duty drawback - is it right for your company? · 2019-08-21 · duty drawback duty drawback is the...

MANAGING IMPORTS & EXPORTS

AUGUST 2010 www.compliancemaven.com

ISSUE 01-17 WWW.COMPLIANCEMAVEN.COM AUGUST 2010

ALSO IN THIS ISSUE....Duty Drawback continued..........................................2Hazardous Materials for Travelers............................3Ask The Experts.............................................................4Webinar Schedule..........................................................5Website Feature of the Month.....................................5How Can a Shipper Utilize a Transportation Provider (Forwarder & Broker) to be TradeCompliant........................................................................6Perserverance and Diplomacy Will Get YourCompany Through the Top 10 RegulatoryChallenges in 2010....................................................7-10Import-Export Managers’ Calendar..........................11Upcoming Educational Seminars..............................11

Duty Drawback - Is It Right For Your Company?

By: Brenda Sweetman Michael Kerlen Comstock & Theakston, Inc.

Duty Drawback

Duty drawback is the recovery of duties paid to the Bureau of Customs and Border Protection on im-ported merchandise that is either exported unused or used to manufacture products that are exported.

Drawback is payable upon exportation, but it is the paying of duties upon importation that determines the amount of drawback refunds a company is en-titled to collect. It is important to keep in mind that companies who do not pay duties directly can still be eligible to claim drawback. Certificates of delivery allow the transfer of drawback rights from an import-er to their customers. Although it is the exporter of record who is entitled to collect drawback, it is also possible for those rights to be endorsed back to a manufacturer. These and other provisions point out the flexibility of the drawback program. The three most common types of drawback are Draw-back on Rejected Merchandise, Unused Merchandise Drawback, and Manufacturing Drawback. They all offer refunds of duties that have been paid out for years. If that interests you and could benefit your company, read on for more details…

Rejected Merchandise Drawback

Rejected Merchandise Drawback is the recovery of im-port duties paid to CBP on merchandise that does not conform to sample or specifications, on merchandise that was shipped without the consent of the consignee, or on merchandise determined to be defective at the time of importation.

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Duty Drawbackcontinued…

Rejected Merchandise drawback privileges also extend to merchandise sold at retail which is, for any reason, returned and exported or destroyed within three years of importation. For this type of rejected merchandise, drawback can be claimed by designating an entry of merchandise with the same product identifier, and classified under the same 8 digit HTSUS, which was imported within one year of the export or destruction of the returned goods.

Unused Merchandise Drawback

In order to claim under this provision, CBP must be as-sured that the merchandise was not put to its intended use prior to exportation. CBP will allow certain opera-tions such as, but not limited to; testing, cleaning, in-specting, repackaging, repairing, reworking, blending, cutting and slitting. Any further processing may ren-der the merchandise ineligible for this type of draw-back. Unused Merchandise Drawback can be claimed in two ways; either on a direct identification basis or by using the substitution privilege. If you are able to directly identify the imports you wish to designate by serial number, lot number, or by using an accounting method which CBP accepts, you can file Unused Mer-chandise Drawback on a direct identification basis.

Substitution allows the interchangeability of import-ed merchandise with commercially interchangeable imported or domestic merchandise at the time of ex-portation. This is allowed once an approval has been granted by CBP.

Drawback on unused merchandise includes refunds of not only duty, but also taxes and fees. This means you can recover both merchandise processing (MPF) and harbor maintenance (HMF) fees paid on entries desig-nated for this type of drawback.

Manufacturing Drawback

Under Manufacturing Drawback, refunds are allowed upon the exportation of articles manufactured with the use of imported, duty paid merchandise. In order to qualify for this type of drawback, the production process involved must meet certain criteria. CBP will look at your manufacturing process and examine the finished product in order to make a determination as to whether or not an acceptable manufacturing operation has taken place.

The substitution privilege is also allowed for Manufac-turing Drawback. Imported or domestic materials of the same kind and quality can be used interchangeably with the designated import in the manufacturing pro-cess. The finished articles, made with either imported or domestic material, are then exported with benefit of drawback.

