You Don't Need to Purchase Your Customs Bond From Your Broker

Yes, you need an import bond to bring goods into the United States. No, you do not need to purchase this bond from your broker.

Odds are when you first began importing into the U.S. your broker did two things for you. 1) Purchased a customs bond from a surety agent and 2) began clearing your entries. What most importers don't know is that they can purchase the exact same bond directly from TRG. Your broker comes to a company such as TRG, purchases the bond, marks up the price and sells it to you. They are doing you a service, but you shouldn't have to pay for this service when you can easily purchase the import bond on your own.

Your Continuous Customs bond is a universal bond that is good at any port. The bond renews every year and your broker sends you a bill every year. This year, purchase it from TRG for a 3 year renewal term and notice the cost savings. Year after year this savings adds up. Get a quote and well tell you about our other services (if you don't already know).

TRG is rated A+ with the Better Business Bureau

The Better Business Bureau (BBB) has implemented a new rating system for all companies within the database including Trade Risk Guaranty (TRG). Each company is rated on 17 different categories and given a letter grade from A+ to F. TRG is rated A+, the highest rating available.

The complaint history of a company is the most highly weighted of all of the factors. As of May 2009, TRG does not have any history of customer complaints through the BBB. TRG works hard to maintain positive customer relationships and values the trust it has earned from the company’s client base since 1991.

TRG import solutions offers U.S. Customs bonds, marine insurance and direct filing of consumption entries and ISF. The difference between TRG and other markets for import-related products is their marketing approach, which is reflected in their prices and excellent customer service. TRG contacts importers direct with the goal of introducing and educating. TRG is proud to have received this A+ BBB rating and will continue strive to maintain this rating.

Find out more about us at www.traderiskguaranty.com or www.trgdirect.com.

TRG Direct Produces Study on Importing

Check out this study contracted out by TRG Direct. It was conducted by an independent party, Empire Research. The main focus of this presentation is educate companies on increasing compliance and control of their import practices while driving down costs. The study addresses the many obstacles effecting every company’s import profitability, closing with a look at new ways to address these challenges.

I was going to upload this video but I will just leave this link. So click here! You can download it in Flash, Adobe and Power Point.

Lacey Act Declaration

Illegal harvesting competes with those companies complying with the rules and regulations of legitimate trade. The Lacey Act has been around for decades battling illegal trafficking of fish, wildlife and plants. In 2008 the Lacey Act was effectively amended to extend the protection to a broader range of plants, encompassing products that are derived from illegally harvested plants and require an import declaration on any plant or plant product imported into the U.S. A phased in approach is in place based on the plant´s degree of processing and complexity of its composition. As of April 1st 2009, Phase 2 plants & plant products will require a declaration. A full list of Phase 2 plants is available on TRG's website.

Are you prepared?

Have you…

◦ identified any/all products that contain plant or plant products,

◦ prioritized products based on plant,◦ determined the original purchaser of the plant or plant material,

◦ determined the plant name, source and value to be included on Lacey declaration,

◦ worked with suppliers to included Lacey information on commercial invoices?

Lacey Act Declaration (LAD)

The declaration must be made at time of importation, and include information on:

Scientific name of any plant,

A description of the value of importation,

Quantity of the plant,

Name of the country in which the plant was harvested.

If a plant species or country of origin cannot be determined, the plant declaration must include a list of possible plant species found in the product or a list of possible countries from which the plant originated.

How will you file this additional data element?

Lacey Act Declaration Addition to TRG Direct Available at No Extra Fee

Phase 2 of the Lacey Act Amendment went into effect on April 1st. TRG Direct's Web-based U.S. Customs entry filing system was ready for this additional data at no extra charge.

Importer's filing consumption entries with TRG Direct (who are subject to the Lacey Act Amendment) were able to begin filing the LAD on April 1st. This addition to the Web-based direct filing system comes at no additional fee to the importer. Customs entries are priced at either $20 or $30 depending on the importer's volume. Thus cost remains the same even with this upgraded feature.

The Lacey Act consists of approximately 19 data elements that need to be filed with Cargo Release and Entry Summary. Cargo Release and Entry Summary already capture some of the required information. The Lacy Act (PG) data set will capture the additional data elements such as: Intended use, description, name of constituent element, quantity of constituent element, unit of measure, percent of constituent element, Participating Government Agency (PGA) line value, scientific genus name, scientific species name container number, source type and source country code.

With TRG Direct this addition has been added to the system as an OGA or Other Government Agency dropdown. It is intended to act much like an FDA regulation. TRG Direct is completely Web-based. This keeps costs down for customers when an entry requirement change is made. There is no need for the importer to engage their IT department for system upgrades. TRG Direct takes care of it all.

