Recently, U.S. Customs has intensified inspections for Type 86 goods, leading to an increased risk of cargo seizures. Customs is conducting random checks across major locations including Houston, Oakland, Los Angeles, Detroit, Atlanta/Savannah, Norfolk, as well as in New York, Miami, Chicago, and Dallas. These inspections are focusing on issues such as declared value, consumer product safety standards (CPS), EPA compliance, and FDA regulations.
Reasons for Increased Inspections
According to an April 17, 2023, report by the Office of the United States Trade Representative (USTR), USTR Ambassador Katherine Tai announced a 301 investigation into China’s maritime, logistics, and shipbuilding industries. This investigation follows petitions from five national unions and continues the trade scrutiny that began under former President Trump in 2018. The current investigation under President Biden reflects the ongoing U.S. commitment to fair trade practices.
At the 51st Annual Conference of the National Customs Brokers & Forwarders Association of America on April 19, 2023, U.S. official Troy Miller emphasized the importance of accurate classification, true value, and detailed descriptions for low-value goods during customs clearance. This heightened scrutiny addresses the dual challenges of unprecedented e-commerce expansion and drug smuggling risks.
Impact of Increased Inspections
U.S. Customs and Border Protection (CBP) has reported a rise in Type 86 imports facing issues such as intellectual property infringement, misclassification, vague descriptions, undervaluation, and counterfeit goods. These issues not only increase the workload for customs brokers handling formal and informal clearances but also pose a labor-intensive challenge. U.S. Customs aims to reduce the risk of non-compliant products entering the market, protect consumer interests, and maintain market order.
A notice issued by U.S. Customs on April 1, 2023, introduced stringent requirements for product descriptions. Customs now rejects vague descriptions such as “gift,” “essential goods,” “accessories,” “parts,” and “miscellaneous,” which fail to accurately reflect the product’s nature. Goods with unclear classifications may be seized until they are correctly described and classified.
Challenges for Sellers, Logistics Providers, and Customs Brokers
The new regulations pose significant challenges:
Detailed Data Submission: Low-value goods must now have detailed data provided “upon arrival or before arrival,” replacing the previous 15-day pre-arrival requirement. This necessitates accurate and complete data submission, including product descriptions and HS codes. Failure to comply can lead to cargo seizures and potential administrative penalties.
Customs Compliance: Customs brokers and freight forwarders must meet the same standards as carriers, thoroughly vetting data for compliance. This rule aims to address compliance issues related to Type 86 imports and protect U.S. market safety and order.
Strategies to Reduce Inspection and Seizure Rates
To navigate the increasingly stringent U.S. Customs inspections and minimize cargo seizures, consider these measures:
Detailed Cargo Listings: Provide a comprehensive cargo list detailing types, quantities, prices, origins, and transportation methods. This clarity helps customs officials quickly understand the cargo specifics and expedites the inspection process.
Complete Documentation: Ensure all documentation is complete and clearly outlines the rights and responsibilities of all parties involved. This helps ensure a legally sound clearance process and protects your interests in case of disputes.
Submit Import Security Filing (ISF): Submit the ISF in advance, ensuring all information is accurate. The ISF is crucial for assessing cargo safety and demonstrating compliance, thereby reducing customs concerns.
Origin Certification: Provide certificates of origin to prove compliance with U.S. import regulations. This important document helps prevent seizures due to unclear product origins.
Adhere to “Safe and Compliant Export” Principles: With heightened scrutiny, ensuring all goods are fully compliant with regulations before departure significantly reduces delays and issues during clearance.
By adopting these measures, sellers and logistics providers can effectively reduce the risk of cargo seizures during U.S. Customs inspections, ensuring a smoother and more efficient entry process into the U.S. market. This not only maintains supply chain fluidity but also enhances international trade credibility and efficiency.
Wakool Transport Solutions
To address the stringent U.S. Customs inspection standards, Wakool Transport offers comprehensive freight forwarding services, including customs brokerage, insurance, and logistics consulting, to significantly reduce inspection and seizure rates.
Our customs brokerage team is well-versed in international and U.S. Customs regulations, ensuring the accuracy of cargo values, classifications, and descriptions to avoid seizure risks. We proactively communicate with clients to ensure all customs documentation is thorough and precise.
Our logistics consulting services help clients adjust their shipping strategies based on current market dynamics, optimizing their logistics chains. We provide tailored solutions, particularly crucial in high-risk environments like the U.S. market.
Wakool Transport not only mitigates seizure risks through professional customs brokerage and insurance services but also offers cost-effective logistics solutions, helping clients navigate U.S. Customs challenges and ensuring cargo reaches the U.S. market safely and efficiently.
Commentaires