• Subject to merchandise processing fee (MPF)
• Export of material must be certified by CBP.
• Not eligible for drawback
Offshore NAM 6

7. Transportation Entries
Transportation Entry (IT/IE/T&E)
• Three types of transportation entries
– Immediate Transport (IT) – Clearance to transport to another CBP bonded
facility.
– Immediate Export (IE) – Clearance to export via another carrier within the
same customs port.
– Transportation and Exportation – Clearance to export via another carrier
outside of the current customs port.
• Not subject to OGA and licensing requirements for entry to be made
• No duty paid
• Not Subject to HMF or MPF
• Shipment must remain intact and cannot be manipulated.
• Shipment must remain in custody of the bonded carrier. (ISS is a bonded carrier)
• Not eligible for duty drawback
Offshore NAM 7

8. Warehouse Entries
Warehouse Entries
• Temporary Importation allowed for up to 5 years in a CBP Bonded Facility
• Warehousing for storage only.
• Application for simple manipulation can be made (ie repacking)
• No duty paid at time of entry
• Not subject to MPF at time of entry
• Not subject to OGA and licensing requirements at time of entry
If you have offshore storage issues or a high volume of in-transit material,
establishing a CBP bonded area within your facility may be a solution. ISS in the
Gulf of Mexico has the experience necessary to guide you through this process.
Offshore NAM 8

9. Foreign Trade Zone
FTZ Admissions
• Foreign-trade zones are a part of a duty deferral program. Generally, payment of
duties and excise taxes on foreign merchandise is deferred until the goods are
transferred from the zone
• No duty paid at time of admission
• Not subject to MPF at time of admission
• No time limit on how long material can remain within the FTZ
• Merchandise admitted into a FTZ may be stored, exhibited, repacked,
assembled, distributed, sorted, graded, cleaned, processed, tested, labelled,
repaired, mixed with foreign or domestic merchandise otherwise manipulated,
destroyed, or manufactured.
Offshore NAM 9

10. US Goods Returned
Declaration for Free Entry of Returned American Products
• Applicable to US manufactured goods temporarily exported for use abroad.
• No duty paid
• Not subject to MPF
• Not subject to HMF
• Not subject to OGA and licensing requirements
Offshore NAM 10

11. Entry Exemptions
Entry Exemptions:
• Section 321 Release (19 CFR 10.151) – Items Valued less than $200
Instruments of international trade (19 CFR 10.41a)
• All material manifested in AMS needs either an entry or exemption filed with CBP
within 15 days of arrival. Failure to file will result in the shipment being held
under General Order (GO)
Offshore NAM 11

12. Ship Spares in Transit
• If vessel will arrive within 30 days,
shipment will be cleared under a
Transportation Entry
• If shipment will be held for over 30 days
– initial clearance will be done via a
Warehouse Entry.
Offshore NAM 12

13. Offshore NAM 13
Any Questions?