Register today to to hear directly from Senior Trade Advisor, Don Woods, DTL’s president, Jennifer Diaz, and Associate Attorney, Denise Calle as they discuss real life stories, current trends/risks associated with the import process, proactive ways to stay compliant, and the importance of training to avoid costly encounters with CBP.

Why Should I Register for this Webinar?

CBP is actively enforcing its laws and regulations against non-compliant importers, as seen by the 70,683 seizure letters issued to importers in FY2021.  Importers are required to develop, maintain, and follow a compliant import plan. Importers must be aware of CBP’s various enforcement mechanisms, and more importantly,  how to avoid  such actions. CBP’s most common enforcement activities include seizures, detentions, and criminal prosecution.

In response to the increase in enforcement discussed below, Diaz Trade Law is hosting a NEI accredited webinar, Building & Maintaining an Effective Import Compliance Plan to train industry on top compliance tips to avoid enforcement, and best practices to maintain and effective and compliant import plan.

Seizures in FY21:

• With Fy21 yet to finish, the CBP has already had more than 70,000 trade seizures
• With Fy21 yet to finish, CBP has already had $2.5 billion worth of IPR Seizures – More than it has seized in each of the past 5 years!

Other Trade Enforcement Activities:

• 1,942 Trade Penalties Issued
• 16,302 Total Trade Liquidated Damages
• $16 million collected in Trade-related penalties and liquidated damages

In this webinar, you will learn the common risks associated with the import process and how to build and maintain an effective Import Compliance Plan . Presenters will discuss… The objective of the webinar is to teach participants how to create an effective import plan that allows importers to avoid CBP altogether.

Importers, Customs Brokers, Regulatory Affairs Professionals, and others engaged in the importation of goods into the United States are encouraged to attend either live on October 6, 2021 at 12:00 PM, or on demand thereafter. Register Here

Join us IN PERSON in Baltimore, MD, July 26-27, 2021. NCBFAA NEI and hotel staff will be complying with all state and venue COVID-19 protocols so you can feel safe attending the event! Virtual attendance is available, so you can gain knowledge from anywhere!

REGISTER TODAY!

All trade professionals, regardless of membership or affiliation, are invited to join to:

• Learn from industry subject matter experts on today’s pressing matters
• Get an opportunity to voice your questions to federal, state and industry experts about the latest issues affecting your business
• Acquire fresh ideas by networking with business colleagues while meeting new people

Diaz Trade Law is enthusiastic to announce that our President, Jennifer Diaz will be a featured speaker alongside Adrienne Braumiller on the topic “Update on CBP Enforcement Efforts: IPR, Section 301, 232, AD/CVD” taking place on July 27th from 9:00 am to 10:30 am EST.

As we all know, Intellectual Property Rights, AD/CVD, Section 301 and 232 are all things on CBP’s priority list for enforcement. What do you have in place to make sure you are complying with the regulations? What have you done to assure yourself that your imports are not affected by the rules, and if they are, how you are managing the additional complexity of these movements?

Learn More About Jen Diaz!

President and Founder of Diaz Trade Law, Jennifer (Jen) Diaz is a Chambers ranked, Board Certified International Attorney specializing in customs and international trade. For more than 15 years, Jen has provided legal advice and customized training on import and export compliance to industry, with a strong record of success in mitigating federal administrative enforcement actions.

Jen has received many accolades from the legal community, including being recognized by “Super Lawyers” as a Top International Attorney, having an AV rating of “Superb,” and serving as President of the Organization of Women in International Trade (2018-2019).

A frequent media commentator, Jen has authored book chapters, journal articles, and other articles for The Florida Bar, the American Bar Association, Bloomberg Law, and others. Jen is Editor of “Customs & International Trade Law,” a blog recognized by the U.S. Library of Congress as being an important part of the legal historical record.

REGISTER TODAY!