Does one of these programs sound like a perfect fit for your company? If so, you must give us a call and let one of The World Academy Drawback Specialists as-sist you in determining your potential. We are also available to help you establish a comprehensive and efficient drawback program that we will manage to-gether to ensure compliance with the laws and regula-tions of CBP. A robust drawback program will benefit your company by reducing your cost of goods, increas-ing your profits, allowing you to keep jobs here in the U.S., and by giving you the competitive edge when competing internationally. Can you really afford to not call us and do the research?

Contact Michael Kerlen (x.117) or Brenda Sweetman (x.119) at:Comstock & Theakston, Inc.

466 Kinderkamack RoadOradell, NJ 07649

(201) 967-1220

Please see our class schedule on page 11 for dates and locations on upcoming Drawback Workshops.


AUGUST 2010 www.compliancemaven.com 3

Hazardous Materials for Travelers

By Kelly Raia

Okay, I’ll admit it…my own compliance team has made a pact that in the event any of us meets an unfortunate end due to hazardous materials on an aircraft that we will get to the bottom of the prob-lem until it is resolved and the violators have been suitably punished.

Surely you can’t be serious, I am serious and don’t call my Shirley (first one to send me an email with the actor’s name and the movie name will get a prize). How many times do we inadvertently pack something in a suitcase whether as carry-on or checked baggage that is potentially hazardous?

My brother recently visited me from Vegas. He was doing a 150 mile bike ride on Long Island to raise money for ALS (Lou Gehrigs disease). He shipped his bike as baggage on Southwest. As he was stay-ing at my house, he left two CO2 cartridges on my kitchen counter. These are used by bicyclists to put air in tires so they’re not stranded. He purchased the cartridges on Long Island and asked me wheth-er he could put them in the bike case. I told him to leave them behind because I didn’t know.

I did a quick Google search and found the follow-ing: CO2 cartridges are banned from all aircraft be-cause they are listed as hazardous materials by the Federal government Department of transportation and FAA. The reason for this is that the containers are un-regulated and can and do have the ability to fail without warning. The department of transpor-tation does not allow these to be transported in any way by air, which means they cannot be shipped via FedEx, UPS or any air service. They must be ground shipped and they even fall under the same hazardous materials rule that they cannot be driven inside of certain tunnels.

The FAA recently gave statistics that they issue 40,000 letters per year to travelers, not shippers, not forwarders, not carriers, but travelers who are trav-eling with undeclared hazardous materials. Most

travelers are unaware the products they packed in their bags are hazardous. Now I have to think the guy traveling with a used chain saw in his suit-case to help his family in a tornado devastated area should know better, but we all know sometimes people just don’t think.

Therefore, I’ll ask you this…please educate your family, friends, coworkers, drinking buddies, church elders, anyone you can think of to under-stand the dangers of traveling with hazardous ma-terials. And of course within our day-to-day job responsibilities, let’s ensure we do not tender haz-ardous materials to any trucker, airline, courier, rail or ship without proper documentation.



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MIE’s ‘Ask the Experts’ team -- Kelly Raia, Vice President & Senior Consultant and Randi Keenan, Assistant Vice Presi-dent and Senior Consultant, both from The World Academy -- answer readers’ import or export related questions. Readers may submit questions to [email protected] - This month’s column is by Randi Keenan.

Question: We are verifying that our imported merchandise is legally marked with the country of origin. We notice that although we imported from Germany, the origin marking indicates made in the EU. Is that legal for marking purposes?

Answer: No. The abbreviation EU does not represent an individual country. CBP does allow for some ab-breviations to indicate country name. For example, Luxemb for Luxembourg or Gt. Britain for Great Britain. They even allow variance on spelling such as Brasil or Brazil…Italy or Italie. The marking regulation is in place to inform the ultimate purchaser in the United States of the country in which the imported article was made. In the example of showing the origin as EU, it leaves the purchaser unaware of the specific country of origin.

Question: We are in the process of applying for C-TPAT. We are trying to find out if CBP recognizes any other countries supply chain security programs as meeting the C-TPAT standards. Do you have any information about this?

