CBLE cheat sheet

An individual broker's license requires: age 21 or older, U.S. citizenship, not a current federal employee, good moral character, and a score of at least 75% on CBP's written licensing exam (19 CFR 111.11-111.13).

A broker must file a triennial status report with CBP by February 1 of every third year with a $100 fee; failure to file is a ground for suspension or revocation (19 CFR 111.30(d)).

A licensed broker must maintain a $50,000 customs bond and must hold a permit for each customs district or port where it transacts customs business (19 CFR 111.19, 111.21).

Brokers must retain records of customs business transactions for 5 years from the date of the transaction and make them available to CBP upon request (19 CFR 111.23).

Responsible supervision and control (19 CFR 111.28) requires a licensed broker to supervise employees who transact customs business, provide adequate training, and maintain internal controls.

A written power of attorney must be obtained from each client before transacting customs business, and it must be retained for 5 years after revocation (19 CFR 111.31-111.39).

"Customs business" means activities involving entry filing, entry summary preparation, classification, valuation, duty payment, and related transactions with CBP on behalf of another person (19 CFR 111.1).

Violations of 19 U.S.C. 1641 may result in a civil penalty of up to $30,000 per violation, plus suspension or revocation of the license or permit after notice and an opportunity for a hearing.

Grounds for revocation or suspension include false statements in the license application, felony conviction, failure to file the triennial report, and violations of customs laws or regulations (19 CFR 111.53).

Entry must be filed within 15 calendar days after arrival of the importing conveyance; merchandise not entered within that period is sent to a general order warehouse (19 U.S.C. 1484, 1490).

Formal entry requires a right to make entry (bill of lading or carrier certificate), a commercial invoice, packing lists, the entry manifest or immediate delivery form, and a bond.

The entry summary (CBP Form 7501) together with deposit of estimated duties, taxes, and fees must be filed within 10 working days after the entry is filed or the merchandise is released (19 CFR 142.3).

Informal entry is authorized for shipments valued at $2,500 or less (19 CFR 143.21); no bond is required and duties are paid at the time of entry.

A continuous bond must be at least $50,000 and at least 10 percent of the duties, taxes, and fees paid during the preceding calendar year, whichever is greater (19 CFR 113.13).

A single-transaction bond must equal at least the entered value plus estimated duties, taxes, and fees (19 CFR 113.14).

The right to make entry belongs to the owner, purchaser, consignee named in the bill of lading, or a licensed broker acting under a valid power of attorney (19 CFR 141.11-141.18).

General order merchandise not entered within 6 months after arrival may be sold at public auction after notice to the importer (19 U.S.C. 1491).

De minimis: merchandise valued at $800 or less per person per day is admitted free of duty and tax (19 U.S.C. 1321; 19 CFR 10.151).

GRI 1: classification is determined by the terms of the headings and any relative section or chapter notes; GRIs 2-6 apply only when the heading or notes do not otherwise require.

GRI 2(a): an incomplete or unfinished article having the essential character of a complete article is classified as the complete article; the same rule covers unassembled or disassembled articles.

GRI 2(b): a reference to a material or substance includes mixtures and combinations of that material with others; goods put up in sets are addressed by GRI 3.

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

GRI 3(b): composite goods and sets are classified by the component giving essential character; GRI 3(c) applies when 3(a) and 3(b) fail and selects the heading occurring last in numerical order.

GRI 4: goods that cannot be classified under GRIs 1-3 are classified under the heading for the goods to which they are most akin.

GRI 5: cases, boxes, and containers specially shaped or fitted for a specific article are classified with that article; packing materials and containers are classified with the goods they contain.

GRI 6: classification at the subheading level applies GRIs 1-5 mutatis mutandis, and only subheadings at the same level are compared.

Additional U.S. Rule of Interpretation 1(a)-(d): use-based provisions are governed by principal use at importation; actual-use provisions require intended use, actual use, and proof within 3 years; a parts provision does not prevail over a specific provision for the part; Section XI mixture rules apply to textile provisions.

The six valuation methods are applied in strict order: transaction value, transaction value of identical merchandise, transaction value of similar merchandise, deductive value, computed value, and fallback (19 CFR 152.101-152.107).

Transaction value is the price actually paid or payable for the goods when sold for exportation to the United States, plus packing costs, selling commissions, assists, royalties or license fees, and proceeds of resale (19 CFR 152.103).

Buying commissions, costs of transport after importation, duties and taxes, and post-importation engineering or construction costs are excluded from transaction value.

A royalty is added to transaction value only if it relates to the imported merchandise and payment is a condition of the sale of the merchandise for exportation to the United States.

An assist includes tools, dies, molds, materials, components, and engineering, development, artwork, or design work performed outside the United States and supplied free or at a reduced cost to the producer.

Related-party transaction value is acceptable only if the relationship did not influence the price; CBP tests this against test values or circumstances of the sale (19 CFR 152.103(l)).

Deductive value begins with the unit price at which the imported goods are sold in the United States and deducts commissions, profits, general expenses, transport, and duties and taxes (19 CFR 152.105).

Computed value is the sum of materials and fabrication costs, profit and general expenses, and packing costs (19 CFR 152.106).

Currency conversion uses the exchange rate in effect on the date of exportation of the merchandise to the United States (19 CFR 152.107).

CBP must liquidate an entry within 314 days after the date of entry, unless liquidation is extended or suspended (19 CFR 159.12).

If CBP does not liquidate within one year after entry (or after the final decision on a matter), the entry is deemed liquidated at the rate, value, and duty asserted by the importer (19 U.S.C. 1504).

The merchandise processing fee is 0.3464 percent ad valorem, subject to a minimum and maximum amount adjusted annually for inflation (19 CFR 24.23).

