FedEx US Core & Import Guidelines Jan 2024 PDF

US Core & Import Guidelines  Agenda 1. GTS - Global Trade Services 5. Other Government Agencies 2. US Customs – Introduction 6. Customs - Systems & Data 3. Classification Sources 4. Customs – Essential Paperwork...

US Core & Import Guidelines  Agenda 1. GTS - Global Trade Services 5. Other Government Agencies 2. US Customs – Introduction 6. Customs - Systems & Data 3. Classification Sources 4. Customs – Essential Paperwork 2 Getting to Know You 1. Name and work experience 2. If you have a superpower, what would it be? 3 How are you feeling today? 4 Quick House Rules Be punctual Listen actively Be fully present Remove distractions Participate Ask questions Write down notes Support each other Be H-O-T (humble, open and teachable) 5  experience I outstanding. every make FedEx will I will make every FedEx experience outstanding. The Purple Promise To keep the Purple Promise, we must:  Do whatever it takes to satisfy our customers  Always treat customers in a professional, competent, polite and caring manner  Handle every transaction with the precision required to achieve the highest quality service  Process all customer information with 100 percent accuracy  FedEx Philosophy PEOPLE are the company's most important assets. PROFIT can only be SERVICE made by is our ultimate providing aim and we outstanding strive to excel. service. 7 February 2024 9 GTS – Global Trade Services Index 1. Introduction to GTS : the GTS Mission 2. One day @ GTS Imports 3. GTS Activity overview – key focus 4. International Trade 5. Shipment flow overview 6. Terminology Mission GTS is a key enabler, supporting FedEx to be the fastest global transportation service in the industry. It provides regulatory compliant, cost efficient, fast & revenue generating cross border customs clearance & brokerage services for all our customer needs. One Day at GTS Import What is our obligation towards the customs authorities? As brokers, we are responsible for providing Revenue & Customs with an accurate import entry. This entry has to be made according to a number of rules. In other words, the entries have to be made in such a form and manner as the customs officials may request. Mis-declarations or incorrect entries can have dramatic consequences. They constitute an offense in all countries and give way to fines, and in some cases, even imprisonment. Customs as Partner Revenue & Customs have been set up for the benefit of the countries it serves. They have obligations towards us and we have obligations towards them. Our operational success is inevitably linked to our relationship with Revenue & Customs. A trusted partnership between Customs and ourselves ensures a smoother clearance and a better service to our customers. GTS Activity Overview – Key Focus Achieving the balance between full compliance with customs and other regulatory agencies legislation, whilst acting in the customers and Company’s best interest is a challenging and demanding task. However, it is one that all GTS team members must master, as it is this ability, which will give us the competitive advantage and enable us to provide a truly differentiated experience to our customers. Customer Experience Customs Regulations  Ensure that every interaction  We operate in a highly with FedEx provides an regulated field, where outstanding customer compliance is critical. experience, which is  The different customs personalised, user-friendly regulations and even local and consistent across all interpretations make the world channels. of GTS a very challenging and  This increases customer complex environment. loyalty and satisfaction now and in the future. 14 International Trade EXPORT procedures IMPORT procedures according to origin according to destination country (third country) country EXPORTER-SELLER- IMPORTER-BUYER- SHIPPER International Monitoring CONSIGNEE 15 Terminology Shipper Party who sent the shipment Manufacturer Party who made the merchandise in the shipment Consignee Party who will receive the shipment Importer Party legally responsible for bringing goods from a foreign country into the US for sale or trade. Generally, they also take responsibility of the cost of duties and taxes on the shipment. ** Note: The importer and the consignee do not need to be the same party. Terminology HTSUS Harmonized Tariff System of the United States Made up of 8 - 10 digit tariff codes assigned according to the detailed description of the imported merchandise First 6 digits are universal and recognized internationally Used to assess duty & taxes on all imported merchandise Can be assessed online at http://www.usitc.gov/ CBP US Customs & Border Protection, formerly United States Customs Service (USCS) PGA Partnering Government Agencies (besides US Customs) Examples: FDA, ATF, F&W Country of Origin Where a product is made or the last place a substantial change is made Terminology Entry Types Formal Entry All shipments over $2,500 USD Some OGA-related goods regardless