• The new U.S. Bureau of Customs and Border Protection
  
• Key requirements for U.S. commercial importing
  
• Understanding the new audit and compliance procedures
  

Importing into the United States: The Laws, Procedures, and Keys to Successful Customs Compliance

This course is designed to cover the key requirements for U.S. commercial importing, providing a broad overview as well as opportunities to discuss your specific areas of interest.

The U.S. Bureau of Customs and Border Protection (CBP) has replaced the Customs Service. As is implied by the title, it has an expanded mission through the Department of Homeland Security, CBP's high profile activities center on securing our borders against catastrophic incursions. However, the commercial enforcement and facilitation mission of CBP remains, and has taken on new significance. In fact, it has been complicated by the introduction of new programs such as C-TPAT and ISA.

Importers are still required to use "reasonable care" when making entry of imported merchandise. This applies to the traditional import requirements of clasification, valuation, country of origin (declaration and marking) and recordkeeping. It also applies to the "duty minimization" aspects of importing, such as NAFTA certification, return of U.S. goods, and qualifying for "military duty free" status. In fact, reasonable care is required when providing almost any information to CBP about an import. Failure to do so is costly in many ways:

• Errors will bring more examinations from Customs, slowing down your supply chain
  
• Simple negligence in your import declarations can result in monetary penalties up to 20% of the value of the imported merchandise
  
• The work involved in correcting entry errors will consume valuable time that could be spent generating revenue for your business.
  

This course covers the basics of importing, including the tracking of an import from inception to CBP liquidation. It will also cover the rules and pitfalls of classification, valuation, country of origin, CBP challenges and inquiries, and the right way to achieve duty deferral or avoidance. The challenging valuation issue of "assists" will be covered also.

In addition, attendees will learn about the current form of CBP audit, called Focused Assessment, and how to comply with the audit. This segment will explain the internal controls that CBP expects importers to possess and document.

Finally, because of the CBP emphasis on security, the Faculty will also cover the Customs — Trade Partnership Against Terrorism (C-TPAT) including how you can join.

1. Introductions and Overview

2. Background
   1. Bureau of Customs & Border Protection
   2. Role of Customs Brokers
   3. Revenue/Tariffs
   4. Border Protection
   5. Duty Free
   6. Qualifications
   7. Procedures of Claim
   8. Trade Statistics
   9. Fraud/Smuggling

3. The Entry Process
   1. Arrival of Shipment—Entry
   2. Bonds
   3. Cargo Examination and Release
   4. Entry Summary
   5. Common Types of Entries
   6. Reconciliation
   7. Liquidation/Reliquidation

4. Classification
   1. Determines Duty Rate to be Paid
   2. Harmonized Tariff Schedule of the U.S. ("HTSUS")
      1. Harmonized Commodity and Coding System ("HCCS")
      2. 6 Digit Code
   3. Structure of HTSUS
      1. General Rules of Interpretation
      2. U.S. Rules of Interpretation
   4. Goods Excepted from HTSUS
   5. Tariff Items
   6. Duty Rates

5. Special Trade Programs
   1. NAFTA
   2. Generalized System of Preferences(GSP)
   3. Caribbean Basin Initiatives
   4. American Goods Returned

6. Customs Valuation
   1. Appraisement
   2. Value Hierarchy
   3. Price Actually Paid or Payable
   4. Direct Versus Indirect Payments
   5. Additions to Value
   6. Subtractions from Value
   7. Limitations on Use of Transactional Value
   8. Deductive Value
   9. Computed Value

7. Country of Origin and Marking
   1. Determining "COO"
   2. Marking Requirements
   3. FTC Requirements

8. Duty Minimization Programs
   1. Examples
   2. Drawback
   3. Foreign Trade Zones
   4. Bonded Warehouses
   5. Temporary Imports under Bonds

9. Enforcement of Other Agencies' Requirements
   1. Anti-dumping Duties
   2. Countervailing Duties
   3. Department of State
   4. Department of Commerce
   5. FDA

10. Quotas

11. Intellectual Property Rights—Border Enforcement

12. Customs Valuation—Additions to "Price Paid or Payable"
    1. Assists
    2. Non-recurring Expenses
    3. Packing Costs
    4. Sales Commissions vs. Buying Commissions
    5. Royalties or License Fees
    6. Subsequent Resale Proceeds
    7. Supplemental Payments

13. Internal Controls
    1. What Does Customs Want?
    2. How Does Customs Decide Who is Trustworthy?
    3. What are Internal Controls?
    4. Where Can You Find the Rules?
    5. How Can You Win the Game?