Answer: Yes. CBP, as of January 2010, has mutual recognition of supply chain security programs with New Zealand (Secure Export Scheme Program – SESP), Canada (Partners in Protection – PIP), Jordan (Golden List Pro-gram –GLP) and Japan (Authorized Economic Operator – AEO). CBP is currently working with Korea, Singapore and the EU with the goal of reaching mutual recognition of similar programs. When applying for C-TPAT, you should ask your foreign partners in these countries about their status in these particular supply chain security programs. It will go a long way in showing CBP your strengths.

Ask The Experts

Editorial Advisory Board

Marilyn-Joy Cerney, Esq. Gerry Doyle Robert Core Marie Cabral Attorney Attorney Foreign Trade Zone Mgr Imp/Exp Compliance Dir Cerney Associates, PC Doyle & Doyle L’Oreal USA America II Electronics, Inc. Kay Georgi Thomas A. Cook Karen West Lydia Moya-Kiste International Trade Attorney Managing Director CEO Imp/Exp Compliance Mgr Washington, DC Office American River Int’l Earth Customs Inc. Unipart Services America (Export Controls/Trade Remedies) Earth Cargo Inc. Partner, Arent Fox PLLC Jerina Barutis Customs Attorney



Publisher: Rennie Alston ~ Editoral Staff: Randi Keenan, Kelly Raia ~ Managing Editor: Tracy Lenok

Managing Imports & Exports (ISSN 1553-0752) is published monthly for $437 per year by the PACMAN Association, 614 Progress Street, Elizabeth, NJ 07201. © 2009. PACMAN Association All rights reserved. A one-year subscription includes 12 monthly issues plus regular fax and e-mail transmissions of news and updates. Copyright and licensing information: It is a violation of federal copyright law to reproduce all or part of this publication or its content by any means. The Copyright Act imposes liability of up to $150,000 per issue for such infringement. Information concerning illicit duplication will be gratefully received. To ensure compliance with all copyright regulations or to acquire a license for multi-sub-scriber distribution within a company or for permission to republish, please contact PACMAN’s corporate licensing department at 877-PACMAN8, or email [email protected]. Periodicals postage paid at Elizabeth, NJ and additional mailing offices. POSTMASTER: Send address changes to PACMAN Association, 614 Progress Street, Elizabeth, NJ 07201, 877-PACMAN8 or e-mail [email protected]

Webinar ScheduleAugust 12 – NAFTA Overview

September 13 – Managing Forwarders & BrokersOctober 22 – Shipping Lithium Batteries

November 9 – Should Your Company Consider Becoming Part of CCSP?December 7 - ECCN Classification

**PLEASE VISIT OUR WEBSITE FOR COMPLETE DETAILS**

Contact:www.theworldacademy.com

Email: [email protected]

Website Feature of the Month

https://www.cia.gov/library/publications/the-world-factbook/index.html

The CIA has a very informative section on this website that contains facts about countries around the world. This feature is called The World Factbook and provides information on the history, people, government, econo-my, geography, communications, transportation, military, and transnational issues for 266 world entities. Refer-ence tabs include: maps of the major world regions, as well as Flags of the World, a Physical Map of the World, a Political Map of the World, and a Standard Time Zones of the World map. There is also a “guide to country com-parisons” which gives very detailed information on specific countries such as background of the countries roots, geographical location and coordinates, total area of land/water/coastline, climate, terrain, natural resources and natural hazards, military, as well as information on current threats from a particular country such as terrorist or human/drug trafficking threats, and internal disputes the country may be involved in.

It is certainly worth taking a look, especially for those countries in which you export or import too. This is a good tool to use for companies who are in the process of preparing their Risk Assessment for C-TPAT Revalidation as well. Enjoy learning….



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How Can a Shipper Utilize a TransportationProvider (Forwarder & Broker) to be

Trade CompliantBy Michel Wouters

Doing business internationally is a difficult task in today’s complex and ever-changing world. Once recognized only by large multinationals and defense manufacturers, it is now a mandate for each importer and exporter in this global economy to be trade compliant. It is imperative for every business and individual involved in doing business globally, that compliance is now also a major factor in maintaining a competitive edge.

Importers and exporters alike have a duty to be trade compliant in order to avoid violations with Federal Agencies. Transgressions may result in audits, penalties, fines, seizure of cargo or assets and revoked privileges as an exporter.

