MRA Customs Broker flashcards

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

Entry filing deadline

An importer of record must file an entry within 15 calendar days after the merchandise arrives at a U.S. port, unless CBP grants an extension for good cause.

Entry summary deadline

The entry summary (CBP Form 7501) and estimated duties must be filed within 10 working days after the entry is accepted by CBP, unless a different period is authorized.

Protest period

A protest under 19 U.S.C. § 1514 must be filed within 180 days after liquidation. CBP has two years to act; if it does not, the protest is deemed denied.

Reasonable care standard

Under 19 U.S.C. § 1484, importers must exercise reasonable care in classifying, valuing, and declaring merchandise. CBP evaluates knowledge, experience, and access to information.

GRI 1

Classification is determined by the terms of the headings and any relative section or chapter notes, provided the headings or notes do not otherwise require application of GRIs 2 through 6.

GRI 3(b) essential character

Goods put up in sets for retail sale are classified by the component that gives them their essential character, considering bulk, quantity, weight, value, or role.

GRI 3(c) last in order

When goods cannot be classified by GRI 3(a) or 3(b), they are classified under the heading that occurs last in numerical order among those that equally merit consideration.

Column 1 Special rates

HTSUS Column 1 Special rates apply to goods from countries eligible under FTAs or preference programs, provided the origin and documentation requirements are met.

Transaction value

The primary valuation method: the price actually paid or payable for merchandise sold for export to the U.S., plus statutory additions such as assists, royalties, and selling commissions.

Assist

An assist is a contribution by the buyer to the seller free of charge or at reduced cost: materials, tools/dies/molds, merchandise consumed, or engineering/design work done outside the U.S.

Deductive value

A valuation method starting with the U.S. resale price of the imported goods and deducting commissions, profits, general expenses, U.S. transport, duties, and post-importation assembly.

Computed value

A valuation method equal to the cost of materials and fabrication, plus profit and general expenses, plus packing costs and any assists not already included in the cost.

USMCA certification of origin

A document completed by the importer, exporter, or producer that certifies goods meet USMCA origin rules. No prescribed form is required, but nine minimum data elements must be included.

USMCA de minimis

Goods that fail a USMCA tariff shift rule still qualify as originating if the value of non-originating materials that fail the rule is 10% or less of the transaction value.

Regional value content

An origin rule requiring a minimum percentage of a good's value to be regional. USMCA uses transaction value or net cost methods; automotive thresholds reach 75% for core parts.

Substantial transformation

The general origin test for non-FTA purposes: processing in a country must produce a new article with a new name, character, or use compared with the inputs.

Continuous bond

A CBP Form 301 bond covering all entries filed by one importer during a 12-month period. Minimum amount is the greater of $50,000 or 10% of prior-year duties.

Single transaction bond

A bond covering one entry only. The amount must be at least the total entered value plus all duties, taxes, and fees owed on that shipment.

Immediate delivery

CBP Form 3461 permits release of merchandise before the entry summary is filed. The summary and duties are still due within 10 working days after entry acceptance.

Post-summary correction

A PSC under 19 CFR 173.3a allows an importer to amend an entry summary after filing but before liquidation to correct errors in classification, value, or origin.

Merchandise Processing Fee

An ad valorem fee of 0.3464% of entered value, subject to annual minimum and maximum caps (e.g., $32.71 to $634.62 for FY2024). It applies to formal entries.

Harbor Maintenance Fee

A fee of 0.125% of cargo value assessed on commercial ocean imports into the U.S. It does not apply to air, rail, or truck shipments.

Manufacturing drawback

A refund of 99% of duties paid on imported merchandise that is manufactured or produced in the U.S. and then exported within five years of importation.

Substitution drawback

Allows refund of duties on imported merchandise when domestic or imported substitute merchandise of the same 8-digit HTSUS subheading is exported within the statutory period.

Broker license requirements

A customs broker must pass the written exam, undergo a background investigation, post a $50,000 bond, and be a U.S. citizen. Licenses are issued under 19 U.S.C. § 1641.

Broker recordkeeping

Brokers must retain records of all transactions, including powers of attorney, entry summaries, and correspondence, for five years after the date of entry (19 CFR 111.23).

Power of attorney

A written authorization from an importer allowing a broker to act on its behalf before CBP. The POA must be retained and produced to CBP upon request (19 CFR 141.46).

Broker disciplinary sanctions

CBP may issue a warning, reprimand, suspension, revocation, or monetary penalty against a broker for violations of 19 U.S.C. § 1641 or 19 CFR Part 111.

Section 1592 fraud penalty

For fraudulent violations, the civil penalty may be up to the domestic value of the merchandise. For gross negligence, up to the lesser of domestic value or four times lost revenue.

Prior disclosure

A voluntary disclosure of a violation before CBP discovers it. For fraud, penalties are limited to interest; for negligence or gross negligence, to the loss of revenue.

Focused assessment

A CBP audit of an importer's internal controls over classification, valuation, and origin. Findings can lead to penalties, increased scrutiny, and corrective action plans.

Forced labor prohibition

19 U.S.C. § 1307 bars importation of goods made with forced, convict, or indentured labor. CBP enforces through Withhold Release Orders and detention of shipments.