Rare Medical Condition Affects Importers: Losuvimp Ortsitis

Throughout the years importers have witnessed the many effects the economy has on their import practices. Today’s economic times are no different, but this year a strange medical and highly contagious virus has blindsided many U.S. importers. Losuvimp Ortsitis has made its way to the U.S. where vaccinations are still in the testing phase. The World Customs Organization predicts that global trade will fall 9% in value this year. We have reason to believe the majority of this sudden downturn is due to Losuvimp Ortsitis. This condition strikes fast are you ready?

So what is Losuvimp Ortsitis?

In medical terms Losuvimp Ortsitis (Loss • of • imports • itis) is the inflammation of the loss of one company’s import practices. This condition is found mainly in small to medium sized enterprises but no matter how severe, the side effects are not always permanent. Many companies who are diagnosed with Losuvimp Ortsitis decide to purchase single entry bonds in order to ensure their shipments. This may seem like a temporary cost savings, but in most situations this is the least economical decision and may actually feed the virus. Depending on the value of the shipment a single entry bond could be anywhere from $55 - $400.

Is there a cure?

At this time no preventative cure is available to stop your company from experiencing Losuvimp Ortsitis, however there is a prescription to help alleviate the symptoms.

Introducing the Low Volume Continuous Import Bond (LVI):

Importers who have always or now import less than 5 shipments with less than $5,000 in duties NEED this bond. Companies such as TRG offer special pricing on the continuous import bond allowing companies to maintain their practices even at a low volume. This bond is can be priced as low as $200 per year.

This bond is the same as any other continuous import bond, but special provisions all for the lower pricing. If you decide to apply for this bond you here are some typical "special conditions" you would have to meet in order to qualify for the continuous US customs bond.

Low-Volume Importer Special conditions:

•Entries per year must be less than 5. Should total entries grow to 5 or more during any 12 month period of the bond, you will be billed the difference between the Special rate and the Standard rate.
•Total duties paid to CBP per year must be less than $5,000.
•Should duty bills reach or exceed $5,000 during any 12 month period of the bond term, you will be billed the difference between the Special and the Standard rate.
•Discounted multi-year pricing is available if you must revert to Standard pricing.
•Financial statements may be required by underwriting.
•This offer does not apply to importers subject to FDA regulations or Anti-Dumping or Countervailing Duties.
•The underwriter should be an A.M. Best A-Rated company.

The fact of the matter is that is you are purchasing multiple single entry bonds in one year, you are probably over paying for your US customs bond. If you choose to go for a low volume bond I suggest making sure the pricing on the company's "standard rates" for the continuous customs bonds are also below the industry average in pricing.

Direct Filing Customs Entries

Direct Filing has become a phenominon over the last couple of years. If you are like most small to medium sized importers today, you have probably wondered about the benefits and ease of direct filing your own entries directly with US Customs & Border Protection (CBP). Here are the ´top ten´ reasons why now may be the opportune time for you to consider direct filing your own import entries.

#10 – 10+2 Importer Security Filing

Now that the 10+2 ISF has officially been passed, direct filing is the way to go. TRG Direct has a comprehensive parts database that keeps track of every item you import. This helps you manage and uniformly apply tariff classification, value, country of origin, quantity and Free Trade Agreements. As a result, TRG Direct gives your company the flexibility to adapt to new sourcing strategies such as 10+2.

#9 – Improved supply chain velocity

Using TRG Direct gives you the ability to pre-file your entries with CBP and actually obtain clearance information up to five (5) full days before the vessel arrives at its US port of destination. Assuming your consignment isn´t targeted by CBP for examination, pre-filed and pre-cleared shipments can be moved as soon as the vessel completes discharging. In some cases you can actually take one or two full days out of your supply chain transit time resulting in greater efficiency and improved cash flow.

#8 – Because you´re probably already doing most of the work

In many cases we´ve found that the majority of US importers are already providing the essential entry data (such as tariff classification, value and origin) to their appointed broker. If that´s the case, the remaining data elements on the CBP entry document are elementary in nature (such as vessel name and import date).

#7 – Improved vendor/supplier interaction

Direct filing not only gives you greater control, but it puts you in closer touch with your foreign vendors and suppliers. If a vendor´s documentation falls short of expectations or is incorrect, the mistakes are generally caught faster and repaired sooner. Again, this leads to greater consistency and improved levels of compliance and helps you meet your obligation to exercise reasonable care.

#6 – No one has more product knowledge

No one knows more about your product line, or the material being imported, than your own employees. If questions arise during the classification or entry process employees typically have access to specification sheets, schematic drawings, the merchant or buyer and lots of other detailed information about the product being imported.

#5 – Enhanced visibility

Direct filing affords your company much greater visibility into the entire supply chain and entry process and helps your company become more efficient along the way.