of value Informal Entry Most goods from $800 to $2,500 unless formal entry is required Non-Entry- Section 321 (Entry Type 86) Most goods under $800 unless formal entry is required Terminology EIN Employer Identification Number Cage code: IMPNO (Importer Number) Required for all formal entries, some OGA-regulated informal entries EIN number must exactly match name on file with Customs and the name on the invoice EIN numbers become inactive with Customs after one-year of no imports Terminology CPG (Customer Profile Guide) FedEx database Contains customer information to include: Importer Number Commodity descriptions and tariff numbers On-file document information (FCC, HS7, C/A, NAFTA) Customer contact information for trace agents IPBSO instructions Other special handling instructions GTS Facts and Figures - Practice 1. What does the acronym GTS stand for? 2. As GTS employee , what 3. When does importer needs are our responsibilities to provide EIN? towards Customs and Customers? 4. What is the value threshold for formal entry? 21 US Customs Introduction Index 1. Introduction to US Customs and Border Protection 2. Customs Key responsibilities 23 Customs Key Responsibilities - CCPP Why is it necessary to have Customs? Customs have a responsibility to control the passage of goods entering and leaving an EU country territory. The responsibilities of Customs can be divided into four main functions: I. Collect : duties/taxes/excises II. Control : statistics III. Prevent : uncontrolled goods entry into territory IV. Protect : society and environment 24 Customs Key Responsibilities – Tasks and Competencies CITES enforcement Duty collection and other import (customs duty licence requirements collection, VAT, excise duties) Health, safety and security enforcement Counterfeit products 25 Customs Essential Paperwork Index 1. Customs Documentation requirements 2. Supporting Commercial Documentation  Air waybill (AWB)  Commercial invoice (CI)  License/permit ( if required) 27 Customs documentation - requirements When importing or exporting goods into the US, it is critical that the correct paperwork/clearance information is made available to FedEx, so that we can ensure the declaration is completed correctly. Missing or inaccurate documents/information can lead to delays, extra costs, legal implications and a poor Customer Experience. It is therefore critical to ensure that you have all necessary information available before completing the Customs declaration. There may be requirements both for the country the goods are being exported from and the country they are being imported into. 28 Supporting commercial documentation In order to be able to create an accurate customs import declaration, we need certain supporting commercial documentation from the shipper. Origin and shipper must provide:  AIR WAYBILL (AWB)  COMMERCIAL INVOICE (CI)  LICENCES (if required) NOTE! Based on AWB information, Manifest Data Entry (MDE) will be created. It is this data that feeds our clearance system. 29 Supporting commercial documentation: Air Waybills AIR WAYBILL (AWB) - a document that accompanies goods, providing detailed information about the shipment and allows its location to be tracked. 30 Supporting commercial documentation: Air Waybills An AWB should contain the following information: an AWB number Shipper’s name and address Consignee’s name and address # of packages travelling on the awb total weight of the shipment total value of the shipment and the type of currency description of the commodities contained therein IPBSO information (if service is requested) Importer’s tax ID number (helpful for customs clearance!) Supporting commercial documentation – Commercial Invoice COMMERCIAL INVOICE (CI) - is a legal document between the supplier and the customer, which clearly describes terms of sale. The commercial invoice, when used in foreign trade, is a customs document. It is one of the main documents used by customs in determining customs duties. 32 Supporting commercial documentation: Invoice Commercial Invoice A commercial invoice shall be presented for each shipment of merchandise at the time the entry summary is filed, subject to the conditions set forth in these regulations. The invoice and all attachments shall be in the English language , or shall have attached thereto an accurate English translation containing adequate information for examination of the merchandise and determination of duties. Supporting commercial documentation: Invoice Invoice Requirements name and address of shipper name and address of consignee English translation full description of the commodities value for each commodity currency type used terms of sale country of origin for each commodity quantity Supporting commercial documentation – Commercial Invoice STANDARD INVOICE SCENARIO EXPORTER IMPORTER = CONSIGNEE SHIPPER BUYER SELLER SOLD TO SENDER CONSIGNEE (CNEE) SHIPPED FROM SHIP TO … DELIVERY ADDRESS … Pays duties and taxes Receives the package 35 Supporting commercial