Simplify Your Import/Export Process

The items that you are importing will determine if you need to get a license or permit. According to CBP standards, an importer doesn’t need to have a license. However, other government agencies might require one depending on what you import. The CBP only acts as an administrator for these government agencies. The CBP also plays a part in the export process. Some of the laws they follow are the same as other agencies. Exports don’t usually require permits or licenses and the process is typically much shorter. If you do not need a license or permit for an import, you will still have to complete CBP document forms. Likewise, you should research your export to make sure that it doesn’t require a permit or license as well.

What About a Customs Bond?
You will need a customs bond under two circumstances.

1st. if you are importing commercial goods that have a value of over $2,500. Commercial goods are goods and services that are made available for purchase.

2nd. circumstance is if the goods you are importing are regulated by another federal agency.

If you need a customs bond, there are two different types that you can obtain. The first is a continuous bond. This bond will cover you for any number of imports for the entirety of a year. When you only import items on a less random basis you should use a single transaction bond. This bond is good for one time use only.

Documents Needed
There are many different documents that are needed for importing and exporting. However, there are two documents that you can count on needing for both.

bill of lading
commercial invoice/packing list.

The bill of lading is an extremely important document that both importers and exporters need. This document is signed by both the exporter and the importer. The document also contains important information regarding the import.

Description of Goods
Quantity of Goods
Weight of Goods
Name of Recipient
Address of Recipient
Terms of Sale

The second document that both importers and exporters will need is the commercial invoice and packing list. While these documents might seem different since they each have different names, the two are grouped together because they contain roughly the same information. The only real difference between the two is that the packing list requires a more detailed summary of the goods. When you fill out these documents, you need to make sure that the information on each document matches one another.

The following information that will need to be included on the commercial invoice is the:

Name and address of both the seller (exporter) and the buyer (importer)
Value of goods
Quantity of goods
Description of goods
Tariffs on imports and exports

When you import items into the U.S., you will likely have to pay a tariff on them. The CBP collects tariffs on behalf of the Department of Commerce or DOC. The rates of tariffs can vary depending on what item you are importing and from what country it is coming from. Tariff rates are determined by an item’s HTSUS code — a 10-digit code used for tariff and product classification. Every internationally traded product falls under a specific HTS code which you can find by using an HTS code lookup tool. This code will let you know the duty owed on a product depending on which country it’s being imported from and whether or not the U.S. has a free trade agreement (FTA) with said country. If there is an FTA in place, tariff rates will either be reduced or free. Otherwise, you’ll likely owe some form of duty on your import.

Under Title 19, section 1467, of the United States Code (19 U.S.C. 1467), CBP has a right to examine any shipment imported into the United States and it is important to know that you, the importer, must bear the cost of such cargo exams. Per the CBP regulations, it is the responsibility of the importer to make the goods available for examination-- "The importer shall bear any expense involved in preparing the merchandise for CBP examination and in the closing of packages" (19 C.F.R. 151.6). Household effects are not exempt. No distinction is made between commercial and personal shipments.

CBP created 10 industry-specific Centers to increase uniformity at the ports, facilitate the timely resolution of trade compliance issues nationwide, and further strengthen the agency's knowledge about industry practices.

Centers Webpage - Information on how the Centers transform the way CBP approaches trade operations and works with the international trade community; the Centers are aligning with modern business practices, focusing on industry-specific issues, and providing tailored support to unique trading environments.

Federal Register - Regulatory authorities and codification of centers under TFTEA.

Centers Directory - A directory that provides all contact information for each of the Centers.

Centers of Excellence and Expertise (Centers) are industry-focused and account-based operational organizations processing post-release trade activities on behalf of US Customs and Border Protection (CBP).

Centers are aligned by 10 key industry sectors in strategic locations at Ports of Entry across the U.S. and are the strategic point of connectivity between the trade community and CBP operations. The Centers increase uniformity of practices across the Ports of Entry, facilitate the timely resolution of trade compliance issues nationwide and strengthen CBP’s ability to protect the U.S. economy.
The Centers are comprised of organization units that focus on one of the following strategic areas:

Partnership Division: Streamline trade facilitation efforts through partnership programs and increase industry-based knowledge through bi-direction education efforts.

Validation and Compliance Division (V&C): Validate risk factors within an industry sector and develop approaches to improve compliance.

Enforcement Division: Develop and address risks through impactful national enforcement plans and strategies.

Related Centers of Excellence and Expertise Information

Regulatory Implementation of the Centers of Excellence and Expertise

Centers Trade Process Document

Centers Contact Directory

CBP has provided new tools to better enforce IPR, enhance collaboration with IPR holders, and strengthen international partnerships to stop counterfeiting at the source.

IPR Webpage - Information on how CBP engages in the interdiction of products that infringe on the U.S. trademarks, copyrights, or exclusion orders issued by the U.S. International Trade Commission

IPR Brochure – Overview of IPR, one of CBP’s Priority Trade Issues (PTIs)

Failure to comply with the new rule could ultimately result in monetary penalties, increased inspections and delay of cargo.

A map of the united states with locations marked.

