IMPORTING: IN PRACTICE. Imports can be divided into those sent forward "on consignment" and those arriving "against orders." In either case the British importer's duty is to superintend the reception, clearance and delivery of goods, either on his own behalf or in the service of a principal. He must receive and nego tiate certain documents, and prepare others. His duties fall under three heads : those required of him by (I) the government (as rep resented by the Board of Trade and the Customs officials) ; (2) the shipowner in whose vessel the goods have been carried; (3 ) the port authority or wharf owners responsible for berthing the vessel and (perhaps) landing the goods.
The government requires accurate records of all goods that enter or leave the country. The importer has to complete a Customs Entry giving full particulars of his goods and of the importing vessel. Net quantities must be given, and the value required is the c.i.f. value or, if goods are consigned for sale, the latest sale value. Importers may by law be called upon to verify their entries and are liable to penalties for inaccu racies.
Duty-free goods are entered on a form which must be lodged at the Custom House. One copy of this form (termed the "bill") is kept by the officials and a second copy (the "warrant") is sent to the examining officer at the place where the vessel is discharging so that the goods can be compared with the owner's statement. The third copy, or "duplicate warrant" is returned to the im porter.
If imported goods are dutiable (and the Customs tariff is the source of information as to what goods are dutiable) three courses are open to the importer. (a) By paying duty forthwith, the goods may be cleared for removal as soon as required : or, to post pone payment of duty, storage may be arranged either (b) at the port of importation, or (c) elsewhere, subject to H.M. Customs approval. In the former case a form is prepared and presented at the Custom House. Should an importer wish to defer payment of duty he can have goods stored in a bonded warehouse by spe cial arrangement. When it is desired to remove goods from a bonded warehouse into consumption the entry formalities are completed by the preparation of a warehouse warrant of the appropriate kind, and the payment of duty.
Goods of Empire origin entitled to enter the country at the preferential rates of duty, have to be vouched for by a certificate of origin bearing the signature of the British consul at the port of shipment or place of production. This certificate, with such further evidence by way of invoices, bills of lading, etc., as may be specially required, must be tendered when the entry is lodged at the Custom House. If a claim to preference cannot at once be substantiated, the goods can be secured by depositing duty at the full rate pending production of satisfactory evidence.
British returned goods which, but for their British origin, would be dutiable, are entered by bill of store in addition to the appro priate entry form. Supporting commercial documents must also be produced. This procedure only holds when goods are re imported within five years of exportation.
Special forms. govern the entry of goods by bill of sight (in the absence of proper details for an entry), by baggage sufferance (passengers' baggage and household effects of a miscellaneous na ture), statutory declaration for plate imported for private use, key industry entry (for goods subject to ad valorem duty under the Safeguarding of Industries act, 192 i) and goods which may be intended to qualify for drawback upon re-export.
The shipowner's chief anxiety is to get his vessel discharged promptly and to secure payment of his freight charge, if not prepaid. The importer will have re ceived from his shipper, either direct or through a bank, a set of Bills of Lading which, on being presented to the shipowner properly endorsed, will substantiate the importer's claim to the goods. The inward freight clerk in the shipowner's office, to whom the bills must be presented, will satisfy himself as to the validity of the endorsement, check the details of the goods as shown by the bill of lading with those furnished on his manifest (i.e., the list of cargo prepared at the starting port by the ship's representatives) and as to the payment, or security for, the freight charge, and will then grant a freight release or ship's delivery order.
In the temporary absence of bills of lading, some shipowners will permit delivery of goods when the importer has signed and lodged a banker's guarantee. Other lines allow delivery overside to craft to commence upon the lodgment of a provisional release, so long as the craft is not moved away from the ship until the proper release has been obtained and presented.
