TradeLane

This is one of those scenario’s we see all the time:

Asia Customs Broker: Hello, Mr. Ahmad, we are sorry. The customs manual documentation cannot be completed because we are missing the HS codes. Can you provide us with the correct one so that we can proceed with the permit application and import declaration, please?

Logistics Employee: Can’t you check our previous shipments? This is not the first time we have imported similar materials into our warehouse! You should have all the details!

Binding rulings allow an importer to get a determination on the correct classification and duty rate for their products in advance of importation.  A binding ruling request can be submitted electronically or in a letter to the CBP Information Exchange, National Commodity Specialist with a detailed description of the product along with relevant specifications, descriptive literature and samples. The importer generally receives a response within 30 days. Once Customs issues the ruling, the classification is binding for all US ports.  

Last year I published a blog entitled “The No-No List.” were I talk about bad ideas in Trade and in my household. Well, a year later I’m sure we are a little older, a little smarter, and my sweet children have learned to stop putting gum in each other’s hair… maybe not but I’m definitely a year older. 

Since my first day at Tradewin, I have always been interested in items being seized at the border and general non-compliance.  It seems like such an interesting crossroad of illegal activity.  Some I think are quite obvious to you and I, while others are not so much. 

Being audited is pretty unpleasant. Having people go through your things in minute detail looking for mistakes you have made. Most companies’ normal reactions to a customs audit in Korea is probably ‘Why us?’ or ‘We are doing just fine’.

Well, unfortunately it looks like customs auditors have different views on how well companies are doing on customs compliance. In 2013, the Korea Customs Service imposed $200 million USD in additional duties collected through customs audits and investigations; more than 4.4 times the 2012 figure. And this number has been steadily growing ever since.

The CBSA Audit Priorities were recently released for the second half of 2016. This gets called many things “Trade Verification Priorities” or the “CBSA Audit Target List” or just “2016 Audit Priorities”. Whatever name this gets really doesn’t matter, it’s a most wanted list.

Yep, the Marshal has put out the targets they’re gunnin’ for; and if yer importin’ them into Canada yer a most wanted importer.

Ok! You can lose the John Wayne or Yosemite Sam voice now.