Types & Amounts of Import Non-Compliance
Customs has outlined penalties and fines for failing to meet customs compliance requirements in 19 U.S.C. § 1592. Under this statute, Customs can apply monetary and fines based on:

the severity
type
history of the importing company.

Government agencies render different fines and penalties based on:

merchandise of duties
taxes
fees.

Customs also has three levels they use when determining the severity of non-compliance:

Negligence: Customs will find you negligent if your company fails to exercise reasonable care and competence required from a compliance procedure. Clerical errors do not constitute negligence, and unintentional electronic errors may not result in negligence.
Gross Negligence: This level of culpability means that importing goods was done with adding false information or omitting relevant facts from CBP while importing goods.
Fraud: This is the most severe culpability level because it means that an importer knowingly provided false statements or omitted information from regulatory agencies.

Common Trade Compliance Program Mistakes
Your business needs a comprehensive import compliance program if your supply chain relies on international trade and imported goods. Import regulations are continually changing, and the U.S. government requires importers to meet strict guidelines at each import process stage.

An import compliance program needs to adapt to changes among different government agencies each year, and all imported goods must be classified and reported accurately to ensure tariffs, duties, and other regulatory requirements are met. Some importers choose to handle their import compliance program in-house.

Cargo Control
CBP uses risk-based analysis and intelligence to pre-screen, assess and examine 100 percent of suspicious containers. Remaining cargo is cleared for entry into the U.S. using advanced inspection technology.

Standard Guidelines for CBP/Trade Outages

Bonded Warehouse Manual for CBP Officers and Bonded Warehouse Proprietors

How Cargo Flows Securely to the U.S.

Foreign-Trade Zones

Automated In-Bond Processing Business Process Document

In-Bond Regulatory Changes Frequently Asked Questions

Computation Formula of Mod-7 Check Digit

Examination and Detainment
Historically, cargo entering the United States from any foreign territory has been subject to physical examination by the U.S. Government to verify that it complies with U.S. laws and regulations. After September 11, 2001, a new combined organization of Border Patrol, the Immigration and Naturalization Service, Agriculture Inspection, and the U.S. Customs Service became Customs and Border Protection (CBP) in the Department of Homeland Security. CBP now assumes a leading position in the defense of Homeland Security to protect the country against terrorists and weapons of mass destruction.

The CBP antiterrorism mission is not limited to the physical examination of cargo when it arrives in U.S. ports. CBP is also using intelligence from a number of sources to identify high-risk shipments in order to concentrate its inspectional resources on them. Domestically, CBP is working with the thousands of companies who are members of the Customs Trade Partnership Against Terrorism to emphasize security in the supply chain, so that CBP cargo examinations can be given even more selectively.

An important part of the CBP mission remains the facilitation of legitimate trade. In addition to its own regulations, CBP enforces over 400 laws on behalf of over 40 other U.S. Government agencies. A large number of these import restrictions and requirements are designed to protect the American people from dangerous and illegal goods. CBP has undertaken a number of initiatives, such as the use of non-intrusive inspection technology, to increase its ability to examine cargo effectively without slowing the flow of trade, which plays a significant part in the U.S. economy. Customs detainment can be a major hassle. Once it is detained you have to try to get it released by completing the necessary paperwork or paying the necessary fees. Understand why the shipment was held in the first place. Understanding the Customs process times. Not all Customs holds are because there is an issue with the shipment. Customs processes tend to take time in most countries.

Customs Trade Partnership Against Terrorism (CTPAT): As a voluntary supply chain security program based on trust, CTPAT is open to members of the trade community who can demonstrate excellence in supply chain security practices and who have had no significant security related events. While each application to the CTPAT program is considered on an individual basis, applicants need to take into account that if issues of concern do exist, they may result in CBP determining the applicant to be ineligible for participation in the program.

Importer Eligibility Requirements

Be an active U.S. Importer or Non-Resident Canadian Importer. Active is defined as having imported goods into the U.S. within the past 12 months.
Have and maintain an active U.S. Importer of record (IOR) number in one of the following formats: U.S. Social Security Number, Internal Revenue Service assigned ID(s), or CBP assigned Importer ID.
Have and maintain a valid continuous import bond registered with CBP and operate a business office staffed in the United States or Canada.
Designate a company officer that will be the primary cargo security officer responsible for CTPAT.
Sign the “CTPAT-Partner Agreement to Voluntarily Participate” and demonstrate commitment to the obligations outlined in this Agreement. This document is signed by a Company officer when the company applies for CTPAT membership via the CTPAT Portal.
Complete a supply chain security profile in the CTPAT Portal, identifying how the company meets and maintains the Program’s MSC for U.S. Importers.
Maintain no evidence of financial debt to CBP for which the responsible party has exhausted all administrative and judicial remedies for relief, a final judgment or administrative disposition has been rendered, and the final bill or debt remains unpaid at the time of the initial application or annual renewal.

