CCEB Component A cheat sheet

Entry filing: goods are entered by filing CBP Form 7501 (Entry Summary) with estimated duties, taxes, and fees; entry must be filed within 15 calendar days of the date of arrival at the port of unlading unless a extension is granted.

Right to make entry: only the importer of record (owner, purchaser, or a licensed customs broker holding a valid power of attorney) may file entry; a broker acts as agent, not principal.

Liquidation: CBP liquidates an entry within 314 days of the date of entry; the liquidation date fixes the final duty and starts the 180-day protest window under 19 U.S.C. 1514.

Protest: a protest must be filed within 180 days of liquidation (or of a deemed liquidation) using CBP Form 19; protests are decided by the port director and appealable to the Court of International Trade.

Recordkeeping: importers must retain entry records for 5 years from the date of entry (19 C.F.R. Part 163); records must be produced within 30 days of a CBP request, extendable by 30 days.

Reasonable care: importers must exercise reasonable care in classification, valuation, and country-of-origin declarations; failure can trigger penalties under 19 U.S.C. 1592 (negligence: 2x unpaid duties; fraud: domestic value of the merchandise).

Prior disclosure: an importer that discloses a violation before CBP initiates an investigation and tenders unpaid duties limits penalties to interest (19 U.S.C. 1592(c)(4)).

Post-entry corrections: a Post Summary Correction (PSC) may be filed to amend a filed entry summary before liquidation; after liquidation, use a protest or a 520(c) reliquidation request.

HS structure: 21 sections, 97 chapters (chapters 1-97, with chapter 77 reserved), headings at 4 digits, subheadings at 6 digits; the U.S. HTSUS adds 8-digit and 10-digit statistical suffixes.

GRI 1: classification is determined by the terms of the headings and any relative section or chapter notes; only if headings are ambiguous do later GRIs apply.

GRI 3(a): the heading providing the most specific description prevails over a heading providing a more general description.

GRI 3(b): composite goods and goods put up in sets are classified by the component that gives them their essential character; if that is not determinable, GRI 3(c) applies (last heading in numerical order).

GRI 6: comparison at the subheading level uses the same rules (GRI 1-5) applied mutatis mutandis, and only subheadings at the same level may be compared.

Section and chapter notes are legally binding and can exclude goods from a heading even when the heading text appears to cover them.

General Rules of Interpretation are applied sequentially; a classification reached under GRI 1 is not revisited under GRI 3.

Binding rulings: a CBP binding ruling (e.g., a ruling letter) is binding on CBP and the requester for the specific transaction described, and is published in the CBP Rulings database.

Primary basis of appraisement is transaction value: the price actually paid or payable for the goods when sold for export to the United States, plus adjustments.

Additions to transaction value (19 U.S.C. 1401a(b)): packing costs, selling commissions, assists, royalties/license fees as a condition of sale, and proceeds of resale accruing to the seller.

Deductions from transaction value: international freight, insurance, and other CIF charges to the port of export, plus post-importation costs, are excluded from dutiable value.

Fallback hierarchy when transaction value is unavailable: (1) identical merchandise, (2) similar merchandise, (3) deductive value, (4) computed value, (5) derived value.

Duty calculation: ad valorem duty = dutiable value x duty rate; specific duty = rate per unit; compound duty combines both.

Merchandise Processing Fee (MPF): 0.3464% of entered value, minimum $32.71 and maximum $634.62 per entry (FY2024 figures; verify current year).

Harbor Maintenance Fee (HMF): 0.125% of cargo value, applies to vessel imports (not air or land), and is not subject to the MPF cap.

Section 301 and AD/CVD duties are assessed in addition to normal duty and are calculated on the customs value unless the order specifies otherwise.

Commercial invoice must show seller/buyer, description, quantity, unit price, total value, currency, Incoterms, country of origin, and terms of sale; it is the primary valuation document.

Packing list itemizes cartons, weights, dimensions, and marks; it must reconcile with the commercial invoice quantities.

Bill of lading (ocean) or air waybill (air) is the contract of carriage and, when negotiable, a document of title; a straight B/L is non-negotiable.

Certificate of Origin: a non-preferential CO states origin generally; a USMCA certification (no prescribed form) is required to claim preferential tariff treatment.

Entry documents for a formal entry: entry summary (CBP Form 7501), commercial invoice, packing list, bill of lading/air waybill, and any required licenses or permits.

Importer Security Filing (ISF, 10+2): must be filed 24 hours before cargo is loaded on a vessel bound for the U.S.; late/inaccurate ISF can trigger a $5,000 liquidated damages claim.

Electronic Export Information (EEI) is filed in AES when the shipment value exceeds $2,500 per Schedule B number, or when a license is required, regardless of value.

