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Our amazing trade advisory team is able to assist in all aspects of Customs Advisory Services. Many people do not realize the full array of areas that can be vulnerable in their import/export supply chain. We have outlined many of these areas for you and encourage you to reach out to us if you have any questions.
Importers pay certain duties, taxes, and fees when importing merchandise into a country—if those articles are then exported or destroyed, claimants can receive a refund on the duties that they paid, if the merchandise is eligible for duty drawback and they have the correct records available.
Those entitled to claim drawback are:
Claimants can self-file, but due to the complexity of the claim (as well as necessary software), it is advisable to enlist the service of a licensed Customs broker.
HS or tariff classification is used to identify goods being imported or exported. This classification also helps determine any applicable customs duties or taxes to be paid on these goods. Tariff codes are 10-digits, the first six digits are the same for any country that uses the Harmonized System that is published by the WTO (World Trade Organization). Each country then has its own program that will extend the HS to the full 10 digits. The last two digits of the code are often used by the importing country for statistical gathering of specifics on imported goods.
The correct tariff classification of goods is a key component of compliance in global trade. If your business operates in multiple countries, ensuring your HS code is harmonized across all platforms ensures a seamless approach to drawback and compliance, as well as to ensure your goods clear the border without delay.
Tariff is also a key component looked at by customs officials when auditing imports and exports. To ensure you are compliant, we offer a complete tariff database audit.
For more information on tariff classification, how to determine correct classifications on your own, and how to engage with customs if you are under audit, please reach out to us.
A customs ruling is a written decision by a customs authority that provides an importer key information relating to an imported good. These can include but are not limited to Tariff Classification, Valuation, and Origin.
A customs ruling makes the import process easier and more predictable by assuring both the importer and the customs authority that taxes, duty and other obligations will be handled compliantly.
Every country has its own application process and types of rulings. For more information on how to obtain a ruling for a specific country, or a ruling for an item in multiple countries, please reach out to us for assistance.
A Free Trade Agreement is a treaty between two or more countries that facilitates trade and eliminates trade barriers. Free trade agreements help to build a competitive and open global marketplace. Every trade agreement contains different regulations and provisions, depending on the partner countries.
There are around 420 regional trade agreements already in force around the world, according to the World Trade Organization (WTO). Although not all are free trade agreements (FTAs), they still shape global trade as we know it.
xGlobl is well-versed with all trade agreements and we can help your business understand the requirements required to take advantage of these to reduce or eliminate duties payable on the goods you import. Please reach out to us for a review of your current trade countries.
A value for duty must be declared for all goods at the time of importation, including goods received free of charge (e.g. gifts), regardless of the circumstances of their importation. Even if duties and taxes are not owed, the value for duty of the goods being imported must still be established so that accurate importation and international trade statistics can be gathered.
The value for duty of all goods must be declared in the currency of the destination country. If you have a commercial invoice in another currency, your customs broker will be able to convert the values expressed in a foreign currency. They must be multiplied by the exchange rate recognized by the country of import in effect on the date that the goods began their direct and uninterrupted journey to said country.
Members of the WTO (World Trade Organization) value imported goods based on the rules included in the World Trade Organization’s Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, which is also referred to as the Customs Valuation Agreement.
The Customs Valuation Agreement establishes a fair, uniform and neutral system for valuing goods in accordance with commercial reality, and prohibits the use of arbitrary or fictitious customs values.
Its goal is to ensure that the customs value of all goods entering all World Trade Organization (WTO) Member countries is established using the same rules, and that the valuation of goods is not a barrier to trade.
The value for duty must be established using one of the six methods of customs valuation identified below:
Whether you are preparing for an audit, changing providers, or proactively building compliance in from the start – valuation is a key area to focus on.
Determining the value for duty of your goods is a complex process with many factors to consider. For businesses to ensure they have accurate valuation tools and audit trails, xGlobl is the right partner for your needs. Please reach out to us for assistance or any questions on valuation.
The TCA can be outsourced or conducted internally by your own staff, you must understand the role of maintaining ethics throughout the TCA. If you were to conduct a TCA internally, without outside perspective, such as that of xGlobl Inc., some staff members may be inclined to make potential violations out to be minimal. In reality, a minor infraction could easily add up to thousands of dollars in lost revenue, penalties, fines, unpaid duties, and more.
A value for duty must be declared for all goods at the time of importation, including goods received free of charge (e.g. gifts), regardless of the circumstances of their importation. Even if duties and taxes are not owed, the value for duty of the goods being imported must still be established so that accurate importation and international trade statistics can be gathered.
The value for duty of all goods must be declared in the currency of the destination country. If you have a commercial invoice in another currency, your customs broker will be able to convert the values expressed in a foreign currency. They must be multiplied by the exchange rate recognized by the country of import in effect on the date that the goods began their direct and uninterrupted journey to said country.
Members of the WTO (World Trade Organization) value imported goods based on the rules included in the World Trade Organization’s Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, which is also referred to as the Customs Valuation Agreement.
The Customs Valuation Agreement establishes a fair, uniform and neutral system for valuing goods in accordance with commercial reality, and prohibits the use of arbitrary or fictitious customs values.