Remember that participation in C-TPAT is voluntary, but the benefits can significantly improve your trade operations.
The Customs-Trade Partnership Against Terrorism (C-TPAT) offers several benefits to participating companies:

Supply Chain Security: C-TPAT helps enhance the security of your supply chain by implementing best practices and risk-based security measures. This reduces the vulnerability to theft, tampering, and other security threats.
Expedited Processing: C-TPAT members enjoy faster processing times at ports of entry. This means reduced wait times for inspections, quicker cargo release, and improved efficiency.
Reduced Inspections: CBP (Customs and Border Protection) conducts fewer physical inspections on C-TPAT shipments, saving time and resources for both importers and CBP.
Priority Access: C-TPAT participants receive priority access to certain CBP programs and initiatives, such as the Free and Secure Trade (FAST) program for expedited border crossings.
Risk Mitigation: By implementing security measures, companies can better protect their goods from theft, damage, and unauthorized access. This leads to reduced financial losses and business disruptions.
Global Recognition: Being part of C-TPAT demonstrates your commitment to supply chain security, which can enhance your reputation with international partners and customers.
Eligibility Check: Ensure that your company meets the eligibility criteria. Generally, importers, carriers, brokers, and other supply chain partners can participate. Visit the CBP website for specific eligibility details.

For eligibility of the C-TPAT program the following needs to occur:
Risk Assessment:

CBP will review your application and conduct a risk assessment.
They may request additional documentation or clarification.

Validation Process:

If your application is approved, CBP will schedule a validation visit.
During the visit, CBP officers will assess your security practices, procedures, and physical facilities.
Address any findings or recommendations from the validation process.

Agreement and Certification:

Sign the C-TPAT agreement, committing to maintaining security standards.
Receive your C-TPAT certification upon successful validation.

Maintain Compliance:

Continuously adhere to C-TPAT security criteria.
Participate in annual security reviews and self-assessments.
Remember that C-TPAT is a voluntary program, but it offers significant benefits for supply chain security and trade facilitation.

The Customs-Trade Partnership Against Terrorism (C-TPAT) has specific security criteria that participating companies must meet. Here are the key areas:

Business Partner Requirements: Ensure your business partners (suppliers, vendors, etc.) also follow security best practices.
Procedural Security: Implement documented security procedures for handling cargo, personnel, and information.
Physical Security: Secure your facilities, including access controls, perimeter protection, and surveillance.
Personnel Security: Screen employees, provide security training, and manage access to sensitive areas.
Education and Training: Regularly train staff on security protocols and threat awareness.
Access Controls: Limit access to authorized personnel and maintain visitor logs.
Manifest Procedures: Accurately document cargo information for tracking and security purposes.
Information Security: Safeguard sensitive data, including cybersecurity measures.

Regularly reviewing and updating your security procedures is crucial for maintaining a robust supply chain security program. Here are some guidelines:

Scheduled Reviews:

Conduct formal reviews at least annually. Set a specific date or timeframe to assess your procedures comprehensively.
Consider additional reviews after significant changes (e.g., expansion, new partners, regulatory updates).

Risk-Based Approach:

Evaluate risks associated with your supply chain. Focus on high-risk areas or processes.
Prioritize updates based on risk assessments.

Incident-Driven Updates:

After security incidents (e.g., theft, breach), review and enhance relevant procedures promptly.
Learn from incidents to prevent recurrence.

Personnel Training:

Regularly train employees on security protocols.
Update procedures if there are changes in personnel responsibilities.

Industry Changes:

Stay informed about industry best practices, regulations, and emerging threats.
Adjust procedures accordingly.
Reviews

Personnel Training:

Regularly train employees on security protocols.
Update procedures if there are changes in personnel responsibilities.

Industry Changes:

Stay informed about industry best practices, regulations, and emerging threats.
Adjust procedures accordingly.

To become CTPAT certified, your company must meet specific security requirements. Here are the eligibility criteria for different types of partners:

Importers:
Be an active U.S. importer or non-resident Canadian importer with recent imports into the U.S. within the past 12 months.
Have an active U.S. Importer of Record (IOR) number.
Maintain a valid continuous import bond registered with CBP.
Operate a business office staffed in the U.S. or Canada.
Exporters:
Be an active U.S. exporter with a documentable Employee Identification Number (EIN) or Dun & Bradstreet (DUNS) number.

Maintain a business office staffed in the U.S.

Other partners (such as carriers, customs brokers, and manufacturers):

Demonstrate excellence in supply chain security practices.

Have no significant security-related events.

Meet industry-specific security requirements 3.

Remember, each application is considered individually, and CBP assesses eligibility based on trust and security practices. If your company qualifies, you can actively participate in the CTPAT program! 🌟312

Process
The certification process for CTPAT varies based on several factors, but here’s a general overview:

Application Submission: After submitting your application, CBP reviews it for completeness and eligibility. This initial step typically takes a few weeks.
Validation Process: If your application is accepted, CBP schedules an on-site validation visit. The duration depends on your company’s size, complexity, and location. It can range from a few days to several weeks.
Corrective Actions: If any security gaps are identified during the validation, you’ll need to address them. The time required depends on the specific issues found.
Final Approval: Once all requirements are met, CBP grants certification. This step usually takes a few weeks.

Overall, the process can take several months from application to certification. Remember that maintaining consistent security practices is essential to remain certified.

During the validation visit, CBP representatives visit your company’s facilities to assess your supply chain security practices. Here’s what typically occurs:

Interviews: CBP interviews key personnel, including security coordinators, managers, and employees. They discuss security procedures, documentation, and compliance.

