Title: Complying with US Customs Product Documentation and Marking Requirements (CFR, Title 19,U.S.C. 19, HTS US)

Transcription

1 Title: Complying with US Customs Product Documentation and Marking Requirements (CFR, Title 19,U.S.C. 19, HTS US) Document Number: Document Level: II Process Owner: Traffic Revision: Rev - C Page: 1 of 17 APPROVED BY: Casey Benhart Kathryn Barton Jim Newton Dave Jones Ron Fry Mike Abel Bill Pratt Bill Johnson Mark Steffens Galina Free Buyer/Planner II Manager, Traffic and Distribution Director, Order Planning, Fulfillment, and Distribution Director, Procurement Director, NPI and Supply Chain Management VP,Program Management Director, New Products Engineering and Quality Assurance Director, Service Logistics Director, Engineering Customs Compliance Specialist REFERENCED FORMS, DOCUMENTS, AND RECORDS: The Code of Federal Regulations, Title 19 The United States Code, Title 19 The Harmonized Tariff Schedule of the United States Valuation Encyclopedia Company Proprietary

2 TABLE OF CONTENTS 1.0 PURPOSE SCOPE GENERAL REQUIREMENTS...3 A) IMPORT DOCUMENTS:...3 B) COUNTRY OF ORIGIN PRODUCT MARKING:...3 The Purpose of Country of Origin Marking:...3 Required Marking Characteristics:...4 Marking Clarifications: Production Parts: Kits Spares: PCB Assembly Made In vs. Assembled In: Shipped with Items (Sets):...5 Country of origin marking requirements for domestic suppliers:...6 C) CERTIFICATES OF ORIGIN....6 D) CUSTOMS RULINGS, PROVIDED FOR DIFFERENT IMPORTATION CONDITIONS INTO THE UNITED STATES...6 Importation for sale...6 Re-Importation requirements for goods returned to the USA after service repair abroad....7 US goods previously exported with intent to re-import after temporally use abroad....8 Commercial Invoice Notation....8 US origin goods previously exported and than re-imported for repair....8 Commercial Invoice Notation....8 Foreign Goods Returned/Shipped into the United States for Repair...9 Repair. General Note....9 Imported foreign goods exported and reimported....9 Commercial Invoice Notation Importation and Exportation of Test Equipment...10 Requirements for Outbound Test Equipment:...10 Requirements for Inbound Test Equipment:...10 Requirements for Importing Samples and Prototypes: SUMMARY GLOSSARY...11 APPENDIX 1. (GOODS RETURNED /SHIPPED TO THE USA AFTER REPAIR)...13 A DECLARATION FROM THE PERSON (COMPANY) WHO PERFORMED REPAIRS OR ALTERNATIONS APPENDIX 2. (GOODS SHIPPED/RETURNED TO THE USA AFTER REPAIR)...14 A DECLARATION BY THE OWNER, IMPORTER, CONSIGNEE OR AGENT HAVING KNOWLEDGE OF THE PERTINENT FACTS...14 APPENDIX 3. (IMPORTED FOREIGN GOODS EXPORTED AND REIMPORTED)...15 A DECLARATION OF THE PERSON BY THE PERSON WHO RECEIVES AND IS RETURNING THE MERCHANDISE TO THE UNITED STATES APPENDIX 4. (IMPORTED FOREIGN GOODS EXPORTED AND REIMPORTED)...16 A DECLARATION BY THE OWNER, IMPORTER, CONSIGNEE, OR AGENT REVISION HISTORY...17 Document Number: Rev C Page 2 of 17

