How to Import into the US

The Directorate of Defense Trade Controls (DDTC), Bureau of Political-Military Affairs, in accordance with 22 U.S.C. 2778-2780 of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR) (22 C.F.R. Parts 120-130), is charged with controlling the export and temporary import of defense articles and defense services covered by the United States Munitions List (USML). It has among its primary missions (a) taking final action on license applications for defense trade exports and (b) handling matters related to defense trade compliance, enforcement, and reporting.

PMDTC: Political Military Defense Trade Controls

The International Trade Administration (ITA) is the lead unit for trade in the Department of Commerce. It promotes U.S. exports of manufactured goods, nonagricultural commodities and services.

ITA: International Trade Administration

The Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture (USDA) works to improve foreign market access for U.S. products. FAS operates programs designed to build new markets and improve the competitive position of U.S. agriculture in the global marketplace.

FAS: Foreign Agricultural Service

The Department of State and Agency for International Development (USAID) Strategic Plan for Fiscal Years 2004 to 2009 sets forth the Secretary of State’s direction and priorities for both organizations in the coming years. The Strategic Plan supports the policy positions set forth by President Bush in the National Security Strategy and presents how the Department and USAID will implement U.S. foreign policy and development assistance.

DoS: Department of State

The priority mission of CBP is to prevent terrorists and terrorist weapons from entering the United States.This important mission calls for improved security at America’s borders and ports of entry as well as for extending our zone of security beyond our physical borders – so that American borders are the last line of defense, not the first.

US Customs and Border Protection

The mission of the Bureau of Industry and Security (BIS) is to advance U.S. national security, foreign policy, and economic interests. BIS’s activities include regulating the export of sensitive goods and technologies in an effective and efficient manner; enforcing export control, antiboycott, and public safety laws; cooperating with and assisting other countries on export control and strategic trade issues; assisting U.S. industry to comply with international arms control agreements; and monitoring the viability of the U.S. defense industrial base and seeking to ensure that it is capable of satisfying U.S. national and homeland security needs.

Question

What is OGA?

Answer

The term OGA refers to Other Government Agency. Part of the mission of US Customs is to regulate and apply duty to incoming shipments which will enter the commerce of the United States.

All imports are subject to the import requirements of US Customs, but some products face additional regulations from various other government agencies. It is the responsibility of US Customs to enforce the regulations imposed by other agencies at the port of entry. Examples of other government agencies include:

• FDA – the Food and Drug Administration which regulates food, drugs, and consumer/commercial products which may have an impact on the health of the user.
• BIS – the Bureau of Industry and Security which regulates the import and export of “dual-use” goods that have both civilian and military applications.
• EPA – the Environmental Protection Agency which regulates imports that may have an impact on the environment.
• DOT – the Department of Transportation which regulates the import of motor vehicles and other forms of transportation.
• PMDTC – the Office of Political Military Defense Trade Controls which regulates the import and export of products and technology that may impact the national security of the United States.

Question

What is AMS?

Answer

Automated Manifest System (AMS) The Automated Manifest System (AMS) is a multi-modular cargo inventory control and release notification system.

AMS interfaces directly with Customs Cargo Selectivity and In-Bond systems, and indirectly with ABI, allowing faster identification and release of low risk shipments. AMS speeds the flow of cargo and entry processing and provides participants with electronic authorization to move cargo release prior to arrival.

Please note: This article is intended for informational purposes only and is not specific legal advice. As an importer, it is your responsibility to meet all the legal requirements for importing goods.

Question

What is a Line Release?

Answer

The answer to this question lies in 19CFR142.41, subpart D which states:

Sec. 142.41 Line Release.

Line Release is an automated system designed to release and tract repetitive shipments. It is a method of entry or immediate delivery extended to importers of merchandise which Customs deems to be repetitive and high volume. Line Release may be used only at locations approved by Customs for handling Line Release. At certain high-risk locations along the land borders of the United States (the locations to be published in the Federal Register), which are approved by Customs for handling Line Release, the use of Line Release for particular shipments may be denied by Customs unless the imported merchandise is transported by carriers that participate in the Land Border Carrier Initiative Program (see, subpart H of part 123 of this chapter).

Please note: This article is intended for informational purposes only and is not specific legal advice. As an importer, it is your responsibility to meet all the legal requirements for importing goods.

Transshipment is the act of shipping goods to an intermediate destination prior to reaching their ultimate end-use. Transshipment is a common practice with logistic benefits, but can be used to illegitimately to disguise country of origin or intent of the goods.

Transshipment is commonly used by smugglers and terrorists seeking to disguise the point of origin of their goods from Customs officials. Certain countries like Libya, North Korea, and Syria are considered higher risk for security threats while countries like China and Taiwan are likely sources for counterfeit goods. Importers can transship goods both intentionally and accidentally. Intentional transshipments are done to avoid higher duty rates levied on certain countries, avoid import restrictions like visa and quota restrictions, or make use of a special trade program to drastically lower duty rates.

Accidental transshipments are usually caused by miscommunication between foreign vendors or US buyers. Too often, US importers do not recognize the need for properly declaring country of origin and see reduced duty rates as smart business. Foreign vendors typically do not have the in-depth knowledge of US Customs regulations to advise against the practice.

Penalties

In addition to the loss of import privileges and seizure of imported merchandise, importers practicing transshipment may also be subject to an array of civil penalties under 19 U.S.C. 1592.

Maximum penalties for transshipment are:

• Fraud: An amount not exceeding the domestic value of the merchandise.
• Gross Negligence: The lesser of
  • the domestic value of the merchandise, or
  • four times the lawful duties, taxes, and fees, or
  • if the violation did not affect the assessment of duties, 40 percent of the dutiable value of the merchandise.
• Negligence: The lesser of
  • the domestic value of the merchandise, or
  • two times the lawful duties, taxes, and fees, or
  • if the violation did not affect the assessment of duties, 20 percent of the dutiable value of the merchandise.