Physical Inspection: Inspectors examine your facilities, cargo handling areas, storage spaces, and security measures. They verify compliance with CTPAT security criteria.

Document Review: CBP reviews your security-related documents, such as security plans, training records, and incident reports.
Security Assessment: Inspectors evaluate your security practices against CTPAT’s minimum security criteria. They may ask for evidence of specific security measures.
Corrective Actions: If any deficiencies are found, you’ll receive recommendations for corrective actions. Address these promptly to maintain certification.

Remember, the validation visit is an opportunity to demonstrate your commitment to supply chain security.

Procedure:
CTPAT Trade Compliance Handbook:
Refer to the CTPAT Trade Compliance Handbook provided by the U.S. Customs and Border Protection (CBP).
1. It offers detailed guidance on modernized trade compliance within the program.

Understand the requirements and best practices outlined in the handbook.

Written Cybersecurity Policies:

Develop comprehensive written cybersecurity policies and procedures based on industry standards

2. Ensure they cover data protection, access controls, incident response, and risk management.

Regular Training:

Train employees on C-TPAT security protocols.
Reinforce the importance of compliance and vigilance.

Risk Assessments:

Conduct regular risk assessments of your supply chain.
Address vulnerabilities promptly and adjust procedures as needed.

Internal Audits:

Regularly audit your security practices.
Identify gaps and implement corrective actions.

Remember, consistent compliance strengthens your supply chain security and facilitates smoother processing by CBP

Validation

During the CTPAT validation process, there are several common reasons why companies may fail:

Inadequate Documentation: If your security-related documents (such as security plans, training records, or incident reports) are incomplete, outdated, or don’t align with CTPAT requirements, it can lead to a failed validation.
Lack of Employee Training: Insufficient training for employees regarding security protocols and procedures can be a red flag. Regular training ensures everyone understands their roles in maintaining security.
Physical Security Gaps: Any physical vulnerabilities, such as unsecured access points, inadequate fencing, or poorly monitored areas, can result in a failed validation.
Non-Compliance with Security Measures: If your company doesn’t consistently implement the security measures outlined in your security plan, it can jeopardize certification.
Insufficient Supply Chain Partners’ Cooperation: CTPAT encourages collaboration across the supply chain. If your partners (e.g., carriers, suppliers) don’t meet security expectations, it can impact your validation.

If a company fails CTPAT validation, CBP provides guidance on addressing the identified deficiencies. The company must promptly implement corrective actions to meet security requirements. Failing validation doesn’t automatically result in removal from the program, but consistent non-compliance may lead to suspension or removal. It’s crucial to maintain robust security practices and address any gaps promptly.

The timeframe for addressing deficiencies identified during CTPAT validation varies. CBP typically provides a reasonable period for corrective actions, considering the specific issues found. It’s essential to promptly address any gaps and demonstrate commitment to supply chain security.

If you find it challenging to address the deficiencies within the specified timeframe, communication is key. Reach out to CBP promptly and explain the situation. They understand that unexpected obstacles can arise. By maintaining open communication and demonstrating your commitment to resolving the issues, you can work collaboratively toward a solution.

CBP conducts revalidations for CTPAT partners on a three-year cycle. During the revalidation process, CBP reviews your security practices, documentation, and compliance to ensure ongoing adherence to CTPAT requirements. It’s essential to maintain consistent security measures throughout the certification period.

Preparing for a successful CTPAT revalidation involves several key steps:

Review Your Security Measures: Assess your existing security practices against CTPAT criteria. Ensure that all required measures are consistently implemented.
Update Documentation: Review and update security-related documents, including security plans, training records, and incident reports. Make sure they reflect any changes or improvements since the last validation.
Employee Training: Conduct refresher training for employees on security protocols. Reinforce their understanding of their roles in maintaining supply chain security.
Incident Reporting: Ensure that your incident reporting procedures are effective. Promptly document and address any security incidents.
Collaborate with Partners: Engage with supply chain partners (carriers, suppliers, etc.) to verify their compliance with security requirements. Collaboration is essential.
Physical Security: Inspect your facilities for any physical vulnerabilities. Address gaps related to access points, fencing, and monitoring.

Stay Informed: Keep up-to-date with any changes in CTPAT requirements or guidelines.

Consistent security practices

Maintaining consistent security practices across global supply chains can be challenging due to various factors:

Diverse Regulations:

Different countries have varying security regulations and standards.
Harmonizing practices across borders can be complex.

Cultural Differences:

Cultural norms affect how security measures are perceived and implemented.
Bridging cultural gaps is essential for uniform compliance.

Language Barriers:

Communication challenges arise when dealing with multilingual partners.
Misunderstandings can impact security procedures.

Supply Chain Complexity:

Global supply chains involve multiple stakeholders (suppliers, carriers, warehouses).
Coordinating security efforts across this complexity is demanding.

Third-Party Risk:

Outsourcing parts of the supply chain introduces risk.
Ensuring third parties adhere to security standards is critical.

Technological Advancements:

Cybersecurity threats evolve rapidly.
Keeping up with technology and securing digital aspects is a challenge.

