1 CHAPTER XIII CUSTOMS CLEARANCE  Entry Process of Goods, Types of Entry  Evidence of Right to Make Entry  Entry Documents, Surety  Entry Summary & Payment of Duties  Electronic Entry Filing  Immediate Delivery Application prior to Arrival  Entry for Bonded Warehouse  Unentered Goods  Informal Entry of Goods, Mail Entries  Examination of Goods & Entry Documents  Classification, Liquidation  Protest and Litigation

2 Entry Process of Imported Goods  Entry means filing required documents with US Customs  Goods are legally entered when 1)Shipment has arrived within port of entry 2)Release of goods is authorized by Customs 3)Estimated duties have been paid  Articles subject to approval or acceptance by other government agency: Its approval must be obtained first prior to release of articles by Customs

3 Types of Entry 1) Consumption entry: For resale after importation 2) Transportation entry: To interior destination for customs clearance under bond 3) Warehouse entry: To enter Customs-bonded warehouse. Maximum 5 years. No explosives & perishables 4) Warehouse withdrawal entry: To pay duties and withdraw from warehouse 5) Immediate export entry: To reroute goods via US port to foreign country 6) Baggage declaration and entry: By a traveler

4 Evidence of Right to Make Entry 1. Documents for ownership 1)Original Bill of Lading, Air Waybill, Sea Waybill 2)Carrier’s Certificate 2. Person who has a right to make entry 1) Owner 2) Purchaser 3) Licensed customs broker with a power of attorney

5 Entry Documents Within 15 calendar days of arrival of shipments 1)Entry/Immediate Delivery (CBP Form 3461) 2)Evidence of right to make entry 3)Commercial Invoice or Pro forma invoice 4)Packing list if appropriate 5)Customs bond (Surety) 6)Other documents required for particular shipments 7)Identification of a new buyer, if sold during transit

6 Surety (Customs Bond)  Guarantee to U.S. Customs by a surety company  Must be posted with Customs at the time of entry to cover potential duties, taxes, and penalties 1)Single transaction bond: for one time importation 2)Continuous bond: During a bond period, one year

7 Entry Summary & Payment of Duties  Within 10 working days of entry of imported goods,  Entry summary (Customs Form 7501) must be filed and estimated duties must be paid.  Duties are personal debts  Checks made payable to :U.S. Customs & Border Protection" rather than to "Customs broker."

8 Electronic Entry Filing  To speed up customs clearance time  Use Customs Automated Commercial System (ACS) to electronically receive and process entry document, and provide cargo disposition information  May use a customs broker who transacts customs business with the Automated Broker Interface (ABI) in conjunction with ACS

9 Immediate Delivery Application prior to Arrival  Entry/Immediate Delivery (Form 3461) & Customs bond must be filed prior to arrival of merchandise  Entry summary and estimate duty: Within 10 working days of release  Limited to 1)Goods from Canada or Mexico 2)Fresh fruits and vegetables from Canada or Mexico 3)Goods for U.S. Government 4)Goods for trade fair 5)Tariff-rate Quota goods 6)Goods specially authorized by Customs HQ

10 Entry for Bonded Warehouse  Enter Customs-bonded warehouse for future release  Maximum 5 years  Goods may be manipulated by cleaning, sorting, repacking or other processes, but not manufacturing  Perishable goods, explosives or prohibited articles are not allowed

11 Unenterd Goods  If entry documents not filed within 15 calendar days after arrival, goods may be placed in a general order(G.O) warehouse.  Carriers, not port directors, are required to notify bonded warehouse of unentered merchandise  If not entered in 6 months, goods are sold at public auction  CBP has authorized CWS Marketing Group & Rod Robertson Enterprises to auction off themCWS Marketing Group Rod Robertson Enterprises

12 Mail Entries  If not exceeding $2,000, duties are collected by postman. No entry form required. $5 processing fee.  If over $2,000, commercial invoice required for a formal entry  Some sundry products limited to $250  Packages whose declared value is under $200 ($100 if being sent as a gift to someone other than the purchaser) are generally cleared without any additional paperwork prepared by CBP

13 Examination of Goods and Entry Documents  In order to determine 1)Value of goods and their dutiable status 2)Whether country of origin is properly marked 3)Whether contains prohibited articles 4)Whether correctly invoiced 5)Whether excess or shortage of invoiced quantity 6)Whether contains illegal narcotics

14 Classification  All products are classified either of 1)By items that name them 2)By general description 3)By component materials 4)By actual or principal use

15 Liquidation  Duties paid at the time of entry are estimated duties.  Customs final determination of exact amount of duty owed on the shipment after reviewing the classification and appraisement  Post Notice of Liquidation on a public bulletin board  Send Courtesy Notice of Liquidation (Form4333A)  Deemed liquidated, if not liquidated within one year unless extended for another year. Total four years

16 Protest and Litigation 1)Appraised value of goods 2)Classification, rate and amount of duty 3)All charges 4)Exclusion of goods from entry 5)Liquidation or any modification 6)Refusal to pay a drawback claims 7)Refusal to reliquidate an entry Protest: Within 180 days after liquidation on CBP Form 19 Litigation: Within 180 days after denial of protest with U.S. Court of International Trade