3 1.0 PURPOSE This procedure is intended to provide direction regarding mandatory requirements for the use of Intermec Technologies Corporation s international and domestic suppliers. The expectation is that all suppliers shipping international and domestic shipments to Intermec Technologies Corporation will follow these directions or halt shipments until they have established compliance. 2.0 SCOPE This procedure applies to any and all articles coming into the United States at any time and through any port of entry, and are applicable to both imported articles and their accompanying packaging, (individual and bulk) and the import commercial invoices. Marking requirements established herein by Intermec Technologies Corporation may, in some instances exceed those established by the United States Customs and Border Protection (CFR, Title 19, U.S.C. 19, HTS US). This procedure also applies to some domestic products, when such products are to be exported overseas by Intermec Technologies. NOTE: The supplier will be held responsible by Intermec Technologies for any costs or fines incurred by Intermec Technologies Corporation due to shipments that are not properly marked. 3.0 GENERAL REQUIREMENTS These general requirements are set out for all markings with regard to country of origin (COO) marking on Intermec s imported products. A) Import Documents: All commercial invoices accompanying shipments imported into the United States must clearly state the actual country of origin of each article, in a manner that is both accurate and that reflects the actual country of origin marking applied to the article or its container. Example: An article originating in one country (Country A), but trans-shipped to the United States after having been exported to another country (Country B), requires that the Intermec supplier properly identifies both the article and the corresponding country of origin information on the import invoice to reflect country of origin as being Country A. B) Country of Origin Product Marking: The Purpose of Country of Origin Marking: Document Number: Rev C Page 3 of 17

4 The 1 ultimate purchasers must have the ability to establish the Country of Origin on those items supplied to them. The Importer of Record must make the correct payment of duties and taxes on those items it imports into the United States. US Customs Regulations require that our supply base conform to the articles in Title 19, Volume 1, Parts 1 to 140. Our supply base is responsible for following all customs guidelines. Required Marking Characteristics: 1. These markings must be indicated in English and spelled out in full text. No abbreviation or short form version will be acceptable. 2. These markings are acceptable in the form of stickers, labels, tag, paint, or etching. The marking must be applied to a surface that ensures that the marking is 2 conspicuous, 3 legible and 4 sufficiently permanent. Marking Clarifications: 1. Production Parts: Production parts are those parts which are intended solely for further assembly by Intermec of a product prior to purchase by an end user or customer. This does not include parts that are sold as spares. The correct Country of Origin must be clearly indicated on the commercial invoice, the outer shipping container, and on any internal packaging. Packaging like trays and sleeves do not need to be marked as long as the part itself is marked and the tray or sleeve cannot be used to ship individual parts to an ultimate purchaser. If the part is not sold as a spare then bagging and labeling in multiple quantities is acceptable rather than individual marking. 2. Kits. Kits are created by the process of combining different articles. The majority of the kits are spare parts kits, combined by the manufacture depending on customers needs. The supplier is responsible for Country of Origin identification for each of the individual parts that make up a kit. Each of the individual components that make up the kit must be marked with its Country of Origin either on the component itself, or on the box or bag that contains the component. The Commercial invoice must also contain the Country of Origin for each of the enclosed components. Please note, that kits differ from sets (shipped with items). For the purposes of this document, kit is a combination of individual items, which can be utilized by the ultimate purchaser independently from each other. 1 ultimate purchaser means the last person in the United States that receives the good in the form in which it was imported. However, for a goods of a NAFTA country (USA, Mexico, and Canada), the ultimate purchaser is the last person in the United States who purchases the good in the form in which it was imported; such receiver/purchaser need not be the last person that will use the good; 2 conspicuous means capable of being easily seen with normal handling of the good or container; 3 legible means capable of being easily read; 4 sufficiently permanent means capable of remaining in place until the good reaches the ultimate purchaser, unless deliberately removed; Document Number: Rev C Page 4 of 17

