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| 1 | --- |
| 2 | name: customs-duties-workflow-base |
| 3 | description: > |
| 4 | 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). |
| 5 | version: 0.1 |
| 6 | jurisdiction: GLOBAL |
| 7 | category: foundation |
| 8 | verified_by: pending |
| 9 | --- |
| 10 | |
| 11 | # Customs and Duties Workflow Base v0.1 |
| 12 | |
| 13 | ## What this file is |
| 14 | |
| 15 | The Tier 1 workflow base for customs duty skills. Country content skills load on top. |
| 16 | |
| 17 | --- |
| 18 | |
| 19 | ## Section 1 — Audience and assumptions |
| 20 | |
| 21 | This base assumes: |
| 22 | |
| 23 | - The **declarant** is an importer / exporter / customs representative |
| 24 | - The **shipment** has been physically moved or is being placed under a customs procedure |
| 25 | - A **licensed customs broker** or in-house customs manager files the declaration |
| 26 | - The HS Code is determined under the WCO Harmonized System and applied at the national tariff level |
| 27 | |
| 28 | --- |
| 29 | |
| 30 | ## Section 2 — Lifecycle runbook |
| 31 | |
| 32 | ### Step 1 — Document the transaction |
| 33 | |
| 34 | - Commercial invoice (supplier, buyer, consignee) |
| 35 | - Packing list |
| 36 | - Bill of lading / airway bill / CMR |
| 37 | - Certificate of origin (preferential or non-preferential) |
| 38 | - Transport documents |
| 39 | - Sanitary / phytosanitary / safety certificates |
| 40 | - Licenses (dual-use, controlled goods) |
| 41 | - CBAM-relevant emissions data (EU imports of in-scope goods) |
| 42 | |
| 43 | ### Step 2 — Determine HS classification |
| 44 | |
| 45 | **[T1]** Use WCO Harmonized System nomenclature at the level required by the destination country: |
| 46 | - 6 digits — WCO common level |
| 47 | - 8 digits — typical national tariff (e.g., EU Combined Nomenclature) |
| 48 | - 10 digits — TARIC or US HTS additional precision |
| 49 | |
| 50 | Apply the General Rules for the Interpretation (GRI 1-6) of the HS: |
| 51 | 1. Headings and chapter notes |
| 52 | 2. Incomplete / unassembled goods classify as complete |
| 53 | 3. Mixed goods classify by essential character or last-in-numerical-order |
| 54 | 4. Goods most akin |
| 55 | 5. Containers / packaging |
| 56 | 6. Comparable level subheadings |
| 57 | |
| 58 | ### Step 3 — Determine origin |
| 59 | |
| 60 | **[T1]** Two origin types: |
| 61 | |
| 62 | - **Non-preferential origin** — country where last substantial transformation occurred; used for trade statistics, anti-dumping, trade remedy, marking, quota |
| 63 | - **Preferential origin** — origin granting reduced or zero duty under a free trade agreement (FTA), generalised scheme of preferences (GSP), customs union |
| 64 | |
| 65 | **[T1] Preferential origin tests:** |
| 66 | - Wholly obtained (mining, agriculture, fishing) |
| 67 | - Sufficient transformation per the FTA's specific rules (change in tariff heading, value-added percentage, specific manufacturing operation) |
| 68 | - Cumulation (bilateral / diagonal / full / regional) |
| 69 | - Direct transport / non-manipulation |
| 70 | |
| 71 | ### Step 4 — Determine customs value |
| 72 | |
| 73 | **[T1] WTO Customs Valuation Agreement** — six methods in hierarchical order: |
| 74 | |
| 75 | 1. **Transaction value of the imported goods** (the price actually paid or payable) — primary method |
| 76 | 2. **Transaction value of identical goods** — already accepted by customs |
| 77 | 3. **Transaction value of similar goods** |
| 78 | 4. **Deductive value** (resale price method) |
| 79 | 5. **Computed value** (cost-plus method) |
| 80 | 6. **Fallback / reasonable means consistent with WTO** |
| 81 | |
| 82 | **[T1] Adjustments to transaction value (Article 8 WTO Valuation Agreement):** |
| 83 | |
| 84 | | Add | Subtract | |
| 85 | |---|---| |
| 86 | | Commissions / brokerage paid to buyer's agent | Buying commissions | |
| 87 | | Container costs | Charges for construction / assembly / maintenance after importation | |
| 88 | | Packing | Duties and taxes payable in destination | |
| 89 | | Assists (free or below-cost goods/services provided by buyer to seller) | Interest paid (if separately identified) | |
| 90 | | Royalties / license fees related to imported goods that buyer must pay as condition of sale | | |
| 91 | | Resale proceeds accruing to seller | | |
| 92 | | Transport, loading, handling, insurance to the place of importation | | |
| 93 | |
| 94 | ### Step 5 — Apply tariff |