To date, CBP has collected $87.8 billion in China 301 tariffs. If you have paid Section 301 China tariffs on Lists 3 and 4 and you have joined the landmark lawsuit demanding full refunds on these tariffs paid, it is critical that you understand the extent of China tariffs that you have paid, and proactively look out for liquidations. Proactively and comprehensively auditing your ACE import data is the first step.

Whether you are new to importing or a seasoned professional, this one-hour webinar is a must attend. Register today to hear directly from our Diaz Trade Law President Jennifer (Jen) Diaz about audit risks and duty-saving opportunities. Jen is a Chambers ranked, Board Certified International Attorney specializing in customs and international trade.

This one-hour webinar describe the benefits of Automated Commercial Environment (“ACE”) import history audits and show audience how to analyze data. ACE is a U.S. Customs and Border Protection (“CBP”) system designed to facilitate legitimate trade while enhancing border security. ACE provides a single, centralized access point for the trade community to connect with CBP and its Partner Government Agencies (“PGAs”). It is the primary system through which the trade community reports imports and exports and the government determines admissibility. The presentation will discuss services offered by DTL including the import report card.

In This Webinar You Will Learn:

• How to setup An ACE account
• What is ACE and why is it important?
• WHAT you import
• WHERE you import
• How much you import
• Determine cost saving strategies
• Determine issues with your import processes based on the data

Who Should Attend:

• Importers
• Customs Brokers
• Regulatory Affairs Professionals
• In-House Legal Counsel
• Product Development Managers
• Others Interested in Importing

This webinar is eligible for continuing education credit from the NCBFAA Educational Institute. Space is limited, registration required! Access instructions will be provided after your registration is complete. Don’t just take our word for how awesome Diaz Trade Law webinars are. Click here to see what our past attendees had to say. Be sure to join us on May 19, 2021! To register, click here. 

Whether you are new to importing or seasoned, this one-hour webinar is a must attend. Register today to hear directly from this specialized, expert trio on the “Top 10 Tips When Importing to Ensure Compliance” with real case studies:

• President and Founder of Diaz Trade Law, Jennifer (Jen) Diaz is a Chambers ranked, Board Certified International Attorney specializing in customs and international trade,
• Trade Advisor at Diaz Trade Law, Donald Woods has worked in the express delivery, freight forwarding, and logistics industries for 34 years in both imports and exports. He retired from UPS after 34 years of service as the VP, Customs & Trade Compliance for the Customs Brokerage business unit.
• Associate Attorney of Diaz Trade Law, Denise Calle assists U.S. and foreign manufacturers, distributors, and importers, with a range of import compliance, regulatory compliance, and enforcement matters involving U.S. Customs.

This one-hour webinar describes the importer’s role as the responsible party for an import transaction. Our speakers will discuss how to comply with U.S. Customs and Border Protection’s (CBP) vast laws and regulations. By the end of the webinar, you will know and understand the importance of tariff classification, customs valuation, country of origin marking, intellectual property rights and free trade agreements.

You will also learn basic customs concepts and terms like CBP Form 7501, CBP 28, CBP 29, protests, detention and seizure cases, liquidated damage claims, penalties/fines, prior disclosures, and the FP&F process. Additionally, you will learn the top 10 tips when importing to ensure compliance. This webinar will provide valuable assistance to all importers, customs brokers, and all trade professionals.

In This Webinar You Will Learn:

• Importance of CBP Rulings for Classification, Valuation and Country of Origin.
• Cost Savings practices like utilizing Free Trade Agreements.
• Importance of protecting intellectual property rights.
• Basic customs concepts and terms.
• Top tips to proactively work with your Customs Broker.
• What to do if you encounter a CBP detention and/or seizure case Learn when to submit a prior disclosure to CBP Top 10 tips when importing to ensure compliance.
• Learn key best practices and hear real life case studies.
• Learn what to do, and more importantly, what NOT to do, and what the consequences are for non-compliance.

