One of the most common questions asked within our initial consultation with clients is, who is the IOR? The Importer of Record (IOR) is the essential entity in international trade. It is the one who is responsible for complying with all customs regulations, facilitating smooth import operations and managing all potential legal liabilities. It is essential when conducting due diligence and avoiding penalties.
About $10 billion in coffee was imported into the U.S. in 2022 with 50% primarily coming from Brazil and Columbia at roughly $2.2 billion each. It’s a staple in the majority of American’s daily lives via a kick of caffeine in the morning. The amount of business discussed daily over numerous cups of java goes without saying. If you’d like to have a cup with us and have a chat about anything international trade compliance related, we’ll be here. BLG can help you with Global Trade Compliance.
In literature a tragedy is a drama that shows the protagonist involved in a significant event and meeting his or spectacular downfall. On the grand stage of the sometimes cruel world of international trade, a similar drama often occurs at the bustling ports and borders of global commerce. A tragedy begins when essential compliance checks are overlooked, setting the stage for a CBP inspection that can halt the movement of goods, leading to possible seizure, hefty fines, and severe penalties. But on another global stage, where foresight and vigilance reign, these tragedies are avoided. Here, reasonable care is the hero of the story. We stand as your guardians, equipped with expertise and dedication, ensuring that reasonable care is in every facet of global trade compliance. We don’t just assist in avoiding tragedies; we pave the way for triumphs. Global Trade Compliance is what BLG does because sometimes in the cruel world of international trade you need a superhero.
In the world of international trade not all regulations seem to be in black and white as there is some grey area. But if you choose to play a chess match with customs, based on our experience you stand a good chance of self-destructing. Global Trade Compliance is what we do.
Customs Trade Partnership Against Terrorism is about building supply chain security and mitigating risk. CTPAT is an ever-evolving security program that was inaugurated by Customs and Border Protection in 2001 under the newly establish Department of Homeland Security. Today is is a multi-layer cargo strategy that works with the trade community to support and strengthen international supply chains. There are at least a dozen benefits to the program including reduced number of CBP examinations, front of the line inspections, shorter wait times at the border, possibility of enjoying additional benefits by being recognized as a trusted trading partner by foreign customs administrations that have signed a Mutual Recognition Agreement with the United States, eligibility for other U.S. government pilot programs such as the FDA’s secure supply chain program, priority consideration at CBP’s industry focused Centers of Excellence and Expertise, the best approach is to have a guide assist int he process of applying for entrance into the program and we just happen to have a CTPAT expert on campus.
WIth regard to import and export, bananas are botanical berries not fruit. The HTS code for berries is different from that of bananas which is different from the HTS code for edible fruit in general. If you need help with classification BLG can assist.
By: Adrienne Braumiller, Founder of Braumiller Law Group
On January 16, 2024, the Bureau of Industry and Security (BIS) under Assistant Secretary for Export Enforcement, Matthew Axelrod, disclosed significant enhancements to the process for Voluntary Self-Disclosures (VSDs) related to the Export Administration Regulations (EAR). These adjustments are strategically designed to streamline export control compliance for U.S. governmental bodies, the commercial sector, and academic entities.
By: Adrienne Braumiller, Partner & Founder and Gavin Andersen, Trade Advisor
Last June (2023), in response to a ruling request from Your Special Delivery Services Specialty Logistics (YSDS), Customs and Border Protection (CBP) issued HQ H324098, clarifying what it means to be an “owner or purchaser” with sufficient financial interest to act as importer of record (IOR).
Por Brenda Cordova, Mexico Attorney, Braumiller Law Group
Uno de los requisitos más importantes para importar mercancías a México es estar registrado como importador en el registro de importadores mexicanos. Hay 2 tipos de registros para importadores, uno es para importadores generales (Padrón de Importadores) y el otro es para importadores de sectores industriales específicos (Padrón de Importadores de Sectores Específicos) que pueden importar mercancías identificadas por el código arancelario MX (es decir, productos químicos, armas de fuego, puros, calzado, textiles, alcohol, hidrocarburos, siderurgia, automoción, etc.). Generalmente, estos 2 registros son listados con información de personas y entidades autorizadas para importar mercancías a México.
By: Brenda Cordova, Mexico Attorney, Braumiller Law Group
One of the most important requirements for importing goods into Mexico is to be registered as an importer under the Mexican importer’s registry. There are 2 types of registries for importers, one is for general importers (Padron de Importadores), and the other is for importers of specific industry sectors (Padron the Importadores de Sectores Especificos) which may import goods identified by the MX tariff code (i.e. chemical products, firearms, cigars, footwear, textiles, alcohol, hydrocarbons, steel, automotive, etc.). Generally, these 2 registries are lists with information of individuals and entities authorized to bring goods into Mexico.
By Bob Brewer, Braumiller Law Group
At the core of the definition, a Parallel import is a non-counterfeit product imported from another country without the permission of the intellectual property owner. They are also goods that are not authorized for importation into the U.S. It’s a global phenomenon, a very grey area, and their presence varies across different parts of the globe.