Resource Constraints:

Smaller companies may lack resources for robust security practices.
Balancing cost and effectiveness is crucial.

DHS/CBP/PIA–013 Customs-Trade Partnership Against Terrorism (C-TPAT)
Customs-Trade Partnership Against Terrorism (C-TPAT) is a U.S. Customs and Border Protection (CBP) voluntary trade partnership program in which CBP and members of the trade community work together to secure and facilitate the movement of legitimate international trade. The program focuses on improving security throughout the supply chain, beginning at the point of origin (including manufacturer, supplier, or vendor) through a point of distribution to the destination. C-TPAT member companies, called partners, agree to implement certain security procedures throughout their supply chains to protect those supply chains from terrorist infiltration and other illegal activities that threaten the security of the United States. C-TPAT partners who undertake these protections receive facilitated processing by CBP. As a result, the program helps CBP achieve its twin goals of improving security while facilitating the flow of global trade. In the course of enrolling, certifying, and validating C-TPAT applicants/partners and their supply chains, the C-TPAT system will receive personally identifiable information and confidential business information from the applicant/partner, as well as sensitive law enforcement information from existing law enforcement systems. February 2021

As of now, there are over 11,400 certified partners in the Customs Trade Partnership Against Terrorism (CTPAT) program. These partners span various sectors within the trade community, including U.S. importers/exporters, carriers, customs brokers, and more. CTPAT aims to enhance supply chain security and mitigate risks by fostering collaboration between partners and U.S. Customs and Border Protection (CBP). By participating in CTPAT, companies can take an active role in safeguarding supply chains against potential threats while enjoying benefits like reduced CBP examinations, priority consideration, and access to specialized programs 1. If you’re interested in joining CTPAT, the application process is voluntary and straightforward.

CTPAT Highlights

CTPAT Global Presence Map NEW
CTPAT 2023 Impact Report NEW
CTPAT Introductory Video
CBP CTPAT 20th Anniversary Video
CTPAT University of Houston Study Results
CTPAT Workshops and Events

The World BASC Organization and U.S. Customs and Border Protection
U.S. Customs and Border Protection’s (CBP) Deputy Commissioner Robert E. Perez tasked the Customs-Trade Partnership Against Terrorism (CTPAT) program to lead a CBP wide effort to further strengthen the working relationship between the World BASC Organization (WBO) and CBP. CTPAT worked diligently with the leadership of the WBO on a strategy that culminated in the CBP-WBO Action Plan. Under such a plan, both organizations identified nine objectives or areas of cooperation, including:

The establishment of a Maritime Security Committee – a forum of Government and international organization representatives, as well as private sector experts, where challenges to the maritime environment are discussed so that we can better coordinate our collective approach in making sure that the global supply chain remains secured.
The recognition of a BASC Supply Chain Partner – When a CTPAT Member has a BASC certified company as part of its supply chain, the CTPAT member only needs to document that this business partner is BASC certified in order to meet its CTPAT business partner monitoring and oversight obligations.
CTPAT Access to the World BASC Databases – The WBO agreed to provide CBP personnel with access to both of its web-based databases – Global BASC and SIBASC.
Sharing of intelligence between the two organizations to institutionalize information-sharing arrangements.
The creation of a Supply Chain Security Committee – An expert group where supply chain security issues are discussed with organizations from the private sector that mirror what CTPAT does in the Public sector.
The objectives under the CBP-WBO Action Plan will yield benefits to both organizations and to the trade at large –including CTPAT Members. Today, more than ever, with limited resources in both government and business, CBP must foster a global supply chain system that is prepared for, and can withstand, evolving threats.

Controlled Import / Export

U.S. Export Laws explained:
U.S. export control laws are complex, when talking about ITAR and EAR. Businesses often struggle to figure out what parts of the law apply to them. Since it is so complicated GCA is here to help. Below are the steps in understanding the process:

Type of Controlled Goods: is your product/service involved in transferring data or physical products?
Final use: who is it destined for and for what use?
ITAR or EAR: does your product/services fall under ITAR or EAR regulations.
Type of Export: is your company exporting, re-exporting, or shipping domestically?
Obtaining the License: having the documents needed for obtaining the license.

GCA can assist with obtaining the license if your company is having a hard time in understanding the requirements or the application process. Sometimes companies receive a "Return Without Action" (RWA) on their license application, GCA can explain the reasons for the RWA. GCA can also be the liaison with foreign partners. GCA will be happy to assist in identifying any export restrictions and saving you time and effort by guiding you through the process.

Directorate of Defense Trade Controls (DDTC)
GCA can assist in the Directorate of Defense Trade Controls (DDTC) registration process and navigating the International Traffic in Arms Regulations (ITAR) especially to the companies who are involved in manufacturing, exporting, or brokering defense articles, services, and technical data. GCA will help companies understand the DDTC registration and its importance when considering engaging with ITAR-controlled items. GCA has experience in helping distributors, importers, software/hardware vendors, third-party suppliers, government contractors, and wholesalers.

