Chapter 12
A full refund of duties paid is made when imported goods that do not conform to specifications are returned to U.S. customs within 90 days and returned to the seller under U.S. customs supervision.
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Customs rules and duty assessment rates are uniform throughout the free world.
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Foreign Trade Zones make it possible for U.S. manufacturers to export goods without having to pay any duties.
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Goods held in a Foreign Trade Zone must be removed within one year of their original import date.
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If an importer provides tools, dies, or molds to a foreign supplier free of charge to be used in the manufacturer of the imported items, the value of these assists will not be included in transaction value.
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In 1997, U.S. Customs adopted a "checklist" that provides an absolute legal standard of reasonable care to be used by importers.
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In the United States v. Golden Ship Trading case, Wu, the owner, was found not liable because she exercised due care in verifying the merchandise was manufactured in China.
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Liquidation of goods must occur within three months of entry.
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Shipments to be entered must be accompanied by commercial invoices written in English and in the native language of the country of origin to assure that there are no discrepancie
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The country of origin is always determined by where the article is grown, produced, or manufactured.
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The rule of informed compliance requires the importer to unilaterally seek a customs ruling on the tariff status of all goods they plan to import.
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Under the Harmonized Tariff Schedule, all countries charge the same rate of duty upon the import of the same or similar products.
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Under the Mod Act, negligent record keeping can be punished by fines up to a maximum of $5,000, or 20 percent of the value of the goods.
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Upon entering goods for use or consumption, all necessary documentation and duties, fees and taxes must be paid within five days.
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An imported item substantially transformed in the United States by the importer before being sold to the ultimate purchaser need not be marked with a foreign country of origin.
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Assume Article X is manufactured in Country Y. It is shipped to Country Z where it is substantially transformed before being imported into the United States for resale. For the purposes of imposing import duties under U.S. law, Article X will be considered a product of Country Z.
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Caribbean nations that do not cooperate with the U.S. in the enforcement of U.S. drug laws do not qualify for assistance under the Caribbean Basin Economic Recovery Act.
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Duty-free status is granted to Caribbean nations under the guidelines of both CBERA and the GSP.
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For purposes of assessing duties to be paid, the transaction value is the dutiable value when all import-related costs have been included in the purchase price.
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For smaller commercial shipments that are mailed into the U.S., the U.S. Postal Service letter carrier acts as an agent for the U.S. Bureau of Customs and Border Protection for purposes of collecting import duties.
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Foreign Trade Zones are free ports provided by the government to allow the receipt of imports to be duty free.
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Goods financed by the seller have duties assessed against the interest payable only if that amount is included in the purchase price of the goods.
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Imported goods may be entered into the U.S. by the purchaser, consignee, or customs broker.
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In interpreting the Harmonized Tariff Schedule, the courts will look at the common and commercial meaning of the items being imported.
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Textile imports are classified according to the fibers that constitute the chief weight of the article.
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The Mod Act increased customs enforcement powers and stiffened penalties for violators.
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The U.S. Bureau of Customs and Border Protection is the agency charged with assessing and collecting tariffs and administering duty-free zones.
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The U.S. and Canada have both adopted the Harmonized Commodity Description and Coding System.
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The owner, purchaser, or consignee of goods or a customs broker with a written power of attorney must enter goods delivered to a U.S. port of entry within five days of the arrive of the goods.
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The purpose of country-of-origin marking requirements is to give consumers in the marketplace the information they need about the products they purchase.
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The purpose of trade preferences is to provide assistance for countries whose economies are developing.
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There are many provisions made in U.S. tariff laws designed to aid developing countries.
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U.S. imports that originate in a normal trade relations country and are shipped to a GSP country must undergo a dual transformation in the GSP country in order for the GSP country to be considered the country of origin.
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Where an imported item could be classified under several different provisions of the Harmonized Code, it will generally fall under that provision which describes the item most specifically.
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Where the transaction value of merchandise cannot be determined, the U.S. Bureau of Customs and Border Protection will look to the dutiable value of identical merchandise imported under similar circumstances.
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