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1 Thank you for joining us, the Webinar will begin shortly While you are waiting please check out the upcoming webinars on

2 WE Decide 2016 is uniting women entrepreneurs across the country to raise their voices and engage in the 2016 presidential election. Learn more today by visiting: Follow WE Decide 2016 on your social media channels: Facebook:

3 Before We Begin: During the presentation lines will be muted so only presenters can be heard While you are listening please also put your phone on mute Do NOT put your phone on hold please hang up and call back If having trouble viewing the presentation please close out and log in using a different browser If your slides are not moving please refresh or log out & then log back in If you have any questions during the presentation, please feel free to enter them into the discussion box on the bottom left of your screen

4 Andrea M. Ewart, Esq. DevelopTradeLaw, LLC July 28, 2016

5 Today s Presenter Andrea M. Ewart, Esq. CEO of DevelopTradeLaw, LLC

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7 The Rules US Customs and Border Protection (CBP) enforces US customs entry requirements Informed Compliance Reasonable Care Customs Modernization Act of 1993 Trade Act of 2002 Trade Facilitation & Trade Enforcement Act of 2015

8 Exercise of Reasonable Care Customs Modernization Act Informed Compliance & Shared Responsibility The importer of record is responsible for using reasonable care to enter, classify and determine the value of imported merchandise and to provide any other information necessary to enable U.S. Customs and Border Protection to properly assess duties, collect accurate statistics, and determine whether other applicable legal requirements, if any, have been met. (Section 484 of the Tariff Act, as amended (19 U.S.C. 1484)

9 The Rules CBP also enforces requirements of other agencies: Alcohol & Tobacco, Tax & Trade Bureau (TTB) Consumer Product Safety Commission (CPSC) Environmental Protection Agency (EPA) Food & Drug Administration (FDA) US Department of Agriculture (USDA) US Department of Treasury US Immigration and Customs Enforcement (ICE) US Patent & Trademark Office (USPTO) Most products are permitted so long as they meet the requirements of the relevant agency

10 The Rules Importers are legally required to: Have complete invoices Correctly classify goods Correctly value the goods Pay the correct duties Correctly and clearly identify the country of origin Properly package and mark or label Comply with entry requirements for US agencies Prepare and keep records

11 The Rules Importer of Record - legally responsible for import Entry Process : Entry Summary Other relevant documents Payment of duties owed CBP Examination Liquidation (within one year of date of entry)

12 Legally required to Have complete commercial invoices in English Port of destination Names, time, place of transaction Detailed description of merchandise, including quantity Country of origin Purchase price in currency of sale All factors that affect price to importer One invoice per shipment

13 Sample Commercial Invoice Legally required to

14 Legally required to Correctly classify your import HTSUS is A ten-digit classification system Based on the International Harmonized System Assigns a code to every product being traded Classifies goods for import into the United States

15 Importance of correct classification Legally-required information Lowest duty rate possible Preferential access Statistical trade data Avoid penalties Avoid higher duties if get it wrong

16 Classification: HTSUS Structure Products Sections I XXI; Chapters 1-97 Special Classification Provisions Special Classification Provisions: Chapters Alphabetical Index Rules of Interpretation General Rules of Interpretation (WCO) US Rules General Notes 1 35 (FTAs, preferential programs) Section Notes Chapter Notes Chapter Headings

17 Classification: HTSUS Structure

18 Classification: HTSUS Structure

19 Classification: HTSUS Structure

20 Classification: HTSUS Index

21 Classification: HTSUS Code

22 Help! I can t figure it out CBP Rulings & Opinions Informed Compliance Documents Customs Broker Customs Attorney

23 Legally required to Correctly value your import Methods in descending order of use are: 1. Transaction value of the imported good 2. Transaction value of an identical good 3. Transaction value of a similar good 4. Deductive value 5. Computed value

24 What is Transaction Value? Price actually paid or payable for the good when sold for export to the U.S. If not included in the above price, also includes: Packing costs Selling commission Value of assists Royalties or licenses Revenue to seller of subsequent resale, disposal, or use of good Excluded: transportation, insurance, US customs duties If any of these items is unavailable cannot use transaction value method

25 Legally required to Correctly & clearly identify country of origin Information for consumers Identifies goods eligible for preferential access Exceptions Properly package, mark, label, if required Food & Drug Administration (FDA) labeling laws Special marking requirements on other products

26 Legally required to Comply with requirements of other US agencies, e.g. FDA s Food Safety Modernization Act (FSMA) USDA (meats, dairy) TTB (alcohol, tobacco) CPSC (household, toys) USPTO (intellectual property) OFAC (goods from embargoed countries)

27 Legally required to Pay the correct duties $$$$$$$ Proper Classification (w/country of Origin) + Correct Valuation = Dutiable Value of the Good

28 Legally required to Prepare and keep records Record is any information made or normally kept in the ordinary course of business relevant to the entry Keep for five years from date of entry (with exceptions) Original records (paper or electronic) Penalties are severe for failure to produce Up to $100,000 or 75% appraised value for each entry Up to $10,000 or 40% of appraised value for each entry Unpaid duties are assessed

29 Legally required to Comply with Importer Security Filing Rule Provide advance electronic notification of cargo arriving by ship Verify the security of the supply chain Enroll in Customs-Trade Partnership Against Terrorism (C-TPAT) Use Business Alliance for Secure Commerce (BASC) Know or verify the supplier --

30 Doing It Right Resources CBP Informed Compliance Publications -- Guidance for Industry Food Safety Modernization Act htm

31 Doing It Right Compliance Tools Develop a Compliance Manual Develop reliable procedures for recordkeeping Get compliance software Contact an attorney if in doubt or in trouble!

32 DevelopTradeLaw, LLC Andrea M. Ewart, Esq.

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34 Thank you for Participating! Following this call you will receive links to the podcast of this session, or you can find the links on under Export NOW! For questions, please contact Ivana Pivovarnik at