The harbor maintenance fee is 0.125 percent of the value of commercial cargo loaded or unloaded at U.S. ports (19 CFR 24.24).

Duty drawback refunds 99 percent of duties, taxes, and fees paid on imported merchandise that is exported or destroyed; the claim must be filed within 5 years after the date of importation (19 U.S.C. 1313; 19 CFR 190.11).

Drawback categories include manufacturing drawback (direct identification and substitution), unused merchandise drawback, and rejected merchandise drawback.

Voluntary reliquidation may be made by CBP within 90 days after the original liquidation (19 CFR 173.3).

Interest accrues on underpayments from the date of liquidation and on overpayments refunded by CBP (19 U.S.C. 1505).

Antidumping, countervailing, and Section 301/232 additional duties are assessed in addition to normal duties and are deposited at the time of entry summary filing.

Foreign trade zone merchandise is admitted on CBP Form 214 and is not entered into the customs territory until it is transferred for domestic consumption.

FTZ status categories are privileged foreign, non-privileged foreign, zone-restricted, and domestic; privileged foreign status fixes classification and duty at the time of admission.

Under the inverted tariff benefit, an importer may elect to pay duty on the finished product if its rate is lower than the rate on the components imported into the zone.

Weekly entry allows one entry summary per week for zone merchandise, with the merchandise processing fee capped per weekly entry rather than per shipment (19 CFR 146.63).

USMCA replaced NAFTA on July 1, 2020 and requires a written certification of origin prepared by the importer, exporter, or producer; no prescribed form is mandated and records must be kept 5 years (19 CFR 10.1000 et seq.).

HTSUS 9801.00.10 provides duty-free treatment for U.S. goods returned without having been advanced in value or improved in condition abroad.

HTSUS 9802.00.40, 9802.00.50, and 9802.00.60 assess duty only on the value of the foreign repair, alteration, or processing, not on the full value of the returned article.

Temporary importation under bond (HTSUS 9813) permits duty-free admission of goods imported temporarily if they are exported within 1 year, with extension available on request.

A binding ruling under 19 CFR Part 177 is prospective and binding on CBP and the requesting party for the transaction described, provided the facts and merchandise description are accurate and complete.

CBP may revoke or modify a ruling only after publishing notice in the Customs Bulletin and allowing a 60-day comment period (19 CFR 177.12).

Internal advice (19 CFR 177.11) is CBP headquarters guidance issued on a specific transaction pending before a field office; it is not a binding ruling to the requester.

A protest under 19 U.S.C. 1514 must be filed on CBP Form 19 with the port director within 180 days after liquidation, a relevant decision, or a demand for duties.

Protestable decisions include classification, appraisement, rate of duty, exclusion of merchandise, refusal to reliquidate, and certain fines, penalties, and claims for liquidated damages.

An application for further review (19 CFR 174.25) requests headquarters review of the protest before the port director decides it; the protestant must state the specific basis for review.

If CBP does not act on a protest within 30 days, the protest is deemed denied (19 U.S.C. 1515); the protestant may then seek accelerated disposition after 90 days, which CBP must decide within 30 days.

A denied protest may be challenged in the U.S. Court of International Trade by filing a summons within 180 days after the denial or deemed denial.

Under 19 U.S.C. 1592, civil penalties are: fraud, up to the domestic value of the merchandise; gross negligence, up to 40 percent of dutiable value; negligence, up to 20 percent of dutiable value.

CBP issues a pre-penalty notice describing the alleged violation and giving the party 30 days to respond before a penalty is assessed (19 CFR 162.77-162.78).

After a penalty notice, the party may file a petition for relief with CBP within 60 days (19 CFR 171.2).

A prior disclosure filed in writing before CBP commences a formal investigation eliminates fraud penalties and limits negligence and gross negligence penalties to interest (19 U.S.C. 1592(c)(4); 19 CFR 162.74).

CBP officers may board vessels, search vehicles, and examine merchandise under 19 U.S.C. 1581-1582; personal searches must be conducted by an officer of the same gender and may require detention for a reasonable time.

A CBP summons under 19 U.S.C. 1509 may compel the production of records or testimony relevant to an investigation, importation, or entry.

Seized property is subject to notice of seizure, appraisement, and administrative or judicial forfeiture; petitions for remission or mitigation are decided under 19 CFR Part 171.

Claims for liquidated damages are mitigated through the fines, penalties, and forfeitures process under 19 CFR Part 172.

Recordkeeping violations for failure to maintain or produce required records may result in penalties of up to $100,000 per release of information (19 U.S.C. 1509(g); 19 CFR Part 163).

FDA prior notice for imported food must be submitted no more than 15 calendar days and no later than 24 hours before the merchandise arrives at the port.

Consumer products regulated by CPSC require a certificate of compliance and must be certified before entry; noncompliant goods are subject to detention or refusal.

EPA requires a TSCA import certification for chemical substances and mixtures, and an EPA declaration for vehicles and engines (19 CFR 12.118-12.127).

USDA APHIS requires import permits and phytosanitary or veterinary certificates for plants, animals, and agricultural products.

FCC-regulated radio frequency devices require a declaration of compliance filed as an FDA/FCC message set in ACE (19 CFR 11.14).

Section 337 exclusion orders issued by the U.S. International Trade Commission are enforced by CBP through exclusion of infringing merchandise at the border.

Section 301 (China and other trading partners) and Section 232 (steel and aluminum) additional duties are collected at entry in addition to normal duties and require specific HTSUS Chapter 99 reporting.

Textile and apparel imports are subject to quota, visa, and country-of-origin rules, and merchandise must be marked with its country of origin (19 U.S.C. 1304).

Trade facilitation programs include ACE electronic filing, CTPAT supply chain security certification, and the Importer Self-Assessment (ISA) program.