Table of Contents


Part 1, Import Transactions


Controlling the Transaction ……………………………….................………………………………………………………3

Using International Shipping Terms ……………………………..............................…………………………………3

The Purchase Order ………………………………………………………...............................…………………………….16

Acceptance of the Purchase Order …………………………………............................……………………………...17

The Battle of the Forms ………………………………………………………………………................................………20

Managing Legal Jurisdictions …………………………………………………………................................……………22

The Purchase Order Form …………………………………………………………...............................………………...24

Model Purchase Order Form ……………………………………………………………..............................…………..25

Terms and Conditions of Purchase ………………………………………….............................…………………….27

Model Terms and Conditions of Purchase …………………………………............................…………………..28

The Master Purchase Agreement ……………………………………………….............................………………….69

Model Master Purchase Agreement ……………………………………….............................………………………71

Letters of Credit ………………………………………………………………….................................……………………….78

Managing Transportation ………………………………………………………................…………………………………..82

Monitoring Your Shipment ……………………………………………………………...............................……………..82

Distribution of Transport Documentation …………………………………….............................………………..83

Carrier Obligations ………………………………………………………………………...............................……………...84

Transport Documents ..………………………………………………………...............................………………………..86

Ocean Bill of Lading ………………………………………………………………................................…………………….87

Sample Ocean BOL Form ……………………………………………………................................……………………….88

Sample Ocean BOL Terms and Conditions ……………………………………............................……………….91

Air Waybill ………………………………………………………………………………………..................................…………96

“Forwarder’s” or “House” Bill of Lading/Air Waybill ………………………..............................………………97

FIATA Bill of Lading ………………………………………………………………………..................................……………97

Cargo Insurance ………………………………………………………………………………................................………….98

Purchasing Intermediaries ……………………………………………………………...............…………………………..103

Brokers and Forwarders ……………………………………………………..............................………………………..103

CBP Power of Attorney Forms …………………………………………...............................………………………….105

Customs Broker POA Forms ………………………………………………...............................……………………….108

Sample Customs Broker POA Form ………………………………………..............................…………………….109

Customs Broker POA Terms and Conditions of Service ......………………….........................………….115

Sample Customs Broker POA Terms and Conditions of Service ..…………........................………….116

Duties and Responsibilities of Customs Brokers ……………………………..........................………………132

Foreign Purchasing Representatives …………………………………………….............................………………133

Model Purchasing Representation Agreement ………………………………..........................………………134


Part 2, Customs Compliance


Importer Compliance Obligations ………………………………………………………………...............……….…….155

Import Sanctions and Embargoes ………………………………………………………,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,….……155

Importer Security Filing ……………………………………………………………................................………….…...158

Tariff Classification ………………………………………………………………................................…………….……..161

Classification Compliance Procedure …………………………………….............................……………….…….181

Chapters 98 and 99 of the HTSUS …………………………………………..............................……………….……182

Chapter 98 …………………………………………………………………………….................................…………………..183

Chapter 99 ……………………………………………………………………………………….................................………..187

Country of Origin Rules ……………………………………………………………...............................………………..188

NTR Countries …………………………………………………………………………................................………………..189

NAFTA Countries …………………………………………………………………….................................…………………190

Other Preferential Rules of Origin…………………………………………………….............................…………..197

Generalized System of Preferences ………………………………………………............................………………199

Textiles and Textile Products …………………………………………………………...............................…………..200

CBP’s Tariff Shift Initiative ………………………………………………………….................................……..………200

Country of Origin Marking …………………………………………………………...............................…..………….201

Marking of Containers ………………………………………………………………...............................………..……..206

Certificates of Origin …………………………………………………………………...............................……..………..208

Valuation …………………………………………………………………………………………..................................….……209

Transaction Value ………………………………………………………………………................................…….……….210

First Sale for Export ………………………………………………………………….…................................…………….220

Related Party Transactions ………………………………………………………….…..............................…………..224

Transaction Value of Identical and Similar Merchandise ……………….…….........................…………227

Deductive Value …………………………………………………………………………………................................……..228

