--- name: customs-duties-workflow-base description: "> Tier 1 workflow base for customs duty skills. Covers the customs declaration lifecycle from origin determination, HS classification, valuation, preference, special procedures, through to release for free circulation. Workflow architecture only — no country-specific tariff rates or detailed special procedure mechanics. MUST be loaded alongside a country/region customs content skill (EU UCC, US CBP, UK CDS post-Brexit, etc.). Assumes a licensed customs broker, AEO/CTPAT certified party, or in-house customs manager files the declaration. Does NOT cover: CBAM (see cbam-carbon-border-adjustment), import VAT (see country VAT skills), excise duties (see excise-tax-workflow-base), or anti-dumping / countervailing duty investigation procedure (only their tariff effect at point of declaration)." license: AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content) metadata: source: openaccountants jurisdiction: GLOBAL category: foundation quality: source-cited draft openaccountants_url: "https://openaccountants.com/skills/customs-duties-workflow-base" obligation: FW --- # Customs and Duties Workflow Base v0.1 > **General reference only.** This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction. ## What this file is The Tier 1 workflow base for customs duty skills. Country content skills load on top. --- ## Section 1 — Audience and assumptions This base assumes: - The **declarant** is an importer / exporter / customs representative - The **shipment** has been physically moved or is being placed under a customs procedure - A **licensed customs broker** or in-house customs manager files the declaration - The HS Code is determined under the WCO Harmonized System and applied at the national tariff level --- ## Section 2 — Lifecycle runbook ### Step 1 — Document the transaction - Commercial invoice (supplier, buyer, consignee) - Packing list - Bill of lading / airway bill / CMR - Certificate of origin (preferential or non-preferential) - Transport documents - Sanitary / phytosanitary / safety certificates - Licenses (dual-use, controlled goods) - CBAM-relevant emissions data (EU imports of in-scope goods) ### Step 2 — Determine HS classification **[T1]** Use WCO Harmonized System nomenclature at the level required by the destination country: - 6 digits — WCO common level - 8 digits — typical national tariff (e.g., EU Combined Nomenclature) - 10 digits — TARIC or US HTS additional precision Apply the General Rules for the Interpretation (GRI 1-6) of the HS: 1. Headings and chapter notes 2. Incomplete / unassembled goods classify as complete 3. Mixed goods classify by essential character or last-in-numerical-order 4. Goods most akin 5. Containers / packaging 6. Comparable level subheadings ### Step 3 — Determine origin **[T1]** Two origin types: - **Non-preferential origin** — country where last substantial transformation occurred; used for trade statistics, anti-dumping, trade remedy, marking, quota - **Preferential origin** — origin granting reduced or zero duty under a free trade agreement (FTA), generalised scheme of preferences (GSP), customs union **[T1] Preferential origin tests:** - Wholly obtained (mining, agriculture, fishing) - Sufficient transformation per the FTA's specific rules (change in tariff heading, value-added percentage, specific manufacturing operation) - Cumulation (bilateral / diagonal / full / regional) - Direct transport / non-manipulation ### Step 4 — Determine customs value **[T1] WTO Customs Valuation Agreement** — six methods in hierarchical order: 1. **Transaction value of the imported goods** (the price actually paid or payable) — primary method 2. **Transaction value of identical goods** — already accepted by customs 3. **Transaction value of similar goods** 4. **Deductive value** (resale price method) 5. **Computed value** (cost-plus method) 6. **Fallback / reasonable means consistent with WTO** **[T1] Adjustments to transaction value (Article 8 WTO Valuation Agreement):** | Add | Subtract | |---|---| | Commissions / brokerage paid to buyer's agent | Buying commissions | | Container costs | Charges for construction / assembly / maintenance after importation | | Packing | Duties and taxes payable in destination | | Assists (free or below-cost goods/services provided by buyer to seller) | Interest paid (if separately identified) | | Royalties / license fees related to imported goods that buyer must pay as condition of sale | | | Resale proceeds accruing to seller | | | Transport, loading, handling, insurance to the place of importation | | ### Step 5 — Apply tariff **[T1]** - Base most-favoured-nation (MFN) rate per WTO commitments - Preferential rate where origin satisfied and certificate / declaration provided - Anti-dumping / countervailing duty if applicable - Tariff suspensions (autonomous suspensions, EU) - Tariff quotas (in-quota / out-of-quota duty rates) - Safeguard measures - Retaliatory duties (Section 301 US; EU retaliation lists) ### Step 6 — Apply special procedures (where applicable) - **Inward processing** — duty-free import for processing and re-export - **Outward processing** — re-import after processing abroad with duty only on added value - **Customs warehousing** — duty deferral - **Free zones / FTZ** — duty-free storage and processing - **Temporary admission / ATA Carnet** — duty-free import for exhibitions, samples, professional equipment - **End-use** — reduced duty for specific use - **Transit** (T1 / T2 / TIR) — movement under customs control ### Step 7 — Prepare and lodge declaration - Customs declaration in destination country's electronic system (EU AES/IES, US ACE, UK CDS, China MIPS, India ICES, etc.) - Single Administrative Document (SAD) for EU; entry summary for US ABI - Pre-arrival lodgement where required (24-hour rule for ocean