Blog Posts

 

Have you ever experienced inconsistency at the hands of U.S. Customs? Ever had shipments of similar or even identical goods classified differently at different ports of entry?

 

Chances are, you have. This isn't really that surprising, given that import assessment and decision-making has historically been done by whichever Customs official is on duty at whichever port of entry your shipment happens to come through. The result of this system, as you may well know, is inefficiency and unpredictability. And that’s not good for business.

 

Many businesses today source offshore to take advantage of lower prices or to obtain goods unavailable in North America. The savings can be significant: sourcing from China, for example, can reduce product costs by as much as 75% - or even more ⁽¹⁾.

 

 

Regulatory changes related to border enforcement were signed into law in February of this year under the TFTEA (Trade Facilitation and Trade Enforcement Act). All indications are that enforcement at the U.S. border is on the rise already, and this trend is likely to continue. 

 

The U.S. Customs Modernization Act (the “Mod Act”) is part of the North American Free Trade Agreement (NAFTA) Act and pertains to improving compliance and enforcement with U.S. customs laws. Among other things, the Mod Act places legal responsibilities on the importer for declaring all relevant information with respect to goods imported into the U.S. (information such as the value, classification, and rate of duty, among others).

 

 

The Trans Pacific Partnership (TPP) is a free trade agreement involving 12 Pacific Rim countries and is considered to be one of the most ambitious such agreements ever signed. Ratification would create the largest trade zone in the world, spanning four continents and 800 million people. The 12 nations involved produce an estimated 40% of the world’s economic output.