Importers and Import Procedures
What the exam tests
This domain examines the importer's legal and practical obligations: registration, pre-import checks, documentation, customs valuation, payment, release and record-keeping.
Before the import
An importer should hold a TIN and be registered for tax purposes, check whether the goods are prohibited or restricted, identify the correct HS and CET line, and obtain sector permits before shipment. A licensed customs agent may act, but the importer remains responsible for the accuracy of the declaration and for paying duty. Pre-import checks avoid cargo arriving without a required permit or with an unworkable classification.
Documentation and valuation
Core documents include commercial invoice, contract or purchase order, packing list, bill of lading or airway bill, freight and insurance evidence, certificate of origin, and permits such as FDA, EPA, phytosanitary or standards approvals. Customs value is normally the transaction value adjusted under the WTO valuation rules: add commissions, assists, royalties and licence fees where required, and include freight and insurance to CIF. If the transaction value is unreliable, for example because buyer and seller are related and the price is influenced, Customs applies the sequential fallback methods.
After lodgement
After assessment the importer pays through the approved bank or ICUMS payment route, then supports examination and release. Records must be retained for the statutory period so that post-clearance audit can reconstruct the transaction. Voluntary disclosure of an error is generally better than discovery in an audit.
Worked example
An importer buys from a related supplier at USD 8,000 CIF, while identical goods from unrelated sellers sell at USD 10,000 CIF. Customs finds the relationship influenced the price and rejects the transaction value. It moves sequentially to identical goods, then similar goods, then deductive or computed value, and finally the fallback method. If the acceptable value is USD 10,000 and duty is 20%, duty rises by USD 400. The importer cannot insist on the related-party invoice merely because it is genuine.
Traps that cost marks
Under-valuing goods to reduce duty; omitting assists or royalties; using a certificate of origin without meeting the origin rule; importing restricted goods without a permit; and failing to keep records after release.
Key points
- The importer remains liable even when a customs agent acts.
- Pre-import checks cover prohibition, restriction, HS code and permits.
- Customs value is transaction value adjusted to CIF under WTO rules.
- Related-party prices can be rejected if influence is shown.
- Records must support post-clearance audit.