to US, EU ICS2) ### Step 8 — Pay duty and VAT/GST - Duty paid on release OR deferred under deferment account (with bank guarantee) - Import VAT/GST — paid at import OR self-assessed under postponed VAT accounting (EU PVA), reverse charge ### Step 9 — Post-clearance audit and amendment **[T1]** Customs authorities have 3-5 years post-clearance to audit. Maintain documentation. Voluntary amendment (corrective declaration) reduces penalties. --- ## Section 3 — Customs regimes by region ### 3.1 European Union - **UCC (Union Customs Code) — Regulation (EU) 952/2013** in force from 1 May 2016 - **AEO (Authorised Economic Operator)** — trusted-trader certification (AEO-C customs, AEO-S security, AEO-F combined) - **Centralised clearance** — declaration in one MS for goods imported into another - **ICS2 (Import Control System 2)** — pre-arrival risk analysis - **CBAM (Carbon Border Adjustment Mechanism)** — see `cbam-carbon-border-adjustment.md` ### 3.2 United States - **CBP (Customs and Border Protection)** under Title 19 USC - **ACE (Automated Commercial Environment)** declaration system - **C-TPAT** trusted trader program - **Section 301 tariffs** (China) - **Section 232 tariffs** (steel, aluminum) - **De minimis** USD 800 per shipment ### 3.3 United Kingdom (post-Brexit) - **CDS (Customs Declaration Service)** replaced CHIEF in 2023 - **UK Global Tariff (UKGT)** since 1 January 2021 - **Northern Ireland Protocol / Windsor Framework** — separate rules for NI imports from GB - **Inward / outward processing** — UCC mechanics retained - **Postponed VAT accounting** — VAT deferred to VAT return ### 3.4 Other major regimes - **Canada — CBSA** with CARM system rollout 2024-2025 - **Australia — Border Force** with ICS - **Japan — Japan Customs** with NACCS - **China — General Administration of Customs** with GACC - **India — ICEGATE** with Customs Act 1962 - **Brazil — Receita Federal** with Siscomex / Portal Único do Comércio Exterior (Pucomex) --- ## Section 4 — Reviewer brief ``` 1. Shipment register - Commercial documents - HS classification with GRI rationale - Origin determination with supporting certificate - Customs value with WTO method and Article 8 adjustments 2. Tariff calculation - Base MFN rate - Preference applied - ADD / CVD applied - Tariff quotas allocated - Total duty 3. VAT / GST on importation - Base value (customs value + duty + other charges) - VAT rate - Postponed accounting status 4. Special procedure usage - Procedure code - Bond / guarantee status - Discharge plan 5. Risk register - Trade compliance flags (controlled goods, sanctioned parties, dual-use) - ADD / CVD investigation status - CBAM in-scope goods 6. Reviewer questions — [T2]/[T3] items ``` --- ## Section 5 — Self-checks (15) 1. [ ] HS classification supported by GRI reasoning, binding tariff information (BTI) or equivalent if available 2. [ ] Origin determination supported by certificate or supplier declaration 3. [ ] Customs value method correctly applied per Article 8 hierarchy 4. [ ] Royalties / assists / commissions / freight added per Article 8 5. [ ] Preference verified against current FTA text and product-specific rules 6. [ ] ADD / CVD / safeguard rates current and applicable 7. [ ] Tariff quota allocation verified 8. [ ] Special procedure code correct 9. [ ] Sanctions / dual-use / controlled-goods screening completed 10. [ ] Importer-of-record identification correct 11. [ ] Pre-arrival electronic submission lodged within window 12. [ ] CBAM scope checked for EU imports 13. [ ] Postponed VAT accounting election applied where eligible 14. [ ] Bond / guarantee in place for special procedures 15. [ ] Output flags every [T2]/[T3] item for reviewer judgement --- ## Section 6 — Global refusal catalogue | Refusal | Trigger | |---|---| | R-CUST-1 | Sanctioned party / OFAC / EU restrictive measures match | | R-CUST-2 | Controlled / dual-use goods without licence | | R-CUST-3 | ADD / CVD investigation active and country uncertain | | R-CUST-4 | HS classification ambiguous — request BTI / equivalent | | R-CUST-5 | Preference origin contested or supplier declaration absent | | R-CUST-6 | Customs value contested (related-party transaction, missing royalty info) | | R-CUST-7 | Anti-circumvention investigation against country of origin | | R-CUST-8 | CBAM in-scope without verified emissions or default-value-cap exceeded | --- ## Section 7 — Slot contract for country customs skills ``` [TARIFF SYSTEM] - Nomenclature (CN, HTS, UKGT, etc.) - Tariff portal URL - Update frequency [FTA PORTFOLIO] - Active FTAs and product-specific rules portal references - GSP/GSP+/Everything But Arms applicability [VALUATION] - National rules supplementing WTO Valuation Agreement - Related-party transaction rules [PROCEDURES] - Special procedure codes - AEO / trusted trader equivalent [FILING] - Electronic declaration system - Pre-arrival lodgement window - De minimis thresholds (low-value consignment) [OVERLAYS] - CBAM (EU) - Section 301 / 232 (US) - Trade remedy investigations active [PENALTIES] - Misclassification penalties - Origin misstatement penalties - Voluntary disclosure relief ``` --- ## Section 8 — Disclaimer This workflow base produces working papers for review by licensed customs practitioners. Customs declarations are legally binding; misstatements carry criminal as well as civil penalties. Every output must be reviewed and signed off by a licensed customs broker or in-house customs manager before lodgement. The most up-to-date, verified version of this workflow base is maintained at [openaccountants.com](https://openaccountants.com). --- _Source: [OpenAccountants](https://openaccountants.com/skills/customs-duties-workflow-base) — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: **source-cited draft**. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (`openaccountants-mcp`)._