Importers must be aware of their legal obligations when purchasing goods from foreign vendors for import to the United States. In many cases, the purchasing company may be required to act as Importer of Record and therefore responsible for the Customs entry, duties and taxes, as well as the related regulatory obligations. 

Recent actions by CBP reveals heightened scrutiny on LDP/DDP shipments to the United States. In numerous cases, the Importer of Record is being required to prove their right to make entry and support the declared value of merchandise.  Identified through carton markings and other means, many ultimate consignees and purchasers are being tasked with providing supporting documentation to CBP for clearances in which they are not acting as IOR.

US Customs & Border Protection (CBP) governs who may act as Importer of Record under Directive 3530-002A and the concept of “Right to Make Entry”.  This Directive  3530-002A Right to Make Entry | U.S. Customs and Border Protection (cbp.gov) provides that only the owner, buyer or seller of the imported merchandise has the right to act as Importer of Record.  Additionally, CBP regulations strictly govern proper valuation of merchandise under Title 19 of the Code of Federal Regulations.  The very first basis of appraisement being Transaction Value, followed by five other calculation methods to be considered in order, should the export to the United States fall outside of the parameters described therein.

Importers are encouraged to be very careful when entering into LDP/DDP purchasing arrangements to ensure compliance with CBP regulations.

For further information, please contact our regulatory team at [email protected].