American Conference Institute's 3rd U.S. Customs Compliance Boot Camp

Registration and Continental Breakfast

Co-Chairs’ Opening Remarks: Building Your Customs Compliance Roadmap

Making Sense of Complex HTSUS Classification Rules: The Biggest Mistakes that Trigger Audits, Delays and Penalties

• How to classify goods by industry. Key considerations for consumer goods, pharma, food, electronics and other sectors
• How to use the Harmonized Tariff Schedule and where companies make mistakes
• Understanding HTSUS structure and framework
• Processes of evaluation for tariff classification
• Applying relevant section and chapter notes, heading and subheading notes, general notes and explanatory notes, and using the rulings as guides
• Complying with Chapters 84, 85, 90: Key pitfalls to avoid
• Defining “sets” and “kits”
• Classifying unusual products
• Examining the benefits of the Generalized System of Preferences
• Strategies for handling gray areas in tariff classification – when and how to file binding ruling requests
• Resources available for your guidance

Morning Coffee Break

Getting Customs Valuation Right: How to Apply Core Requirements and Valuation Methodologies

• How to determine the correct value of goods and avoid common valuation errors
• Examining transaction value
• Case study: How to go through the valuation process using transaction value
• Defining a “related party transaction”
• When not to use transaction value
• Making sense of the other five valuation methodologies and when they should be applied (transaction value of identical merchandise, transaction value of similar merchandise, deductive value, computed value, derivative method)
• Understanding assists, royalties and other additions as part of the dutiable value
• Identifying the different types of deductions and how deductions are determined
• What you need to prove eligibility for a deduction
• Review of sample invoices: How to identify and correct mistakes before it’s too late
• How to handle valuation of a product imported for repair

Networking Luncheon

Key Government Agencies: A Practical Perspective on How to Coordinate Your Import Efforts with CBP, FDA, ATF and Other Key Agencies

This session was specifically designed for what you have asked: How do I comply with CBP requirements plus the other relevant agencies? Hear directly from the agencies on how CBP enforcement and other agency requirements are converging and what it means for your day-to-day operations.

• How do you know when there are “other Federal agency requirements” applicable to your imported product?
• Who do you contact at each Federal agency to understand which regulations apply to your imported product?
• What happens when your cargo clears U.S. Customs, but violates another Federal agency requirement?
• Understanding CBP’s role as the border enforcement agency
• Contrasting FDA, CPSC, EPA, ATF roles and responsibilities regarding imports
• Determining which regulatory requirements apply to the product you are importing
• How to identify transactions that involve multiple agencies
• At what point in the process should the agency be involved?
• How importers should approach each agency
• Obtaining helpful information through government personnel, websites, and other channels
• Getting onboard to report to these agencies using ACE pursuant to the government’s December 2016 deadline

C-TPAT and ISA: The Ins and Outs of CBP’s Trusted Trader Program

• C-TPAT: What is it, how to apply, and what does it take to join?
• Making sense of CBP’s expectations for “minimum security standards”
• Weighing the risks and benefits of participation in C-TPAT
• Developing a five-step risk assessment process that meets CBP expectations
• How to incorporate threat and vulnerability risks / red flags into the C-TPAT assessment
• Core elements of the Importer Self-Assessment Program (ISA)
• Outlining the requirements of ISA
• Examining the benefits of participation in the ISA Program
• Weighing the benefits vs. the rigors of ISA membership
• How to determine if your company is “Trusted Trader ready”
• Working with CBP throughout the process, and educating CBP on your business
• Update on CBP and FDA Trusted Trader Pilot

Networking Refreshment Break

Managing Successful Customs Broker Relationships: What Brokers Really Need From Importers

Have you ever wondered what brokers think about where their clients go wrong on compliance, their interaction with customs authorities, and how they feel the overall relationship can be improved? This one-of-a-kind session give you the opportunity to hear directly from the brokers on these and other important topics.

• Communication – Knowing how importers can communicate compliance expectations and requirements to brokers
• Site Visits – Helping the broker to understand better the importer’s company, operations, and products
• Guidelines/ SOPs – Developing guidelines and Standard Operating Procedures together
• Useful Tools – Using even basic tools to improve the broker – importer relationship
<li.monitoring and="" auditing="" –="" measuring="" monitoring,="" including="" conducting="" periodic="" reviews="" what="" to="" do="" if="" you="" discover="" non-compliance
• Boundaries – Understanding where the importer and broker responsibilities begin and end
• Understanding – Valuing your broker as a key resource
• Collaboration – Working together to implement global and local policies and procedures

Best Practices of Customs Compliance: Core Elements of How to Satisfy CBP Requirements for an Effective Compliance Program

