The Entry Process
The Entry Process
When a shipment of goods intended for commercial use reaches the United States, it may not be entered legally until after: (a) it enters the port of entry, (b) the exporter pays the estimated duties and (c) customs authorizes delivery of the merchandise.
The process, in its simplest form, has five essential steps.
Step One: Entry
. Within five working days of arrival of a shipment at a United States port of entry, entry documents must be filed. These documents consist of:
• Entry Manifest, Customs Form 7533; or Application and Special Permit for Immediate Delivery, Customs Form 3461
• Evidence of right to make entry
• Commercial invoice or a pro forma invoice
• Packing list(s) if appropriate
• Other documents necessary to determine merchandise admissibility
Form 3461 is a Special Permit for Immediate Delivery and is an alternative procedure that provides for the immediate release of a shipment. Figure 6-2 shows the form used for land shipments, and Figure 6-3 shows the form used for ocean and air shipments. You or your broker should file the application before the arrival of the goods, and, if approved, the goods won't have to sit on the dock or in a warehouse. They are released on arrival. You are allowed 10 working days to file a proper-entry summary (form 7501) and deposit estimated duties. Release under this provision is limited to the following:
• Merchandise arriving from Canada or Mexico
• Fresh fruits and vegetables for human consumption arriving from Canada or Mexico
• Articles for a trade fair
• Tariff-rate quota merchandise and, under certain circumstances, merchandise subject to an absolute quota
• Merchandise specifically authorized by customs because of perishability or inconvenience to the importer, carrier, or agent
Step Two: Examination. A Customs Officer's determination of the value of the goods and their suitability for entering has five substeps:
• Valuation of the goods for customs purposes and their dutiable status
• Checking the proper markings of the goods with the country of origin
• Determining whether the shipment contains prohibited items
• Determining whether the goods are invoiced correctly
• Inventory to determine whether there are excesses or shortages of the invoiced quantities
Step Three: Valuation.
This step is actually another substep of the examination process, but I offer it here as a separate step because of its importance. Valuation determines the value of the goods for purposes of applying any tariffs or duties.
Generally, the customs value will be the transaction value, or the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price:
• The packing costs incurred by the buyer
• Any selling commission paid by the buyer
• The value of any assist (Note: An example of an assist would be tools, dies, molds, engineering, artwork, etc.)
• Any royalty or license fee that is required from the buyer as a condition of the sale
• The proceeds from the sale of the imported goods that accrue to the seller
If you cannot use the transaction value for the goods, then you must use secondary bases in the following order of precedence:
• Transaction value of identical merchandise
• Transaction value of similar merchandise
• Deductive value
• Computed value
Step Four: Classification. This step too, is a substep of the examination process designed to determine the tariff or duty rate. Classification is initially the responsibility of the importer, customhouse broker, or other person preparing the entry papers. Familiarity with the Tariff Schedule of the United States (TSUS) and the Harmonized System (HS) Tariff Schedule of the United States facilitates the process.
Step Five: Liquidation. The classification and valuation, as well as other required import information, are reviewed for (a) correctness, (b) as a proper basis for appraisement, and (c) for agreement of the submitted data with the merchandise actually imported. If it is accepted without changes, it is liquidated "as entered." This step is finalized in the traditional way of posting a notice on the public bulletin board at the customhouse. The bulletin board is now a computer printout.
After the liquidation, an importer may pursue claims for adjustment or refund by filing, within 90 days, a protest on Custom's Form 19. Time limits do not begin to run until the date of posting. If, after further review, the importer is still not satisfied, he may file a summons with the United States Customs Court of International Trade.
When a shipment of goods intended for commercial use reaches the United States, it may not be entered legally until after: (a) it enters the port of entry, (b) the exporter pays the estimated duties and (c) customs authorizes delivery of the merchandise.
The process, in its simplest form, has five essential steps.
Step One: Entry
. Within five working days of arrival of a shipment at a United States port of entry, entry documents must be filed. These documents consist of:
• Entry Manifest, Customs Form 7533; or Application and Special Permit for Immediate Delivery, Customs Form 3461
• Evidence of right to make entry
• Commercial invoice or a pro forma invoice
• Packing list(s) if appropriate
• Other documents necessary to determine merchandise admissibility
Form 3461 is a Special Permit for Immediate Delivery and is an alternative procedure that provides for the immediate release of a shipment. Figure 6-2 shows the form used for land shipments, and Figure 6-3 shows the form used for ocean and air shipments. You or your broker should file the application before the arrival of the goods, and, if approved, the goods won't have to sit on the dock or in a warehouse. They are released on arrival. You are allowed 10 working days to file a proper-entry summary (form 7501) and deposit estimated duties. Release under this provision is limited to the following:
• Merchandise arriving from Canada or Mexico
• Fresh fruits and vegetables for human consumption arriving from Canada or Mexico
• Articles for a trade fair
• Tariff-rate quota merchandise and, under certain circumstances, merchandise subject to an absolute quota
• Merchandise specifically authorized by customs because of perishability or inconvenience to the importer, carrier, or agent
Step Two: Examination. A Customs Officer's determination of the value of the goods and their suitability for entering has five substeps:
• Valuation of the goods for customs purposes and their dutiable status
• Checking the proper markings of the goods with the country of origin
• Determining whether the shipment contains prohibited items
• Determining whether the goods are invoiced correctly
• Inventory to determine whether there are excesses or shortages of the invoiced quantities
Step Three: Valuation.
This step is actually another substep of the examination process, but I offer it here as a separate step because of its importance. Valuation determines the value of the goods for purposes of applying any tariffs or duties.
Generally, the customs value will be the transaction value, or the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts for the following items if not included in the price:
• The packing costs incurred by the buyer
• Any selling commission paid by the buyer
• The value of any assist (Note: An example of an assist would be tools, dies, molds, engineering, artwork, etc.)
• Any royalty or license fee that is required from the buyer as a condition of the sale
• The proceeds from the sale of the imported goods that accrue to the seller
If you cannot use the transaction value for the goods, then you must use secondary bases in the following order of precedence:
• Transaction value of identical merchandise
• Transaction value of similar merchandise
• Deductive value
• Computed value
Step Four: Classification. This step too, is a substep of the examination process designed to determine the tariff or duty rate. Classification is initially the responsibility of the importer, customhouse broker, or other person preparing the entry papers. Familiarity with the Tariff Schedule of the United States (TSUS) and the Harmonized System (HS) Tariff Schedule of the United States facilitates the process.
Step Five: Liquidation. The classification and valuation, as well as other required import information, are reviewed for (a) correctness, (b) as a proper basis for appraisement, and (c) for agreement of the submitted data with the merchandise actually imported. If it is accepted without changes, it is liquidated "as entered." This step is finalized in the traditional way of posting a notice on the public bulletin board at the customhouse. The bulletin board is now a computer printout.
After the liquidation, an importer may pursue claims for adjustment or refund by filing, within 90 days, a protest on Custom's Form 19. Time limits do not begin to run until the date of posting. If, after further review, the importer is still not satisfied, he may file a summons with the United States Customs Court of International Trade.
Comments
Post a Comment