documentation – Commercial Invoice 36 Supporting commercial documentation – Commercial Invoice THIRD PARTY TRANSACTION – INVOICE SCENARIO IMPORTER EXPORTER BUYER SOLD TO IMPORTER OF RECORD (IOR) … Pays Duties and Taxes SHIPPER SELLER CONSIGNEE SENDER SHIPPED FROM SHIP TO … DELIVERED TO DELIVERY ADDRESS … Receives the package 37 How to fill up a Commercial Invoice A A: Fill in FedEx International Air Waybill number B C B: Shipper’s Details - Fill in complete name, address, telephone, Business Registration No./ Customs / Tax ID No. (or as locally required) C: Consignee’s Details - Fill in complete name, address, D E telephone, Business Registration No./ Customs / Tax ID No. (or as locally required) D: The country where the merchandise was grown, mined or manufactured, in accordance with Customs regulations E: Complete details of the item(s) being shipped, including name, part numbers, serial numbers, and H.S. numbers, if available F F: Please declare one currency type only G: Sign your name and date G The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Tips in Commercial Invoice Preparation The invoice should include a detailed/specific description of the goods. The value must be correct. If the shipment 1. What is it made of? consists of more than one (1) item, the shipper 2. What is it part of? needs to provide a value breakdown and ensure 3. What is it used for? that the total amount tallied equals the total value The declared value must be the transaction value The invoice should include the quantity, weight, – the price actually paid or payable – for the unit price, currency, and country of origin item or any other identical item in case the (COO). shipment has been provided free of charge or as a gift. Putting “No Commercial Value” (NCV) or an unreasonable value will lead to Customs If the payment for freight and insurance is included asking the consignee or shipper to provide in the invoice, make sure to provide a separate value evidence such as proof of payment, proof of amount and value for freight and purchase order, or telegraphic transfer. insurance. Important note: Once a shipment arrives at the destination gateway, details can no longer be changed in the shipping documents, thus, the shipment will undergo an amendment, which requires longer processing by Customs. It is possible the amendment request may be denied by Customs so it’s very important to double check shipping details Tips in airwaybill preparation The declared value must be correct and consistent Completely and accurately fill out all the with the commercial value. For shipments with necessary details (weight, number of packages, multiple items, make sure that the total amount is description, value, currency, shipper’s & correct. Please indicate the currency used. consignee’s details and payer information). Make sure all the information on the AWB is consistent with the commercial invoice and Make sure the AWB has a reachable consignee other related shipping documents. contact, including extension number, mobile phone, and e-mail address, so the destination gateway personnel can easily contact the The postal code must be correct in order to avoid consignee to inform him/her about the shipment’s the shipment being missorted to another location. arrival and advise of any necessary clearance paperwork. Provide a specific description for each item. Product number or serial number is not enough. The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Supporting commercial documentation: Air Waybills Requires clear, accurate and detailed commodity descriptions What is an acceptable description? A good description needs to answer the following questions: What is it? What is it made from? and What is its intended use? Under customs regulations, general descriptions such as ‘electronics’ are not detailed enough but descriptions of ‘CD players’ or ‘computer monitors’ are acceptable. Avoid descriptions such as ‘general merchandise’, ‘samples’, ‘promotional materials’, ‘parts’ and ‘see commercial invoice’. Identify Commercial Invoice Issues The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues Item Description not specified ( need use, what it is made of, Codes not acceptable ) The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues No declared value No declared value and without value breakdown if it contains multiple items The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues Unreadable details in the description and value breakdown The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues Juan de la Cruz Paco, Manila The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues Juan de la Cruz Paco, Manila Incomplete consignee's/shipper's details (company name, address, valid contact no.) The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues Discrepancy on details between invoice and Airway Bill (description, value, weight, and no. of packages) The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues Lack of specific description The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues Misdeclaration of Items and Undeclared Item The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Commercial Invoice Issues Misdeclaration of Items and Undeclared Item The information provided in this presentation is correct as of August 2020, but is not intended to be binding. Please speak with your Sales representative or visit fedex.com for further information Supporting commercial documentation – Commercial Invoice ATTENTION! THIRD PARTY TRANSACTION! 