Bef ore removing goods one must also satisfy the dock or wharf officials that delivery is being made to the rightful owner, and must also pay or guarantee their charges. For this purpose the bill of lading, properly endorsed and released, or the equivalent documents (freight release, provisional release, or ship's delivery order) must be produced at the dock office, as must the customs entry unless clearance from customs has already been arranged. An applicant other than the original importer of goods will need to be provided with a transfer order, delivery order or sub-order, or possibly several such, showing between them a correct chain of instructions from the original importer to the actual applicant. (J. A. D.) Consular Invoice.—The initial requirement for the importa tion of merchandise into the United States, if valued over $ioo, is the presentation of an invoice for certification, to the U.S. Con sular officer for the district in which the merchandise was manufac tured or purchased. This must show the time when, the place where, the person by whom and the person to whom the mer chandise is sold or agreed to be sold; or if secured otherwise than by purchase, the place from which shipped, the time when and the person to whom and the person by whom shipped ; and other neces sary information. Such invoice to be signed by the seller or ship per, or the agent of either. One copy of the certified invoice, which is made in triplicate, or in quadruplicate for merchandise intended for immediate transportation, is forwarded with the bill of lading to the consignee in the United States.
Upon the arrival of merchandise the consignee is re quired to prepare and present an entry at the Customs House with in 48 hours. Entry may be made for immediate consumption, warehouse or for immediate transportation without appraisement to another port. After the entry is lodged, a preliminary estimate of the duties based upon the statements contained in the entry, is made and the amount of duty thus ascertained is paid by the importer and a permit is issued to him, which releases the mer chandise except for the packages designated for examination by the appraiser. The appraiser ascertains the dutiable value of im ported goods. He may advance the entered value of merchandise to a point representing, in his opinion, the fair market value, at the time of shipment, in the exporting country. If this is un determinable, American market value may be used if higher than declared value. He also describes the merchandise, that the col lector may classify it and determine the final rate. The surveyor of customs weighs, gauges and measures merchandise subject to specific rates of duty before delivering to the importer; and, in the case of goods entered for warehouse, before the transfer to the designated to a bonded warehouse. A report is made to the collector as a basis for the final assessment of duty in liquidation.
If the importer desires the merchandise may remain in a bonded warehouse designated by the importer for a period not exceeding three years from date of importation without payment of duty. All goods with the exception of perishable or dangerous articles or those free of duty may be stored in a bonded warehouse. Any time during the three year period the importer may withdraw any portion of the merchandise, not less than an entire package, and pay the duty upon such portion withdrawn. Goods may also be sent to manufacturing warehouses, processed and re-exported under a draw-back system which refunds 99% of the duty. Merchandise imported for which no entry is made is sent to a General Order warehouse, which is under the jurisdiction of the collector, where it may remain for one year. There are also certain requirements of the Department of Agriculture with re gard to the importation of meats, food products and drugs, which the collector of customs is required to enforce before delivery and samples of these articles are required for examination and analysis. There are also similar requirements with regard to the importation of plants, grains and fruits from particular countries.
The foregoing procedure relates to merchandise. For articles brought into the United States by pas sengers in their baggage a declaration form is distributed by the steamship employees to the passengers upon the return voyage. This form covers all articles acquired abroad by gift, purchase or otherwise. Returning residents of the United States are per mitted to bring in free of duty articles up to but not exceeding $zoo acquired abroad for personal or household use, or as sou venirs, if not intended for sale or purchased on commission for other persons. All Non-residents of the United States will be treated for customs purposes as non-residents and are entitled to bring in free of duty all personal effects, without limitation as to value, which were actually owned by them and in their possession abroad at the time of or prior to their departure from a foreign country, which are necessary and proper for their wear and use, provided they are not intended for other persons or for sale. The dutiable effects are appraised by customs officers and duty, if any, estimated and paid to the collector's representative upon the pier.
The appraiser, after examination of the mer chandise, returns the properly completed invoice to the collector who thereupon determines the proper paragraph of the schedules of the dutiable or free list applicable to the particular articles in question, and thereupon the amount of duty is ascertained. The collector's liquidation of entries of merchandise, subject to a specific duty, is also based upon the report of the surveyor. A notice of additional duty or refund is sent to the importer for the final adjustment of the account—if the liquidation results in an amount different from that found at the time of the preliminary estimate and payment of duty when entry was made.
A customs court is provided for a review of questions of classification when the importer is dissatisfied with the collector's decision; also for a review of the dutiable value of imported merchandise as determined by the U.S. appraiser. The decisions of the U.S. customs court with regard to questions of law and classification are also reviewable by the U.S. court of customs appeals.
There are many classes of merchandise which upon submission of the required proof may be admitted without payment of duty. There are also provisions for the importation of many articles under bond for a limited period in accordance with regulations prescribed by the secretary of the Treasury. (H. C. S. ; X.)
