U.S.

Customs Procedures

C.B.S.A. U.S. Customs

“CBP”
Reports to Dept. Of Public
Safety & Emergency
Report to Dept. of
Preparedness
Homeland
Security
Customs Entry “B3”

Duty and Taxes collected Customs Entry “7501”

Compliance and Security Duties and other “fees”.

No tax.
Civil Servants
U.S. Customs Procedures.

Importing into Canada is a right

Importing into the United States is a

privilege
 U.S. Customs Procedures.

The Major responsibility of the U.S. Customs

Service was to administer the Tariff Act of
1930.

Also has responsibility for enforcing over 400

laws and regulations on international traffic
and trade for 40 other government agencies.
 U.S. Customs Procedures.

Mission:
Protect the nation’s revenue
Protecting the American consumer and
environment
Protecting domestic industry and labour against
unfair foreign competition
Detecting and stopping smuggling
 U.S. Customs Procedures.

-Organization consists of 20
Management centers
(CMC’s)

- each CMC is subdivided into

service ports, area ports, and ports
of entry.

- There is a CMC director, service and area port directors, and port
directors.

- Import transactions are conducted at service ports, area ports, and

ports of
 U.S. Customs Procedures.

Customs Management
Centers:
East Great Lakes : Buffalo
West Great Lakes: Detroit
 U.S. Customs
 Conveyance Arrives
in USA with freight Procedures.
onboard…….
 U.S. Customs Procedures.

Carrier must have a signed “Carriers

Certificate”

Certifies that the carrier has the right to

carry the goods into the United States
Freight is offloaded to a
Bonded Warehouse

Or the conveyance waits

for Customs Clearance.
 U.S. Customs Procedures.

Carrier goes to visit a US Customs Broker, or

sends the paperwork to a US Customs Broker

In order for the Customs Broker to legally be

allowed to clear a company’s freight, a U.S.
Customs Power of Attorney must be
completed and on file with Customs and the
Customs Broker.
U.S. Customs Procedures.

 “Right To Make Entry”

 Owner or Purchaser Of The Goods

 Licensed US Customs Broker who has a

signed Power of Attorney with the
importer.
 U.S. Customs Procedures.

Imported goods not entered within 5 calendar days

of arrival is sent to a General Order warehouse.

Importer is responsible for all storage charges at

this
warehouse

If the goods are unclaimed at the end of a calendar

year,

the merchandise is sold at auction or destryoed

U.S. Customs Procedures.

Entered For Consumption

Intent is to physically bring the goods into the

USA
 U.S. Customs Procedures.

Entering goods into Customs is a two part

exercise

(1) Filing the documents necessary to

determine whether merchandise may be
physically released from Customs custody

(2) Filing documents that contain

information for Accounting of goods to
Customs.(duty assessment and statistical
information).
 Customs Entry Timeline

Within 5 days Within 10 days

Arrival Of Release Entry

Goods Summary
7501
 Release Method Types

Border Cargo Selectivity (BCS)

Standard release method

Carrier visits Customs Broker who prepares

the paperwork for release to Customs
Release Method Types.

Entry Documents:
- Inward Cargo Manifest Form 7533
- Bill of lading, Airway bill etc
- Evidence of Right to make entry
- Commercial Invoice or Pro-forma invoice.
- Packing Lists
- Any other documents necessary to
determine
merchandise admissibility.
 Release Method Types

Line Release
-Expedited release method

-Importer through their Customs broker

submits a
Line Release application for each of their
products
they wish to clear via line release.

-If accepted by US Customs importer attaches a

Line
Release Bar code to their invoices.
 Release Method Types

Line Release

-When truck shipment arrives at US Border the

Customs Officer wands the bar code into the
US
Customs system, and reviews the documents.

-If all is well, shipment is released.

 Release Method Types

Pre-Arrival Processing System (PAPS)

All release information is sent to the Customs Broker

and then to US Customs prior to the physical arrival of
the goods at the border.

A formatted bar –code pro-bill number is attached to

the documents being sent to Customs.

Upon arrival Customs Officer wands the bar code on

drivers copy
of paperwork, and if the entry is in the systems the
officer makes
a release decision.
 Release Method Types.

Customs checks the paperwork to see if any

“Flags” are against the importer, or the
shipment.

The shipment may be examined, or

examination may be waived. The shipment is
then released.
 Entry Summary.

“Entry Summary Documentation” is filed and within

10 working days of the entry of the merchandise and
estimated duties are deposited.

Entry summary documentation consists of:

Entry package as filed to release goods.

Entry Summary 7501

Any other invoices and documents necessary to

assess duties and taxes.
U.S. Customs Procedures.
Types Of Entries.

Informal (Consumption) Entry

- Personal shipments, commercial shipments
and mail shipments that are valued less than
$2000.00 USD or less.

- Some exceptions exist such as textiles,

footwear, and other goods requiring
inspection and/or input from government
departments other than US Customs.
Types Of Entries
 Formal (Consumption) Entry

 Most commercial shipments eventually used

in US Commerce.

 Shipments must be supported by a Surety

Bond by the importer.
Types Of Entries
 Temporary Importation Bond Entry

 Goods entering USA on a Temporary Basis.

 Shipments must be supported by a

Temporary Importation Bond held by the
importer.
 Customs Entry Timeline

Within 5 days Within 10 days

Arrival Of Release Entry

Goods Summary
7501

Liquidation
314 days
Liquidation
 Final step in entry process 314 days after
entry summary was filed.

 If US Customs is satisfied with the entry

(duties, value) the entry is liquidated.

 Liquidation means the shipment can no

longer be altered and is final.
 U.S. Customs Procedures.

Besides Duty Other Fees are charged:

Merchandise Processing Fee:
0.21% of Shipments Value.
Min. $25.00 Max. $485.00

Monies are used to pay for U.S. Customs

Expenses

Waived if the goods qualify for NAFTA

 U.S. Customs Procedures.

Harbor Maintenance Fee:

0.125% of shipments value.

Monies are used to maintain and repair U.S. Port Harbors

Levied and Ocean Imports.

Waived if the goods qualify for NAFTA

U.S. Customs Procedures.

In Canada the Customs Broker is the party

that holds the Customs Bond.

In the United States, the importer posts

bond.

Two types of Surety Bonds for Customs

Consumption Entries