Tag: CBP
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Origin Matters More Than You Think Country of origin affects duty rates, eligibility for preferential treatment, applicability of trade remedy duties, admissibility under import restrictions, and marking requirements. Getting origin wrong can raise suspicions of transshipment or evasion. Two Origin Frameworks Non-preferential origin uses the substantial transformation test. Preferential origin uses agreement-specific rules. A single…
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Relief Is Available, But You Have to Ask Tariff exemptions, exclusions, and suspensions can eliminate additional tariff burdens entirely. They require applications prepared carefully, documented thoroughly, and filed within specific deadlines. Types of Tariff Exemptions Section 301 exclusions (USTR), Section 232 exclusions (BIS), Miscellaneous Tariff Bill provisions, and Generalized System of Preferences. Preparing a Strong…
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Valuation Is the Foundation of Your Duty Calculation If classification determines the percentage rate, valuation determines the dollar amount to which that percentage is applied. Valuation errors affect every product at every duty rate and can be equally or more significant than classification errors. Understanding the Transaction Value Method The transaction value is the price…
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A Powerful Tool Hiding in Plain Sight Foreign Trade Zones are designated areas where imported goods can be stored, assembled, manufactured, or processed without formal customs entry or duty payment until the goods enter U.S. commerce. Over 190 general-purpose zones exist, yet many importers have never evaluated whether FTZ operations could benefit their business. How…
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The Most Important Name on the Customs Entry Every customs entry must identify an importer of record (IOR): the entity legally responsible for ensuring accuracy, paying duties, and meeting all regulatory requirements. Being the IOR is the assumption of significant legal and financial obligations. What the IOR Is Responsible For Accuracy of entry data, paying…
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The Case for Auditing Your Own Import Program A voluntary compliance audit identifies errors before the government does, giving you the opportunity to correct them through voluntary disclosure, which dramatically reduces penalty exposure. It also identifies overpayments that can be recovered through refund claims. What a Compliance Audit Covers Classification accuracy, valuation practices, country of…
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The Most Underutilized Refund Program in U.S. Trade Duty drawback dates back to 1789. The concept: when duties are paid on imported goods that are subsequently exported, the government refunds up to 99 percent. Industry estimates suggest only a small fraction of eligible duties are actually recovered, leaving billions unclaimed. Types of Duty Drawback Manufacturing…
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Why Classification Is the Most Important Decision in Your Import Program Every imported product needs an HTS code. That code determines duty rate, eligibility for preferential treatment, whether it is subject to quotas or trade remedy duties, and whether specific agency requirements apply. Get it right, and compliance falls into place. Get it wrong, and…
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The Scale and Complexity of Canada-U.S. Trade The Canada-United States trade relationship is the largest bilateral trade relationship in the world, with goods and services crossing the border valued at roughly two billion dollars every single day. Trade compliance consulting for cross-border operations requires an integrated understanding of how the two regulatory systems interact. CUSMA:…
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A Landmark Legal Challenge The use of the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs on imported goods represents one of the most significant expansions of executive trade authority in modern American history. Its application to impose import duties on a sweeping scale has prompted legal challenges that have reached the highest…