7/29/2019 (Pim)CHAPTER 2 - Types of Entries and Cargo Examination

1/4

CHAPTER TWOTypes of Entries and Cargo Examination

Chapter Objectives:

To understand several types of entries To understand the role of customs broker and how can they help the importer To understand the examination procedures

Introduction:

In todays trading environment the tariffs, which are your duty to pay on goods coming into US

are fairly low.

The total duty collected is a very minor part of US revenues

The main purpose of having customs requirement is to enforce various trade laws

First step

* The shipment arrived and the carrier notify us

*The procedures are depend of type or merchandise, value of goods and what laws and

regulations apply to it

*There are several types of entries:

Type of entries

Formal entry Informal entry Consumption Warehouse TIB (Temporary Importation under Bond) Re-warehouse, government Foreign trade zone

7/29/2019 (Pim)CHAPTER 2 - Types of Entries and Cargo Examination

2/4

Customs Broker:

Customs broker transact customs business on behalf of the importer for a fee.

They are licensed by US Customs They are accountable under law for providing these services in a competence,

professional and legal manner

They are familiar with all the ins and outs of Customs clearance They can handle any problems that arise They usually get shipment released expeditiously

A Customs Broker can

Prepare for the import Be present at examination of goods Solve problem Pay duty and fee, complete the process Delivery, execute bonds, respond to request of customs File Protests and administrative review request with customs

Informal Entries

The easiest entry Most goods can enter this way if the value is $2,000 or less Food and Leather can clear informally if the value is less than $250 Personal effect shipment will be release on an informal entry Commercial textile could not be cleared informal entry regardless the value Shipment coming back for repair will be cleared informal entry

7/29/2019 (Pim)CHAPTER 2 - Types of Entries and Cargo Examination

3/4

7/29/2019 (Pim)CHAPTER 2 - Types of Entries and Cargo Examination

4/4

The Less than Perfect but Ok Entry

Shipment must be examined by customs Shipment has problem with country of origin marking Solution was released for arranging marking Customs Broker accepts and release shipment The importer pay more for import duty and close file

The Worst Possible Entry

The merchandise is unmark Customs broker is unable to contact importer The freight sits on dock, container is in CY, shipment is in CFS warehouse, the importer

has to pay late filing and much storage charges

Merchandise will be seized after 15days The importer maybe goes out of businessWhat do we need to do?

Hire a Customs Broker Arrange enough time for Customs Clearance Find out requirements for product ahead of time Do not smuggle or try smuggling Drug trafficking is maybe caused capital sentence