• Assessing your company’s risk profile – Key factors to consider
• Large vs. small importer
• Number of imports
• Complexity of classification
• Valuation transfer pricing approach
• Tax approach vs. customs compliance approach
• Tailoring your customs compliance program to your company’s risk profile
• Raising awareness of your compliance program within your company
• How to build effective internal controls
• Working with other stakeholders in your company
• Developing effective written procedures: Review of sample Procedures
• Developing compliance program tools
• The pre-entry and post entry processes
• How to incorporate record keeping, auditing, testing into your compliance program
• Monitoring for violations (e.g. anti-dumping)
• Benchmarking to ensure a balanced program

Boot Camp Adjourns to Day Two

Co-Chairs’ Opening Remarks

Deciphering Complex Country of Origin and Marking Rules

Morning Coffee Break

How to Benefit from NAFTA and Other Key Free Trade Agreements

The United States now has free trade agreements or special duty programs in force with 20 countries, each with its own unique rules of origin. Importers that wish to take advantage of these duty free programs need to understand the rules, requirements, and risks. Learn the key requirements in claiming NAFTA and other FTA programs (Korea, CAFTA, etc.), and avoid the most common mistakes importers make.

• Coping with multiple rules of origin in FTAs
• Understanding NAFTA origin rules and requirements
• Tariff shift vs. regional value content rules
• Special rules for intermediate materials
• Using inventory accounting rules (e.g. LIFO, FIFO)
• The importance of maintaining supporting documentation
• Undergoing a NAFTA validation and responding to information requests
• Complying with other FTA rules: Are you up for the challenge?
• Korea, CAFTA, etc.
• Generalized System of Preferences (GSP), African Growth and Opportunity Act (AGOA), and other related programs and potential impact of expired and expiring GSP programs

ADD/CVD – Complying with Anti-Dumping Duty and Countervailing Duty Requirements: What You Need to Know and Why

• What are ADD and CVD?
• How could my goods be subjected to ADD or CVD?
• Making sense of ADD CVD CBP procedures involving the ITA and ITC
• Defining the scope of ADD CVD orders
• How do you anticipate ADD CVD application to your goods and what happens if you don’t?
• CBP Enforcement of ADD CVD duty collection
• Non-reimbursement certificates
• Liquidated damages
• Civil and criminal consequences
• Due diligence and best practices regarding ADD CVD

Networking Luncheon

Lessons Learned from the Biggest, Most Expensive Customs Violations in Recent Memory – The Outside Counsel Perspective

• What triggers a CBP investigation
• Red flags and errors that lead to penalty actions:
• Failure to act with reasonable care
• How to respond to a CBP penalty notice
• How CBP determines civil penalty amounts
• Determining “mitigation options”
• Anticipated CBP enforcement priorities for 2015

CBP Audit Approach and Expectations: How Companies are Selected, Notified, and What to Expect during an Audit

• Types of Customs Audits
• Focused Assessments
• Quick Response Audits
• How an importer is notified and how to respond
• Preparing for a Customs Audits
• What is CBP looking for/at?
• Defining the “standard of reasonable care”
• CBP’s reasonable care checklist
• CBP audit plans and priorities for 2015 and beyond

Communication Strategy: How to Communicate with CBP When Your Goods are Delayed, Denied, or Seized

• How is CBP organized? Who does what?
• Effectively responding to CBP requests for information
• Developing your communication plan with CBP when goods are delayed, denied, or seized
• Preventing a communication breakdown – when to call in external counsel or other advisors to help you work with CBP to get your goods into the country

Networking Refreshment Break

Record Keeping: Who, What, When, Where, and How to Retain Effective Customs Records

• Key record keeping requirements and common areas of non-compliance
• What happens if you don’t have the required records: Scope of penalties and loss of duty benefits
• Who should keep your customs records, and when to delegate to a broker
• What types of customs records should be created
• “A(1)a” List of Required Records
• Specific records required for special programs like FTAs, GSP, U.S. goods returned, etc.
• Identifying where customs records are kept
• How to retain customs records: Which records should be retained in hard copies vs. electronic copies
• Determining which records are needed for a CBP audit

Live ACE Demonstration – How to Navigate this Portal Critical to Your Business

Don’t miss this unique opportunity to participate in a live demonstration of the ACE portal, hear about new ACE developments, and upcoming plans for further implementation. Prepare for the ACE rollout by asking your questions to CBP and ACE participants about their experiences, and gain best practices that you can apply to your daily work. Topics will include:

• ACE portal and how it is the backbone of simplified entry
• Practical tips on how to navigate the portal
• Using Importer reports
• liquidation reports
• individual customs reports
• entry summary and other reports
• Key challenges encountered when implementing ACE, and how to resolve them