The costs for Registration are $2,250 per year for new registrants and for companies submitting fewer than ten licenses annually. Companies with more than ten licenses the fee is variable. Once a company is registered it means it is compliant with Part 122 of ITAR and allows the company to apply for export licenses or exemptions. If registration lapses, you cannot import or export until it's reinstated.

Restricted Party Screening in Trade Compliance
GCA will assist companies through the Restricted Party Screening (RPS) and identifying individuals or entities who are on the government denied party lists. Below is a list of some of the reasons individuals or organizations are prohibited:

Terrorist affiliations
Corrupt business practices
Threats to national security
Previous dealings with denied parties

GCA will assist in making sure companies are not dealing with anyone on the restricted party lists. If this occurs companies can lose export privileges, be subject to severe fines, and ultimately have business disruptions. By having GCA help with your company it will avoid costly fines, save time and money, prevent delays and disruptions, helping national security.

Trade:
GCA understands trade is often confusing and constantly having new regulations being added. GCA is available to help companies navigate these regulations. GCA will look for ways to save the company time and money. GCA can help companies understand International Traffic in Arms Regulations (ITAR): Licensing, exemptions, product classification, and agreements, Export Administration Regulations (EAR): Licensing, exceptions, product classification, and export controls, Export Compliance: Licensing, product classification, and sanctions review, Import Compliance: Customs protests, tariff classification, trade agreements. If your company exports or imports goods, services, or data, you likely need to comply with ITAR or EAR regulations. Many businesses, regardless of size or industry, require help understanding and maintaining compliance with these rules.

GCA can help with companies who want to know more about ITAR or EAR regulations, getting contacted by government agencies like Commerce or HSI, and CBP constantly seizing shipments.

OFAC Screening
Restricted parties screening is complex, with the addition of the regulations set by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). GCA will advise companies who are on the OFAC Screening list. GCA will look for:

Specially Designated Nationals (SDN) List
Persons Identified as Blocked (PIB) Solely Pursuant to EO 13599 (Treasury Dept. vessels)
Foreign Sanctions Evaders List
Sectoral Sanctions Identification (SSI) List
Palestinian Legislative Council (PLC) List
List of Foreign Financial Institutions Subject to Part 561

OFAC sanctions can be specific to individuals and entities or be can be broad like countries, it can be directed to specific criminal or administrative violations due to financial transactions and asset flows.

Export Management and Compliance Programs
GCA understands that each country and region in the world is culturally different and require approaches so that’s why GCA is managed by those people. Different customs, cultures, currencies, and foreign policies make it difficult so GCA is there to help.

Export Compliance Program
An Export Compliance Program (ECP) is a structured system designed to manage export-related decisions and transactions. It ensures compliance with Export Administration Regulations (EAR), identifies potential risks, and helps avoid violations. An effective ECP helps you choose compliant partners and manage export activities properly.

GCA is structured to advise companies from unintentional errors can lead to severe consequences, such as expensive fines, loss of export licenses and privileges, legal repercussions, including jail time, time-consuming corrective actions, and placement on restricted parties’ lists.

Voluntary Disclosure
If a company feels that they have done something wrong, the National Security Division (NSD) of the U.S. Department of Justice (DOJ) offers a formal program for companies to report past trade compliance violations, whether intentional or accidental. GCA can discover past violations and assist in voluntary disclosures to the government so mitigation of potential fines and penalties can occur, and show your company is committed to doing what’s right. By doing this companies may have a reduced penalty, potential non-prosecution agreements, shorter supervised compliance periods, and lower fines and other monetary penalties. GCA can help by explaining the compliance issues so companies can find the mitigating factors and develop and implement corrective actions. GCA can also help in companies get in touch with government officials so they can to resolve your case. If ITAR or EAR applies to your company GCA can consult directly with the U.S. Government and get the answers you may need. GCA can assist in a Commodity Jurisdiction (CJ) request which asks for an official evaluation of your product or service to see if it falls under ITAR regulations. GCA can help if your product or service is new, you have cutting-edge technology, you're unsure if older legacy products still fall under ITAR and your military-inspired items now have broader commercial uses. GCA can provide CJ request effectively by providing detailed specifications of the product or service, explain its commercial and military applications, and describe its development history.

Export Compliance Assessment
An export compliance assessment is essential for ensuring adherence to export regulations and protecting your company from potential penalties. GCA will assess your company’s strengths and weaknesses in its compliance programs.

Once GCA understands your company’s situation, GCA will begin gathering information to evaluate its level of export compliance. The quality of the data collected is crucial. Without complete information, it becomes challenging to identify compliance gaps or areas of non-compliance. GCA will gather information through documentation and interviews. These interviews not only help us understand your company but also serve as an opportunity for education and relationship-building. GCA’s aim to make every client a long-term partner. GCA takes the time to explain the purpose behind our questions and develop a deep understanding of your company’s internal dynamics. This allows us to create a detailed picture of your operations and position your business for future trade compliance.

While interviews provide the narrative, documentation reveals the details. Before interviews, GCA will request specific data, such as export compliance manuals, procedures, shipping documentation, and export logs over a defined period. Even if a company is just starting out and lacks documentation, that’s okay! GCA can guide you in setting up necessary processes and documentation to build a compliance program from scratch.