Take this quick self assessment test and see where your company stands with compliance: A. Does my company have a written Trade Compliance Policy Statement, which was issued by our most senior Executive? yes no B. Does my company have a formal Trade Compliance Department, "Empowered Official" or Designated Trade Compliance Officer? yes no C. Have our employees been involved in the processing of international transactions and/or completed current import and/or export com-pliance training (and updates) within the last six months? yes no D. Has my company properly classified all of its export products with appropriate Export Control Classification Numbers (ECCN), U.S. Munitions List (USML), dual usage and such cat-egories or import commodities with appropriate Harmonized Tariff Schedule (HTS) numbers? yes no E. Do our employees that are involved with any export transactions, including in the sales process, check all foreign parties (including

banks, freight forwarders, etc.) against the Bureau of Industry and Security’s recommended “Lists to Check” (e.g. Denied Persons, Specially Designated Nationals, etc.)? yes no F. Does my company keep documented im-port and/or export transactions for compliance and internal audit procedures, and are we aware of what paperwork that involves and for how long we must keep it available? yes no If any of these questions were answered ‘No” you would be considered non compliant.

A good, reliable and compliant freight forwarder and customhouse broker will be able to assist you in correcting any of the above questions you may have answered “no” to. In addition, they can assist you with other valuable information to ensure that you are fully compliant, thus avoiding a myriad of pos-sible penalties.

What are the qualities of a good, reliable and compli-ant freight forwarder or customhouse broker? Here are a few questions that you might want to ask your present freight forwarder/customhouse broker:

A. How many years experience do the opera-tions personnel have in the industry?B. Is there a system in place to monitor quality control and take corrective measures?C. Have they formalized internal SOP’s (stan-dard operating procedures) for dealing with compli-ance in their operation?D. Do they have mandatory in-house education and training for their operations personnel?E. What type of technology (if any) are they us-ing to screen the “Denied party lists”?

My experience over the years has shown that while many companies believe they are trade compli-ant, many times a deeper dive into processes and a “mock” audit reveals that exporters and importers are, in fact, not compliant or are lacking full compli-ance. Utilizing a freight forwarder or Custom House Broker with an expertise in this important area can be a valuable tool. These issues need to be taken into consideration, in addition to the fees they charge.



By: Lenny Feldman Managing Member, Miami Office Sandler, Travis & Rosenberg, PA

Introduction

You are not alone if you are wondering: when will the government pendulum shift away from increased regu-latory enforcement to trade facilitation? For at least the time being, you can be assured that in 2010, the govern-ment will not buckle its sword or buck the enforcement trend. In this article, we have constructively addressed the actions your company can take today to address the top ten regulatory challenges and opportunities we ex-pect the trade community to face this coming year.

Imports

1. Develop Internal Procedures to Withstand a Customs Broker Audit

Issue: After many years, CBP has resurrected its cus-toms broker audit program. This year more brokers can expect a call and visit from CBP’s Office of Regulatory Audit to assess compliance.

Rationale: While the broker visits are designed to in-crease compliance, CBP always maintains the right to assess broker penalties of up to $30,000 (and higher penalties in cases of fraud or financial gain) if it uncov-ers violations of the customs laws and/or a lack of re-sponsible supervision or control.

Actions:• Carefully review CBP’s Broker Compliance Handbook, particularly the list of items CBP typically considers when conducting a site visit.• Review, and as needed, develop a written com-pliance manual addressing all critical issues such as: POAs, reference materials, document processing/filing, other government agency requirements, payment/ fi-nancial controls, recordkeeping, etc.

• Assess risky shipments involving high val-ue/duty, preference claims, etc., and those that in-volved a post entry adjustment or CBP inquiry. Also, identify imports where you may have served as the importer of record.

2. Scrutinize the Documentation Necessary to Support Duty Preference Claims

Issue: This year, expect CBP to more frequently ver-ify the sufficiency of preference claims. Imports de-clared as duty free under a free or preferential trade program present a major revenue risk to CBP, par-ticularly for apparel, which accounts for over 40% of all collected duties.

Rationale: CBP consistently has found that many im-porters and their brokers cannot substantiate prefer-ence claims. Often, the merchandise actually meets the requirements of the program, but mandatory supporting documentation is inaccurate or unavail-able… a circumstance which often motivates import-ers to suggest that their brokers (or their brokers’ E&O carrier) pay the increased duty bills.

