Classification and Valuation – Import and Export

admin — Thu, 03 May 2012 19:06:47 +0000

Import Compliance requires that you be at a high percentage in classification (95%). Best way to attain is to know your merchandise (good description) and to be very familiar with the GRI(s) (General Rules of Interpretation) located in the front of the Tariff. Across the board there is a high use of GRI 1. If you can’t use that rule know the others to classify.

Valuation compliance is expected to be at 99%. Stay in Transaction Value and have access to the points (elements).
Definition. The transaction value of imported (instant) merchandise is the price actually paid or
payable for the merchandise when sold for exportation to the United States, plus amounts equal to:
A. The packing costs incurred by the buyer

B. Any selling commission incurred by the buyer

C. The value of any assist

D. Any royalty or license fee that the buyer is required to pay as a condition of the sale

E. The proceeds, accruing to the seller, of any subsequent resale, disposal, or use of the imported merchandise

These amounts (A through E) are added only to the extent that each (1) is not included in the price, and (2) is based on information establishing the accuracy of the amount. If sufficient information is not available, then the transaction value cannot be determined; and the next basis of value, in order of precedence, must be considered for appraisement.

Classification and Valuation accuracy apply to Export also.

Compliance Manuals

admin — Thu, 03 May 2012 18:51:44 +0000

In the period after the passage of the Customs Modernization Act, many advised not to have a written compliance manual as it could be a “smoking gun”. It seems that those legal professionals are now in enthusiastic support of compliance manuals. Everyone needs to be a participant in a company’s compliance where they are involved. Having access to the tools required is important…an uninformed participant is a weak link. Having written responsibility without resources to do the job creates a burden. While some advocate against manual templates, be advised that you must have a manual and it is a starting point and, maybe with proper updating, a final but far from static product. Our purpose is to give you the means to achieve compliance.

Import requires attention to classification, valuation, admissibility and security.
Export requires similar with licensing and other specific areas dependent on what the product is and area where you are doing business.

You need written manuals, internal training, internal audit and recordkeeping among others.

GLOBAL Trade Compliance

admin — Wed, 28 Oct 2009 19:50:45 +0000

“Experience has taught us again and again that giving short shrift to regulatory compliance subjects a company’s investors, employees, management, directors, and every other stakeholder to unacceptable risks….Compliance programs have made huge strides in recent years in becoming more formalized and more robust…. Now more than ever, companies need to take a long-term view on compliance and realize that their fiduciary responsibility requires a constant commitment to investors. That means sustaining their support for compliance during this market turmoil, and beyond it as well.” 12/2/08 SEC Chair Letter

SEC site

Companies involved in GLOBAL Trade need to effectively practice compliance. Recordkeeping, internal audits and internal training are areas of focus. We provide means!