Who should attend:

• Importers
• Customs Brokers
• Regulatory Affairs Professionals
• In-house Legal Counsel
• Product Development Managers
• Other Trade Members

This webinar is eligible for continuing education credit from the NCBFAA Educational Institute. Space is limited, registration required! Access instructions will be provided after your registration is complete. Don’t just take our word for how awesome Diaz Trade Law webinars are. Click here to see what our past attendees had to say. Be sure to join us on May 5, 2021!

Automated Commercial Environment (ACE)

You can now double check your entries filed by your broker  with CBP & directly (or via a trusted consultant) interact with CBP via ACE!

ACE provides a single, centralized access point for the trade community to connect with CBP and its Partner Government Agencies (PGAs). It is the primary system through which the trade community reports imports and exports and the government determines admissibility. Through ACE as the Single Window, manual processes are streamlined and automated, paper is being eliminated, and the trade community is able to more easily and efficiently comply with U.S. laws and regulations.

Automated Commercial Environment (ACE) Features

ACE has modernized and streamlined trade processing across all business capabilities, including Manifest, Cargo Release, Post Release, Export and Partner Government Agencies (PGAs).

The Automated Commercial Environment (ACE) is the primary system for the international trade community to submit import and export data to communicate with U.S. Customs and Border Protection (CBP) and other participating government agencies. CBP and the partner government agencies will use ACE to collect, track, and process required trade information.

What Does DTL Recommend?

We recommend you create an ACE account as soon as possible! You (or your consultant) can now request years of your import history (which can confirm the duties paid to CBP, and much more, similar to an ITRAC request, but for FREE), respond to CBP 28’s, CBP 29’s and file Protests, all ONLINE!

• To apply for an ACE Account: https://www.cbp.gov/trade/automated/getting-started/portal-applying
• More information on ACE is available here: https://www.cbp.gov/trade/automated

 What are Benefits of ACE?

 Manifest

Electronic manifests allow the government to more quickly determine if incoming cargo poses a risk or can proceed into the country.

• Designate a list of authorized partners who can use carrier custodial bonds.
• Reduced wait time for processing at Ports of Entry.
• Receive enhanced visibility of cargo status through new status messages.

Cargo Release

Working with representatives of trade associations, CBP has undertaken steps to simplify the entry process; resulting in a reduced data set, consisting of fewer elements to be filed for electronic submissions.

• Streamlined submission of data elements.
• Ability for PGA and CBP personnel to provide enhanced security, safety and compliance through faster processing.
• No longer file CBP paper form 3461.

Post Release

Filers are also able to submit post summary corrections such as reconciliation, drawback, liquidation, and statements.

• Protest – All electronic protests must be filed via the ACE Portal.
• Drawback
• Duty Deferral
• Reconciliation
• Statements and Associated Collections
• Liquidation ­- Note: status of liquidations is electronically available through the online Official Notices of Extension, Suspension, and Liquidation.

Reports

U.S. Customs and Border Protection (CBP) has enhanced ACE Reports to support the transition of Automated Commercial System (ACS) core trade processing capabilities to the Automated Commercial Environment (ACE).  A listing of all types of ACE reports includes our favorite, the entry summary line detail report, and many more to choose from.

ACE Secure Data Portal Registration

The ACE Secure Data Portal is a web-based entry point for ACE. It provides a centralized online access point to connect CBP, trade representatives and government agencies involved in importing goods into the United States.

The portal provides account holders the ability to identify and evaluate compliance issues, monitor daily operations, set up payment options, review and respond to filings, access a reports tool, compile data, and perform national trend analysis.

What’s Not Supported in ACE?

The following entries types are NOT supported in ACE. Entries and associated entry summaries for these entry types must be filed via paper (non-ABI) at a local port of entry:

04 – Appraisement
05 – Vessel – Repair
24 – Trade Fair
25 – Permanent Exhibition
26 – Warehouse – Foreign Trade Zone (FTZ) Admission
33 – Aircraft and Vessel Supply (For Immediate Exportation)

Once your ACE account is set up, please contact us to add our firm as a consultant so we assist you with reports, upload responses to CBP on your behalf, and more. Questions? Contact us at info@diaztradelaw.com or 305-456-3830.

