Washington D.C. Customs Consultation

All goods imported into the United States must be properly classified, valued, and documented. This process is governed by a strict set of regulations designed to ensure fair trade and proper duty collection. A consultation can help businesses navigate this complex process, ensuring every detail is correct.

• HTSUS Classification: All imported goods into the United States must be classified under the Harmonized Tariff Schedule of the United States (HTSUS). An incorrect classification can lead to overpayment of duties or severe penalties. A consultation can help businesses verify the correct HTSUS code for their products, ensuring accurate duty calculations and compliance.
• Valuation and Payment: The value declared for imported goods is the basis for duty calculation. U.S. law primarily uses the transaction value method. Customs consultation can help ensure the correct valuation is declared, avoiding overpayment or, conversely, a CBP audit and potential penalties for undervaluation.
• Procedures and Documentation: Navigating customs clearance procedures can be challenging due to the numerous required documents. A consultation can help clients understand which documents, such as commercial invoices and bills of lading, are necessary for their specific goods. Proper preparation of these materials is crucial to prevent delays or rejection of a shipment at the border.

Beyond the immediate transaction, a customs consultation addresses long-term corporate compliance and risk management. This involves implementing internal controls and understanding the potential for audits and other regulatory actions.

• Corporate Compliance and Risk: Businesses face complex issues including the risk of audits by U.S. Customs and Border Protection. Proactive consultation can help companies develop internal compliance programs, ensuring they are prepared for a CBP audit and can effectively address any issues that may arise. This includes FTA origin verification, where CBP reviews if a good qualifies for preferential tariff treatment under a free trade agreement.
• Managing Seizures and Penalties: One of the most severe risks in international trade is the seizure of goods or the imposition of substantial penalties. These can arise from various violations. A consultation can provide a strategic defense, helping to mitigate or reverse these actions.

The protest process is the importer's first line of defense against an unfavorable CBP decision. If this administrative appeal fails, a formal judicial review is the next step. Both processes require a thorough understanding of customs law.

• The Protest Process: The first formal step to challenge a CBP decision, such as an incorrect tariff classification or an assessed penalty, is to file a Protest. This administrative appeal is filed with the relevant CBP office within 180 days of the contested decision. A protest is a critical step, as it allows the importer to present legal arguments and evidence directly to the agency that made the original ruling.
• Judicial Review: If the administrative protest is denied, the importer may seek judicial review by filing a civil action with the United States Court of International Trade (CIT). The CIT is an Article III federal court with nationwide jurisdiction over cases arising from U.S. customs and international trade laws. This judicial appeal is a subsequent step and provides a formal legal avenue to resolve a dispute.

The success of a consultation often depends on the quality of the information provided by the client. Gathering key documents allows the legal professional to quickly assess the situation and provide tailored advice.

Essential Documents for Customs Consultation

• Commercial Invoice: A detailed record of the transaction.
• Bill of Lading or Air Waybill: Documentation of the shipping contract and transport details.
• Packing List: Details the contents of each package in a shipment.
• Import Declaration (Entry Summary): The official record of the imported goods, filed with CBP.
• Prior CBP Rulings or Correspondence: Any previous decisions or communications from Customs related to the goods.
• FTA Certificates of Origin: Documents proving the origin of the goods for preferential tariff treatment.

A well-prepared client can streamline the consultation process, allowing the legal team to focus on developing a robust legal strategy rather than administrative fact-finding. This efficiency is critical in time-sensitive customs matters.