MRA Customs Broker cheat sheet

19 U.S.C. § 1484 requires an importer of record to file an entry for merchandise within 15 calendar days of arrival at a U.S. port, unless CBP grants an extension.

Entry types: consumption (19 CFR 141.4), warehouse (19 CFR 144), transportation and exportation (T&E, 19 CFR 18), immediate transportation (IT, 19 CFR 18.11), and informal entry for shipments valued at $2,500 or less (19 CFR 143).

The entry summary (CBP Form 7501) must be filed within 10 working days after the entry is accepted, with estimated duties deposited (19 CFR 142.2).

Liquidation becomes final 180 days after the date of entry summary filing if no protest is filed (19 U.S.C. § 1504).

A protest under 19 U.S.C. § 1514 must be filed within 180 days of liquidation; CBP has 2 years to act, after which the protest is deemed denied (19 U.S.C. § 1515).

CBP Form 28 (Request for Information) and CBP Form 29 (Notice of Action) are the primary tools for post-entry verification; responses are generally due within 30 days.

Administrative rulings are issued under 19 CFR Part 177; a ruling is binding only with respect to the requester and the specific transaction described.

The Customs Modernization Act (Title VI of the North American Free Trade Agreement Implementation Act, 1993) shifted legal responsibility for classification and valuation to the importer of record through the 'reasonable care' standard (19 U.S.C. § 1484(a)(1)).

The HTSUS General Rules of Interpretation (GRIs) are applied in sequence: GRI 1 through GRI 6; GRI 1 controls when the heading text and section/chapter notes are dispositive.

GRI 3(a): the heading providing the most specific description prevails over a heading providing a general description; GRI 3(b) applies essential character for goods put up in sets for retail sale; GRI 3(c) selects the heading occurring last in numerical order when 3(a) and 3(b) fail.

GRI 5 governs packing materials and containers: cases, boxes, and similar containers presented with the goods are classified with the goods if of a kind normally sold therewith.

General Note 3(a) HTSUS contains the general tariff-rate structure; General Note 11 contains the USMCA rules of origin; General Note 4 contains the GSP program.

The eight-digit subheading is the legal rate line; the ten-digit statistical suffix is for reporting only and does not affect duty.

Column 1 General rates apply to WTO members and normal-trade-relations countries; Column 1 Special rates apply under FTAs and preference programs; Column 2 rates apply to non-NTR countries such as Cuba and North Korea.

Section and chapter notes are legally binding and can exclude goods from a heading even when the heading text appears to cover them (e.g., Chapter 98 special provisions).

A binding tariff classification ruling is requested on CBP Form 28? No - use a letter to the National Commodity Specialist Division per 19 CFR 177.1; include a complete description, composition, and function.

The primary basis of appraisement is transaction value under 19 U.S.C. § 1401a(b): the price actually paid or payable for the merchandise when sold for exportation to the United States, plus statutory additions.

Statutory additions to transaction value include: packing costs, selling commissions, assists, royalties/license fees related to the imported goods, and proceeds of resale accruing to the seller.

Items excluded from transaction value include: international freight and insurance, construction/assembly after importation, and U.S. duties and taxes.

An 'assist' is any of four categories: materials/components/parts incorporated in the goods, tools/dies/molds consumed in production, merchandise consumed in production, and engineering/development/design work undertaken outside the U.S.

The six sequential valuation methods: (1) transaction value, (2) transaction value of identical merchandise, (3) transaction value of similar merchandise, (4) deductive value, (5) computed value, (6) fallback method (19 CFR 152.101–152.107).

Deductive value starts with the resale price in the U.S. and deducts: commissions, profits and general expenses, transportation/insurance within the U.S., duties and taxes, and any post-importation assembly.

Computed value = cost of materials and fabrication + profit and general expenses + packing costs + assists not already included.

Related-party transaction value is acceptable only if the relationship did not influence the price; CBP may use 'test values' (identical/similar merchandise sales to unrelated buyers) to verify (19 CFR 152.103(l)).

USMCA (effective July 1, 2020) replaced NAFTA; origin is determined under General Note 11 HTSUS and the Uniform Regulations.

USMCA product-specific rules of origin (PSRs) are set out in Annex 4-B; tariff shift, regional value content (RVC), and/or process rules may apply.

USMCA RVC methods: transaction value method and net cost method; automotive RVC thresholds are 75% under the core parts rules and 70% for other vehicles, phased in over time.

USMCA certification of origin may be completed by the importer, exporter, or producer and does not require a prescribed form; it must contain the nine minimum data elements listed in Article 5.2.

USMCA de minimis: goods that do not satisfy a tariff shift rule are still originating if the value of non-originating materials that fail the rule is ≤10% of the transaction value (≤10% of net cost for automotive).

USMCA allows duty drawback and duty deferral between parties (unlike NAFTA), subject to Article 2.5.

