CBLE key terms

A person licensed by U.S. Customs and Border Protection to transact customs business for others, including preparing and filing entries and paying duties, and who must use reasonable care in those activities.

The credential CBP issues to an individual who passes the broker's examination, meets character and fitness standards, and is a U.S. citizen; the license belongs to the individual, not the firm.

A permit allowing a licensed broker to conduct customs business at every port nationwide instead of being separately permitted at each port; obtained by application and posting the required broker bond.

A written authorization signed by an importer that lets a broker or agent file entries and act before CBP on the importer's behalf; CBP does not require a prescribed form.

The requirement that a broker keep records of customs business, including powers of attorney and entry papers, for five years from the date of entry and make them available to CBP on request.

The formal process of telling CBP that imported merchandise has arrived and should be released, typically begun by filing CBP Form 3461 with the supporting commercial documents.

The person liable for duties and responsible for the accuracy of the entry; must be the owner or purchaser of the goods, or a licensed customs broker acting under a valid power of attorney.

The CBP Form 7501 filing that classifies the merchandise, states the entered value, and computes duties, taxes, and fees; generally filed within 10 working days after release.

A bond covering one entry only, posted when the importer has no continuous bond or when another agency requires a bond amount larger than the continuous bond provides.

An annual, renewable bond that covers all entries made by the importer during the bond period, with liability limits set by CBP and agreed to by the surety.

The six legally binding rules at the beginning of the HTSUS that govern classification; they are applied in order, and GRI 1 controls whenever headings and notes resolve the question.

The test for goods put up in sets or made of mixed materials, asking which component gives the item its distinguishing nature by bulk, weight, value, or role.

The rule that when two or more headings each describe part of the goods, the heading giving the more specific description prevails over a general one, unless the goods form a set.

Interpretive rules printed in the HTSUS that operate alongside the General Rules of Interpretation and address classification points unique to the U.S. tariff schedule.

The World Customs Organization's official commentary on Harmonized System headings and subheadings; not legally binding in the United States but persuasive and often relied on by CBP and the courts.

The primary appraisement method: the price actually paid or payable for goods sold for export to the United States, plus required additions, when the sale is bona fide and not distorted by a related-party relationship.

Any item the buyer supplies free or at reduced cost for producing the imported goods, such as materials, tooling, or engineering and design done outside the United States, whose value is added to transaction value.

Buyer and seller linked by family ties, employment, ownership of five percent or more of shares, or control; their transaction value is accepted only if it closely approximates another test value.

An appraisement method starting with the price at which the imported or similar goods are sold in the United States after importation, reduced by commissions, transport, duties, and usual profit and general expenses.

An appraisement method built from the cost of materials and fabrication, plus profit and general expenses, plus packing and other costs of delivering the goods to the place of export.

Valuation based on an earlier arm's-length sale in the export chain, before the sale to the U.S. buyer, when the goods were clearly destined for the United States at the time of that sale.

CBP's final computation and determination of the duties owed on an entry; it becomes final and conclusive unless a protest is filed within 180 days after notice.

A refund of up to 99 percent of duties, taxes, and fees paid on imported merchandise that is later exported or destroyed, or that is used to manufacture articles which are exported.

An ad valorem fee charged on most formal entries, subject to minimum and maximum caps, used to fund CBP processing; certain goods and preference programs are exempt.

A fee on commercial cargo loaded or unloaded at U.S. ports, calculated on the value of the cargo and used to maintain harbors; CBP collects it for maritime shipments.

Reduced or zero duty claimed under a trade agreement or preference program, available only if the importer makes a valid claim and the merchandise satisfies the program's origin rules.

The criteria in a trade agreement or preference program that decide whether goods qualify as originating, such as tariff shift, regional value content, or wholly obtained requirements.

A designated site inside the United States that is legally outside the customs territory, where goods may be stored, manipulated, or manufactured without duty until they enter U.S. commerce.

The designation of goods admitted to a foreign trade zone: privileged foreign status fixes the duty rate at admission, while non-privileged foreign status allows duty on the condition or value at entry.

A written CBP decision applying the law to a specifically described transaction, requested under 19 CFR Part 177; it binds both CBP and the requester for that transaction.

A formal challenge to a CBP decision such as liquidation, classification, or value, filed within 180 days of the decision; a denial may be appealed to the Court of International Trade.

An electronic correction filed before liquidation to fix errors on a transmitted entry summary without a protest or prior disclosure; it must be filed within the period CBP allows.

Telling CBP about a violation of law concerning imported merchandise before CBP begins a formal investigation, which limits penalties to interest on the unpaid duties.

CBP's demand for monetary penalties for fraud, gross negligence, or negligence in entering, classifying, or valuing merchandise; fraud carries the highest multiples of the loss of duty.

CBP's taking of merchandise believed subject to forfeiture, such as smuggled or prohibited goods; the owner may petition for relief or file a claim to force a judicial forfeiture proceeding.

CBP's reduction or cancellation of a penalty or forfeiture under 19 CFR Part 171 guidelines, decided after the violator petitions and shows mitigating factors such as cooperation or a clean record.

A federal agency other than CBP, such as FDA, USDA, or CPSC, whose requirements apply to imported goods and whose data is often transmitted through the PGA message set in ACE.

The advance electronic filing of ten data elements by the importer, plus two by the carrier, at least 24 hours before cargo is loaded for the United States; also called 10+2.

A voluntary CBP supply-chain security program in which importers, carriers, and other parties certify security measures in exchange for benefits such as fewer examinations and faster processing.