5 For example, we created a repair kit, consisting of products A (country of origin USA), B (country of origin Japan), and C (country of origin China). The ultimate purchaser uses the product C only. The rest of the kit can be used when necessary. In this case we have to indicate the country of origin for each product. The country of origin of the whole kit is not required. Commercial Invoice for Kits should read: The Kit s Part Number Containing: x-xxxxxx-xx & Country of Origin x-xxxxxx-xx & Country of Origin x-xxxxxx-xx & Country of Origin Manuals must contain Published In or Printed In referenced on them and on the Commercial Invoice but do not need any other labeling. 3. Spares: Customers of Intermec must be able to distinguish the correct Country of Origin for spare parts purchased through Intermec s spares distribution. The commercial invoice and marking must reflect the Country of Origin where the part was made, which may be different from the country Intermec purchased the part. For example, if Intermec purchases a spare from one of its suppliers in Singapore but the Singapore supplier purchased the part from a manufacturer in China, the part must be labeled Made in China. Each individual part must be labeled with its Country of Origin. In cases where this is not possible, it must be placed on any outer packaging available for labeling and this packaging should be permanently sealed. If spares are sold as multiples and are never separated, such as in a bag or tray, than one label may be applied to the bag or tray which is permanently sealed. 4. PCB Assembly Made In vs. Assembled In: Unpopulated boards imported into the US from foreign origin must have a Made In label applied to the surface of the board. Those boards that are populated must have an Assembled In label applied to the surface of the board. If there is a Made In label already on a board that does not reflect the same country in which the board was populated, then the Assembled In label must be placed on the same side as the Made In label. The size of font the Assembled In label must be at least the same size or larger than the Made in Label, since according to US Customs regulations, in many cases the country of assembly is the country of origin of the populated board. 5. Shipped with Items (Sets): Shipped with items or sets are defined as those items that are part of a final assembled product/end item, such as a printer, scanner, or terminal and which presents by itself as such to an end user. These items are shipped in the same box with the end item and cannot be separated from an end item and/or sold as spares. Only items such as batteries, cables, and instructions that are individually shipped with an end item and will always travel with the functional unit fit this description. In this case they are considered part of that particular printer, scanner, or terminal. These items are not referenced on the commercial invoice and Document Number: Rev C Page 5 of 17

6 will not be subject to the same Country of Origin Requirements as other items. Note, that if containers (boxes, packages) reasonably indicate the origin of articles, than articles are excepted from marking under 19 U.S.C (a) (D). For an exception to be granted under this provision, generally, the articles must be imported in the container and that container must reach the ultimate purchaser unopened. Country of origin marking requirements for domestic suppliers: All production parts, manufactured in the USA and shipped from the USA do need to have a Country of Origin marking. However, domestic suppliers may mark the products packages or shipping lots with the Country of Origin information. All items produced in any other country (outside the customs territory of the United States) and supplied to Intermec Technologies domestically fall under all marking requirements described in chapter B of this manual. All finished products regardless of their Country of Origin should have the Country of Origin marking and fall under marking requirements described in chapter B of this manual. At the time of export Intermec Technologies is held responsible for fulfillment of all marking requirements set forth by the Unites States customs regulations. In case of exporting any domestically supplied item, we want to ensure that the Country of Origin of such item is reported properly. C) Certificates of Origin. It is important to supply to Intermec Technologies a valid certificate of origin for every part imported into the USA. As an exporter, we are required to provide our customers legible certificates of origin and/or NAFTA certificates of origin. In order to ensure compliance and correctness of countries of origin claimed in our export documents, we require all vendors (domestic and international) to supply us with the certificates of origin and/or NAFTA certificates of origin, if such certificates are available or if there is a legitimate ground to issue such certificates. The NAFTA certificate of origin requirement applies only to suppliers in the U.S.A., Canada, and Mexico. D) Customs Rulings, Provided for Different Importation Conditions Into the United States Importation for sale. Commercial invoices should indicate correct country of origin, supplied by the certificate of origin. The country of origin marking should conform to the certificate of origin and to the customs invoice. The commercial invoice should include the following charges, if available: Document Number: Rev C Page 6 of 17

