Customs & Compliance

Navigate complex customs regulations and ensure compliance with Flint's intelligent automation.

Customs Basics

Role of Customs

Government agencies responsible for:

Revenue Collection - Duties and taxes
Border Security - Protecting national interests
Trade Compliance - Enforcing regulations
Statistics - Trade data collection
Protection - Health, safety, environment

Key Principles

Accurate declaration
Proper valuation
Correct classification
Origin determination
Complete documentation

Import Process

Pre-Clearance

ISF Filing (US) - 24 hours before loading
Entry Summary - Detailed declaration
Document Review - Completeness check
Risk Assessment - Automated targeting

Arrival & Examination

Arrival Notice - Carrier notification
Entry Filing - Formal declaration
Examination - If selected
- Document review
- Physical inspection
- X-ray scanning
Release - Goods cleared

Post-Clearance

Duty payment
Liquidation
Audit possibility
Record retention (5 years)

Classification

HS Code System

Harmonized System structure:

8517.12.0050
│    │  │ └── National subdivision
│    │  └──── Subheading
│    └─────── Heading
└──────────── Chapter

Classification Rules

General Rules of Interpretation (GRI)
- GRI 1: Classification by terms
- GRI 2: Incomplete articles
- GRI 3: Multiple classifications
- GRI 4: Most similar goods
- GRI 5: Cases and packaging
- GRI 6: Subheading comparison

Common Classification Challenges

Multi-component products
Technology products
Textile classifications
Food products
Chemical compounds

Valuation

Transaction Value Method

Primary method (90% of imports):

Transaction Value = Price Paid + Additions

Additions Include:

Commissions (except buying)
Assists
Royalties
Resale proceeds

Deductions Include:

Post-import transportation
Post-import duties
Construction/assembly

Alternative Methods

When transaction value cannot be used:

Transaction value of identical goods
Transaction value of similar goods
Deductive value - Working backwards from sale price
Computed value - Build up from costs
Fallback method - Flexible application

Origin Determination

Rules of Origin

Non-Preferential

General origin for:

Marking requirements
Trade statistics
Anti-dumping duties

Preferential

Special treatment under:

Free Trade Agreements
GSP (Generalized System of Preferences)
Special programs

Origin Criteria

Wholly Obtained - Entirely from one country
Substantial Transformation - Character change
Tariff Shift - HS code change
Regional Value Content - Percentage requirement

Certificates of Origin

General CO - Chamber of Commerce
FTA Specific - USMCA, etc.
Self-Certification - Importer/exporter declaration

Trade Agreements

Major Agreements

USMCA (formerly NAFTA)

US, Canada, Mexico
Duty-free for qualifying goods
Complex automotive rules
Digital trade provisions

CPTPP

11 Pacific Rim countries
Reduced tariffs
Service trade liberalization
Investment protections

EU Agreements

Single market access
Common external tariff
Mutual recognition
Simplified procedures

Utilizing FTAs

Verify product eligibility
Obtain origin documentation
Meet direct shipment rules
Maintain records
Claim preference at import

Compliance Programs

AEO (Authorized Economic Operator)

Benefits:

Reduced examinations
Priority processing
Simplified procedures
Mutual recognition

Requirements:

Security standards
Compliance history
Financial solvency
Record keeping

C-TPAT (US)

Customs-Trade Partnership Against Terrorism:

Supply chain security
Reduced inspections
Front-of-line processing
Business resumption

Other Programs

FAST - US/Canada/Mexico
PIP - Partners in Protection (Canada)
TSA Known Shipper - Air cargo

Special Regulations

Restricted & Prohibited Items

Prohibited

Narcotics
Counterfeit goods
Certain weapons
Endangered species

Restricted

Pharmaceuticals - FDA approval
Food products - Health certificates
Electronics - FCC compliance
Textiles - Quota/visa requirements

Partner Government Agencies

FDA - Food and drugs
USDA - Agriculture
EPA - Environment
FCC - Communications
DOT - Transportation
ATF - Alcohol, tobacco, firearms

Documentation Requirements

Core Documents

Every shipment needs:

Commercial invoice
Packing list
Bill of lading/airway bill
Entry summary (customs form)

Additional Documents

Depending on goods:

Certificates of origin
Permits and licenses
Health certificates
Inspection reports
Test results

Electronic Filing

Most countries require:

ABI - Automated Broker Interface (US)
AES - Automated Export System (US)
CERS - Canadian Export Reporting
ICS - Import Control System (EU)

Duty & Tax Calculation

Duty Types

Ad Valorem - Percentage of value
Specific - Per unit (weight/quantity)
Compound - Combination
Mixed - Alternative calculation

Example Calculation

Product Value: $10,000
Duty Rate: 5.5%
Duty Amount: $550

Merchandise Processing Fee: 0.3464% (min $27.75, max $538.40)
Harbor Maintenance Fee: 0.125% (ocean only)

Total Customs Charges: $606.39