Actions:• Match the origin requirements for the appli-cable preference program(s) to bills of materials for the goods initially to determine if the merchandise meets the necessary criteria.• Confirm that all supporting documents exist and are internally consistent, including Certificates of Origin, affidavits, proof of purchase and sale, etc., as required by applicable CBP Directives.• Establish procedures requiring producers and/or providers of the finished goods and compo-nents/materials to present the necessary documenta-tion as a condition of sale.

3. Develop an Effective Strategy for the Re-lease of Goods Seized for Trademark or Copyright Infringement

CONTINUED ON PAGE 8

Perseverance and Diplomacy Will Get YourCompany Through the Top 10Regulatory Challenges in 2010



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Perseverance and Diplomacy Will Get Your

Company Through...continued…

Issue: In fiscal year 2009, CBP intercepted 14,841 sei-zures of counterfeit and pirated goods with a total domestic value of $260.7 million. While these figures may seem high, the Administration, Congress and trademark and copyright owners claim that there is much more escaping detection. It is one of CBP’s high-est priorities to increase its seizures in 2010.

Rationale: Consistent with customs regulations and some case law, CBP generally follows the instruction of the trademark owner as to whether imports are counterfeit or piratical warranting seizure, destruction and often the issuance of a fine. Frequently, this leaves importers of genuine merchandise or those unknow-ingly purchasing fakes feeling there are no alterna-tives but to abandon the merchandise.

Actions: • Understand the difference between counter-feit, confusingly similar and grey market (restricted and unrestricted) merchandise to ascertain whether the goods may be classified as other than counterfeit.• Confirm whether the trademark or copyright has been recorded with CBP. If not, there may be a greater chance to have the goods released.• If plausible, attempt to obtain authorization to import from the trademark owner.• Alternatively, consider establishing a paper trail to the authorized manufacturer.• Distinguish between products claiming to be “compatible with” a brand as opposed to knocking off the brand itself.

4. Remain Vigilant on Import Safety Require-ments to Avoid Border Delays

Issue: CBP increasingly has been coordinating with agencies such as the FDA, USDA and CPSC to prevent the importation of contaminated, diseased, infested, unsafe or adulterated products that could harm indi-viduals or the economy.

Rationale: Numerous cases of tainted products enter-

ing the U.S. will continue to spark an unprecedented wave of enforcement and legislation, which means increased scrutiny and delays at the border.

Actions: • Confirm that appropriate facility registration numbers exist for food and pharmaceutical/device manufacturers and shippers.• Obtain New Drug Application/NDC Codes for pharmaceuticals.• Check for SID/FCE numbers for acidified foods.• Keep current with FDA Import Alerts.• Verify that the appropriate FDA product code is submitted via the OASIS system.• Familiarize yourself with FDA and CPSC la-beling requirements.• Keep abreast of CPSC lead requirements and recent penalty actions particularly for toys and child care articles.

5. Assess Your Current 10+2 Progress to Mini-mize Exposure to Potential Liquidated Damages Claims

Issue: Although enforcement of the 10+2 rule offi-cially commenced January 26, 2010, the trade com-munity breathed a sigh of relief upon learning that CBP agreed to a “common sense…measured” and “gradual enforcement approach” until mid-2010.

Rationale: In order to work with importers and fil-ers to achieve compliance, CBP is providing warn-ing letters and progress reports instead of issuing liquidated damages claims or ”No Load” messages. However, later this year CBP will begin holding car-go and issuing claims for more high risk, serious er-rors particularly those that are repetitious. They also promise special treatment for those repeatedly fail-ing to comply during the generous “gradual enforce-ment approach” period.

Actions:

• Carefully analyze and track ISF progress re-ports to identify recurring errors so you can reach out to your supply chain to improve compliance.• Adopt language with your business partners requiring cooperation in providing the necessary data elements, including bill of lading information, in a timely fashion.



• Apply recordkeeping requirements in the 10+2 context. The documentation may assist in mitigating po-tential claims.• Leverage 10+2 information to improve supply chain efficiency and lower transaction costs.