7 a) commissions-selling b) royalties c) assists d) packing costs incurred by the buyer e) proceeds accruing to the seller from the resale, disposal or use of the imported merchandise. These charges should be shown separately from the price paid or payable. Re-Importation requirements for goods returned to the USA after service repair abroad. Intermec Technologies Corporation must fulfill the requirements outlined by the United States Customs and Border Control Service in order to qualify for duty free re-importation of the imported products exported for repair and re-imported to the U.S.A. These requirements are outlined in the Harmonized Tariff Schedule of the United States, Title 19 CFR, and 19 U.S.C. Articles exported and returned to the U.S., after having been advanced in value or improved in condition, qualify for a duty exemption under subheading (repairs under warranty) and (other) HTSUS, provided the foreign operation does not destroy the identity of the articles or create new or commercially different articles. Please note, that articles returned after having been exported for repairs or alternation will be claimed to duty only on the value of repairs or alternations, performed abroad. In order to qualify for such privilege the following requirements should be met: a) All appropriate duties must have been paid when this article was previously imported for those items of foreign origin. b) A declaration from the company, which performed such repairs or alternations should be attached to the customs documents. Appendix 1. c) A declaration by the owner, importer or consignee should be attached to the customs documents. Appendix 2. d) The cost or value of repairs or alternations outside the United States should be set forth in the invoice in addition to the actual value of the product after repairs. Commercial Invoice Notation. The Harmonized Tariff Schedule # or must be referenced: Goods Returned After Repair. It should appear in a large bold text on the Commercial invoice. The invoice should also include the country of origin information, the cost or value of repair, and the value of the product after repair. The Country of Origin Markings Requirements, outlined in the U.S. Customs Regulations must be followed when re-importing any product into the United States. They are still subject to all rules and regulations established by the United States Customs and Border Protection (CFR, Title 19, U.S.C. 19, and HTSUS) Document Number: Rev C Page 7 of 17

8 US goods previously exported with intent to re-import after temporally use abroad. This provision is set forth for U S made articles exported for demonstration, testing or other purposes and then reimported into the USA. The correct HTS US classification number is There are certain requirements should be met in order to claim this HTS US classification number: a) These goods should be of the U.S. origin. b) The goods can not be advanced in value or improved in condition by any process of manufacture or other means while abroad. Commercial Invoice Notation. The Harmonized Tariff Schedule # must be referenced: US Goods Returned After Temporary Use Abroad. It should appear in a large bold text on the Commercial invoice. The invoice should include the value of the item and the item s country of origin. The Country of Origin Markings Requirements, outlined in the United States Customs Regulations must be followed when re-importing any product into the United States. They are still subject to all rules and regulations established by the United States Customs and Border Protection (CFR, Title 19, U.S.C.19, and HTSUS). US origin goods previously exported and than re-imported for repair. Parts produced in the United States that are being imported into the US for repair fall under the Harmonized Tariff Schedule # Terms outlined in the HTS US: a) These goods should be of the U.S. origin. b) The goods can not be advanced in value or improved in condition by any process of manufacture or other means while abroad. Commercial Invoice Notation. The HTS US # must be referenced: US Goods returned for repair. It should appear in a large bold text on the invoice. Diminished value of the products must be listed for each item in addition to the Country of Origin information. Commercial invoices should also indicate correct Country of Origin and a product s part number. The Country of Origin marking should conform to the commercial invoice. At the time of export, the value of the repaired article should include the value of the imported article before repair and the cost of repair. The Country of Origin Markings Requirements, outlined in the United States Customs Regulations must be followed when re-importing any product into the United States. They are still subject to all rules and regulations established by the United States Customs and Border Protection (CFR, Title 19, U.S.C.19, and HTSUS). Document Number: Rev C Page 8 of 17