By: Kerry Wang, Senior Associate, Braumiller Law Group
Consider this scenario: a client faced the challenge of deferring duty payments while managing a significant volume of imports destined for re-exportation from the U.S. Initially considering duty drawbacks, which proved unsuitable for their specific needs, we turned our attention to bonded warehouses and free trade zones. This scenario is not uncommon in the trade world and highlights a critical decision point for many businesses: choosing between a bonded warehouse and a Foreign Trade Zone (FTZ).
By Bruce Leeds, Senior Counsel, Braumiller Law Group
The First Sale Rule applies in circumstances such as the example above. A US company places an order with a middleman in the US. The middleman in turn subcontracts to a foreign supplier. The supplier then ships the product either to the middleman or to the original US company that placed the order, meaning either could be the importer of record. The entered value could be the amount on the original purchase order or the price paid by the middleman to the foreign supplier.
By: James R. Holbein, Of Counsel and Justin Holbein
The world of cryptocurrencies on blockchains and the world of traditional assets in markets have often stood in stark contrast to one another since Bitcoin’s creation in 2008. The lack of a reliable bridge between these two worlds has limited the impact of cryptocurrencies on assets in the real-world outside of on-chain speculation and prevented adoption of the benefits that blockchain technologies can bring to real world processes.
By: Victoria Holmes, Braumiller Law Group
President elect Lai Ching-te’s victory in Taipei ignited tensions across the Taiwan strait and now the geopolitical field waits to see if China will kick off World War Three. I’m only slightly joking, but Beijing has exerted diplomatic pressure on nations maintaining close ties with the island in the past and Taiwan’s decision to remain a democracy will no doubt ramp up China’s reunification process in the coming months. But how will that affect trade relations?
Of the 21 FTAs (Free Trade Agreements) that the U.S. currently has in place none is more significant than USMCA (formerly known as NAFTA). The benefits of participation can be substantial. If you need some assistance in qualifying your merchandise, BLG has USMCA Gurus (formerly known as NAFTA Gurus) on campus. Jim Holbein, D.C. counsel for Braumiller Law Group, even helped negotiate the original NAFTA agreement. Our mantra is rooted in success, drawing from decades of experience.
We would like to go on the record and state that AI will not be replacing any of our attorneys in the near future. Well maybe a few by 2050 as some will be 80 years old by then. Keep in mind they will have learned everything they know from us. So they, for all intents and purposes, are us. Maybe we could all eventually just go on vacation and let our AI’s do all the work. On second thought, they are really still just infants in the machine, ever evolving but still infants. Keep in mind the next time you engage with your favorite AI app for legal advice. BLG will be here if you need us, or possibly at the beach with cell service.
The U.S. foreign-trade zones program was created by the Foreign-Trade Zones Act of 1934 during President Franklin D. Roosevelt’s administration. It was amended in 1950 under Harry S. Truman’s administration and really came into play with global trade in 1984 under the Reagan administration. Today, there are over 230 foreign-trade zone projects and nearly 400 sub zones in the United States, all within or adjacent to the ports of entry. Every state has at least one port of entry, and there are 314 ports of entry categorized by 19field operations offices which they report to. These FTZs are there to eliminate and/or reduce tariff burdens on the importation of foreign inputs and on exported finished products. The cost savings can be substantial relevant to: duty exemption, duty deferral, duty reduction, invited tariff, merchandise processing fee, streamlined logistics, quota avoidance, and direct delivery. BLG has experts regarding the establishment and administration of FTZs.
You discovered a wrong classification on product in the supply chain and you must decide whether or not to file a Prior Disclosure. If you go down this road, you’d better keep your friends and employees close and your enemies even closer because there is a nice size cash reward via customs for whistleblowers. If they find out, it’s classified as intentional, and the penalties are now multiplied by 10x the original amount. Why not come clean and use the Prior Disclosure as the mitigation tool that it was meant to be. You’ll sleep better anyway. BLG can help with Prior Disclosure which we file on a regular basis. Global Trade Compliance is what we do.
Did you get a CF-28 from customs requesting additional information on a shipment? You only have 30 days to respond. Hopefully all necessary documentation will not have been sucked into the proverbial big black hold of missing information. The Importer of Record (IOR) has responsibility. If you case is bumped to a CF-29 mitigation strategies may need to be implemented, not to be confused with a next stop CF-30 which is from the State of California Health and Human Services Agency California Department of Social Services SAR 7 reminder notice. It may behoove you to internally publish best practices as laying the groundwork to be proactive is a much better plan of action via an import manual for all to follow. BLG can create the blue print specific to your business and can also provide customized training.
Braumiller Law Group PLLC, is an international
trade law firm based in Dallas, TX, U.S.A. Braumiller
Law Group provides legal services related to
international trade and Customs regulations.
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