With years of experience conducting export compliance assessments, GCA knows how to ask the right questions and gather the right information efficiently. Once GCA reviews the data, GCA categorizes it and identifies where any compliance gaps exist. GCA’s goal is to help your company exceed basic regulatory expectations while keeping our recommendations practical and feasible.

GCA will provide a thorough overview, highlighting areas of non-compliance, risk factors, gaps, vulnerabilities, and best practices. GCA offers actionable advice to close these gaps and enhance compliance in each functional area. Every solution is customized, as we understand each company is unique. GCA’s consultants are experts in export regulations and can swiftly identify issues and provide effective solutions.

Office of Foreign Assets Control
The Office of Foreign Assets Control (OFAC) is a branch of the U.S. Department of Treasury responsible for enforcing economic sanctions and combating money laundering. It maintains a sanctions list of blocked persons and countries, and its regulations aim to support U.S. foreign policy and national security objectives. OFAC’s jurisdiction extends to all U.S. persons and citizens, as well as foreign entities. The agency operates under various laws, including the Trading with The Enemy Act and the International

Emergency Economic Powers Act.
OFAC compliance is crucial for businesses to avoid significant penalties, which can reach up to $1 million for corporations per violation and $250,000 or 20 years in prison for individuals. Non-compliance can also lead to negative publicity and loss of international business. Companies engaged in international trade must implement robust compliance programs to adhere to OFAC’s complex sanctions and embargoes.

Import Compliance
Adhering to U.S. government regulations for importing goods include:

Valuation: Report the price and all associated costs for imported goods.
Classification: Define imported items using the Harmonized Tariff Schedule (HTS) and assign an HTS code to determine duties and trade statistics.
Country of Origin: Accurately list the country of origin, as it affects duty rates and compliance.
Quantity: Report the number of items and follow HTS guidelines for measurement units.

Compliance is ongoing and requires vigilance. Importers must avoid penalties by maintaining accurate records and adhering to regulations. Non-compliance can lead to severe penalties, including fines for negligence, gross negligence, or fraud.

Common mistakes include underestimating the time and cost of compliance, assuming Customs won't target their business, or over-relying on brokers. Proper import compliance programs can help streamline processes and avoid costly fines. GCA offers consulting to ensure businesses meet compliance requirements and avoid penalties.

Businesses engaged in importing need professional import consulting services to ensure smooth customs clearance and regulatory compliance. Mistakes in documentation or record-keeping can lead to delays and costly fines. Import compliance is complex, requiring hands-on experience with government agencies and industry-specific knowledge. GCA can assist companies through the following projects:

Import compliance training to keep employees up-to-date with changing regulations.
Import audits to identify potential compliance issues before fines occur.
HTS compliance for correct product classification and tariffs.
Free Trade Agreement guidance for cost savings.
Duty protests to reclaim funds through duty drawbacks.

GCA will help your company navigate regulations, maintain compliance, and streamline operations, allowing it to focus on other priorities while avoiding penalties. A comprehensive import compliance program is essential for any business involved in international trade.

Harmonized Tariff Schedule
The HTS (Harmonized Tariff Schedule) is a classification number that is used by U.S. Customs to determine tariffs on imported goods. With over 17,000 possible codes, finding the correct one can be challenging. The HTS code is crucial as it determines the duty rate, identifies regulations, streamlines Customs procedures, and helps collect trade statistics. It also identifies if a product qualifies for duty exemptions under trade agreements or specific laws. Accurate classification is essential since mistakes can lead to audits and potential penalties, even after goods have been cleared. Working with a trade consultant can help ensure correct HTS classifications.

Maximizing FTA Benefits
Free Trade Agreements (FTAs) can significantly reduce your company's costs by easing access to international markets. FTAs, like the USMCA (formerly NAFTA), KORUS (South Korea), CTPA (Colombia), and others with countries such as Australia, Chile, and Panama, lower trade barriers and make exporting more affordable for U.S. businesses. Navigating these agreements can be complex, but GCA can help your company understand and comply with FTA requirements, ensuring you maximize savings and maintain compliance.

Customs Protests
The U.S. Customs and Border Protection (CBP), part of the Department of Homeland Security, ensures the safety of trade and imports. Non-compliance with customs laws can be costly for importers, but pursuing customs protests can potentially save money.

A customs protest is a formal objection to CBP's decisions, such as the classification of imported items. By filing a protest, importers can request a review of their cases. If CBP agrees with the protest, importers might receive refunds for overpaid duties plus interest.

In order to potentially obtain a custom, protest a company must follow the following guidelines:

Protests must be filed within 180 days of liquidation using CBP Form 19.
They require a thorough review of the Harmonized Tariff Schedule (HTS) and Customs Regulations (19 CFR).
Protests can be filed electronically through the ACE Protest module or by paper at CBP ports.

International Traffic in Arms Regulations

The International Traffic in Arms Regulations (ITAR) is a set of regulations that the U.S. government uses to oversee exports and re-exports of defense services, technical data, and specific goods.

The Directorate of Defense Trade Controls (DDTC) is responsible for ITAR compliance. It regulates the export of defense articles and related technical data on the United States Munitions List (USML).

