CCEB Component A flashcards

33 cards. Read the term and the definition here. The deck at the top of this page is optional.

Entry Summary Form 7501

The CBP form used to declare imported goods, their classification, value, and duty owed. It must be filed within 15 calendar days of arrival and is the basis for liquidation.

Liquidation

CBP's final determination of the duties owed on an entry, occurring within 314 days of entry. It fixes the duty amount and starts the 180-day protest period.

Protest

A formal challenge to a CBP decision, filed on CBP Form 19 within 180 days of liquidation. It is decided by the port director and appealable to the Court of International Trade.

Reasonable Care

The legal standard requiring importers to exercise due diligence in classification, valuation, and origin declarations. Failure can support penalties under 19 U.S.C. 1592 for negligence or fraud.

Prior Disclosure

A voluntary report of a customs violation made before CBP begins an investigation. If duties are tendered, penalties are limited to interest rather than the full statutory amount.

HS Structure

The Harmonized System has 21 sections and 97 chapters, with headings at four digits and subheadings at six. The U.S. HTSUS adds eight- and ten-digit statistical suffixes for reporting.

GRI 1

The first General Rule of Interpretation: classification is determined by the heading terms and any relative section or chapter notes. Later GRIs apply only if headings remain ambiguous.

GRI 3(b) Essential Character

Composite goods and sets are classified by the component that gives them their essential character. If that cannot be determined, GRI 3(c) assigns the last heading in numerical order.

GRI 6

The rule extending GRI 1 through 5 to subheading comparison. Only subheadings at the same level are compared, and the subheading terms and notes control the result.

Binding Ruling

A CBP ruling letter that is binding on CBP and the requester for the specific transaction described. It is published in the CBP Rulings database and may be relied upon.

Transaction Value

The primary basis of appraisement: the price actually paid or payable for goods sold for export to the U.S., plus statutory additions such as assists, royalties, and packing costs.

Assists

Goods, services, or engineering supplied free or at reduced cost by the buyer to the seller for use in producing the imported merchandise. Their value must be added to transaction value.

Fallback Valuation Hierarchy

When transaction value is unavailable, CBP uses, in order: identical merchandise, similar merchandise, deductive value, computed value, and finally derived value as a residual method.

Merchandise Processing Fee

A fee of 0.3464% of entered value, subject to a minimum and maximum per entry. It applies to most formal entries and is adjusted annually for inflation.

Harbor Maintenance Fee

A 0.125% fee on the value of cargo imported by vessel. It does not apply to air or land shipments and is not subject to the MPF cap.

Commercial Invoice

The primary valuation document showing seller, buyer, description, quantity, unit price, total value, currency, Incoterms, and country of origin. It supports the declared customs value.

Bill of Lading

The contract of carriage between shipper and carrier. A negotiable B/L is a document of title; a straight B/L is non-negotiable and names a specific consignee.

Importer Security Filing

The 10+2 filing required 24 hours before vessel loading. It provides CBP with advance cargo data; late or inaccurate filings can trigger a $5,000 liquidated damages claim.

Electronic Export Information

Data filed in AES for exports exceeding $2,500 per Schedule B number or when a license is required. It replaces the paper Shipper's Export Declaration.

USMCA Certification

A written certification, with no prescribed form, claiming preferential tariff treatment under the USMCA. The importer must retain supporting records and produce them on request.

ECCN

An Export Control Classification Number identifying an item on the Commerce Control List. Items not listed are designated EAR99 but remain subject to the EAR.

Entity List

A Supplement No. 4 to Part 744 listing parties subject to license requirements for specified items. The requirement can extend to items not otherwise controlled.

OFAC SDN List

The Specially Designated Nationals list imposing a full asset freeze. U.S. persons are prohibited from dealing with listed parties, and their property is blocked.

De Minimis Rule

Foreign-made items incorporating controlled U.S.-origin content are subject to the EAR if that content exceeds 25% by value, or 10% for certain destinations.

ITAR

The International Traffic in Arms Regulations governing defense articles and services on the USML. They require licenses for exports and are administered by the State Department.

EXW

Ex Works: the seller makes goods available at its premises. The buyer bears all loading, export clearance, transport costs, and risk from that point.

FOB

Free On Board: the seller delivers goods on board the vessel at the named port. Risk passes when goods are on board, and the buyer arranges main carriage.

CIF

Cost, Insurance, and Freight: the seller pays cost, insurance, and freight to the destination port. Risk passes at origin when goods are on board, not at destination.

DDP

Delivered Duty Paid: the seller bears all costs and risks to deliver cleared for import at the named destination, including import duties and customs clearance.

24-Hour Rule

A CBP requirement that a complete vessel cargo manifest be filed 24 hours before loading at the foreign port. It enables advance targeting of high-risk shipments.

CTPAT

The Customs-Trade Partnership Against Terrorism, a voluntary program. Members implement supply-chain security measures and receive reduced inspections and front-of-line processing.

Demurrage vs. Detention

Demurrage is charged when containers remain at the terminal beyond free time. Detention is charged when containers remain outside the terminal beyond free time.

Broker Confidentiality

A broker may not disclose client business information except as required by law or with client consent. The duty is codified in 19 C.F.R. 111.24.