Charter also holds an Ocean Transportation Intermediary License as an Ocean Freight Forwarder issued by the Federal Maritime Commission.  As a freight forwarder, Charter prepares and files the bills of lading and related documentation required for the exportation of merchandise from the United States. 

Charter is a validated participant in the Customs-Trade Partnership Against Terrorism (C-TPAT) program and has extensive experience with the Importer Self Assessment (ISA) program, facilitating entry into these program for various clients.  Charter maintains records, provides support services in the event of reviews, requests for information, audits or issues raised by U.S. Customs.

Charter’s Import Export Data System (CIMEX) is a proprietary data tool that allows clients to analyze import or export data.  Combined with the electronic document retention functions, CIMEX provides clients with an industry leading analysis and compliance system.

Customs Clearance and Compliance Services – General Information
“Customs clearance” refers to the process whereby merchandise imported into the United States must be cleared through applicable customs and related laws and regulations and released from the custody of U.S. Customs and Border Protection to the importer or consignee, and all import duties and taxes are assessed and collected.  Customs requires documented compliance with these laws and regulations.  Complete and current knowledge of the tariff laws and regulations is essential for accurate customs clearance and penalties are imposed on importers for failure to comply. 

Customs Clearance and Compliance – Detailed Information
All merchandise imported into the United States is subject the customs laws related to entry and duty assessment, as set forth in the Tariff Act of 1930, as amended (19 U.S.C. § 1202 et seq.). The entry process consists of the filing of documentation required by law and regulations in order to inform Customs of the identity and value of the goods so that the goods may be classified in accordance with the Harmonized Tariff Schedule and appraised in accordance with applicable provisions of the Tariff Act (19 U.S.C. 1401a et seq.), and duties and fee assessed and collected.

The customs laws require that importers exercise “reasonable care” in the entry of merchandise (19 U.S.C. § 1484) and impose penalties for failure to comply (19 U.S.C. § 1592).  In addition, importers must maintain records to support their customs activities (19 U.S.C. § 1508).

Some of the key focus compliance areas include:

Classification – Imported merchandise must be classified under the Harmonized Tariff Schedule of the U.S. (19 U.S.C. § 1202, 19 C.F.R. 152.11).  The proper classification of imported merchandise is critical in declaring the kind, nature, or type of the imported merchandise and for establishing the applicable duty rate.  Conflicting provisions, complicated exceptions, and the highly technical nature of classification requires importers to use the utmost care to ensure proper classification of their imported goods.  Charter is a premier provider of classification services .  Our advocacy work on behalf of clients with Customs has helped provided guidance in critical classification issues, such as motor fuel blending stocks.

Valuation – Imported merchandise must be appraised based on one of the defined methods of appraisement, the preferred method being transaction value (19 U.S.C. § 1484, 19.C.F.R. §§ 152.100, 108)  With increased global trade, cross-border related party transactions, and critical trade data impacting global markets the proper appraisement and value declaration is of primary importance for every import transaction.  Our background in transfer pricing, Customs valuation methodologies, and valuation audits assists our clients in achieving compliance with these complicated laws and regulations.

Quantity – Import entries must accurately state the specific quantity of the imported merchandise.  (19 U.S.C. § 1484(f), 19 C.F.R. § 141.61(e)).  Quantity, particularly in the petroleum and petrochemical industries, can determine the total amount of duties to be paid to Customs.  Quantity is also a critical component of trade data necessary for the government to analyze trade flows and determine national policies.  It is critical for the importer to have correct quantity declarations to Customs and Charter works with clients, third parties (e.g. public gaugers), and Customs to ensure that the proper quantity is declared on every import.

Special Trade Programs and Trade Agreements – These program provide an importer with the opportunity to claim a duty preference under either a trade agreement (e.g. North American Free Trade Agreement (NAFTA)) or a unilateral trade promotion program (e.g. African Growth and Opportunity Act (AGOA)).  Each program has specific requirements that must be met for the importer to obtain the benefits of the applicable program.  Charter’s experience allows importers to achieve high levels of compliance with these complex requirements and thereby obtain advantageous duty treatment, when applicable.

Recordkeeping – Importers are required to maintain records that support the critical elements of an import (19 U.S.C. §§ 1508, 1509 and 19 C.F.R §163).   Importers must keep records (commonly referred to as the “(a)(1)(A)” list) that they prepare in order to import the merchandise.  In addition to the regulatory requirement to maintain records, Customs requests for information, investigations, audits, and other inquires require that the importer maintain a vast array of supporting documents in order to prove up a compliant import.  Charter works with clients to achieve recordkeeping solutions, including Charter’s Import Export Data System, (CIMEX), a proprietary data analysis and document storage solution.

Antidumping / Countervailing Duties (AD/CVD) and Quotas – These trade restriction tools are used by the U.S. government to combat unfair trade practices.  Very specific requirements apply to imports subject to these restrictions.  Charter’s experience and compliance based business model allows importers to comply with these programs.  (19 U.S.C. §§ 1673, 1671 and 19 CFR § 351)

In addition to the above major compliance areas, an importer must deal emerging compliance focus areas that customs identifies, such as transshipment and intellectual property rights.  Importers must not only comply with an ever increasing network of trade agreements and trade preference programs, importers must actively plan their operations to optimize these opportunities to maintain a competitive edge.  Importers must also manage the constant changes to the underlying laws and regulations, Presidential proclamations, and changes to other governmental agencies’ import requirements in order to avoid incidents of non-compliance.