A trade compliance audit (TCA) is a review of your current, internal and external communications, processes, and actions in international trade for adherence to regulatory measures. A TCA sounds extensive, stressful, and costly; however, a TCA will help you identify if your organization follows your own internal and external policies.
If you have existing weaknesses in your trade compliance program, a trade compliance audit will highlight the problems, and you can figure out what changes to implement to increase adherence to compliance measures. Essentially, a TCA reduces risk from violations of compliance measures when engaging in international trade.
What are the basics that should be included in a TCA?
A PGA (Partner Government Agency) is a government agency that works alongside the Customs agency for the region you’re importing into.
Some US PGAs include:
Some Canadian PGAs include:
Products that are regulated by PGAs often require permits or other additional documentation, so many PGAs have their own import guides. It is the importer’s responsibility to be aware of what they need to import a product. If you have questions on whether your item requires a PGA prior to purchasing, please contact us for assistance.
If you have questions on PGAs for other countries, please contact us.
Please be aware that if a PGA refuses an import shipment, CBP will consequently not allow the goods to enter the country.
CTPAT and PIP refer to a trusted status as an importer, exporter, or carrier at the Canadian-American border.
CTPAT refers to the Customs Trade Partnership Against Terrorism, a part of the U.S. Customs and Border Protection’s (CBP) strategy to strengthen international supply chains and improve border security. Participation is voluntary and companies, whether they be importers/exporters, highway carriers, rail and sea carriers, freight consolidators, manufacturers, or any other transportation-related entity, work with the CBP to achieve their goals of safe and efficient transport of goods. CTPAT partners are vetted upon application and are thus considered low risk, allowing them to get through customs and security faster and more effectively than non-partners, which in turn makes choosing a CTPAT partner a smart move.
PIP stands for Partners in Protection and is in partnership with the Canada Border Service Agency (CBSA). The goal of the PIP program is similar as well, with the aim to strengthen security of both the Canadian-American border and the trade chain. Participation is voluntary and member businesses are recognized as “trusted traders”, allowing them to make transporting goods across the border more efficient.
In addition, both CTPAT and PIP are recognized in countries all over the world, boosting participants’ trusted status even further.
For more information on becoming CTPAT or PIP Certified, please contact us.
A Non-Resident Importer (NRI) is a business whose physical address is located outside of the country of importation who acts as the Importer of Record (IOR). The NRI sells their goods to domestic customers and assumes all responsibilities for the various Import requirements. NRI’s can be located in any country that is a permitted trading partner and meets the requirements of the governing body of the country of import.
A Non Resident importing goods can have the same rights and obligations as a resident company in terms of the Importing process. It is important to review these details and consult with Tax Experts for that country, as well as a Customs Brokerage expert like xGlobl. The biggest advantage of becoming an NRI is opening up the global market to your products without requiring your client to handle the importing process. This is advantageous for B2C markets where the company wants to sell at a landed cost. Additional advantages of becoming an NRI:
The benefits for importers:
The ISA program is a voluntary approach to trade compliance. It is built on knowledge, trust, and a willingness to maintain an ongoing CBP/importer relationship. The ISA program offers meaningful benefits that can be tailored to industry needs and requires that importers demonstrate readiness to assume responsibilities for managing and monitoring their own compliance through self-assessment.
Participating importers can significantly reduce the cost of doing business with the CBSA.
Importers can use their own business systems and processes, which must meet the CBSA’s requirements, to forward trade data and to report and remit payment of taxes and duties once a month to their own financial institutions. This self-assessment option represents significant cost savings because importers no longer have to remit payment at the time of each shipment.
For more information on these programs, or other similar programs globally, please contact us.
The Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) project is a multi-year initiative that will transform the collection of duties and taxes for goods imported into Canada.
Through CARM, the CBSA will modernize and streamline the process of importing commercial goods.
Importers to Canada will be required to have a profile online with the CBSA as of CARM Release II in October of 2023. For more information or assistance with this transition, or obtaining a bond, , please contact us for assistance.
Protests and appeals can be filed on behalf of importers who do not agree with a customs decision on an importation, a penalty, or a seizure. xGlobl works diligently within the compliance boundaries of the governing region to act in the best interest of our clients during the protest/appeal process.
If you are facing a customs decision that you do not agree with, please contact us to see how we can help resolve the problem.
A Voluntary disclosure is a process by which an importer may come forward voluntarily to notify customs of non-compliance. This process can include:
Voluntary disclosure is not available as a way to avoid penalties in all countries. For validation of this process for your imports, please contact us to determine your best path to ensure compliance.
A Master Provisional entry is a Canadian Shipment Type for goods to clear through CBSA and an ACI (Advanced Cargo Information) eManifest. In certain situations, the importer/owner or broker cannot establish a final value for duty of goods at the time of importation. In such cases, goods may be released under the interim accounting provisions of subsection 32(2) of the Customs Act (known as a Provisional Entry) or Master Provisional and by also obtaining authorization from CBSA Trade Operations. For more information on provisional entries, please reach out to us for assistance.
Our team consists of licensed customs brokers who have years of experience in the industry.