Customs Systems and Documentation Quiz

US Core & Import Guidelines

• FedEx provides guidelines for US Core and import procedures.
• A key aspect of the guidelines involves Global Trade Services (GTS).
• US Customs processes imports and exports.
• Essential paperwork is a critical aspect of import/export procedures.
• Other government agencies, such as the FDA, US Fish & Wildlife Service, USDA, EPA also have regulations.

Agenda

• GTS - Global Trade Services is the first item on the agenda.
• US Customs is the second topic covered.
• Classification of goods is the third point.
• Essential paperwork for customs is the fourth topic.
• Other Government Agencies and their roles is the fifth.
• Sixth item is on Customs systems & data sources.

Getting to Know You

• Introductions, experience, and personal interests.
• Students are asked what superpower they would have if they had one.

Positive and Negative Emotions

• A chart of positive and negative emotions is included.
• The emotions range from accepted to resentful, and relieved to embarrassed.

Quick House Rules

• Students are expected to be punctual.
• Active listening is encouraged.
• Being present and focused is emphasized.
• Removing distractions is important for participation.
• Students are asked to participate actively.
• Asking questions is expected.
• Writing down notes is encouraged.
• Supporting and helping each other is important.
• Maintaining a humble, open, and teachable attitude is essential.

FedEx Mission Statement

• The aim is to make every FedEx experience outstanding.

The Purple Promise

• The focus is on satisfying customers.
• Professional, competent, and polite service is valued.
• Accuracy in processing customer information is key.

FedEx Philosophy

• People are the most important company assets.
• Outstanding service is essential for profit.
• Excellent service is the ultimate company goal.

GTS- Global Trade Services

• GTS is a key enabler, supporting FedEx to be the fastest global transportation service in the industry.
• GTS provides regulatory compliant, cost-efficient, fast, and revenue-generating cross-border customs clearance and brokerage services for all customer needs.

One Day at GTS Import

• Brokers are responsible for accurate import entry, following rules.
• Mis-declarations or errors can lead to fines or imprisonment.
• Revenue & Customs exist for the benefit of countries they serve and have obligations towards FedEx and vice-versa.
• A trusted partnership ensures smooth clearance.

GTS Activity Overview - Key Focus

• Balancing compliance with customer and company best interests is a challenging task.
• This ability will give GTS the competitive advantage.
• The team must master customs regulations & interpretations.
• The varying interpretations make the environment challenging and complex.

International Trade

• Export procedures depend on the origin country.
• Import procedures follow the destination country's rules.
• Exporter/Seller/Shipper/Importer/Buyer/Consignee designations exist in international trade processes.

Terminology

• Shipper is the party sending the shipment.
• Manufacturer made the merchandise in the shipment.
• Consignee receives the shipment.
• Importer is legally responsible for bringing goods into the US for sale or trade. The importer also typically handles duties and taxes.

More Terminology

• HTSUS is the Harmonized Tariff System of the United States. It uses 8-10 digit tariff codes.
• CBP is US Customs & Border Protection.
• PGA is Partnering Government Agencies.
• Country of Origin is where a product is made or where a substantial change occurs.

Entry Types

• Formal Entry is required for shipments over $2,500.
• Informal Entry is needed sometimes for goods between 800and800 and 800and2,500.
• Non-Entry, Section 321 (Entry Type 86) is used for most goods under $800.

EIN

• EIN is the Employer Identification Number.
• Cage code, IMPNO (Importer Number), is required for formal entries.
• EIN must match the name in Customs records.
• EIN becomes inactive if there are no imports within a year.

CPG

• CPG is the Customer Profile Guide, and is a FedEx database.
• This database contains important information about the importer, including: importer number, commodity descriptions, tariff numbers, and document information.
• This database also contains important contact information.

GTS Facts and Figures - Practice

• Questions on GTS acronym.
• Responsibilities towards Customers and Customers.
• When Importer needs to provide EIN.
• Value threshold for formal entry.

US Customs Introduction

• An introduction to US Customs and Border Protection.
• Discussion on core responsibilities.

Customs Key Responsibilities - CCPP

• Responsibilities of Customs that include duties/taxes/excises, statistics, preventing unauthorized goods, protecting society and the environment.

