CB3u—Intro to U.S. Customs Brokerage, Part 3: Cargo Release Processing; Surety Bonds

Subscriber price: $180.00, Non-subscriber price: $235.00
Estimated total study time: 12 hours 23 minutes [Enroll now]

This the third of the six-part series of introductory courses in the practical work of U.S. customs brokerage work groups, and should be taken after completion of Intro to U.S. Customs Brokerage, Part 2, for proper continuity. (See the syllabus for Part 2 for more information).

This course begins with transporation information required for a customs release. Next we address entry and non-entry types and conclude with importer and surety bond information.

Note: The actual processing of a customs entry is covered in Part 6 of this introductory course series.

Customs Entry and Release Overview

This lesson begins with an entry process overview and progresses through the steps a broker typically takes in order to set up a customs clearance transaction (the "file initiation process" covered in Part 2 of this series of customs broker courses). It concludes with the type of importer information necessary and how to obtain it, including standing instructions from the importer.

(Estimated study time: 43 minutes)

Customs Entry Information Requirements

In this lesson we address customs entry requirements such as when an importer bond is required and the importer's "CBP Form 5106" that must be entered into Customs system prior to filing a customs entry and importer's bond data.

(Estimated study time: 57 minutes)

Transportation Information Required for a Customs Release

In this lesson, we begin with an explanation of the customs manifest and chain of custody requirements. Then we describe how this transportation information is transmitted electronically to CBP to receive a Customs release.

(Estimated study time: 1 hour 4 minutes)

Information Requirements by Air and Ocean

Different information is necessary depending on whether the goods arrive by air, ocean, rail or truck. These systems can all file their manifest information electronically. This lesson covers the carrier's requirements with respect to cargo and how to obtain the information for air and ocean shipments if it has not been received.

(Estimated study time: 1 hour 11 minutes)

Information Requirements for Truck (PAPS)

Release at the border is very different than at an international port that handles air and ocean imports. International transactions can be more complicated than border shipments between Canada, the U. S. and Mexico but these shipments also have their idiosyncrasies. Here we discuss the information required to process release of a truck shipment arriving at the border, players and information required for PAPS to function and the relationship between PAPS, FAST and NCAP.

(Estimated study time: 50 minutes)

More on PAPS

This lesson will continue our discussion on PAPS covering the sequence of events and processing of e-manifest at ACE enabled ports. Then we will move on to the relationship with other government agencies and security aspects of the program.

(Estimated study time: 1 hour 3 minutes)

BRASS and Its Replacement FAST

Even more secure than PAPS, but beneficial to the trade are FAST and NCAP. FAST is scheduled to replace BRASS at sometime in the near future. It can be transmitted closer to the time of arrival at the border and allows a more rapid release of cargo, but it has much more stringent rules and regulations. NCAP operates like PAPS, but has special rules when used in conjunction with FAST. We will discuss the operation and benefits of these programs.

(Estimated study time: 1 hour 0 minutes)

Non-PAPS Imports; Intransit and In-bond Movements

Non-PAPS shipments are usually those where an entry summary is not required or low risk shipments that are allowed to arrive at the border without pre-clearance. Here we will cover shipments traveling through the U.S. in-bond and those intransit through Canada and Mexico for re-entry into the U.S.

(Estimated study time: 58 minutes)

Other Non-PAPS Imports

This lesson will continue the exploration of Non-PAPS shipments. Here we will cover low value shipments, consignment of freight to a Foreign Trade Zone, imports of business records and data, goods imported for personal use, and specialized handling of transportation equipment and reusable packing.

(Estimated study time: 1 hour 16 minutes)

Information Requirements for Rail; Customs Entry Information

This lesson covers the carrier's requirements with respect to cargo and how to obtain the information for rail shipments if it has not been received. In addition, CBP requires other information in order to determine the correct customs treatment of imported goods. What general customs entry information is required including invoice and transaction requirements, paper vs. electronic entry information, and what is necessary to obtain Customs release based on partial information.

(Estimated study time: 46 minutes)

Deciding What Type of Entry to Prepare

There are many different types of entry. Each one of these entry types has its own code that belongs in Block 2 of the CBP Form 7501. In this lesson we provide a decision tree and questions to ask to determine how to handle certain shipments and what entry type to use.

(Estimated study time: 1 hour 7 minutes)

Importer Customs Bonds, Purpose, and Parties

Importers require a surety bond for their imports, but there are different types of surety bonds available in varying amounts. In this lesson we review when a surety bond is necessary, who is involved and how to obtain one, when necessary.

(Estimated study time: 41 minutes)

Types of Importer's Customs Bonds and Amounts

There are two basic types of importer's bonds: continuous bonds (the most widely-used type) and single transaction bonds which are usually for importers with less than 5 shipments per year. In certain cases, CBP may require that an importer's continuous bond be extended to cover additional amounts and types of liability via riders. This lesson reviews the types and liabilities of these surety bonds.

(Estimated study time: 47 minutes)