14. Post Entry Inquires/Challenges
    1. The Phone Call—Informal Inquiries
    2. Request for Information—CF-28
    3. Notice of Action—CF-29
    4. Rejected Entry
    5. Seizures
    6. Redelivery Notice
    7. Liquidation with a Change
    8. Liquidated Damages Notice
    9. Prepenalty and Penalty Notices
    10. Notice of Audit
    11. Prior Disclosure
    12. Stories and Lessons

15. Penalties
    1. Section 1592
    2. Seizure/Forfeiture
    3. Penalty Procedures
    4. Liquidated Damages

16. Prior Disclosures

17. Record Keeping Requirements
    1. Records that Must be Retained("(A)(1)(A)List")
    2. Who Must Retain Records
    3. How Long

18. Record Keeping Penalties

19. The Focused Assessment in Detail
    1. Who is a Candidate for a Customs Audit?
    2. Types of Audits
    3. Preparing for a FAP Review
    4. What Happens in a FAP Review?
    5. Where Does it Happen?
    6. When Will it Happen to You?
    7. What Can You Do to Prepare?

20. C-TPAT
    1. Background
    2. Requirements
    3. Program Metrics
    4. Should You Join?

21. New Customs Initiatives
    1. Customs—Trade Partners Against Terrorism (C-TPAT)/Proposed Program Expansion
    2. Importer Self Assessment (ISA)
    3. Mandatory Advance Electronic Manifest Filing
    4. Proposed AES Filer Licensing
    5. Container Security Initiatives
    6. Proposed Advance Notices to FDA Re: Imported Food
    7. Customs Role in Homeland Security
    8. Assessments of High Technology and "Questionable Need"

22. Wrap-up

The Course Instructors are with JPMorgan Chase Vastera, a firm specializing in import and export compliance.

Susan Pomerantz is a Certified Customs Specialist, has worked with U.S. Customs since 1975, and is a licensed U.S. Customs broker. A graduate of Michigan State University with a B.A. in Geography, Ms. Pomerantz began her international career with Ford Motor Company.

Currently Import Practice Leader for JPMorgan Chase Vastera Professional Services, (JPMCVPS),since joining JPMorgan Chase Vastera, Susan has held several Senior Management positions. She served as Global Transition Manager, successfully leading the transition of operational activities to a centralized managed service environment for several clients.

Susan was most recently the Director of North American Managed Services Operations, managing operational activities in 4 locations and a team of over 200 trade professionals in the US, Canada, and Mexico. Previous responsibilities within JPMorgan Chase Vastera have included membership on the Ford -Vastera acquisition team and New Business Opportunity Analysis.

Prior to joining JPMorgan Chase Vastera, Susan was a Customs Broker Manager at Ford Motor Company's World Headquarters.

After leaving Ford, Susan became President and CEO of Priority One International, an integrated logistics and consulting company specializing in the import/export of State Department licensable goods, electronics, and consumer items. Priority One was instrumental in the launch of Orlando's Foreign Trade Zone and Ms. Pomerantz was selected by the Governor of Florida to serve on the Committee for International Trade. She often assisted local universities with developing trade education and training and small businesses with international trade development.

As CEO of Priority One, Susan worked with major multinational companies including General Electric, Walt Disney World, Harris Corporation, Lockheed Martin, and Alfa Romeo.

Despina Keegan received her J.D. from New York Law School and a B.A. in Politics and History from New York University. She is admitted to practice law in New York and Connecticut, and before the U.S. Court of Appeals for the Federal Circuit, the U.S. Court of International Trade and the U.S. District Court for the Southern District of New York.

Ms. Keegan has extensive experience in customs and international trade law matters, including tariff classification and valuation, country of origin and marking, compliance reviews, investigations and audits, antidumping and countervailing duties, trade agreements and preference programs, customs litigation, C-TPAT security compliance and administrative reviews.

As a seasoned advisor for diverse industries and organizations, Ms. Keegan has been instrumental in developing customized compliance and auditing programs, delivering critical cost-savings tariff engineering advice for product development, diagnosing logistics efficiencies, advising on preferential trade programs and formulating and delivering client training seminars.

Ms. Keegan has represented companies engaged in manufacturing, sourcing, transporting, importing, exporting and distributing products. In addition to issues pertaining to U.S. Customs and Border Protection, Ms. Keegan has advised clients in matters involving the Federal Trade Commission, Food and Drug Administration, Consumer Product Safety Commission, Fish and Wildlife Service, Department of Commerce, Federal Aviation Administration and Department of Agriculture.

Prior to joining JPMorgan Chase Vastera, Ms. Keegan was in private practice. She is fluent in Greek and has a working knowledge of Spanish.