Customs Key Responsibilities - Tasks and Competencies

• Responsibilities in duties collection, CITES enforcement (other import license requirements), health, safety, and security enforcement, and identification and handling of counterfeit goods.

Customs Essential Paperwork

• Basic document requirements for customs/import processes such as commercial documents (air waybills, commercial invoices, and licenses).

Customs Documentation - Requirements

• Obtaining the correct paperwork and clearance information for importing/exporting goods to the US is crucial.
• Missing or inaccurate documentation can cause delays, higher costs, legal issues and a poor customer experience.

Supporting Commercial Documentation - Air Waybills

• Origin and shipper must provide AWB, commercial invoice and licenses where necessary.
• AWB information will be used to create a manifest data entry (MDE).
• Essential details on the AWB include the shipper's and consignee's information, number of packages, total weight and commodity description.

Supporting Commercial Documentation – Commercial Invoice

• The commercial invoice is a legal document between a supplier and customer that describes the terms of sale.
• The commercial invoice is a customs document.
• Information needed on the invoice includes the name and address of the shipper and consignee, a full description of the commodities and value of each commodity type.
• The currency used, terms of sale, and origin country for each commodity are also required.
• The quantity of each item is also needed.

Supporting Commercial Documentation – Invoices (Third Party Transactions)

• In a third-party transaction, the exporter is different from the consignee(the party receiving the goods).
• The buyer (or importer of record, IOR) pays duties and taxes.

How to fill up a Commercial Invoice

• Filling in the FedEx International Air Waybill number.
• Providing complete shipper details (including name, address, and relevant identification numbers).
• Providing complete consignee details.
• Including the country of origin for the merchandise.
• Complete details about the shipped items, including name, part numbers, serial numbers, and HS numbers (if applicable).
• Declaring one currency type only.
• Signing and dating the invoice.

Tips in Commercial Invoice Preparation

• Ensure accurate detailed descriptions of goods.
• Give the transaction value (the amount actually paid).
• Provide a clear value breakdown.
• Provide a complete list of the items in the shipment, along with the unit price, total price, and currency.

Tips in Airwaybill Preparation

• Maintain consistent values.
• List all necessary details like the weight, quantity, description, currency and sender/receiver details.
• Correct postal codes are necessary.
• Provide a reachable contact person for inquiries.

Supporting Commercial Documentation: Air Waybills

• Clear, accurate, and detailed commodity descriptions are needed.
• Include information about the goods (what the items are, what they're made of and what they are intended to be used for).
• Avoid vague descriptions.

Commercial Invoice Issues

• Specific issues to look out for include mis-descriptions, missing or inaccurate information such as the declared value, unreadable details or value breakdown issues when there are multiple commodities, lack of specific description or incomplete consignee/shipper details.

Systems & Data Sources - Overview/Practice Problems

• Overview of systems and data sources used for clearance processes.
• This section includes practice problems like identifying the systems used to store details, create customs declarations, track shipments and scans.

Other Government Agencies

• A list of government agencies (FDA, US Fish & Wildlife Service, USDA, EPA) that regulate various products and services.
• These agencies have regulations concerning foods, drugs, biologics, medical devices, electronic products and cosmetics.
• Additional agencies provide regulations concerning veterinary products and tobacco products.

Regulatory Requirements

• Regulations on how shipments are handled in bonded facilities.
• Documentation requirements for all shipments (AWB, invoices, importer's tax ID number, and proper information needed for import approval).

More Regulatory Requirements

• Regulations that govern the transportation of (among other things) goods that are regulated by the FDA, and require special certificates like a Drop Ball Test (DBT) or a certification form 2877 (RADEC).

Classification

• The process of assigning the correct HSUS number to shipped / exported / imported goods for proper customs clearance of the goods.
• Accurate commodity descriptions, using specific terminology where possible, is crucial.

Systems & Data Sources

• A summary of different systems, data sources, and eSRG used in the import and export clearance processes.

FedEx Practices

• FedEx practices and standards for operations such as the cost of quality using pyramid structure with prevention, correction cost and failure cost.

Additional Note

• General notes on the importance of efficiency and the need to do things correctly the first time.

Test your knowledge on various customs systems and documentation utilized in international trade. This quiz covers the functions of systems like VISA, eOPS, and GENESIS, as well as key documents such as Air Waybills and Commercial Invoices. Assess your understanding of how these systems facilitate customs processes.