 Here is our re-cap:

The morning kicked off with a networking breakfast where experienced and novice custom brokers, legal counsel, trade consultants, and others were able to engage in meaningful dialogue about overlapping issues they experience in their respective workplaces in dealing with the topic of AD/CVD.

The seminar promptly began at 9:00 am with introductory remarks by our own President, Jennifer Diaz. We had all attendees introduce themselves and include why this seminar was important to attend. We were glad to hear from majority of attendees that their reason for participating was to further their trade education, and CBP wanted to ensure they performed “informed compliance” with the trade community.  One attendee commented with “I’m here to continue to learn as that’s what we [customer brokers] are required to do.”

Next, representatives of Miami Free Zone explained their role in international business solutions as they provides users and visitors with convenient international business resources including turnkey FTZ solutions for distribution; a wholesale marketplace; an international business center environment; and premium showroom, office, and warehouse spaces. As well as providing FTZ users with flexible control over their domestic and foreign inventory, duty elimination and deferment, and high security standards for their businesses and valuable merchandise.

The first speaker was Zeidy Lozoya, an Import Specialist with CBP. She started her career as an Intern in 2004 in Nogales, AZ and became an Import Specialist in 2006. Zeidy has been a part of different commodity specialist teams throughout her career including the Electronics, Textiles and Apparel, and Agriculture teams. In 2014 she held the position of Acting Senior Import Specialist for the Electronics and Textile team. She is currently part of an enforcement team with the Automotive and Aerospace CEE. Ms. Lozoya provided insight on the role of Import Specialists in assisting CBP in determining whether merchandise was correctly imported into the United States (U.S) and finding discrepancies in entries that may lead to an investigation on AD/CVD. She also provided a historical overview of the Agency and highlighted that both the Customs Modernization Act and Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) are extremely relevant to CBP. Ms. Lozoya underscored the importance of the working with the applicable Centers of Excellence and Expertise (CEE) prior to importing a commodity. The CEEs “transform the way CBP approaches trade operations and works with the international trade community. The Centers represent CBP’s expanded focus on “Trade in the 21st Century.” More information on the CEE are available here. Some helpful tips from her presentation included:

• Highlights of top Trade Priority Issues: No. 1 on the lists is AD/CVD.
• Good way to avoid Request for Information (28’s) is by providing CBP an invoice with good descriptions.
• Import Specialists often go to ports to inspect products themselves.

Jim Schultz followed Ms. Lozoya’s presentation.  Mr. Schultz is a Supervisory Import Specialist with CBP.  He has been an Import Specialist since beginning work with the agency in 2005.  Jim has supervised commodity teams at the Port of Chicago and the Machinery Center of Excellence and Expertise (CEE), where he was the Trade Enforcement Coordinator and supervisor of the CEE’s trade enforcement team.  Jim is currently supervising an enforcement team with the Automotive and Aerospace CEE. Mr. Schultz dove directly into the hot topic of AD/CVD. There were questions and answers during his presentation as the attendees had submitted questions prior to the seminar. He underscored that all opinions or responses from Import Specialist are extremely fact specific and issued on a case by case basis.  Here are highlights from the discussion:

• Countervailing occurs when a foreign government offers subsidies to their citizens to manufacture or produce a product and that product is then sold it at a lower rate in order to make a higher profit margin which in turn materially injures the American market as the fair competition is disrupted.
• The trade industry has the responsibility to ask and to continue to ask…“if you don’t know, ASK!”
• He explained the partnership with the Dept. of Commerce and CBP. To that extent, Commerce is a regulating agency that instructs CBP how to take action and CBP’s role is ministerial in nature.
• It is an expensive process to get an Antidumping Order. Contact an Import Specialist, law firms and other resources to learn whether a commodity is subject to a Scope Ruling.
• Importers/Customs Brokers should keep records when dealing with AD/CVD issues BEYOND THE 5 YEAR REQUIREMENT (a safe rule of thumb is one year past liquidation)!
• HTS Codes listed on Scope ruling are instructive, but not controlling.
• The President’s Executive Order required that the Secretary of Homeland Security develop a plan to address certain importers who pose a significant antidumping/countervailing risk within 90 days.
  • The order arose from growing number of shell companies, non-resident importers, and underpayment of AD/CVD.
• CBP advised if importers identify problems in the documents previously submitted to CBP, to consider the following options:
  • Prior Disclosure
  • Have Conversation with Import Specialist
  • Seek Administrative Avenues
  • (*DTL Recommendation, SEEK COUNSEL PRIOR to communicating any errors to CBP).
• Some Red Flags indicating possible AD/CVD issues:
  • Case mismatches – (using the correct AD/CVD case numbers)
  • Failure to file entries as 03 (or AD/CVD entries).
  • The importer doesn’t have a “right to make entry”
• Other topics discussed:
  • AD/CVD still apply to Foreign Trade Zones.

Jennifer Diaz concluded the seminar with a detailed explanation of the overtly burdensome process of obtaining a Scope Ruling from the Department of Commerce and provided resources for attendees to use. For more information on how we can help you through the labyrinth of Scope Rulings email us at info@diaztradelaw.com.

A special thanks to all our prize winners for participating during the seminar. We appreciate your involvement and interest! Especially those who provide great feedback on the seminar. Here are some commentaries:

• “It was very informative session could hear directly from professionals.” – Attendee
• “It’s always great to attend one of your seminars. Thanks for all the knowledge and help.” – Attendee
• “You have no option to get bored. Presentations were really focused, short and to the point. Great job.” – Attendee
• “Great use of my morning. Lots of information, thank you.” – Attendee
• “Loved the ‘Top 10 Tips'” – Attendee
• “The event facilitated by Attorney Diaz and staff epitomizes the meaning of true networking on importing/exporting” – Attendee
• “Have attended 3 presentations by Diaz Trade Law and enjoy all of them because how well organized and informative + Jennifer makes them SUPER fun. Thank you!!” – Attendee

Our next seminar will be held on Thursday, May 18, 2017 to discuss FDA FSMA Compliance Seminar for Importers. Hope to see you there! Limited tickets available via Eventbrite.

In celebration of World Trade Month, Diaz Trade Law is hosting a World Trade Month Seminar Series for Compliance Professionals featuring U.S. Customs and Border Protection (CBP) and U.S. Food and Drug Administration (FDA) speakers.

In the first seminar, attendees will learn the ABC’s of Antidumping & Countervailing Duties (AD/CVD) compliance and CBP Enforcement.

In the second seminar, FDA will focus on food importations and discuss the upcoming Foreign Supplier Verification Program (FSVP) requirement under the Food Safety Modernization Act (FSMA).

The TOP reasons you should attend? 

1. For a limited time, registration is FREE!
2. You have the ability to hear DIRECTLY from CBP and FDA.
3. We want the seminars to be informative and all of your questions answered. In that vain, we are currently taking ANY questions you have related to the Centers of Excellence and Expertise (CEE) and Antidumping & Countervailing Duties (AD/CVD) for CBP, and food importation/FSMA related questions for the FDA. Please email your questions today to info@diaztradelaw.com!

Full details including registration information for BOTH seminars are below. 

May 10, 2017 ( 9 – 11 a.m.)

• ABC’s of AD/CVD & CBP Enforcement
• CLICK HERE for our draft agenda
  • Hear directly from CBP Import Specialists & an industry legal expert
  • TOP Tips when Importing to Ensure Compliance with AD/CVD
  • Valuable opportunity to speak direct with Supervisory Import Specialist with U.S. Customs and Border Protection and legal experts to address any concerns relating to CBP’s role in administering and enforcing imports subject to AD/CVD
  • *** CBP WOULD LIKE TO HEAR FROM ATTENDEES OF THE TRADE COMMUNITY ON WHAT ISSUES OR QUESTIONS THEY WOULD LIKE TO BE ADDRESSED DURING THE PRESENTATION. PLEASE SUBMIT QUESTIONS TO INFO@DIAZTRADELAW.COM ***
• RSVP HERE

May 18, 2017 ( 9 – 1 2 p.m.)