Food Imports – Deciphering FSMA’s Foreign Supplier Verification and Voluntary Qualified Importer Programs and What it Means for Your Business

• Overview of the pre-FSMA provisions of the Federal Food Drug & Cosmetic Act governing food imports and how FSMA is changing the legal landscape for domestic companies that rely on foreign suppliers for food and food ingredient imports
• Overview of framework and key issues for domestic companies
• Foreign Supplier Verification Program
• Voluntary Qualified Importer Program
• Other key FSMA provisions affecting domestic companies with foreign suppliers
• Enforcement considerations

Co-Chairs’ Closing Remarks & Boot Camp Concludes

MOCK AUDIT: A Step by Step, Complete Walk Through a Focused Assessment – How to Manage and Prepare for an FA and Respond to CBP Requests During the Audit

This comprehensive and practical working session will provide you with a step-by-step guide to the Focused Assessment audit process. Through a comprehensive mock audit, experts will take you through an in-depth analysis of the entire process, and provide real life examples and insights on major pitfalls to avoid. Learn how to respond to auditor requests, and take away valuable tools that will help your company withstand the rigorous audit process. Benefit from case studies and make sense of methodologies that CBP uses during the audit process. Topics of discussion will include:

• What is the “control environment” and what does CBP review prior to commencing an audit?
• Answers which CBP deems as red flags in the importer questionnaire
• Understanding how CBP reviews an importer’s risk assessment and the importance of acknowledging these risks upfront
• Learning what CBP expects your compliance manual to include and how the manual is used in the audit process
• Types of internal company communications CBP reviews to determine if there is adequate dialogue between relevant departments (e.g. logistics, licensing, legal, compliance)
• How to prepare company officials for interviews with CBP
• Determining the scope of resources to devote to the process
• Examining how CBP chooses its “sample selection” of entries to audit
• What to do when CBP finds an error: Quick Response, corrective action, internal controls
• How does CBP respond when corrective action is not taken: Review of “statistical sample” (50-200 entries)
• Key indicators that CBP plans to audit your company
• Determining what to request from CBP once an audit has commenced
• Timeframes and how to communicate
• Request for confidential treatment
• When to call in external counsel or other advisors
• How to develop a compliance improvement plan

8:30 am – 11:30 am (Registration Begins at 8:00 am)

Canadian Customs Regulations, Enforcement, and Notable Trends: What Every Trade Compliance Professional Should Know

There have been a number of important customs regulatory changes that affect importers’ customs compliance programs in Canada, along with heightened Canadian Government compliance expectations.

Expert speakers will provide you with a crash course on key concepts, requirements and pitfalls to avoid. Ensure that you are up-to-speed on the latest best practices for preventing import delays, penalties and other consequences that can significantly affect your business north of the border.

Topics will include:

• Canada Customs Act, Customs Tariff and regulations: Key concepts, requirements and common compliance pitfalls to avoid
• Complying with Tariff Classification, Valuation, and Country of Origin Rules
• What you should know about country of origin marking rules
• What CBSA looks for during a compliance verification
• Customs enforcement, penalties and the appeals landscape
• The role of Customs voluntary disclosures (Named and No-Names)
• Customizing your compliance program to the Canadian context: unique elements to incorporate into your program

12:30 pm – 3:30 pm (Registration begins at 12:00 pm)

The Costly Classification and Valuation Mistakes MNCs Make in China and How to Prevent Them

As multinational companies expand their business operations into emerging markets, customs compliance professional must stay on top critical import requirements and prepare for the current enforcement trends. Non-compliance risks in these countries are high due to evolving legal regimes, lack of transparency and often burdensome import processes. Whether you are new to the field or are a seasoned veteran with substantial experience, this practical and interactive working group will provide you with hands-on guidance on how to avoid the most common valuation and classification missteps when importing good into China. Discussion will include:

• Classifying the item with same item name but used in the different field and with different function in the same classification
• Classifying the item for avoiding the license requirement
• Classifying the full function device as a component
• Classifying all the parts of an equipment which are loaded in one shipment separately
• Classifying the item incorrectly due to the inaccurate Chinese translation of the item name
• How to prevent to using incorrect HS Code
• Valuation when Incoterm used is not CIF
• Valuation when bonded zones are used
• Valuation when processing trade (bonded manufacturing) is applied
• Duty exposure when having “non-trade” overseas payment such as royalties
• Valuation in case of related party transactions
• How to mitigate valuation related exposure

3:30 pm – 6:00 pm (Registration begins at 3:00 pm)