Exports

1. Identify Drawback Opportunities

Issue: Drawback allows companies to receive a refund of 99% of the duties paid on imports based on exports (or destruction) of the same or similar articles, their com-ponents or materials. Although the program has been in place for over two hundred years, exporters (or their designees) currently claim less than 15% of all available duty drawback refunds.

Rationale: Florida businesses more than ever should focus on drawback because our state ranks fifth in total value of exports. Also, the South Florida CBP district maintains the highest export surplus nationally. Addi-tionally, new drawback laws simplifying the claims pro-cess are expected to pass Congress later this year.

Actions:• Identify top exporters and determine whether their exported goods can be matched with the same or similar imported goods, or their components or materi-als, which carry a significant duty rate or with such goods imported in high volumes carrying a lower duty rate.• Familiarize yourself with the various types of drawback, e.g., unused, same condition and manufactur-ing.• Understand who can claim drawback and the necessary endorsements as well as certificates of trans-fer.• Work with a qualified drawback specialist to en-sure appropriate documentation is available to demon-strate the import and timely export of the same or similar merchandise within appropriate time frames.

2. File Accurate EEIs to Avoid Census Penalties

Issue: Based on guidelines established in February, 2009 CBP is issuing penalties of up to $10,000 per transaction (that can be mitigated) for untimely and/or inaccurate EEI/SED violations. CBP will continue to assess penal-ties against USPPIs, FPPIs, agents and/or carriers for the failure to file EEIs, late filing of EEIs, and/or providing incorrect information.

Rationale: The Census regulations and the CBP pen-alty guidelines are designed to encourage the trade community to provide appropriate filing citations to the carrier and to timely file EEIs prior to export. EEIs must contain critical information such as the ap-propriate parties to the transaction and the merchan-dise description, classification and value.

Actions:• As a forwarder, understand and recognize cases involving routed transactions where foreign parties (FPPIs), not U.S. parties, are authorizing the filing. Ensure this is properly reflected on the EEIs.• Always require a Shipper’s Letter of Instruc-tion (SLI) demonstrating that you are exercising due diligence in obtaining all necessary information from the party in interest.• Be sure to include the Internal Transaction Number (ITN) on export documentation and format the ITN appropriately, avoiding reuse of ITNs.

3. Make Smart Business Decisions to Avoid Export Seizures Issue: Section §1595a(d) of the customs laws provides that merchandise exported or sent from the United States (or attempted to be exported or sent) contrary to law, shall be seized and forfeited. Congress in-tended this law to provide seizure authority primar-ily to combat federal money laundering and terrorist offenses.

Rationale: For the first time, CBP now has its own export seizure authority and is using that authority more frequently to stop exports that do not involve smuggling or more serious infractions.

Actions:• In all cases, avoid declaring on the EEI a lower value for the merchandise than invoiced and paid by the parties to the transaction. These schemes may result in paying less duty to foreign customs ad-ministrations and can violate U.S. money laundering laws. • Check updated lists of denied and blocked parties published by the BIS, OFAC and DDTC. Consider subscribing to software that conducts the screening, because denied parties are located throughout the world in countries you would least expect.

CONTINUED ON PAGE 10



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• Question your customers’ knowledge of the li-censing requirements to assess whether they accurately are declaring no licensed required (NLR) for typically controlled commodities.

4. Properly Handle International Traffic in Arms Regula-tions (“ITAR”) Commodities

Issue: The State Department’s Directorate of Defense Trade Controls (“DDTC”) administers the ITAR. The regulations set forth specific registration and licensing requirements for the export, re-export and temporary import of defense-related articles, services and technical data. Such items are designated on the U.S. Munitions List and are controlled because they are specifically de-signed, developed, configured, adapted or modified for military, with no predominant civil application.

Rationale: CBP detains or seizes many shipments of defense articles because they often are not properly de-clared as licensed or exempt. Until recently, CBP had not issued uniform instructions for handling imports and exports subject to ITAR.