• FDA FSMA Compliance Seminar for Importers
• CLICK HERE for our draft agenda
  • Hear directly from FDA & an industry legal expert
  • Overview of FDA requirements for importing food products
  • A discussion of best practices when working with your broker to expedite shipments (ACE, ITACS, PREDICT)
  • Overview of the FSMA, including an overview of the FSVP requirement (which has a compliance date of 5/30/17)
  • Best practices for due diligence and responding to enforcement actions and FDA Notices of Action
  • *** FDA WOULD LIKE TO HEAR FROM ATTENDEES OF THE TRADE COMMUNITY ON WHAT ISSUES OR QUESTIONS THEY WOULD LIKE TO BE ADDRESSED DURING THE PRESENTATION. PLEASE SUBMIT QUESTIONS TO INFO@DIAZTRADELAW.COM ***
• RSVP HERE 

We look forward to seeing you at our World Trade Month events!

U.S. Customs & Border Protection (CBP)

• Assisted an importer in having $434,486.00 worth of goods seized returned to it in a RECORD 24 working days, with a signed settlement agreement with CBP in a record 17 working days!
• Assisted an importer in having $324,466.00 worth of goods seized for an underlying AES violation returned.
•  Assisted importers in filing prior disclosures that were accepted by CBP, advising of errors found, and avoiding substantial penalties.
•  Assisted importers in successfully responding to CBP 28’s and 29’s resulting in close outs, and no further enforcement action by CBP!
•  Assisted importers in creating and maintaining pre-compliance programs to evaluate intellectual property rights and pre-report merchandise to CBP resulting in expedited entry into the U.S. with no delays or examinations by CBP.

• Successfully assisted importers in keeping manifest data confidential.
• Post Importation Claim approved by U.S. Customs, resulting in refunds of over $400,000.00!
•  Successfully mitigated a $46,107.00 Liquidated Damages claim down to $768.00!
•  Successfully mitigated a $50,000.00 Liquidated Damages claim down to $10,000.00 and successfully negotiated with the surety to have them pay the mitigated amount!
•  Successfully mitigated a $75,980.00 Penalty for an underlying intellectual property rights violation down to $7,598.00!
•  Successfully mitigated a $75,633.12 Penalty for an underlying intellectual property rights violation down to $7,563.12!
•  Assisted numerous importers in recovering seized hoverboards back (without the non-compliance batteries).
•  Assisted numerous individuals in successfully appealing Global Entry denials and gaining access to the program, as well as filing Traveler Redress complaints, resulting in expedited entry into the U.S. without being sent to secondary.
•  Successfully petitioned CBP for the return of seized Polaris’s.
•  Successfully recorded a USPTO registered trademark with CBP for added protection at all U.S. borders.

U.S. Department of Commerce (DOC)

• Received two positive scope rulings from the DOC’s International Trade Administration (ITA) confirming our clients merchandise is outside of the scope of current AD/CVD orders and not subject to AD/CVD!

Cuba

• Received licenses from the U.S. DOC, Bureau of Industry and Security (BIS) for export of items to Cuba.
• Counseled clients on the legalities of doing business with Cuba.

Federal Maritime Commission (FMC)

• Assisted clients in successfully applying to the FMC for an Ocean Transportation Intermediary (OTI) license to operate as an Ocean Freight Forwarder and Non-Vessel Operating Common Carrier.

Transportation Security Administration (TSA)

• Assisted clients in successfully applying to the TSA for an Indirect Air Carrier (IAC) license.

U.S. Food and Drug Administration (FDA)

• Provided pre-compliance assistance to importers of cosmetics, drugs, and medical devices into the U.S. resulting in expedited entry into the U.S. with no delays or holds by CBP or FDA.
• Assisted numerous importers in registering with the FDA as importers of medical devices.
• Acted as U.S. Agent for numerous overseas manufacturers of food products imported into the U.S.

