Areas of Practice

Classification

The tariff classification of an imported article is usually the main driver of the duty rate applicable to a product. However, the tariff classification of an import can also result in the presence of partner government agency requirements, affect the origin and/or free trade eligibility of a product, result in flagging by the government for antidumping and/or countervailing duties, etc.

For all of these reasons, tariff classification is the cornerstone of any customs transaction. Surprises with regard to tariff classification frequently and dramatically affect an importer's bottom line. Sometimes those surprises result from poor or no planning around tariff classification matters. Other times, Customs challenges the classification an importer uses. We, in turn, are well suited to push back on government challenges through responses to Notice of Action, filing of administrative protests and, when appropriate, initiation of judicial review of Customs' decision.

We work closely with clients to ensure that surprises are avoided. We strive to achieve a more predictable tariff environment for our clients by obtaining binding tariff classification rulings, issuing opinion letters, conducting line reviews of imported merchandise, or using other means. We also work with product engineers during the development of new products, help develop tariff classification databases, and establish written internal controls and procedures over tariff classification that are company and situation appropriate.

Valuation

The correct value of an imported article is as important to customs compliance as is the applicable rate of duty. Here, we help clients avoid surprises by reviewing their customs valuation practices. The goal of our reviews is to ensure that our clients are not overvaluing or undervaluing their goods, but are instead reporting a correct and defensible customs value.

Our valuation reviews cover a comprehensive list of topics that can affect the value of an import. We comb through trial balances/charts of accounts, to identify any gaps in reported customs values, such as agent commissions, royalty and license fee agreements, assistance provided to foreign sellers such as in the form of consigned merchandise and machinery and equipment, additional payments made to foreign sellers, such as progress payments, initial startup payments (e.g., non-recurring engineering charges), prototype expenses, currency risk sharing payments, etc.

For importers who are related to their foreign suppliers, we work closely with the importer's tax counsel/department, analyzing the customs specific aspects of related party pricing. Reviews and defense with regard to transfer price customs requirements, as well the reportability and dutability of periodic transfer pricing adjustments are areas we are frequently engaged on.

For those clients who need to utilize Customs’ ACE Reconciliation Program, we offer a full range of valuation services ranging from reconciliation training to complete outsourcing of the preparation of the reconciliation entry. We have substantial expertise in working with and preparing maquiladora cost submissions, related party transfer pricing adjustments, assist reporting, etc.

Finally, while "First Sale" valuation is not a new topic in customs valuation, the Section 301 tariffs from China have re-established "First Sale" valuation methods as an important tool in an importer's duty savings toolkit. Use of this valuation method can allow our clients to legitimately save hundreds of thousands, or even millions, of dollars in import duties and fees. For this reason, we regularly counsel clients on use of this tool and help them implement and maintain "First Sale" valuation programs.

Country of Origin

Just as the tariff classification and customs valuation contribute greatly to the amount of duties payable on an imported article, the country of origin of the article also plays a large role. It also is important so that goods can comply with country of origin marking requirements. These days, products are rarely sourced from start to finish in a single country. Instead, they often are made using raw materials from various countries.

We help our clients navigate through the origin rules to identify the correct country of origin of their products and to comply with onerous country of origin marking requirements. We also work with clients to solve country of origin problems related to assessment of antidumping duties and government procurement opportunities, such as the Buy America Act.

Duty Preference Programs

We counsel clients with virtually every duty savings program available in the United States, including the new USMCA, NAFTA, KORUS, GSP, AGOA, CBI and many others.

With regard to proper planning and proactive use of these programs, we interact regularly with our clients’ sourcing and import/export personnel to ensure that sourcing decisions maximize duty and cost savings available through duty preference programs. We also work to develop written internal controls and procedures governing the use of these duty savings tools, including protocols to be followed with customs brokers so that accurate claims can be filed and duty savings opportunities will not be missed.

We also help clients when they have to react to government scrutiny around their use of preference programs. Our assistance ranges from drafting a successful response to the frequently used CBP Form 28/ Request for Information to participating in on-site audit work done by any customs authorities, foreign or domestic.

Lastly, in light of the constantly changing political and legal landscape, we provide training, both web-based and “in person”, around duty preference program usage. These sessions are designed to help our clients and their suppliers obtain accurate and timely information so that duties can be properly and safely avoided.

Audits

Roll & Harris LLP offers a full range of audit services.

For clients who wish to take a proactive approach to import compliance, we can customize an audit review that correlates to the client’s import profile audit risk, as well as the client's audit budget. Audit services can range from quick checks on entries and/or written procedure assessments to more detailed and “full blown” type of audits that mimic the audit programs of U.S. Customs & Border Protection (“CBP”).

For clients who find themselves in a “reactive” mode because they have been notified that Customs will audit their operations, we are able to quickly assess our client’s written internal controls relating to import operations, as well as to counsel our clients on the audit risks and whether they are best mitigated by filing a “prior disclosure” prior to (or even during) the audit. We regularly use ACE and ITRAC data to analyze the Company’s imports and risk profile. We counsel clients through each step of the audit by (1) assisting in the responses to the audit questionnaire, (2) preparing and selecting Company representatives for the audit interview process, and (3) reviewing Company responses and documents prior to submission to Customs to ensure they are not overly responsive to the questions asked by the auditors.