GSP (Generalized System of Preferences) expired December 31, 2020; verify current status before claiming; AGOA and CBERA remain in effect as of the knowledge cutoff.

Substantial transformation is the general origin test for non-FTA purposes: a new article with a new name, character, or use must emerge from the processing in the beneficiary country.

Entry is filed electronically via ACE (Automated Commercial Environment) using CBP Form 3461 (entry/immediate delivery) or CBP Form 7501 (entry summary).

A continuous bond (CBP Form 301) covers all entries for one importer for one year; a single-transaction bond covers one entry only.

The basic import bond amount is the greater of $50,000 or 10% of the total duties, taxes, and fees paid in the prior 12-month period, rounded to the nearest $10,000.

A single-transaction bond must be at least the total entered value plus all duties, taxes, and fees.

Immediate delivery (CBP Form 3461) allows release before entry summary filing; the entry summary must still be filed within 10 working days.

Entry summary data elements include: HTSUS number, country of origin, entered value, quantity, rate of duty, and importer of record number.

PGA (Partner Government Agency) data - e.g., FDA, USDA, EPA - must be transmitted with the entry via ACE PGA message set; missing data results in a hold.

An entry may be amended after filing but before liquidation under 19 CFR 173.3; post-summary corrections (PSCs) are filed under 19 CFR 173.3a.

Duty is calculated as entered value × ad valorem rate; specific duties are per unit (e.g., cents/kg); compound duties combine both.

Merchandise Processing Fee (MPF) is ad valorem: 0.3464% of entered value, with a minimum of $32.71 and maximum of $634.62 for FY2024 (adjusted annually).

Harbor Maintenance Fee (HMF) is 0.125% of cargo value for ocean imports; not applicable to air, rail, or truck.

Formal entries are required for shipments over $2,500; informal entries (≤$2,500) may be subject to a flat rate or ad valorem rate and a lower MPF.

Section 301 tariffs (China) range from 7.5% to 25% and are in addition to Column 1 General rates; Section 232 tariffs apply to steel (25%) and aluminum (10%) and derivative products.

Duty drawback under 19 U.S.C. § 1313: manufacturing drawback (99% refund), unused merchandise drawback (99%), and rejected merchandise drawback (99%).

Drawback claims must be filed within 3 years of exportation or destruction (19 CFR 190); the merchandise must be exported or destroyed within 5 years of importation.

Substitution drawback allows matching of imported and exported merchandise of the same 8-digit HTSUS subheading (or same kind and quality for unused merchandise) under 19 U.S.C. § 1313(j)(2).

A customs broker license is required under 19 U.S.C. § 1641; the broker must pass the written exam, undergo a background investigation, and post a $50,000 broker bond.

Brokers must exercise responsible supervision and control over employees and must maintain records for 5 years (19 CFR 111.23).

A broker must file a power of attorney (POA) from each client; the POA must be retained and made available to CBP upon request (19 CFR 141.46).

Brokers may not knowingly make false statements or omit material facts; violations can result in penalties under 19 U.S.C. § 1641 and 19 CFR Part 111.

Broker disciplinary sanctions include: warning, reprimand, suspension, revocation, or monetary penalty (19 CFR 111.50–111.74).

Brokers must not act as both importer and broker on the same entry without disclosure; conflicts of interest must be avoided.

A broker must retain records of all transactions for 5 years after the date of entry, including POAs, entry summaries, and correspondence (19 CFR 111.23).

Continuing education: brokers are encouraged to complete 40 hours of continuing education every 3 years, but this is not mandatory as of the knowledge cutoff - verify current CBP policy.

Civil penalty under 19 U.S.C. § 1592 for fraud: up to the domestic value of the merchandise; for gross negligence: up to the lesser of domestic value or 4 times the loss of revenue; for negligence: up to the lesser of domestic value or 2 times the loss of revenue.

Prior disclosure under 19 CFR 162.74: if made before CBP discovers the violation, fraud penalties are limited to interest on the loss of revenue; gross negligence/negligence penalties are limited to the loss of revenue.

Criminal penalties under 18 U.S.C. § 542 (entry by false or fraudulent invoice) can include fines and up to 2 years imprisonment.

Seizure and forfeiture under 19 U.S.C. § 1595a apply to merchandise imported contrary to law, including smuggling and violations of IPR and health laws.

CBP's Focused Assessment (FA) program audits importers' internal controls over classification, valuation, and origin; findings can lead to penalties and increased scrutiny.

Reasonable care is a legal standard under 19 U.S.C. § 1484; CBP considers the importer's knowledge, experience, and access to information in evaluating it.

The Importer Self-Assessment (ISA) program allows qualified importers to self-monitor compliance; participants must maintain an internal control system and report violations.

Forced labor: 19 U.S.C. § 1307 prohibits importation of goods made with forced, convict, or indentured labor; CBP issues Withhold Release Orders (WROs) and can detain shipments.