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

Subscriber price: $184.00, Non-subscriber price: $235.00
Estimated total study time: 12 hours 12 minutes

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 the prior 2 courses for proper continuity:

• CB1u—Intro to U.S. Customs Brokerage: Part 1, The Players, Functions and Business of a Customs Broker
• CB2u—Intro to U.S. Customs Brokerage: Part 2, Customs Broker Transactions, Supervision and Work Flow

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: 40 minutes)

• Introduction
• Customs Entry and Release Overview
• Review of Broker File Initiation Process and Information
• Standing Importer Information and Instructions/SOPs

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: 1 hour 30 minutes)

• Introduction
• CBP Importer of Record Information (CBP Form 5106 Data)
• Customs Bond Information
• The Manufacturer Identification Code
  • Introduction to the Manufacturer Identification Code
  • Manufacturer Identification Code (MID) Uses
    • Automated Commercial Environment (ACE) MID Application
    • Type of MID for Antidumping and Countervailing Duty Cases
    • Active MID Requirement for CTPAT
    • A Different Type of MID is Required for Dangerous Goods
    • ELVIS and eCert Require a MID
    • MID Requirement for HTSUS Chapter 98
    • MID's for Importer Security Filing
    • Information Required in Ruling Requests
    • Actual MIDs for Textile & Apparel
  • Creating the Manufacturer's Identification (MID) Code
  • Common Errors and Penalty Situations
    • Entry Rejects and Penalties Applicable to Issues with Manufacturers ID
    • Manufacturer ID Rules for Specific Countries
      • Manufacturers in the United States
      • Manufacturers in Canada
      • Manufacturers in China, Hong Kong and Macau
      • Manufacturers in Germany and Italy
      • Manufacturers in Great Britain
      • Manufacturers in Indonesia, Portugal, and Russia
      • Manufacturers in Monaco, Singapore, Vatican City
      • Other Frequent Country Code Errors
    • Manufacturer ID Rules for Cities
      • Mis-Spelling and Errors Due to Language
      • Other Frequent City Code Errors

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: 56 minutes)

• Introduction
• Customs Manifest and Chain-of-Custody Requirements
• Customs Entry (ABI Record) Transportation Information Must Match Customs Manifest
• ABI Record Transportation Data — General
• Goods to be Cleared at First Place of Arrival in the U.S.
• Goods to be Cleared after Transportation In-Bond from Arrival Port to Another Customs Port
• Goods to be Cleared from a General Order Warehouse
• Goods to be Cleared from a Foreign Trade Zone

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)

• Obtaining Needed Transportation Information in General
• Obtaining Shipment Arrival Notification
• Obtaining Transport Information for Goods Arriving by Air Carrier
• Obtaining Transport Information for Goods Arriving by Ocean Vessel

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)

• Introduction
• Facilitating Border Traffic: PAPS and FAST
• PAPS in General
• Players and Information Required for PAPS to Function

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 5 minutes)

• Introduction
• PAPS Process Sequence
  • How PAPS Operates
  • Shipments Arriving at ACE-enabled Ports
  • Shipments Arriving at Non-ACE Ports
• Relationship of PAPS to Other Government Agency Import Controls/Processing
• PAPS and CBP "Selectivity" and Security "Targeting"

FAST; the BRASS/Line Release Replacement

Even more secure than PAPS, but beneficial to the trade are FAST and NCAP. 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: 43 minutes)

• Introduction
• The FAST Program
  • FAST Operation and Benefits
  • Eligibility to Use FAST

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)

• Introduction
• Non-PAPS in General
• Domestic Shipments In-transit via Foreign Country and Foreign Shipments In-transit via the U.S.
• In-Bond Movement by Truck
  • General — In-Bond Movements
  • Importer Requests In-Bond Movement; Carrier Makes Arrangements
  • Importer or Broker Arranges the In-Bond Entry and Movement
  • QP/WP Procedure

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 18 minutes)

• Introduction
• Informal Entry of Truck Shipments
• Customs Release under Section 321 or Entry Type 86
• Consignment to Foreign Trade Zone (FTZ)
• Customs Release under HTSUS General Note 3e
• Customs Release under Instruments of International Traffic (IIT)
  • Arrive in U.S. Filled or Empty
  • Arrive in the U.S. Empty with Residue
• Customs Release of Personal Goods

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: 37 minutes)

• Introduction
• CBP Systems for Rail Transportation Information
• Rail Information and Customs Release Steps
• Rail Shipments In-Bond

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: 59 minutes)

• Introduction
• Decision Tree for Type of Customs Entry to Prepare

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)

• Introduction
• General Information on Customs Bonds
• Customs Bond Purpose and Parties
• Bond Type Codes for Entry Summary
• Surety Codes for Entry Summary

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: 43 minutes)

• Introduction
• Single Transaction Bonds
  • What is a Single Transaction or Single Entry Bond?
  • Bond Amounts for Single Entry Bond
• Continuous Bonds