#4 – Savings

We believe most companies are more concerned about their level of compliance than they are about saving on entry fees. With that said, there could be a windfall of savings based on your volumes and what you are currently paying a broker today for processing your entries. These reduced expenses make your company more competitive by lowering your overall landed cost and adding to your bottom line.

#3 – More control

Direct filing gives you and your company much greater control over the entire import process.

#2 – Higher levels of compliance

With little exception, one of the most compelling reasons to consider direct-filing is improving your compliance rate with CBP. No one will take greater care in the preparation and processing of an entry that your own employees.And, the number one reason to consider direct filing…

#1 – Because you canAll U.S. importers have the right to direct-file entries covering imported product or material for their company; without any requirement for licenses or CBP permits.

Deciphering Your Broker's Bill

How much are you really paying your broker to clear your entries?$60……$70……$80……$90…..$150…..$200+

Quotations for customs brokerage services are usually dependent on a number of factors including the complexity of the entry, your anticipated entry volume and sometimes your level of experience in the business. The base entry fee broker’s charge is usually between $75-$100. What many importers fail to recognize is that even if they are quoted a dollar amount entry fee, that might not be all that they are paying for. If the invoice from your broker contains multiple lines of charges then this is what is commonly referred to as the laundry list fee schedule. As you can see in the chart to the right the entry fee was quoted at only $45, but the accumulation of fees resulted in an actual entry fee of $142. Many of the line items on the bill were for “out-of-pocket” payments to other service providers such as carriers, local truckers, Customs or a terminal. The remaining items on the invoice are considered revenue items or a component of the broker’s income for handling this transaction.

The bottom line is that despite thinking your base entry fee is only $75; if your invoice contains any one of these charges; your entry rate is more than $75. We recommend that you carefully review your broker’s invoices to ensure that the fees charged are consistent with the fees quoted and that the fees charged are also warranted.

To access the tool TRG has created to help you decipher your own broker’s bill click here. What can I do to lower my costs, I’m not a licensed Customs Broker?

What can I do to lower my costs, I’m not a licensed Customs Broker?

File your entries in-house with our ABI system and realize there is no guessing to what you are paying for. When we say a “flat rate”, we mean a “flat rate”. After your initial one time start up fee (either $1,000 or $2,000) there are two pricing options available

$30/entry
$20/entry + $1,200 yearly fee

Another cost savings our customers appreciate is the guarantee that they will only be charged once per entry. Brokers may charge you multiple times for the same entry if they need to go back and make a correction or change to your entry. With TRG Direct, you can alter your entry as many times as you need and will only be charged for the initial transaction.

For more information contact us! www.TradeRiskGuaranty.com

Truth & Consequences

Are import entry filing errors affecting your bottom line?

"Importers are expected to familiarize themselves with their supply chains and exercise reasonable care with their import practices."

The constant change and complexity of importation keeps U.S. Customs faced with many challenges today. Customs 2007 Year in Review reported that there are 317 active U.S. ports of entry where over 190,000 vessels dock annually. Customs must track more than 10 million cargo containers and process over 31.4 million entry documents each year. Even with these considerable challenges, Customs still reviews 100% of all container shipping information.

The U.S. Census Bureau reports that over 8% of all import transactions contain one or more errors. The Mod Act of 1993 puts all reporting liability on the importer of record. Importers are expected to familiarize themselves with their supply chains and exercise reasonable care with their import practices. With that, Customs brokers are not held accountable for compliance reporting issues.

Has your company been subject to these costly reporting errors?

A large camera maker, imported $60 million worth of duty-free camera equipment that was incorrectly labeled “Made in Hong Kong” when in fact the equipment was made in China. The camera maker settled with Customs out of court with a $20M fine.

Another Importer's Customs broker failed to fill out duty-free forms for client merchandise. Because of the Customs broker’s error, the telecommunications provider was incorrectly assessed an 8.5% duty rate. Customs agreed that the error was a mistake of fact, correctable under § 1520(c)(1),but because the importer could not explain why the broker failed to do his job, the duty rate was not reversed and the company had to add legal expenses to an already burdensome import duty.

The Customs broker for an importer of LCD screens, assigned the wrong tariff number, resulting in a $6M penalty to the company. CBP rejected the company’s “reasonable care” defense that reliance on a customs broker to classify merchandise correctly is sufficient to establish that an importer exercised reasonable care.

Take control of your entry filing and to avoid those costly errors.

TRG Direct is a web based self filing system that allows importers to clear their customs entries without the assistance of a customs broker. Our customers choose to file direct because it enables them to control the entry filing process and avoid the consequences of reporting errors.

Contact us for more information: www.TradeRiskGuaranty.com