canadian construction association
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Canadian Construction Association
Annual Conference 2004Matthew Parrott, LCB
Branch Manager, Buffalo, NY
Canadian Construction Association
Annual Conference 2004Matthew Parrott, LCB
Branch Manager, Buffalo, NY
Customs and Border ProtectionReasonable Care
Commercial Invoice Requirements Customs Entries
Harmonized Tariff Coding SystemOther Government Agencies
Mission Statement
To expedite the legal clearance of your goods to ensure proper and on-time delivery to your customers.
We, as U.S. Customhouse Brokers, uphold the laws of the United States, safeguard the revenue, and foster lawful international trade.
Customs and Border Protection
NAFTA PAPS C-TPAT FAST FDA Bioterrorism Act
NAFTANorth American Free Trade Agreement
Allows preferential duty treatment for qualifying goods from qualifying countries.
Not everything from Canada, Mexico, and the U.S. is NAFTA eligible.
Work with a qualified expert to complete your NAFTA Certificate of Origin.
Incorrect Certificates can lead to fines, penalties and prison time.
C-TPAT Customs Trade Partnership against Terrorism A voluntary government/industry partnership
initiative to strengthen overall supply chain and border security.
Industry Commitment Conduct a self assessment of supply chain
security. Submit a supply chain security profile
questionnaire Develop and implement a program
C-TPAT ( con’t )
Benefits to participating in C-TPAT Reduced number of inspections An assigned account manager Access to C-TPAT membership lists Eligibility for account based processes An emphasis on self-policing, not Customs
verification
FAST - Fast and Secure Trade
Facilitate pre-approved low risk trade between the U.S. and Canada over land borders
FAST will allow importers on the U.S./Canada border to obtain expedited release for qualifying commercial shipments
CTPAT FAST approved driver/qualifying goods/approved CTPAT importer
Greater speed at the border Reduced cost of compliance Strong and ongoing partnership with Canadian and U.S.
Customs
FDA Bioterrorism Act
New legislation designed to protect the food supply of the United States.
Takes effect December 12, 2003 Do not ship food or drink of any type, not
even a gift.
Reasonable Care
The importer of record is responsible for knowing what they import and the terms of the transaction.
The importer of record bears the legal responsibility for using reasonable care to correctly enter the merchandise.
In order to meet this legal responsibility an importer may utilize one or more experts to assist him.
Commercial Invoice Requirements
CFR 19 141.86 The port of entry which the merchandise is
destined. The shipper, consignee, buyer (if other then
consignee) and any other parties to the transaction.
A detailed description of the merchandise, including name, quality, grade, and any marks or numbers on the goods.
Commercial Invoice RequirementsCont.
The quantities and weight of the merchandise. The purchase price or value, if not a sale, of
each item in the currency of purchase. The kind and country of currency whether
gold, silver, or paper. Any other items the shipper incurred for the
goods for example: packing, freight, insurance, etc.
Commercial Invoice RequirementsCont.
All rebates, drawbacks, and bounties, if any separately itemized.
The country of origin (manufacture) of the merchandise and any assists given for the merchandise.
Invoice must be in English A packing list should always accompany the
invoice. The HTS code of each item on the invoice.
Commercial Invoice RequirementsCont.
The name of a responsible party from the shipper of the merchandise.
The Federal Tax I.D. number (A.K.A. IRS #, EIN # etc.) of the consignee or buyer (if U.S.) of the goods.
Customs Entries
Consumption Entries (informal and formal) Temporary Importation Bond (TIB) Bonds (Transit, In-Transit, T&E) Warehouse Entries/Consolidated Entries Foreign Trade Zone (FTZ) Section 321 Section 10.41a
Formal Entries
Merchandise valued in excess of $2000 USD or merchandise that is excluded from informal entry, (textiles ), or the Customs Inspector requires formal entry
Bond required Broker’s services very beneficial Duty plus minimum MPF of $25.00 USD Entry review by Import Specialist
Informal Entries
All goods valued at less than $2000 USD unless a Customs Inspector requires formal entry, or if textiles over $5.00 USD.
Broker’s services aren’t necessary, although highly recommended.
Entry is final ( liquidated )upon payment of duty.
Harmonized Tariff Coding System
The Harmonized System
Reading the Numbering Hierarchy
General Rules of Interpretation
Binding Rulings
Harmonized Tariff System A numbering system currently used by over 145
countries that engage in International Trade for the purpose of counting imports, exports and applying duty rates
Individual rates of duty are politically and then legally driven, usually as a means of producing revenue, or to protect selected industries
The U.S. adopted the H.S. Coding System on Jan 1, 1989
Numbering System
10 digit system 1 - 2 Chapter 3 - 4 Heading 5 - 6 Subheading 7 - 8 U.S. Rate line 9 - 10 U.S. Statistical Line
General Rules of Interpretation
The GRI are the six governing principles to be applied in the classification process. They are part of the legal test of the HTS tariff and are intended to be consulted and applied each time merchandise is classified.
Binding Rulings
Importers may request, in advance of import, a ruling decision from U.S. Customs regarding the dutiable status of the merchandise.
CROSS - Customs Ruling Online Search System
95,757 rulings to date
Other Government Agencies Food & Drug Administration (FDA) Federal Communications Commission (FCC) Department of Transportation (DOT) Environmental Protection Agency (EPA) Alcohol Tobacco & Firearms (ATF) U.S. Fish & Wildlife Service (FWS) Department of Agriculture Department of Energy
If you have further questions, please contact:
Matthew J. Parrott A.N. Deringer Inc.1010 Niagara StreetBuffalo, NY 14213Phone: 716-886-8101Fax: [email protected]
Thanks for your time!
If you have further questions, please contact:
Matthew J. Parrott A.N. Deringer Inc.1010 Niagara StreetBuffalo, NY 14213Phone: 716-886-8101Fax: [email protected]
Thanks for your time!