56 Supporting commercial documentation - Licenses LICENCES (if required)  are issued by a national government  authorise the importation and/or exportation of certain goods into/out of its territory. 57  Supporting commercial documentation - Licenses The Kimberly Process is an international certification scheme that regulates the trade in rough diamonds. Its aim is to prevent the trade in conflict diamonds, while helping to protect the legitimate trade in rough diamonds. This certificate is issued by the origin government authority. 58  Supporting commercial documentation - Licenses *CITES certificate. (*CITES: The Convention on International Trade in Endangered Species of Wild Fauna and Flora. CITES is an international agreement between Governments. The purpose is to ensure that international trade in specimens of wild animals and plants does not threaten their survival 59 Customs & Commercial Documentation - Practice 1. What are the two 2. What does AWB 3. When does CITES documents an exporter stand for? certificate required ? must provide? 4. Who is responsible for supplying the correct 5. What information can be export paperwork? found on AWB? 7. What is a difference 8. What could be the impact 6. How many numbers between the Importer and if we don’t have all the make up a FedEx AWB? the Consignee? correct documentation? 60 Customs Other Government Agencies Index 1. FDA 2. US Fish & Wildlife 3. US Department of Agriculture 4. US Environmental Protection Agency 5. Regulatory Requirements 62 Other Government Agencies Customs & Border Protection ATF DOT EPA Alcohol, Tobacco, Highway safety items non-medical chemicals, Firearms and parts dyes, powders, paints FDA FWS USDA Food Products, Non-domestic animals Domestic animals and Radiation Devices and their products their products Other Government Agencies Other Government Agencies Foods, including: dietary supplements bottled water food additives infant formulas other food products (although the U.S. Department of Agriculture plays a lead role in regulating aspects of some meat, poultry, and egg products) Other Government Agencies Drugs, including: prescription drugs (both brand-name and generic) non-prescription (over-the-counter) drugs Other Government Agencies Biologics, including: vaccines for humans blood and blood products cellular and gene therapy products tissue and tissue products Allergenics Other Government Agencies Medical Devices, including: simple items like tongue depressors and bedpans complex technologies such as heart pacemakers dental devices surgical implants and prosthetics non-prescription (over-the-counter) drugs Other Government Agencies Electronic Products that give off radiation, including: microwave ovens x-ray equipment laser products ultrasonic therapy equipment mercury vapor lamps sunlamps Other Government Agencies Cosmetics, including: color additives found in makeup and other personal care products skin moisturizers and cleansers nail polish and perfume Other Government Agencies Veterinary Products, including: livestock feeds pet foods veterinary drugs and devices Other Government Agencies Tobacco Products, including: Cigarettes cigarette tobacco roll-your-own tobacco smokeless tobacco Cigars Hookah E-cigarettes (tobacco and non-tobacco derived nicotine) Other Government Agencies: The department of Fish & Wildlife regulates the importation, exportation, and transportation of wildlife. This includes such things as snakeskin boots, and tortoise shell sunglasses. The Memphis port cannot clear any item that is regulated or restricted. Examples of what is regulated  bird & goose feathers - butterflies/insects  caviar & sea shells - furs, deer skin & hunting trophies  ivory articles and tusks - Mother of Pearl - MOP  alligator, antelope, ostrich, lizard & crocodile leather  seal skins, sharkskin and whalebone articles  tortoise or turtles and products of their shells Many domestic animals are not covered by F&W : cows, sheep, and lambs. Other Government Agencies: USDA regulates any agricultural product imported into the United States. They also regulate the packing materials used for shipping. No entry needs to be submitted to USDA. If they hold a commodity, they will usually do an inspection and decide whether the shipment can or cannot be released. Other Government Agencies: The EPA regulates things such as pesticides, insecticides, flea medicines for pets, and motor vehicles emissions. Enforce Toxic Substance Control Act EPA form 3540 required