9 Foreign Goods Returned/Shipped into the United States for Repair. Commercial invoices should indicate correct Country of Origin and a product s part number. The country of origin marking should conform to the commercial invoice. Diminished value of the products must be listed for each item in addition to the country of origin information. At the time of export, the value of the repaired article should include the value of the imported article before repair and the cost of repairs. The Country of Origin Markings Requirements, outlined in the United States Customs Regulations must be followed when re-importing any product into the United States. They are still subject to all rules and regulations established by the United States Customs and Border Protection (CFR, Title 19, U.S.C.19, and HTSUS). Repair. General Note. When export goods for repair and if the repaired goods are to be shipped after repair to the same country, contact your local Customs office to arrange temporary export to ensure that goods returning after repair will be exempt from customs duties in the country of destination. Imported foreign goods exported and reimported. Imported foreign articles exported and re-imported because articles did not conform to samples or specifications abroad fall under the Harmonized Tariff Classification Number Terms, outlined in the HTSUS: Articles, previously imported, with respect to which duty was paid upon such previous importation if: a) exported within three years after the date of such previous importation, b) re-imported without having been advanced in value or improved in condition by any process of manufacture of other means while abroad, c) re-importation for the reason that such articles do not conform to sample of specifications, and d) re-imported by or for the account of the person who imported them into, and exported them from, the United States falls under harmonized tariff schedule # Document Number: Rev C Page 9 of 17

10 Commercial Invoice Notation. The Harmonized Tariff Schedule # must be referenced: Goods Returned because did not conform to sample or specification. It should appear in a large bold text on the Commercial invoice. The actual value of the product must be listed for each item in addition to item s Country of Origin. There are two supplementary declarations should be filed in connection with the entry of goods: A declaration from the person abroad who received and is returning the merchandise to the United States (Appendix 3). A declaration from the owner, importer, or consignee (Appendix 4). The Country of Origin Markings Requirements, outlined in the United States Customs Regulations must be followed when re-importing any product into the United States. They are still subject to all rules and regulations established by the United States Customs and Border Protection (CFR, Title 19, U.S.C.19, and HTSUS). Importation and Exportation of Test Equipment. Requirements for Outbound Test Equipment: On the outbound commercial invoice list: a) the quantity, goods description for each piece of test equipment, and value of each part; b) in bold text under the last description identify "Test Equipment Shipped For Temporary Use Abroad"; c) the Tariff Code# is used for most test equipment; and d) the Country of Origin. All parts and packaging need to be labeled with correct country of origin as previously mentioned. Requirements for Inbound Test Equipment: On the inbound commercial invoice list: a) the quantity, goods description for each piece of test equipment, and value of each part; b) in bold text under the last description identify "Test Equipment Used Abroad For Temporary Use"; c) the Tariff Code # is used for most test equipment made in US; and d) the Country of Origin. All parts and packaging needs to be labeled with correct country of origin as previously mentioned. Requirements for Importing Samples and Prototypes: Imported sample orders fall under the Tariff Classification of This must be present on the Commercial Invoice of the part. The commercial invoice must also have the Country of Origin referenced and Sample Prototype in large bold text. Each level of packaging should have a Sample label. Individual parts should be marked with a sample Document Number: Rev C Page 10 of 17

11 label when possible or bagged in multiples with an outer marking. Intermec must ensure that these samples are never sold. Section 1432 of the Tariff Suspension of Trade Act of 2000 created this classification for duty-free treatment of prototypes imported exclusively for development, testing, product evaluation, or quality control purposes. Under this section the term Prototypes means originals or models of articles that- (i) Are either in the pre-production, production, or postproduction stage and are used exclusively for development, testing, production evaluation, or quality control purposes; and (ii) In the case of original or models of articles that are either in the production or postproduction stage, are associated with a design change from current production (including a refinement, advancement, improvement, development, or quality control in either the product itself or the means of producing the product). 4.0 SUMMARY Intermec Technologies Corporation has provided clarification to each of its suppliers so that they will have the ability to fulfill the Country of Origin Marking and other US Customs Requirements. It is our expectation that all international and some domestic shipments will meet these requirements. A certification of compliance is required from all suppliers and is retained in the Intermec purchasing supplier files. Failure to meet these requirements may result in fines and possibly a loss of future business. Additional information regarding Country of Origin marking can be accessed on the U.S. Customs Web site at GLOSSARY Ultimate Purchaser means the last person in the United States that receives the good in the form in which it was imported. However, for a good of a NAFTA country (USA, Mexico, and Canada), the ultimate purchaser is the last person in the United States who purchases the good in the form in which it was imported; such receiver/purchaser need not be the last person that will use the good. Conspicuous means capable of being easily seen with normal handling of the good or container. Legible means capable of being easily read. Sufficiently permanent - means capable of remaining in place until the good reaches the ultimate purchaser, unless deliberately removed. Assembly means the fitting or jointing together of fabricated components. The assembly operations may consist of any method used to join of fit together solid components, such as welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use of fasteners. The mixing or combining goods is not regarded as assembly. Document Number: Rev C Page 11 of 17

