CBP's "Focused Assessment" Documents Provide Useful Guidance to Importers, Compliance Professionals, Etc.
U.S. Customs and Border Protection has made available on its Web site a large group of documents related to its Focused Assessment Program (FAP).
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A focused assessment (FA) is a compliance audit, conducted by CBP on importers it selects, based on risk management principles1. FAs replaced CBP's Compliance Assessments (CAs) on October 1, 2001.
October 2003 FA Documents are Still "Current and In Use"
These documents are referred to by CBP as its "FAP Documents" or "FA Kit," and were originally posted in October 2003; however, three of the documents were updated in October 2004, September 2005, and December 2007, respectively. CBP sources have confirmed that all of the posted documents are current and still used by CBP.
FA Documents Provide Guidance for Importers
CBP states that the FA documents posted are used by CBP regulatory auditors when conducting FAs. CBP also notes that while these documents contain the audit program, sampling methodology, and technical information for Pre-Assessment Surveys, they also provide guidance for importers, compliance professionals, etc.
CBP states that providing these documents to the trade is intended to help importers prepare for a FA and conduct an assessment of their own Customs systems. Trade sources note that these documents are also useful to international trade compliance professionals for establishing or evaluating their own compliance programs.
Documents Address Classification, Value, AD/CV, FTAs, IPR, Etc.
CBP's FA documents consist of 56 exhibits covering a wide variety of topics, including (partial list):
Resolving "Gray Areas" of Harmonized Tariff Schedule (HTS) Classification
Errors Disclosed to Customs
Common Importer Errors Identified During Assessments and Audits
A Guide for Supporting Generalized System of Preferences (GSP) Claims
Transaction Value - Technical Information for PAS
Classification - Technical Information for PAS
Antidumping/Countervailing Duty - Technical Information for PAS
Transshipment - Technical Information for PAS
Caribbean Basin Economic Recovery Act & Caribbean Basin Trade Partnership Act - Technical Information for PAS
Andean Trade Preference Act - Technical Information for PAS
Products of Insular Possessions - Technical Information for PAS
Israel Free Trade Act (IFTA) - Technical Information for PAS
African Growth and Opportunity Act - Technical Information for PAS
Reconciliation - Technical Information for PAS
Intellectual Property Rights - Technical Information for PAS
North American Free Trade Agreement - Technical Information for PAS
CBP's FA documents can be viewed or downloaded individually in Word or PDF format or in their entirety in PDF format.
1CBP has previously stated that under a FA, a PAS is conducted to evaluate a company's internal controls over customs operations and, if significant control weaknesses are found, CBP would then use Assessment Compliance Testing (ACT) to measure only those areas where weak controls indicate a significant risk of non-compliance or loss of revenue. CBP states that if a loss of revenue or non-compliance for one or more of the areas tested is significant, CBP will collect the lost revenue and recommend a Compliance Improvement Plan (CIP) for that company.
(See ITT's Online Archives or 01/04/08 news, 08010435 3, for BP summary on the CBP's posting of an updated version of its FAP Exhibit 5U entitled "Intellectual Property Rights Technical Information for PAS.")
CBP's FAP documents are available at http://www.cbp.gov/xp/cgov/import/reg_audit/focused_assessment/fap_documents/.
Intellectual Property Rights Technical Information for PAS (Exhibit 5U, updated 12/07) available at http://www.cbp.gov/linkhandler/cgov/import/reg_audit/focused_assessment/fap_documents/exh5u.ctt/exh5u.pdf.