for importation Regulatory Requirements Cages Caging is the process of holding freight in a bonded facility until all necessary documentation and/or information is received to make entry to US Customs. After the freight is caged, FTN contacts the customer to obtain everything needed to make entry. Regulatory Requirements All Shipments All commodities shipped must have the following legible documentation: AWB (air waybill) Invoice(s) - meeting all invoice requirements Importer’s Tax ID number if known Regulatory Requirements All Shipments- 11 cage reasons result from required items missing from the invoice: AWBO (awb only received) INVMS (invoice missing) or INVPM (invoice page missing) INVIC (invoice incomplete) or INVIL (invoice illegible) DESC (description missing or inadequate) COMP (Product composition required) VALMS (Value missing) VALBK (Value breakdown for each item needed) VERFY (Verify country of manufacture/origin) CURR (Verify currency used for value given) Regulatory Requirements TSCA The Toxic Substances and Control Act (TSCA) enacted in 1976 is the primary Federal statute regulating the use of certain chemicals and substances Shipments of TSCA goods at any value, from any country, must include: Invoice TSCA statement The US importer would normally make the certification A certification must be signed and filed with CBP by the importer of a chemical substance imported in bulk or as part of a mixture, or importer’s authorized agent Statement can be on the invoice or on a separate form Regulatory Requirements FDA (Food & Drug Administration) Cage Reasons DBT (Drop Ball Test Certificate Required)  glasses at any value, from any country of origin RADEC (FDA form 2877 missing)  required at any value for goods subject to radiation control  must be signed  one block must be checked USAGE  must be signed Regulatory Requirements Classification In order to assess duties and taxes, the broker must assign the correct HSUS number to each commodity shipped. A detailed description is needed. Examples of invalid descriptions: Aircraft Parts - better: “steel hinges for aircraft doors” Auto Parts - better: “brake lights for motor vehicles” Spare parts for machinery - better: “air filter for boring machinery” Systems & Data Sources - Practice 1. What type of commodities regulated by FDA? 2.. What type of commodities 3.. What type of commodities regulated by US Fish & Wildlife? regulated by USDA? 5. When does importer needs to 4. What is the meaning of Cage code provide Drop Ball Test Certificate? INVPM? 82 Customs Systems, Data sources & eSRG Index 1. System and data sources overview 2. List of main systems & data source (GENIUS – EIStC – VISA – eOPS ) 3. eOPS – FedEx Track & Trace 4. eSRG 84 System and data sources overview – clearance & associated systems VISA / MDE system for Manifest Data Entry and routing AWB DATA GTS eOPS system for tracking CUSTOMS shipments and package inquiries GENIUS / GEMINI HUB Local image viewer SORT & Entry processing Customer Profile SCANNING APOLLO (UK) / FGC (NL) / SABRE (DE) / SLASH (FR), etc. RELEASED for delivery if customs cleared EISTC / EDM GENESIS HELD IN BOND Central Image repositories Central Image scanning system CAGE CUSTOMER MESSAGE 85 List of main systems VISA Manifest Data Management VISA is generally used for manifesting (MDE) and routing. The manifest details are transferred from VISA to GENIUS. EIStC EMEA Imaging Ship to Collect. GENESIS (Global Shipment Document Repository) EIStC is the scanning and storage system for all documentation for the import entry and billing and is the feed for GENIUS documents. GENIUS / GEMINI GTS EMEA Network Integrated User System / Global Electronic Manifest and Intercept Integrated system GENIUS / GEMINI are the systems used by GTS for making import entries to customs. The entry is transmitted through the local country Customs systems for clearance. eOPS Enterprise Operational Portal The main function of eOPS is for tracking shipments and package enquiries. 86 SRG – Service Reference Guide SRG – Service Reference Guides This guide helps couriers and origin stations identify requirements for shipping commodities to all countries served by FedEx. The guide will help identify documents required for commodities and value limits, prohibitions and restrictions in the receiving country as well as FedEx prohibitions and restrictions. The SRG can be accessed from the following web address: http://esrg.prod.fedex.com/eSRG/menu.jsp 87 Systems & Data Sources - Practice 1. Which system stores data about all FedEx packages? 2. Which system is used to create 3. Which system is used to track and customs declarations? check scans for the package? 5. What is the name of the scan used in 4. What is the name of the system EOPS, which indicates that the where all documents are stored? shipment was delivered? 88 FedEx Practices  Cost of Quality 90 Why Speed is not equal to “ Efficiency “? SPEED EFFICIENCY 92 What is your favorite takeaway today? Thank you! Take quiz here