AEO Customs Procedures & Risk Management 5

Question 1

In the U.S., the entry summary (CBP Form 7501) with estimated duties is generally due within how long after cargo release?

Accepted Answer

10 working days

Answer

The entry summary and estimated duties are due within 10 working days of release.

Question 2

What is the difference between a continuous customs bond and a single transaction bond?

Accepted Answer

A continuous bond covers all entries for a year; a single bond covers one entry

Answer

Continuous bonds cover multiple entries over a 12-month term, while single transaction bonds cover one entry.

Question 3

For non-preferential U.S. origin determinations, which test is commonly applied when goods are processed in multiple countries?

Accepted Answer

Substantial transformation

Answer

Origin is where the goods underwent substantial transformation into a new article with a new name, character or use.

Question 4

Why would an importer request a binding ruling from CBP before importing?

Accepted Answer

To obtain an advance, written determination on issues such as classification or origin

Answer

Binding rulings give legal certainty on classification, valuation, origin or marking before entry.

Question 5

U.S. entries are generally liquidated within approximately how many days after entry if no extension applies?

Accepted Answer

314 days

Answer

CBP's standard liquidation cycle is about 314 days, and by statute entries are deemed liquidated after one year.

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