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Broker-Importer Relations
BROKER AND FORWARDER COMMON MISTAKE
08/01
In the Summer 2001 NCBFAA Bulletin, there
was a lengthy article summarizing the customs broker's obligations in
the event of service of a summons, subpoena, or search warrant. One
important point not clearly made is the obligation of the customs broker
and freight forwarder to let the customer know if records are requested
by Customs or any other government agency. The one exception is where
the requesting agency specifically instructs the service provider not to
do so.
Brokers and forwarders commonly want to
appear cooperative with the requesting agency and simply turn over the
records sought without demanding a summons, subpoena or search warrant.
In so acting, the service provider is voluntarily turning over records
and information. If that action later causes problems for the customer,
the broker or forwarder could find itself on the receiving end of a
messy lawsuit for breaching its duties to its customer under their
principal-agency relationship.
IMPORTER/EXPORTER QUESTIONNAIRE©
This questionnaire is a preliminary draft. It is
being provided as an example of the sorts of inquiries importers and exporters
should come to expect from their customs brokers or freight forwarders.
Responses to these questions should be prepared on
additional sheets of paper, as needed:
GENERAL
INFORMATION
1. Please state the full legal name of the
Company.
2. What is the current business address and telephone number of
the principal office.
3. If there are branch offices, please state the
address and telephone number of each such office.
4. Please state
whether the Company is a corporation, limited liability Company, partnership or
sole proprietorship.
5. If the Company is a corporation or limited
liability Company, when did it incorporate? In what state? Please list the names
of its officers and directors.
6. If the Company is a partnership,
please list the names and home addresses, telephone and fax numbers of the
general partners.
7. If the Company is a sole proprietorship, what is the name and
home address, telephone and fax number of the owner of the Company?
8.
When did the Company begin importing into the U.S.?
9. What are the
principal products in the product line? Are there plans to import different
products in the future? If so, please also list those additional products and
when you expect to start importing them.
10. From what country or
countries do you import? Are there plans to import from elsewhere in the future?
If so, when and from where?
11. Does the Company have binding rulings
from U.S. Customs for any of its products? If so, please provide copies of all
such rulings.
12. Has the Company applied for/completed a Pre-Importation
Review Program with Customs? If so, please provide copies of the
results.
13. How many marking notices has the Company received from
Customs in the last five years? Please provide copies of each and explain how
each was resolved.
14. How many times, if at all, in the last five years
has Customs seized the Company's goods? Please provide copies of the notices,
petitions and all other documents which reflect the specifics of each case and
its final outcome.
15. How many times in the last five years has Customs
imposed penalties on the Company? Please provide copies of the notices,
petitions and all other documents which reflect the specifics of each case and
its final outcome.
16. Has the Company or any of its past or present
officers, directors, employees or agents ever been the subject of a criminal
prosecution by U.S. Customs or by any other governmental agency? If so, please
provide copies of pertinent documents which reflect the specifics of each case
and its final outcome.
17. In valuing its goods, does Company incur any of the
following costs or services: [Please check only those which apply]
a. Buying or selling agents' commissions
b. Export packing costs not otherwise included in the
cost of goods as invoiced
c. Royalties or licensing fees
d. Currency adjustments
e. Proceeds
that it pays its suppliers but the cost is not included on the commercial
invoice which is given to U.S. Customs at time of entry
f.
Quota charges
g. Inspection fees
h.
Quality control charges
If any of these costs or services are incurred by the Company
and not already included as part of the price shown on the commercial invoice(s)
given to U.S. Customs at time of entry, please explain in detail the nature of
the cost or service incurred and how the Company pays for it.
18. Does
the Company provide anything to its suppliers to assist in the making of its
goods? For example, patterns, dies, molds, tooling, design work, software,
machinery, product specifications or samples. This list of examples is not
intended to be all inclusive. If so, please explain in detail the nature of the
assistance and how the Company is paid, if at all, by the supplier for it.
19. Does the Company have any protests pending with Customs? If so,
please provide examples of the issue(s) pending.
