By: Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

It is no surprise to any at this point – international trade into the U.S. has become complex. A vital element to a clean transaction is the commercial invoice – a required document holding key pieces of information for the importer, broker, and US CBP to ensure the entry is compliant with U.S. law.

Today’s trade environment, with all its nuances, can benefit from these considerations on the commercial invoice:

• Products should have clear descriptions that would allow US CBP to properly classify the item.
• The Country of Origin for the goods should be clearly indicated on the commercial invoice.
• If a US HTS code is listed on the commercial invoice, a best practice is to check with the broker to see if their system reflects the same, and that the importer’s system is also aligned. Always confirm with your broker on which US HTS you wish for them to file if your commercial invoice and system do not match!
• Special programs (FTA, chapter 98 claims, IEEPA Reciprocal Exemptions, Sec 301 Exemptions) should be annotated on the commercial invoice.
• Section 232 Aluminum, Steel, and Copper value & weight content should be clearly defined on the commercial invoice for derivative products. Failure to report Aluminum, Steel, and Copper value will result in the Sec 232 tariffs to be applied at the full value of the article!
• Section 232 Aluminum and Steel items should have the aluminum smelt and cast country, and steel melt and pour country listed for ease of processing (providing mill test certificates or certificates of analysis are a bonus).

Additional considerations:

• Consult with your broker after major trade announcements, they will often have insight into how the change will impact the transactional operation and can make recommendations that will ensure a smooth clearance process.
• Seek guidance from a trade consultant or attorney when considering major shifts in commodity classification, valuation, and origin changes.
• Implement a post entry audit program and communicate findings to your broker.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.