Selling Agent Allowed as Importer of Record Despite Not Taking Ownership of Goods, Says CBP
A selling agent and logistics provider may serve as the importer of record, even if it never takes control, for goods ultimately destined for another company, said CBP in a June 23 ruling. The ruling, HQ H240983, involves a company named Seacon, an importer of rubber chemicals from China that was listed as the importer of record for multiple transactions involving liquid antioxidant. The Port of Charleston sought internal advice from CBP headquarters as to whether Seacon had the right to make entry when it never takes ownership of the goods, said the agency.
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Seacon is the U.S. extension and selling agent of Sinopec Chemical Sales, said CBP. Seacon negotiated a supply contract with Michelin North America on behalf of Sinopec "by taking the manufacturer’s price, the cost to heat the liquid antioxidant, the duty, the freight, and a percentage for itself as the selling agent," it said. While Seacon works on behalf of Sinopec, the purchase orders for the goods are between Michelin and Sinopec, not between Michelin and Seacon, said CBP. CBP has previously said the terms owner and purchaser include any party with a financial interest in a transaction, it said. "If Seacon’s financial interest in the goods at the time of entry as Sinopec’s selling agent and logistical service provider is sufficient to constitute a nexus between Seacon’s financial welfare and the imported goods, it may serve as the importer of record."
Seacon's terms of service agreement included numerous responsibilities, said CBP. For instance, Seacon is in charge of coordinating with Michelin and Sinopec to establish a shipping schedule to meet Michelin’s delivery requirements, performing the Importer Security 10+2 filing for each tank exported by Sinopec to Michelin; and maintaining an adequate surety bond with CBP, it said. The company was also responsible for maintaining a fleet of ISO tank chassis sufficient to transport the number of ISO tanks required by Sinopec, storage of ISO tanks at its Charlotte facility for any safety stock that Sinopec wishes to keep in the U.S. to ensure there is no interruption in supply, and heating the ISO tanks prior to delivery.
Seacon's financial interest is a result of its role as both a selling agent and as logistical services provider, said CBP. "Seacon performed post-entry logistical procedures such as heating the ISO tanks prior to delivery to Michelin," said the agency. "On account of this financial interest in the imported goods as both a selling agent and a logistical services provider, Seacon is considered an 'owner or purchaser' and has the right to make entry as importer of record."