The Harmonized Tariff Schedule of the United States, or HTS for short, has provision in Chapter 98 for the return of foreign goods previously imported and for goods of US origin exported and returned. There are many reasons that a company or individual would need to utilize one of these provisions.
For US manufacturers, the provision may be used to return goods for repair and re-exportation. Conversely for US companies utilizing foreign goods that may have been exported and returned for whatever reason, the need to identify these previously imported items to not pay Customs duties or other taxes a second time is important and a legitimate claim.
CBP on August 20th issued CSMS #4913220, “Updated Requirements for Importers and Brokers Regarding HTS Subheading 9801.00.10 – U.S. and Foreign Goods Returned”.
Generally, Customs regulations place the burden of proof to substantiate claims of U.S. goods returned or foreign goods previously imported on the importer of record. Sobel Network Shipping is permitted to be the importer of record (IOR) for these entries, however the burden of proof then transfers to us and our company has taken the position that for the purposes of liability, the actual importer of record, whether a US entity or foreign importer of record, will be made the IOR.
CBP has provided a list of documentation which we can accept as proof of permissibility to file one of these Chapter 98 entries. The agency is changing the regulations for 19 CFR 10.1 to bring the goods in line with TFTEA.
In the interim, for eligible US origin or foreign goods returned (foreign goods must be returned within a 3-year window from date of export) exceeding $2,500 in value, CBP will accept:
- A declaration by the foreign shipper.
- A declaration by the owne, importer, consignee or agent.
The CSMS lays out in full detail what is and isn’t considered eligible and is required. Some products such as commercial or military aircraft carry their own additional regulatory requirements.
Before claiming duty-free eligibility on an entry, Sobel Network Shipping will ask that the appropriate documentation be provided for our recordkeeping and compliance purposes, as well as to aid in determining the eligibility of the claim.
