Month: March 2023

Records Management and Requirements

Recordkeeping plays a vital role in any business, but especially when it comes to imports and exports. Records management is key not only to determine revenue, stay in legal compliance, and keep your goods moving, but because this information helps determine trade policy and how we gauge the success of trade agreements, programs, and the impact these things have on our economy and our citizens. 

 

For these purposes, CBP defines records as:

 

  • any importation, declaration or entry;
  • the transportation or storage of merchandise carried or held under bond into
    or from the customs territory of the United States;
  • the filing of a drawback claim;
  • the collection and payment of fees and taxes to CBP; and
  • any other activity required to be undertaken pursuant to laws or regulations administered by CBP.

 

The term “records” includes any information required for the entry of merchandise and other information pertaining to, or from which is derived, any information element set forth in a collection of information required by the Tariff Act of 1930, as amended, in connection with an activity described above. The term includes, but is not limited to:

 

  • statements, declarations, documents;
  • electronically generated or machine readable data;
  • electronically stored or transmitted information or data;
  • books, papers, correspondence;
  • accounts, financial accounting data;
  • technical data; and
  • computer programs necessary to retrieve information in a usable form

 

That’s a lot of information. Who is required to keep these records? CBP says:

 

  • an owner, importer, consignee, importer of record, entry filer or other person who:
  • imports merchandise into the customs territory of the United States;
  • files a drawback claim;
  • transports or stores merchandise carried or held under bond; or
  • knowingly cause the importation or transportation or storage of merchandise
    carried or held under bond into or from the customs territory of the United
    States;
  • an agent of any person described above; or
  • a person whose activities require the filing of a declaration or entry, or both.

 

How long must records be kept? CBP says:

 

Five years from the date of entry (which includes a reconciliation), if the record relates to an entry, or five years from the date of the activity which required creation of the record. 

There are some exceptions to this general rule, however:

  • records relating to drawback claim must be retained until the third anniversary of the date of payment of the claim;
  • packing lists must be retained for a period of sixty calendar days from the end of the release or conditional release period, whichever is later, or, if demand for return to CBP custody (“redelivery”) has been issued, for a period of sixty calendar days either from the date the goods are redelivered or from the date specified in the demand as the latest redelivery date if redelivery has not taken place;
  • a consignee who is not the owner or purchaser and who appoints a customs broker shall keep records pertaining to merchandise covered by an informal entry for 2 years from the date of the informal entry;
  • records pertaining to articles that are admitted free of duty and tax pursuant to 19 U.S.C. §1321(a)(2) and 19 CFR 10.151-10.153 and carriers’ records pertaining to manifested cargo that is exempt from entry under the provisions of 19 CFR shall be kept for 2 years from the date of entry or other activity which required creation of the record; or
  • if another provision of the CBP Regulations sets forth a different retention period for a specific type of record, the other provision controls. For example:
  • 10.137 sets forth a retention period of three years from liquidation for records of use or disposition for certain goods whose rate of duty is dependent upon actual use; and
  • 181.12 requires that all supporting records relating to NAFTA Certificates of Origin for exports be maintained for five years from the date the certificate was signed.

 

You can check out CBP’s complete guide to recordkeeping requirements here.

Or you can contact your Future Forwarding representative. Put your cargo needs, including questions on recordkeeping and developing a records management system in our experienced hands and our knowledgeable, expert team will make sure you have the resources to keep your cargo moving and compliant.  

 

SE Ports Planning for Growth

The growth in SE ports is expected to continue into 2023 and beyond, as more companies look for alternatives to the West Coast for their shipping needs. According to the Journal of Commerce, the Port of Savannah handled a record-breaking cargo volume—nearly 4 million TEUs. To meet this demand, both the port and Georgia Ports Authority (GPA) are looking at ways to upgrade their infrastructure and improve operations.