12 Certificate of origin Is a document, which certifies that a good being exported from a certain country qualifies as an originating good from this country according to the US Customs regulations. NAFTA certificate of origin shall be employed to certify that a good being exported either from the United States into Canada or Mexico or from Canada or Mexico into the United States qualifies as an originating good for purposes of preferential tariff treatment under the NAFTA. Document Number: Rev C Page 12 of 17

13 APPENDIX 1. (GOODS RETURNED /SHIPPED TO THE USA AFTER REPAIR) A declaration from the person (company) who performed repairs or alternations. I, declare that the articles herein specified are the articles which, in the condition in which they were exported from the United States, were received by me (us) on (date), from (name and address of owner, exporter in the United States); that they were received by me (us) for the sole purpose of being repaired or altered; that only the repairs or alternations described below were performed by me (us); that the full cost or (when no charge is made) value of such repairs or alternations are correctly stated below; and no substitution whatever has been made to replace any of the articles originally received by me (us) from the owner or exporter thereof mentioned above. Marks and numbers Description of articles and of repairs of alternations Full cost or (when no charge is made) value of repairs or alternations Total value of articles after repairs or alternations (Date) (Address) (Signature) (Capacity) Document Number: Rev C Page 13 of 17

14 APPENDIX 2. (GOODS SHIPPED/RETURNED TO THE USA AFTER REPAIR) A declaration by the owner, importer, consignee or agent having knowledge of the pertinent facts. I declare that the (above) (attached) declaration by the person who performed the repairs or alternations abroad is true and correct to the best of my knowledge and belief; that the articles were not manufactured or produced in the United States under subheading , HTSUS; that such articles were exported from the United States for repairs or alternations and without benefit of drawback from (port) on (date); and that the articles entered in their repaired or altered condition are the same articles that were exported on the above date and that are identified in the (above) (attached) declaration. (Date) (Address) (Signature) (Capacity) Document Number: Rev C Page 14 of 17

15 APPENDIX 3. (IMPORTED FOREIGN GOODS EXPORTED AND REIMPORTED) A declaration of the person by the person who receives and is returning the merchandise to the United States. I declare that the me from (Description of articles) were received by (Name and address of U.S. exporter), that they have not been advanced in value or improved in condition by any process of manufacture or other means and are being returned to (Name and address of consignee in the United States) because they do not conform to sample or specifications for the following reasons: (Date) (Signature) (Address) (Title) Document Number: Rev C Page 15 of 17

16 APPENDIX 4. (IMPORTED FOREIGN GOODS EXPORTED AND REIMPORTED) A declaration by the owner, importer, consignee, or agent. I declare that the (Description of articles) were previously imported into the United States at the Port of (Name of port), Entry No., on (Date of entry) by (Name and address of importer) at which time duty was paid; that they were exported from the United States from the Port of (Name of port) on (Date of exportation) by (Name and address of exporter) without benefit of drawback; that the articles are being reimported by of for the account of, and, that the attached declaration from (Name of foreign shipper) is correct in every respect. (Date) (Signature) (Address) (Title) Document Number: Rev C Page 16 of 17

17 REVISION HISTORY Revision Purpose Of Change Document Date Author A Initial Release 02/2000 Beni Turan B Update to include additional instructions 02/2004 Kathryn Barton C Update to include additional instructions 11/05/2004 Galina Free Document Number: Rev C Page 17 of 17