Did you know that US Customs & Border Protection (CBP) is the second-highest revenue-generating agency of the US government? It is second only to the Internal Revenue Service (IRS). Even with all of the money that it collects, CBP thinks that there is a lot more revenue that is not being collected on imports into the United States.

With the recent increase in the volume of requests for information (CF28) and notices of action (CF29) being issued by CBP. Transactions are randomly selected and reviewed to ensure proper valuation and harmonized tariff number application, as well as proper use of preferential tariff treatments (such as NAFTA), among other things. Over the past year, Customs has increased staffing at several border points in a concerted effort to increase vigilance for security purposes as well as increase their capacity to review more Customs transactions for accuracy.

We caution our clients to take these requests for information very seriously. The questions asked, especially as they relate to goods specifics or value, are often far more complex than they might at first appear. A response that is deemed incomplete or improper can result in an increased rate of duty or an increased value for duty even if you are certain you’ve responded accurately to the questions in point. In some cases, the increase can be retroactive to the last five years of imports into the US.

SEA imposes a tax on almost every type of product that is imported into the country whilst certain commodities are liable for export tax. We can advise on import tax, Value-added tax (VAT), Special Consumption Tax (SCT), preferential tax rates, special preferential tax rates, ordinary tax rates, export tax rates, and tariffs, tax-exempt goods, and the related circulars.

Raybar Group understands the details of these Customs requests and is available to counsel our clients on the level of response needed to avoid time delays and the financial risks they can bring in the future.