In addition to Savannah’s impressive gains, other ports have also seen significant growth recently. The Port of Virginia has experienced double-digit increases year-over-year since 2019. Container volumes there increased by 22%. Similarly, in South Carolina’s Port of Charleston container volumes increased by 11%, and the Port of Jacksonville is expecting to see a 15-20% increase in cargo volume

The growth in southeast ports is being driven primarily by companies looking for an alternative to the West Coast, as well as those who want to gain access to new markets on the East Coast. In particular, Savannah is drawing attention from Southeast Asia exporters, who are increasingly using it as a gateway into the US because of its proximity to intermodal connections and its ability to quickly turn around vessels. Additionally, companies have been attracted by GPA’s commitment to environmental stewardship and responsible logistics practices.

These ports are actively courting shippers by updating infrastructure, adding employees, investing in new equipment and technologies and expanding with the future in mind. It remains to be seen whether this growth will continue now that the e-Commerce boom has slowed as consumer spending is lagging. 

No matter what challenges are on the horizon, you’re in experienced hands with Future Forwarding. We’ll get your cargo where it needs to go and help you keep your service promises. Reach out to us today to see how we can help elevate your cargo strategy. 

 

What is Dutiable?

It is incumbent on everyone engaged in trade to know policy and regulations. A lack of knowledge doesn’t mitigate liability. So what do you need to know about what’s dutiable and what’s not? What are your responsibilities when it comes to Customs values and the information you must provide?

 

There are several ways to determine import value but the most common is Transaction Value.  

 

What is Transaction Value? The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts equal to: 

 

  1. The packing costs incurred by the buyer. 
  2. Any selling commission incurred by the buyer. 
  3. The value, apportioned as appropriate, of any assist. 
  4. Any royalty or license fee that the buyer is required to pay, directly or indirectly, as a condition of the sale.
  5. The proceeds of any subsequent resale, disposal, or use of the imported merchandise that accrue, directly or indirectly, to the seller.

 

These amounts (items A through E) are added only to the extent that each is not included in the price, and is based on information accurately establishing the amount. If sufficient information is not available, then the Transaction Value cannot be determined and the next basis of appraisement, in order of precedence, must be considered. 

 

What is the Price Actually Paid or Payable? The price actually paid or payable for the imported merchandise is the total payment, excluding international freight, insurance, and other C.I.F. charges that the buyer makes to the seller. This payment may be direct or indirect. Some examples of an indirect payment are when the buyer settles all or part of a debt owed by the seller, or when the seller to settle a debt he owes the buyer reduces the price on a current importation. Such indirect payments are part of the Transaction Value.

 

Are any amounts excluded from Transaction Value? Yes. The amounts to be excluded from Transaction Value are:  

 

1.) The cost, charges, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the goods from the country of exportation to the place of importation in the United States. 

 

2.)  If identified separately, any reasonable cost or charge incurred for: constructing, erecting, assembling, maintaining, or providing technical assistance with respect to the goods after importation into the United States, or transporting the goods after importation. 

 

3.) The customs duties and other federal taxes, including any federal excise tax for which sellers in the United States are ordinarily liable.

 

Duty amounts can be reduced when shipping under DDP/DAP/CIF terms provided the excludable items mentioned above are documented on the commercial invoice or other written methods that can be made available for review by US Customs and Border Protection (CBP).

 

For those unfamiliar, DDP means delivery duty paid, and puts the maximum onus on the seller as far as responsibility for the goods. The seller is responsible for everything from origin to destination, and the buyer is only responsible for receiving and unloading. DAP means delivered-at-place and the seller has agreed to be responsible for all costs associated with transportation, including loss associated with moving the cargo. CIF is a term that encompasses cost, insurance and freight while cargo is being transported. 

 

You should review CBP’s helpful guide on Customs Value here.

 

If you have any questions about your responsibilities or the information you must provide, reach out to your Future Forwarding representative today, our expert professionals are happy to help. 

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