MRA Customs Broker key terms

The geographic area where U.S. tariff and customs laws apply: the 50 states, the District of Columbia, and Puerto Rico. It excludes Guam, American Samoa, the U.S. Virgin Islands, and other insular possessions.

The formal filing by which imported merchandise is brought into the customs territory and the importer becomes liable for duties. It typically includes documents, estimated duties, and a bond, and must be filed within set deadlines after arrival.

The declaration filed after entry that classifies the merchandise, states its value and origin, and computes duties, taxes, and fees owed. It is generally due within 10 working days of the entry and supports liquidation.

The party legally responsible for ensuring imported goods are entered correctly and that all duties, taxes, and fees are paid. This party must be a U.S. resident or a properly documented nonresident entity.

A financial guarantee ensuring an importer pays duties, taxes, and fees and complies with customs laws. A single-transaction bond covers one entry; a continuous bond covers all entries for a 12-month period.

The classification system used by the United States to assign goods to tariff categories. It is based on the international Harmonized System and determines duty rates, eligibility for trade programs, and statistical reporting.

The six rules at the front of the tariff schedule that govern how goods are classified. They establish a hierarchy, starting with heading text and section notes, then moving to essential character and other tie-breakers.

The factor used under GRI 3(b) to classify goods put up in sets for retail sale. It identifies the component that gives the goods their fundamental nature, considering bulk, value, role, and quality.

A written decision from Customs that fixes the classification, valuation, or origin treatment of specific goods for the requesting party. It is binding on that party and Customs if the facts and law remain unchanged.

The primary customs valuation method: the price actually paid or payable for the goods, adjusted for specified additions and deductions. It applies only when the buyer and seller are unrelated or the relationship did not affect the price.

Goods, services, or engineering provided by the buyer free or at reduced cost for use in producing the imported merchandise. The value of assists must be added to the price actually paid or payable.

A payment for the right to use a patent, trademark, copyright, or similar right. A royalty is added to transaction value only when it relates to the imported goods and is a condition of sale.

A sale between a buyer and seller with a family, employment, ownership, or control relationship. The transaction value may be accepted only if the relationship did not influence the price, or if the price closely approximates a test value.

A secondary valuation method starting from the resale price of the imported goods in the United States, then subtracting profit, general expenses, duties, and post-importation costs. It is used when transaction value cannot be applied.

A valuation method built from the cost of materials and fabrication, plus profit and general expenses, plus the value of assists. It is used only when earlier methods cannot be applied, and the producer's records are required.

The legal criteria that determine the country where goods are considered to originate. They decide eligibility for preferential tariff treatment, marking requirements, and application of quotas or trade remedies.

The non-preferential origin test asking whether processing in a country produced a new article with a different name, character, or use. It is used where no specific tariff-shift rule applies.

A preferential origin rule requiring that non-originating materials used in production be classified in a different tariff heading or subheading than the finished good. It is common in free trade agreements.

A document in which an exporter or producer certifies the origin of goods and the basis for preferential treatment. It must be accurate and retained, because errors can trigger duty recovery and penalties.

A preferential origin test expressed as a percentage of the good's value that must come from originating materials or production within the agreement area. It is often used alongside a tariff-shift rule.

A two-tier duty structure allowing a limited quantity of goods to enter at a lower rate, with amounts above the threshold paying a higher rate. Correct classification and quota reporting are essential to avoid overpayment or penalties.

The final computation and assessment of duties on an entry by Customs. Once liquidated, the entry is generally final unless a protest or reliquidation occurs within the allowed period.

A formal challenge to a customs decision on classification, valuation, origin, or duty assessment. It must be filed within 180 days of liquidation or the decision, and denied protests may be appealed to the Court of International Trade.

A refund of up to 99 percent of duties, taxes, and fees paid on imported merchandise that is later exported or destroyed. Common types include unused merchandise and manufacturing drawback.

A fee charged on most formal entries to cover customs processing costs, calculated on an ad valorem basis with statutory minimum and maximum amounts. It is separate from duties and taxes.

A fee assessed on commercial cargo loaded or unloaded at U.S. ports to fund port maintenance. It is calculated on cargo value and generally applies to vessel imports, not to all modes of transport.

The legal standard requiring importers and brokers to exercise diligence in classification, valuation, origin, and recordkeeping. It is measured against a competent professional and is central to penalty avoidance.

A person licensed by Customs to transact customs business on behalf of others, including filing entries and advising on compliance. Brokers owe duties to both clients and the government.

Written authorization allowing a broker to act for an importer in customs matters. It defines the scope of authority and must be current, because filings made without valid authority can be rejected.

A broker's duty not to disclose a client's business information except as authorized or required by law. It protects commercial data such as pricing, suppliers, and product composition.

The obligation to keep entry records, invoices, and supporting documents and make them available to Customs on request. Records generally must be retained for five years from the date of entry.

A voluntary written statement to Customs admitting a violation before an investigation begins. It can reduce or eliminate penalties, but it must be complete and timely to qualify for relief.

A monetary sanction imposed for customs violations, such as negligent or fraudulent misclassification, undervaluation, or false statements. Penalties vary by statute, culpability, and the loss of revenue.

The government's seizure and loss of goods or property involved in a customs violation, such as smuggling or prohibited importation. It is separate from, and may accompany, a monetary penalty.

The taking of goods by Customs when it believes they are subject to forfeiture, for example because of prohibited content or false declarations. The owner may seek administrative or judicial relief.

A Customs audit program that reviews an importer's compliance with classification, valuation, and other requirements. It can result in findings, corrective action plans, and penalties for identified violations.

The electronic system used to file and process customs entries, manifests, and related data. Brokers and importers must transmit accurate information through it, and system errors can affect entry validity.