Customized Training Programs

DTC taught five customized training programs on the following topics:

• Cochran Program for Dominican Republic & Mexico, Discussion of CAFTA and Best Practices when Importing into the U.S.
• Update on U.S. Laws Regarding Commerce with Cuba.
• Importing into the U.S. and Lacey Act Compliance for Chile Week.
• In Partnership with the SBDC, Introduction to Importing into the U.S. and Import Compliance for Small Businesses

DTL spoke at 21 events in 2016, some highlights included speaking for:

• 2016 Americas Forum
• American Bar Association’s Section of International Law’s Spring Meeting in New York
•  Broward County Office of Economic and Small Business Development, 2016 Export Readiness Seminar
•  Caribbean Shipping Association
•  National Customs Brokers and Forwarders Association of America (NCBFAA)
•  FDANews
•  Nova Southeastern University
•  Miami Dade College
•  Cypress Creek Rotary Club
•  Florida International Trade and Cultural Expo (FITCE)
•  MYCLE

DTL would love to be your Customs and International Trade Law Expert! Contact us at info@diaztradelaw.com to schedule your consultation today.

When you get a deep cut, do you simply put on a band-aid or do you go to the hospital to get stitches that you really need? Stitches take time and are more costly – but, your bleeding will stop and your cut is less likely to re-open. With a band-aid – you’re likely to re-open your wound and/or get an infection. You get stitches if you know what’s good for you!

Compliance is similar in that there may be a quick fix for the current issue; however, if you don’t stop the bleeding and get stitches, you will be in trouble in the long-run, and the bleeding won’t stop.

On a daily basis, different companies call me to discuss issues they are having with U.S. Customs and Border Protection (CBP). For instance, today, a company called me discussing a CBP 28 – Request for Information, and thereafter a CBP 29 – Notice of Action received from CBP. The issue was an underlying classification issue. Bottom line, they had never done any Pre-Compliance on the Harmonized Tariff Schedule’s (HTS) they were using for their imported merchandise. They said the infamous line – that’s why I hired a broker. Important to note that this just does not cut it with CBP.

CBP publishes really great Informed Compliance Publications for Importers – too few importers have read them, and too small a percentage of importers know they exist. For new importers, CBP has a great resource titled Basic Importing and Exporting. Included within these vast resources is a guide titled Importing into the U.S.: A Guide for Commercial Importers. This 211 page guide can save you hundreds of thousands of dollars if you review it, and/or hire the right expert to explain it to you and walk you through it. There is a “Reasonable Care Checklist” in this Guide, and I urge you to review it as soon as possible. If you do not know the answers, then it’s time to start asking the right questions and hiring the right experts to help you.

CBP expects importers to use “reasonable care” in reporting your HTS, value, country of origin, free trade agreement preference, etc. This is a subjective standard; however, all of the questions in the checklist provide a rough overview to get you started. You may still want to ask an expert to make sure you’re on the right track and have the right Pre-Compliance standards in place. Actually, Question #1 is whether or not you have retained an expert (lawyer, customs broker, accountant, or customs consultant) to assist you in complying with CBP requirements. If this answer is no, and you want to import, you need to get an expert, or the penalties for non-compliance can be severe. 19 U.S.C. 1592 is the statute CBP references when issuing penalties for negligence, gross negligence or fraud – depending on the degree of culpability CBP believes you had at the time of your non-compliance.

What’s the bottom line? You can try to put a band aid on your responses to CBP’s 28, and CBP’s 29, and thereafter file a Protest for your current issue; however, until you audit your current practices, the bleeding won’t stop. You can expect more CBP 28’s and 29’s until you have your Pre-Compliance plan in place, and that likely means duties or severe penalties will be owed to CBP by your company.

When you’re ready to spend the time and energy on the Pre-compliance you need, I can help you, so call me and I’ll make sure you are on the right track to protecting yourself and your company.