At Roll & Harris LLP, we also have counseled numerous clients in becoming members of CBP’s Importer Self-Assessment (“ISA”) program. ISA is CBP’s “self-audit” program which removes importer’s from CBP’s regular audit pool and essentially allows the importer to audit itself. To help our clients become members of the ISA program, we work with our client’s import personnel to ensure that the client’s written internal controls will withstand Customs’ scrutiny during Customs’ validation of the internal controls. We help fill any gaps that we find and that must be filled prior to Customs’ visit. For those clients that have been accepted into the ISA program, Roll & Harris LLP offers annual audit services to help the Company meet its ISA obligations, including the Annual Notification Letter and ISA Self-Test Plan requirements.

Enforcement Actions

Customs enforcement proceedings may be initiated by special agents, informant information, Customs audits/focused assessments, import specialist transaction reviews or inspector examinations. They frequently result in Customs claiming that significant civil penalties are owed. These penalties can range from 2 to 4 times any underpaid moneys to up to the domestic value of the goods involved in the proceedings. In other instances, such as when Customs believes the conduct was willful or intentional, the enforcement proceedings involve criminal allegations. We have substantial experience in developing procedures for eliminating civil penalties. When elimination of the civil penalties is not possible, we also work to obtain substantial mitigation of them. Should there be allegations, or risk of, criminal prosecution, we partner with white collar criminal counsel to offer our clients a solid legal defense strategy.

Enforcement proceedings also may involve delays in shipments being cleared or decisions to refuse admission to goods. We also assist clients with seizures for intellectual property rights, forced labor, and other types of violations.

Trade Compliance Programs

At Roll & Harris LLP, we are actively engaged with our clients to ensure that they have world class trade compliance programs. For some clients, the ask is to have us evaluate an existing trade compliance program and to identify gaps. For other clients, we build a trade compliance program from scratch where none exists. In some instances, we even take on a temporary (or not so temporary) "in-house" compliance manager role allowing us to interact directly with the numerous functional areas and stakeholders in a company whose decisions can impact trade comlpiance. We customs design written procedures that are suitable for each client's needs and situation. After evaluating and/or designing these procedures, we audit and test them to ensure the procedures are effective and resulting in compliant transactions.

Forced Labor/Withhold Release Orders

U.S. law prohibits the importation of merchandise produced, wholly or in part, in any foreign country by forced or indentured labor, including forced child labor. Such merchandise is subject to exclusion and/or seizure, and may lead to criminal investigation of the importer. When Customs receives information that reasonably indicates such merchandise is being imported, it may issue a withhold release order (or “WRO”) excluding the goods and requiring the importer to provide evidence that the merchandise was not produced or manufactured in any part with forced or child labor. Roll & Harris LLP has decades of experience documenting supply chains and recording chain of custody to prove that imported goods were not manufactured contrary to law. Our work in this area has involved detailed review of production records and verification procedures in a wide variety of different industries, and our experience has proven invaluable for clients facing a request from Customs concerning detained merchandise, as well as those seeking to solidify their supply chain in anticipation of a potential Customs inquiry on the topic of forced labor.

Supply Chain Security

Roll & Harris LLP renders supply chain security services to our clients by counselling them on how to apply and participate in the Customs-Trade Partnership Against Terrorism (C-TPAT) program. We conduct annual risk assessements for our clients, training and representation during C-TPAT validations. We also help manage issuance, receipt and evaluation of supply chain security questionnaires throughtout the supply chain.

Apart from C-TPAT, we also help clients comply with the Food and Drug Administration’s Bioterrorism Act regulations regarding “prior notice” and registration of “food” facilities. We act as U.S. agent for BTA foreign food facility registrants.

Trade Litigation

Our philosophy at Roll & Harris LLP is to seek to resolve matters first and foremost with government agencies. In our experience, resolution with the government agency is often the quickest and most cost effective way to resolve a dispute. Sometimes, however, agency intransigience, or an incorrect interpretation of law by the agency, is best resolved by resorting to judicial review. At Roll & Harris LLP, we have years of experience in proceedings before the U.S. Court of International Trade, U.S. Court of Appeals for the Federal Circuit, and Supreme Court, as well as before federal district courts.

Seminars & Training

The constant change in laws, regulations and other government measures affecting imports and exports makes it imperative for our clients to stay up to date on these changes. For this reason, we offer a wide menu of seminars and training topics covering virtually all topics in our practice. Apart from updates in our practice, we also provide training for new employees in our client’s import/export departments designed to teach them the ABC’s of import/export compliance, as well as for foreign suppliers who ship our client's goods under all types of preference programs (free trade agreements, etc.). We find in-person training sessions to be the most productive, but offer plenty of training opportunities in the form of webinars. You also will find us as featured speakers at many trade association conferences.

Export Controls

Roll & Harris LLP also offers a full range of legal services to assist our clients comply with U.S. export laws and regulations. We help our clients ensure their exports remain compliant by determining the correct ECCN (Export Control Classification Number) and license requirements applicable to their shipments. When necessary we obtain Commodity Classification andd Commodity Jurisdiction Requests to provide clients with legal certainty as to the correct ECCN and also so they can have clarity on whether their exports are government by Department of Commerce or Department of State.

As with our import practice, we regularly counsel clients through enforcement actions, such as export violation investigations and the filing of self-disclosures to limit export penalties.