Actions:• Parties, regardless of registration with the DDTC, should file a commodity jurisdiction (“CJ”) re-quest to confirm the proper licensing authority for an item. However, it still is necessary to obtain the appro-priate license.• Ensure that manufacturers, exporters, importers or brokers of U.S. defense articles or services are current-ly registered with the DDTC. Registrations are valid for one year only and renewal requests must be timely sub-mitted (at least 30 days, but no more than 60 days, prior to the expiration date).• Present and retain licenses consistent with CBP requirements. Follow CBP’s recent instructions requir-ing temporary imports and exports to include a hard copy CBP entry along with the license for review. Also, ensure that entry documents cite to any applicable ex-emptions along with required ITAR statements, citing to the exemption on the EEI.

5. Decide How You Will Approach the TSA Screening Mandate

Issue: As of August 2010, all passenger air carriers of outbound and domestic cargo will be required to per-form 100% security screenings. (As of May 1, 2010, all air carriers will be required to perform 75% screen-ings.)

Rationale: TSA feels that more entities need to be-come Certified Cargo Screening Facilities (CCSFs) or delays and logjams will occur when 100% screening is required; the carriers alone cannot conduct all the screening themselves. TSA stresses that all entities are eligible as long as they meet the appropriate require-ments.

Actions:• Become familiar with the equipment, process-es and training necessary to meet the CCSF require-ments.• Assess the costs and potential revenue to con-duct the screening at your facility. • Consider your ability to comply with require-ments because screeners are subject to inspection and possibly penalties (although ultimate responsibility is on the carrier).• Talk to your business partners to understand how they each handle and move their shipments. • Also, stay aware of developing CBP and TSA requirements for bonded cargo as these currently are being addressed.

Conclusion

In 2010, all indications are that the government will heighten its enforcement of the laws and regulations designed to promote the health, safety and security of the U.S. More vigorous enforcement is also expected to be the case for commercial transactions where the government feels companies are not playing by the rules and creating an unlevel playing field. Finding just the right blend of perseverance and diplomacy to address these challenging issues as they arise will serve your business well when dealing with any of the numerous government agencies inquiring, auditing or questioning the imports or exports of your company and your clients.

Perseverance and Diplomacy Will Get Your

Company Through...continued…



Contact:www.theworldacademy.com

Email: [email protected]

Advanced Import/Export Operations, Documentation & Compliance ManagementSeptember 20-21, Newark, NJ October 25-26, Los Angeles, CA December 13-14, Ft. Lauderdale, FL

Certified Cargo Screening Program (CCSP)August 17, 2010, Newark, NJ

C-TPAT Certification Training WorkshopAugust 4, Newark, NJ August 23, Cromwell, CT September 1, Orlando, FLSeptember 23, Newark, NJ October 28, Los Angeles, CA December 16, Ft. Lauderdale, FL

Drawback WorkshopSeptember 21, Newark, NJ December 16, Ft. Lauderdale, FL

Establishing Import/Export Compliance ProceduresAugust 2-3, Newark, NJ October 13-14, Chicago

Hazardous Materials TrainingAugust 9-10, Chicago, IL

INCOTERMS and Related Global Trade Issues August 6, Newark, NJ August 26, Cromwell, CT September 3, Orlando, FLSeptember 24, Newark, NJ October 29, Los Angeles, CA December 17, Ft. Lauderdale, FL

Letters of CreditOctober, 20, Newark, NJ August 25, Cromwell, CT

Managing HTS (Harmonized Tariff Schedule)August 5, Newark, NJ August 24, Cromwell, CT September 2, Orlando, FL September 22, Newark, NJ October 27, Los Angeles, CA December 15, Ft. Lauderdale, FL

PACMAN - Import/Export Compliance Certification Workshop & ExamNovember 15-16, San Jose, CA

IMPORT-EXPORT MANAGERS’ CALENDAR

Bureau of Industry and Security (BIS): www.bis.doc.govAugust 11-12 Complying with U.S. Export Controls Los Angeles, CASeptember 14-15 Complying with U.S. Export Controls Birmingham, ALSeptember 16 Complying with the ITAR Birmingham, AL September 22-23 Complying with U.S. Export Ctonrols Salt Lake City, UTSeptember 29-30 How to Develop an Export Management and Compliance Program Santa Clara, CA

American Management Association (AMA): www.amanet.orgOctober 4-6 Import/Export Procedures & Documentation Atlanta, GA

Upcoming Educational Seminars --



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duty drawback - is it right for your company? · 2019-08-21 · duty drawback duty drawback is the...

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