Why do I have to report my shipment to Customs and Border Protection (CBP)?
Customs and Border Protection (CBP) is the federal agency responsible for preventing illegal products from entering the country and collecting duties due on legal products entering the country. No product can enter the United States without the permission of CBP. CBP is the largest federal law enforcement agency in the United States and is an agency of the Department of Homeland Security.
Why do I need a Power of Attorney?
The Power of Attorney is a document that authorizes a licensed customs broker to act as agent for the owner or purchaser of imported products. The Power of Attorney is a legal document that allows the customs broker to take the steps necessary to effect the release of the imported products in CBP custody. Session Group cannot legally act on your behalf as your Customs Broker without a valid Power of Attorney.
How do I complete a Power of Attorney?
You can find a copy of our Power of Attorney form above. Instructions for completing the form are at the bottom of the page. Please be sure to fill out the document completely, and have it signed by an officer of your company, or someone otherwise authorized to sign.
What is a Foreign Trade Zone?
A Foreign Trade Zone is a designated area within the United States that is treated by Customs as if it is outside of the United States. By allowing merchandise to be entered into a Zone free of duty, and allowing manufacturing processes to transform that merchandise, a Foreign Trade Zone can provide many opportunities for tariff and tax relief. As your licensed Customs Broker, Session Group can analyze your supply chain and help you determine if using a Foreign Trade Zone can help your company save money.
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Why do I need a Customs Bond?
A Customs Bond is an insurance policy that guarantees the payment of all duties and taxes due to CBP on an import shipment. All import entries valued over $2500 must be accompanied by evidence that a bond has been posted with CBP to cover any potential duties, taxes, and charges that may accrue. An importer can choose to purchase a Single entry bond or a Continuous bond. A Continuous Bond (also known as an Annual Bond) is almost always the most cost effective option, especially because a Continuous Bond also fulfills an importer’s obligations to have an Importer Security Filing (ISF) bond on file. Session Group can help you determine which kind of bond is best for your company, and get your bond posted with CBP.
What is an Importer Security Filing (ISF)?
The Importer Security Filing (ISF) was created by the SAFE Port Act of 2006. For all merchandise being imported by vessel, certain advance cargo information must be electronically submitted to CBP in the form of an ISF. The importer is responsible for submitting the ISF no later than 24 hours before the cargo is loaded onto a vessel destined to the United States. The ISF is not required for air shipments. As your licensed Customs Broker, Session Group can submit the data you supply on your behalf.
What documents do I need to give CBP?
The most common documents required to make entry for an import shipment are the Bill of Lading, the Commercial Invoice, and the Packing List. Other documents may be necessary depending on the character of the merchandise or the Country of Origin. These documents are necessary to provide evidence of the right to make entry, to determine the dutiable value of the product being imported, and to determine the admissibility of the product being imported.
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Are my shipments subject to any other government agencies?
Possibly. It mostly depends on what you are importing. There are several Partner Government Agencies (PGA) that coordinate with Customs and Border Protection to carry out the individual missions of those agencies. As your licensed Customs Broker, Session Group will review all the products that you import, and will help you determine if they are subject to the regulations of any PGA’s.
What is Reasonable Care?
Reasonable Care is a concept that was created by the Customs Modernization Act of 1993. The “Mod Act” was implemented in the pursuit of increased voluntary compliance with Customs laws. The “Mod Act” not only requires Customs to provide information about an importer’s responsibilities (Informed Compliance), but also requires importers to use “reasonable care” to comply with Customs laws. There is no simple definition of reasonable care, but selecting a qualified, experienced, and reputable Customs Broker is a good first step to fulfilling your obligations. Session Group can help you review your company’s compliance program and recommend procedures to make sure you are using Reasonable Care.
What are Incoterms?
INCOTERMS is an abbreviation of International Commercial Terms. Incoterms are a set of standard trade terms used in international contracts for the sale of goods. These terms are standardized to reduce or remove altogether uncertainties arising from different interpretations of the rules in different countries. Incoterms clearly outline the obligations of the buyer and the seller for the delivery of goods in international transactions. Session Group can help you determine which Incoterms are most beneficial to your company’s bottom line. |
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