Computed Value ……………………………………………………………………………................................…………..231

Currency Conversion ………………………………………………………………………...............................………….232

Duty Determination .....…………………………………………………………………………................................……232

Drawback ……………………………………………………………………………….……….................................…………236

Antidumping and Countervailing Duties ..……………….……………………............................….………….245

Section 301 Actions ………………………………………………………………………...............................……………250

Quotas ………………………………………………………………………………………….................................……………251

Reconciliation ………………………………………………………………………………….................................…….….253

Record Keeping …………………………………………………………………………………................................………257

Customs Rulings …………………………………………………………………….………................................…….…..260

Entry Procedures …………………………………………………………………….…………................................……..264

Customs Surety Bond ……………………………………………………………….…………................................…….265

Entry ……………………………………………………………………………………….……………...................................…266

Liquidation ……………………………………………………………………………….………..................................……..268

Post Entry Amendments …………………………………………………………….…………................................…..268

Protests …………………………………………………………………………………….…..................................…………..269

Customs Bonded Warehouse ……………………………………………………….…..............................………….270

Foreign Trade Zones …………………………………………………………………………................................………274

Importer Policies and Procedures ………………………………………….……..............…………………………….280

Implementation ……………………………………………………….………………................................……………….282

Voluntary Programs ………………………………………………….……………................................………………….282

ISA Program …………………………………………………………….………………….................................…………….283

C-TPAT Program ………………………………………………………………………..................................………………284

Drawback Compliance Program ……………………………………………………..............................…………….289

Record Keeping Compliance Program …………………………………………….............................……………290

ACE Program …………………………………………………….………………………….................................……………291

The Compliance Manual …………………………………….………………………..............................………………292

The Compliance Manager …………………………………..…………………………..............................……………294

Employee Compliance Responsibilities …………………………………………….............................………….295

Performance Reviews ……………………………………………………………………………...............................…..296

Corrective Actions and Training ……………………………………………………..............................……………297

Managing Brokers and Agents ………………………………………………………..............................……………298

Responding to CBP Inquiries and Notices ……………………………………...........................….…………...300

Specific CBP Inquiries and Notices ……………………………………….............................……………………..301

Discovering Violations of Law …………………………………………………...............................………………….303

Use of ITRAC Data …………………………….…………………………………………….................................………...304

CBP Enforcement Procedures ……………………………………………………………...............………………………305

Liquidated Damage Claims ……………………………………………………………..............................……………305

Penalty Claims ………………………………………………………………………………….................................……….308

Assessment of Penalties ……………………………………………………………………..............................…….….310

Mitigation of Penalties ……………………………………………………………………...............................………….313

Prior Disclosure ……………………………………………………………………………................................……………318

Drafting the Prior Disclosure .……………………………………………………….............................……….……..324

Model Initial Disclosure Letter ……………………………………………………..............................………………325

Supplemental Disclosure ……………………………………………………………..............................………………332

Request for Waivers of the Statue of Limitations ……………………………...........................…………….333

Detention of Goods …………………………………………………………………………................................…………344

Seizure of Goods ………………………………………………………………………………...............................………..347

Forfeiture of Seized Goods …………………………………………………………..............................……………….349

Patent, Trademark and Copyright Enforcement ……………………………..............................…………….351

Trademark Violations …………………………………………………………………................................……………..354

Copyright Violations ……………………………………………………………………................................…………….361

Petitions for Relief ....………………………………………………………………………….................................……..364

Other Federal Agency Import Requirements …………………………………………………............…………….375


Appendices

Appendix 1, Sample of a Letter of Credit Issued by Bank of America ………………….............………401

Appendix 2, Attachments to General Terms and Conditions of Purchase (International) ……...405

Appendix 3, Sample Bill of Lading Terms and Conditions ………………………………….............……….414

Appendix 4, Commercial and Pro Forma Invoice Requirements …………………………............…..….432

Appendix 5, Sample FTZ Operator Agreement ………………………………………………...............…….……439

Appendix 6, Sample Waiver of Statute of Limitations …………………………………….............……………455