US Customs Scrutiny Price Of Imported Garments And Customs Clearance Of Importers
According to SSSPO's Brian J. Murphy and Li Xinyu's two lawyers who specialize in US Customs Law, some customs ports in the United States have recently begun to strictly examine the declared price of imported garments, and have conducted investigations into some import companies that have finally cleared customs in LDP pactions.
After the abolition of the quota this year, the export of certain types of textile garments to China has increased considerably. At the same time, the focus of us customs inspection has also changed from illegal pshipment of textiles to examination of declared prices for imported garments. In addition, the customs began to investigate the suspected import companies of customs clearance in LDP pactions.
The customs and regulations of the United States stipulates that there must be a certain "ownership interest" in the commodities for customs clearance of imported goods, otherwise it will not have the right to apply for the import of goods.
The importers in LDP pactions are mostly companies that specialize in customs clearance for others, but not real middlemen. They only earn commission on customs clearance and have no real interest in the sale of goods. Some customs ports in the US have recently requested these customs companies to provide evidence that they have the right to clear the goods.
When the latter failed to provide proof, the US Customs refused to ratify the import of goods. What is more, these goods that cannot be cleared are also in trouble when they return, because the original importers are still unable to prove that they are qualified to submit export customs clearance documents for the returned goods. This situation causes the goods to be stored in the customs GO warehouse for a long time. The high warehouse rent brings huge financial burden to the shippers.
Li Xinyu and merleyn two lawyers also pointed out that if there is evidence that the import companies responsible for customs clearance in the LDP paction are reporting too low prices and escaping from customs duties, the US Customs Department has the right to seize the imported garments and impose a fine. Manufacturers who export garments in LDP mode should be cautious in order to avoid a two loss of payment.
Editor in chief: Xu Qiyun
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