20. Does the Company
have any cases pending regarding the import and/or export of its goods before
the Court of International Trade, U.S. Court of Appeals for the Federal Circuit
or the U.S. Supreme Court? If so, please provide examples of the issue(s)
pending.
21. Who is the individual within the Company in charge of
Customs issues? Please state his/her name, title and direct dial telephone
number.
22. Does the Company have a separate department that deals with
Customs issues? If so, what is it called?
23. Is the Company currently
paying duty to Customs through the Automated Clearing House (ACH) procedure? If
not, are you familiar with ACH? If applicable, please advise why you are not
using it.
24. Is Company currently using the services of a Customs
consultant? If so, please provide his/her name, firm name, address and telephone
and fax numbers.
25. Is Company currently using the services of a
Customs attorney? If so, please provide his/her name, firm name, address and
telephone and fax numbers.
26. How often does Customs inspect Company’s
goods?
27. Does Company import goods bearing its own trade name or logo.
If so, please describe the trade name and/or logo or provide examples.
28. Does Company import goods which bear the trade name, logo,
copyright, trademark and/or trade dress of a different Company. If so, please
describe. Do you have written permission from the other Company to import goods
bearing its mark(s)? If so, please provide copies of the pertinent approvals.
29. Has anyone from Company recently attended any training sessions or
seminars offered by U.S. Customs? If so, please provide details.
30. Has
anyone from Company recently attended any training sessions or seminars offered
by trade organizations or other providers dealing with Customs and/or exporting
issues? If so, please provide details.
31. What records does the Company
maintain (for example, entry summaries, invoices, statements, correspondence,
purchase orders, inventory receiving records, proof of payment to supplier(s),
letters of credit, currency adjustment payments, accounts receivable, accounts
payable; not an all inclusive list) which support its import entries? Please
also describe the Company’s record retention policy and who should be contacted
about record keeping.
32. Who is your current customs broker?
33.
Who is your current freight forwarder?
34. How do you ship your goods -
air? ocean? rail? truck?
35. Do you use consolidation services? If so -
air? ocean? both?
36. Are you a member of a shippers association? Yes or
No. If so, which association(s)?
37. Are you a signatory to an ocean
service contract? Yes or No. If so, with which carrier(s)? Please provide a copy
of your service contract(s).
38. Which air carriers transport the
majority of your goods?
39. Which ocean carriers transport the majority
of your goods?
40. Why are you interested in changing brokers?
41.
Why are you interested in changing forwarders?
42. Do you expect us to
provide credit terms? If so, what terms?
43. What firm(s) do you use to
truck your cargo to destination once it arrives at its final port or
airport?
44. What firm(s) do you use to rail your cargo to destination
once it arrives at its final port or airport?
45. Does Company have
insurance coverage for its cargo? If so, does it cover the cargo while it is en
route or only once it arrives at your facility or the destination you direct?
46. Will Company require us to provide insurance coverage for its
shipments? Yes or No. If so, what sort of coverage does Company require?
47. Do Company's products require any special license(s) in order to be
exported (e.g. BXA, State)? If so, will Company handle the licensing formalities
or will it expect us to do so? If you expect us to do so, please provide details
about the license(s) involved.
48. Has Company or any of its vendors or
buyers been the subject of enforcement action by any federal licensing agency?
If so, please provide details.
49. Do Company's goods qualify as
hazardous for air, ocean, truck or rail transportation purposes? If so, which
mode and are any of Company’s personnel trained regarding hazardous cargo
handling and/or documentation?
50. Does Company have any cargo security
programs it generally employs for the shipment of its goods?
51. Do
Company’s transactions involve negotiation of letters of credit? If so, will we
be expected to negotiate letters of credit for Company? Yes or No. If so, with
which banks does Company normally negotiate its letter(s) of credit?
SELECT FROM THE FOLLOWING PAGES
FOR ONLY THOSE GOODS WHICH
COMPANY
IMPORTS OR EXPORTS
TEXTILE IMPORTATIONS
52. What records does Company
maintain to show that the textile goods it imports are not manufactured with the
use of child or prison labor? Please provide a complete list. Does Company have
current photographs, videotape or similar video evidence in support of its
position?