Defense-related articles are outlined on the USML through the Arms Export Control Act (AECA). There are 21 categories of Defense Articles covered under the USML, including:

Firearms, Close Assault Weapons, and Combat Shotguns
Guns and Armament
Ammunition/Ordnance
Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs, and Mines
Explosives and Energetic Materials, Propellants, Incendiary Agents and Their Constituents
Surface Vessels of War and Special Naval Equipment
Ground Vehicles
Aircraft and Related Articles
Military Training Equipment and Training
Personal Protective Equipment
Military Electronics
Fire Control, Laser, Imaging and Guidance Equipment
Materials and Miscellaneous Articles
Toxicological Agents, Including Chemical Agents, Biological Agents, and Associated Equipment
Spacecraft and Related Articles
Nuclear Weapons Related Articles
Classified Articles, Technical Data, and Defense Services Not Otherwise Enumerated
Directed Energy Weapons
Gas Turbine Engines and Associated Equipment
Submersible Vessels and Related Articles
Articles, Technical Data, and Defense Services.

ITAR Registration and Compliance
To register under the International Traffic in Arms Regulations (ITAR), companies must go through the State Department's Directorate of Defense Trade Controls (DDTC). The registration process can be complex, involving questions about exemptions, end-users, and specifications. Here’s a summary of the key agencies involved:

DDTC: Oversees and enforces ITAR regulations.
Bureau of Industry and Security (BIS): Manages related Export Administration Regulations (EAR) under the Department of Commerce.
Department of Defense (DOD): Conducts critical reviews and approvals.
Department of Homeland Security (DHS): Enforces physical aspects of ITAR compliance, with Customs and Border Protection (CBP) inspecting exports and imports.

ITAR regulates the export of defense-related products, services, and technology, making compliance essential. Violations can lead to severe consequences such as fines up to $1 million per company violation, personal civil penalties up to $500,000 per violation, criminal charges for individuals knowingly violating the rules, and loss of export licenses and potential disruptions to operations.

GCA can help companies navigate the intricacies of ITAR, ensuring compliance and preventing fines, penalties, and operational setbacks.

ITAR Regulations
ITAR has been in place since the 1970s and requires companies involved in defense-related activities to comply with strict regulations, including those covering technical data and services listed under the U.S. Munitions List (USML).

To be ITAR compliant, businesses must first register with the State Department’s Directorate of Defense Trade Controls (DDTC) and follow all outlined requirements. Many industries require their supply chains to be ITAR compliant to ensure secure handling of defense-related items.

GCA can help navigate these complex regulations, avoid violations, and focus on growth.

ITAR Compliance
ITAR controls the export and import of defense-related technologies, services, and items listed on the U.S. Munitions List (USML). ITAR compliance is crucial to prevent sensitive defense information from reaching those who could harm U.S. national security.

Many businesses mistakenly believe ITAR only applies to military hardware like tanks and missiles, but it also governs a broader range of products, services, and technical data. Any company involved with defense-related products or working with sensitive data connected to the USML must adhere to ITAR regulations.

Companies working with the U.S. military or handling defense-related products and sensitive technical data are required to be ITAR compliant. ITAR rules extend beyond traditional defense articles to include a variety of products and services covered under the USML.

Navigating ITAR can seem overwhelming, but with GCA’s guidance, your business can achieve compliance. GCA can provide clear, actionable steps to help you develop a compliance program, allowing your company to focus on business growth while staying aligned with ITAR requirements.

GCA understands that many companies struggle with ITAR compliance due to its complexity. GCA will help companies become compliant by advising them of the steps. Those steps are:

Register with DDTC: Officially register your company with the Directorate of Defense Trade Controls.
Fulfill Regulatory Requirements: Meet all obligations outlined in ITAR regulations.
Implement a Compliance Program: Develop a comprehensive program to manage compliance.
Train Employees: Educate your staff on ITAR rules and procedures.
Maintain Ongoing Compliance: Consistently follow and update your compliance program daily.

Ensuring compliance involves multiple layers, including proper registration, adherence to regulations, and continuous employee training. GCA will help companies register with DDTC. True ITAR compliance requires comprehensive measures beyond submitting forms and paying fees. GCA can help safeguard your business against violations and allow you to focus on your core operations.

Consequences of ITAR Violations
Compliance with the International Traffic in Arms Regulations (ITAR) is essential for any business dealing with defense-related products, technical data, or services. The U.S. Government enforces ITAR regulations strictly, and violations can result in severe penalties.

ITAR violations can occur not only with physical goods but also with the mishandling of technical data or services related to defense. Penalties vary based on the type and severity of the violation, but all carry significant repercussions. The following are penalties for ITAR Violations:

Business Fines: Companies can face fines up to $1 million per violation, which can severely impact their ability to compete.
Personal Civil Penalties: Individuals can be fined up to $500,000 per violation, at the discretion of the Secretary of State.
Personal Criminal Penalties: Individuals knowingly violating ITAR can face criminal charges, including imprisonment.
Loss of Export Licenses: Violating ITAR may lead to debarment, preventing a company from exporting goods or working as a government contractor.
Business Disruption: Sanctions, shipment delays, and damage to a company’s reputation can lead to long-term operational and financial impacts.