Shipper's Letter of Instruction (SLI) authorizes the freight forwarder to file EEI and provides export details; the forwarder files in AES on the shipper's behalf.

Jurisdiction: the Export Administration Regulations (EAR, 15 C.F.R. 730-774) cover dual-use items; the International Traffic in Arms Regulations (ITAR, 22 C.F.R. 120-130) cover defense articles and services on the USML.

EAR classification: every item has an Export Control Classification Number (ECCN) or is designated EAR99 (not listed on the CCL but still subject to EAR).

License exceptions: examples include LVS (limited value shipments), TMP (temporary), and ENC (encryption); each has specific eligibility conditions and recordkeeping requirements.

Entity List (Supplement No. 4 to Part 744): listed parties require a license for specified items; the license requirement extends to items not otherwise controlled if the ECCN/end-use is listed.

Denied Persons List, Unverified List, and Military End User List impose distinct restrictions; screening against all applicable lists is a standard compliance step.

OFAC sanctions: the SDN list imposes a full asset freeze and prohibits U.S. persons from dealing with listed parties; sectoral sanctions (e.g., SSI list) restrict specific transactions rather than all dealings.

De minimis rule: foreign-made items incorporating U.S.-origin content are subject to the EAR if the controlled U.S. content exceeds 25% by value (10% for certain destinations).

Recordkeeping: export records must be retained for 5 years from the date of export (EAR 762.6); ITAR requires retention for 5 years as well.

Incoterms 2020 defines 11 rules: EXW, FCA, CPT, CIP, DAP, DPU, DDP (any mode) and FAS, FOB, CFR, CIF (sea and inland waterway only).

EXW: seller makes goods available at its premises; buyer bears all loading, export clearance, and transport costs and risk.

FCA: seller delivers goods cleared for export to the carrier nominated by the buyer at the named place; risk passes at delivery to the carrier.

FOB: seller delivers goods on board the vessel nominated by the buyer at the named port of shipment; risk passes when goods are on board.

CIF: seller pays cost, insurance, and freight to the named destination port; risk passes when goods are on board at origin, not at destination.

DDP: seller bears all costs and risks to deliver cleared for import at the named destination; seller is responsible for import duties and customs clearance.

Incoterms govern delivery, risk, and cost allocation only; they do not govern title transfer, payment terms, or applicable law, which are set by the sales contract.

Under CIP (Incoterms 2020), the seller must obtain Institute Cargo Clauses (A) all-risks insurance; under CIF, the minimum is ICC (C).

Container security: the 24-Hour Rule requires a complete vessel manifest (including cargo description) to be filed with CBP 24 hours before loading at the foreign port.

Customs-Trade Partnership Against Terrorism (CTPAT): voluntary program offering reduced inspections and front-of-line processing in exchange for supply-chain security measures.

Automated Manifest System (AMS) and Automated Commercial Environment (ACE) are the electronic filing systems for manifest and entry data, respectively.

Freight terms: FCL (full container load) vs. LCL (less than container load); demurrage applies to containers at the terminal, detention applies to containers outside the terminal.

Incoterms and freight: under CIF/CFR the seller pays main carriage; under FOB/FCA the buyer arranges and pays main carriage.

Cargo insurance: Institute Cargo Clauses (A) all risks, (B) and (C) named perils; general average requires cargo owners to contribute to losses incurred to save the voyage.

Security filings: ISF (10+2) for vessel imports, Air AMS for air cargo, and eManifest for truck and rail; each has its own advance filing deadline.

Drayage vs. linehaul: drayage is short-haul movement between port and local warehouse; linehaul is long-haul movement between cities.

Licensed customs brokers are regulated under 19 C.F.R. Part 111; a broker must exercise responsible supervision and control over employees and operations.

Power of attorney: a broker may act for an importer only under a valid written POA; the POA must be retained and produced on request.

Confidentiality: brokers may not disclose client business information except as required by law or with client consent (19 C.F.R. 111.24).

Conflicts of interest: a broker may not represent both buyer and seller in the same transaction without full disclosure and consent.

Duties to clients: exercise due diligence, provide accurate information, and correct errors promptly; a broker may not knowingly file a false or misleading entry.

Penalties: broker misconduct can result in suspension, revocation, or a monetary penalty under 19 U.S.C. 1641; the broker may also face 19 U.S.C. 1592 penalties for false statements.

Continuing education: brokers must maintain knowledge of current regulations; the National Customs Brokers and Forwarders Association of America (NCBFAA) offers ongoing training.

Recordkeeping: brokers must retain records for 5 years and make them available to CBP on request; failure to do so can support a penalty action.