53. Has someone on Company’s behalf visited the
factory/factories which manufacture Company’s goods? If so, when was the last
visit during which Company’s representative inspected and checked about the
factory's use of prison or child labor?
54. Does Company’s supplier own
the quota used to authorize the importation of Company’s goods into the U.S.? If
not, from whom is quota purchased?
55. Whether or not Company’s supplier
owns the quota, has Company encountered any difficulty in obtaining quota for
its goods? If so, please describe the circumstances and how often obtaining
quota is a problem.
56. What, if any, enforcement inquiries (i.e. Notices
to Redeliver, Visas) has Customs made about Company’s garments in the past?
Please detail the nature of any inquiry and the date(s).
57. Has Customs
made any inquiries about the classification of Company’s goods. For example, if
you import t-shirts, is there a question of whether or not they qualify as
t-shirts under the HTS? If you import jackets, has Customs looked at the
garments to confirm they are jackets not coats?
58. Have there been
situations where Company has imported goods with a counterfeit visa? If so,
please describe the circumstances and the final outcome.
59. Have there
been situations where Company imported goods with a valid visa but U.S. Customs
demanded a new visa with a different category number? If so, please describe the
circumstances and the final outcome.
ELECTRONICS
IMPORTATIONS
60. Are any of Company’s imported goods subject to
registration with the Federal Communications Commission (FCC)? If so, please
identify which products.
61. For those imported goods subject to FCC
jurisdiction, does Company have equipment authorizations? If not, please explain
why. If so, please provide copies of all such authorizations.
62. If
Company’s imported goods are subject to FCC jurisdiction but are claimed as
exempt, please provide details and supporting documents for the exemption
claim(s).
63. If Company imports components for electronic products,
please identify those components and how they are marked with their country of
origin.
64. If Company imports electronic products which are not
finished, please identify those products and explain the steps taken to finish
those products in the U.S.
65. If Company imports finished electronic
products (e.g. monitors), please explain what procedures Company has to insure
that these imported electronic products comply with the federal radiation
control requirements enforced by FDA.
66. Has Company been subject to
any government audit for radiation related issues? Yes or No. If yes, please
provide examples of the issues involved.
67. Has Company been subject to
any civil penalties resulting from noncompliance with the federal radiation
control regulations? Yes or No. If yes, please provide examples of the issues
involved.
NAFTA SHIPMENTS
68. Does Company
import or export claiming NAFTA benefits? Yes or No. If yes, is importing or
exporting done from Canada? Mexico? Both?
69. What products does Company
import claiming NAFTA benefits?
70. Does Company source NAFTA products
from related parties? unrelated parties? both? select whichever
applies.
71. Does Company claim NAFTA benefits based upon tariff shift?
regional value content? both? select whichever applies.
72. On attached
sheets, if Company qualifies for NAFTA through tariff shift, please describe the
products involved and how tariff shift is documented in Company's records.
73. On attached sheets, if Company qualifies for NAFTA through regional
value content, please describe the products involved, whether Company relies on
net cost or transaction value and how regional value content is documented in
Company's records.
74. Who maintains the certificates of origin which
support Company's NAFTA claims? Where are the originals maintained?
75.
Does Company use blanket certificates of origin in supporting its NAFTA claims?
If so, how often are these certificates updated?
76. How often, if at
all, has Company been asked to submit its NAFTA Certificate(s) of Origin to the
customs service of one of the NAFTA countries, please also indicate which
country/countries?
77. Has Company been the subject of a NAFTA
verification audit? If so, by which country? What were the results? If any of
Company's products were disqualified from NAFTA, please indicate which ones and
the reasons therefore; also please provide a copy of any NAFTA denial letters.
78. Have any of Company's vendors been the subject of a NAFTA
verification audit? If so, by which country? What were the results? If any of
Company's products were disqualified from NAFTA, please indicate which ones and
the reasons therefore; also please provide a copy of any NAFTA denial letters. |
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