T140c trade processing Flashcards
When processing trade imports cbp officers must ensure
Arrival of goods
Release of goods
Closing of the books
Import processing
5 steps
Import specialist can help with this
- Manufacturer/ shipper delivers goods
- Carrier files manifest delivers goods
- Importer files entry
- Cbp examines/releases goods
- Importer files entry summary
- Liquidation-cbp accepts documents and duty
What is a manufacturer
Shipper/exporter
Person or entity whose goods are being shipped
What is a carrier
Shipping line
Legal entity that transports goods for hire
FROB foreign cargo remaining on board
Inporter security filing ISF
What is the importer
Aka consignee
Person or entity whom goods have been shipped or turned over for care
ISF
What is a notify party
Person or entity to be told about the arrival of a shipment
Broker
What is a freight forwarder
Sometimes called Forwarding agent
Completed paperwork
Makes arrangements with carrier to ship goods
Arranges transportation
What is a manifest
Inventory of all good
Manifest must be filed prior to unloading goods
For sea cargo, 24 in advance
What computer systems can be used for terrorist targeting
CSI
ATS4(review manifest for terrorism or narcotics
Depending on modes of transportation
Manifest must be available at different times
- Air 4 hours
- Rail 2 hours
- Truck 1 hour
- FAST 30 minutes
What are some automated tools to track and control flow of goods
All used for manifest research
ACS automated commercial system ABI automated broker interface ACE automated commercial environment EDI AMS automated manifest system ATS4
What does a bill of lading contain
Contract between two parties:shipper and carrier
Container # Security seal number Commodity description Shipping weight/quantity Shipper Consignee Notify party Msds
When was the new legislation importer security filing ISF and additional carrier requirements( 10+2) signed
January 26, 2009
What is an ISF importer
Owner, purchaser, consignee, or agent that causes all goods to enter the US
Foreign is FROB -carrier
8 data requirements for ISF no later than 24 hours before cargo is laden( exempt bulk cargo)
Seller Buyer Importer record# FTZ applicant id Consignee #s Manufacture Ship to party Country of origin Commodity HTSUS #
What are two additional elements prior to ships arrival 24 hours
Container stuffing location
Consolidator
FROBS, IE, t&e must provide 5 data elements in 24 hours before laden aboard a vessel ( exempt bulk cargo)
Booking party Foreign port of unlading Ship to party Place of delivery Commodity HTSUS #
Additional carrier requirements for ISF
Vessel stow plan no later than 48 hours
Container stays message (csm)
What is an airway bill
Identify each shipment by separate #
And furnish furnish same info as previously listed for bills of lading
All merchandise transported by a commercial carrier must be
Entered within 15 calendar days of arrival in US
Merchandise conditionally released into US
Duty paid within 10 days after authorized delivery
What is the HTSUS
Primary resource for determining tariff classifications and rates of duty
Who makes decisions for rates on dutys
Import specialist
What is a bond
Contract involving three parties
- Principal(importer,carrier,trade entity)
- Surety(furnishes bond, insurance company)
- Creditor(party being paid by surety if principal defaults)
What type of bond is an International carrier bond
Type 3
What type of bond is an importer bond
Type 1
What are the types of entries
Entry is required regardless of value
- Formal(have bond, have IRS,SS,CBP number, over 2,500
- Informal(no bond, less than 2,500)
- Commercial merchandise(not intended for personal or household use)
- Personal or household use importations(intended for personal or household use)
Must all imported goods and merchandise that remain on a commercial conveyance be inspected?
Yes or no
Yes
Formal entry requirements
- Coversheet(cbp3461)
- Evd of right to make entry
- Commercial invoice/pro forma
- Packing list
- Other docs
Can an entry be filed on paper or electronically
Yes or no
Yes
Entries filed in advance has more detailed info than the bill of lading, including
- Ultimate consignee
- More detailed commodity description and tariff number
- Accurate value
- Country of origin
Types of formal entries
- Consumption
- Transportation
- Warehouse
- Appraisement
Consumption entry
Merchandise that will be used in US
” entering the commerce” 95% of all entries
Transportation entry
“In bond”
Arrive at US port and move to another location within that port of exportation
Move to another port without entering to commerce
Use cbp7512
Transportation entries
Immediate transportation (IT)(most used)
-Transportation and exportation(T&E) transported to another US port for exportation
Immediate exportation (IE) Directly exported from port of arrival
Warehouse entry
Stores merchandise not entered into commerce of US
Bonded warehouses
Duty free shops
General order
FTZ
Appraisement entry
Merchandise awaiting appraisement
Damaged shipments
Secondhand goods
Can a cbp port director require formal entry on any merchandise if import admissibility is considered to be a risk
Yes or no
Yes
What is subject to informal entry
American food returned (AGR) personal or commercial valued 10k or less
Returned for repairs or credit
American aircraft part( value doesnt matter)
Temp importation
All personal shipments( regardless of value)
Commercial shipments 2,500 or less
What is subject to formal entry
Commercial shipments over 2,500
Examine and release good considering the risk inherent to cbp, what are they
Risk of terrorism and other smuggling activities
Risk of non compliance
Is the primary purpose of merchandise examination to detect violations of law and regulations
Yes or no
Yes
What is a second purpose of merchandise examination
To gather accurate data so that cbp determine valid rates of compliance
What is the FAST program
Low risk shipments entering from CAN or MEX
What is a cbp 7501
Entry summary submitted to cbp within 10 working days after release and review
Importer, broker, or representative is responsible for this step
Liquidation
ACS automatically liquidates in 314 days after entry summary
Last step in process
Cbp has accepted
- Merchandise is in compliance and admissible
- docs are complete
- duty payment is accurate
Informal entry
Officer examines, appraises, classifies merchandise and collect appropriate duties
Screened like formal entry
General laws governing trade include
- Tariff act of 1930(endorsed by cbp)
- Trade act of 1974( implements generalized system of preference)
- Implementation of harmonized tariff schedule
Trade agreements
Regulate policies of participating countries
Negotiated by president
Approved by congress
Cbp enforces laws concerning
- American agriculture
- Business
- Public health
- Consumer safety
Two trade initiatives
CSI
CTPAT