| 95 | |
| 96 | **[T1]** |
| 97 | - Base most-favoured-nation (MFN) rate per WTO commitments |
| 98 | - Preferential rate where origin satisfied and certificate / declaration provided |
| 99 | - Anti-dumping / countervailing duty if applicable |
| 100 | - Tariff suspensions (autonomous suspensions, EU) |
| 101 | - Tariff quotas (in-quota / out-of-quota duty rates) |
| 102 | - Safeguard measures |
| 103 | - Retaliatory duties (Section 301 US; EU retaliation lists) |
| 104 | |
| 105 | ### Step 6 — Apply special procedures (where applicable) |
| 106 | |
| 107 | - **Inward processing** — duty-free import for processing and re-export |
| 108 | - **Outward processing** — re-import after processing abroad with duty only on added value |
| 109 | - **Customs warehousing** — duty deferral |
| 110 | - **Free zones / FTZ** — duty-free storage and processing |
| 111 | - **Temporary admission / ATA Carnet** — duty-free import for exhibitions, samples, professional equipment |
| 112 | - **End-use** — reduced duty for specific use |
| 113 | - **Transit** (T1 / T2 / TIR) — movement under customs control |
| 114 | |
| 115 | ### Step 7 — Prepare and lodge declaration |
| 116 | |
| 117 | - Customs declaration in destination country's electronic system (EU AES/IES, US ACE, UK CDS, China MIPS, India ICES, etc.) |
| 118 | - Single Administrative Document (SAD) for EU; entry summary for US ABI |
| 119 | - Pre-arrival lodgement where required (24-hour rule for ocean to US, EU ICS2) |
| 120 | |
| 121 | ### Step 8 — Pay duty and VAT/GST |
| 122 | |
| 123 | - Duty paid on release OR deferred under deferment account (with bank guarantee) |
| 124 | - Import VAT/GST — paid at import OR self-assessed under postponed VAT accounting (EU PVA), reverse charge |
| 125 | |
| 126 | ### Step 9 — Post-clearance audit and amendment |
| 127 | |
| 128 | **[T1]** Customs authorities have 3-5 years post-clearance to audit. Maintain documentation. Voluntary amendment (corrective declaration) reduces penalties. |
| 129 | |
| 130 | --- |
| 131 | |
| 132 | ## Section 3 — Customs regimes by region |
| 133 | |
| 134 | ### 3.1 European Union |
| 135 | |
| 136 | - **UCC (Union Customs Code) — Regulation (EU) 952/2013** in force from 1 May 2016 |
| 137 | - **AEO (Authorised Economic Operator)** — trusted-trader certification (AEO-C customs, AEO-S security, AEO-F combined) |
| 138 | - **Centralised clearance** — declaration in one MS for goods imported into another |
| 139 | - **ICS2 (Import Control System 2)** — pre-arrival risk analysis |
| 140 | - **CBAM (Carbon Border Adjustment Mechanism)** — see `cbam-carbon-border-adjustment.md` |
| 141 | |
| 142 | ### 3.2 United States |
| 143 | |
| 144 | - **CBP (Customs and Border Protection)** under Title 19 USC |
| 145 | - **ACE (Automated Commercial Environment)** declaration system |
| 146 | - **C-TPAT** trusted trader program |
| 147 | - **Section 301 tariffs** (China) |
| 148 | - **Section 232 tariffs** (steel, aluminum) |
| 149 | - **De minimis** USD 800 per shipment |
| 150 | |
| 151 | ### 3.3 United Kingdom (post-Brexit) |
| 152 | |
| 153 | - **CDS (Customs Declaration Service)** replaced CHIEF in 2023 |
| 154 | - **UK Global Tariff (UKGT)** since 1 January 2021 |
| 155 | - **Northern Ireland Protocol / Windsor Framework** — separate rules for NI imports from GB |
| 156 | - **Inward / outward processing** — UCC mechanics retained |
| 157 | - **Postponed VAT accounting** — VAT deferred to VAT return |
| 158 | |
| 159 | ### 3.4 Other major regimes |
| 160 | |
| 161 | - **Canada — CBSA** with CARM system rollout 2024-2025 |
| 162 | - **Australia — Border Force** with ICS |
| 163 | - **Japan — Japan Customs** with NACCS |
| 164 | - **China — General Administration of Customs** with GACC |
| 165 | - **India — ICEGATE** with Customs Act 1962 |
| 166 | - **Brazil — Receita Federal** with Siscomex / Portal Único do Comércio Exterior (Pucomex) |
| 167 | |
| 168 | --- |
| 169 | |
| 170 | ## Section 4 — Reviewer brief |
| 171 | |
| 172 | ``` |
| 173 | 1. Shipment register |
| 174 | - Commercial documents |
| 175 | - HS classification with GRI rationale |
| 176 | - Origin determination with supporting certificate |
| 177 | - Customs value with WTO method and Article 8 adjustments |
| 178 | |
| 179 | 2. Tariff calculation |
| 180 | - Base MFN rate |
| 181 | - Preference applied |
| 182 | - ADD / CVD applied |
| 183 | - Tariff quotas allocated |
| 184 | - Total duty |
| 185 | |
| 186 | 3. VAT / GST on importation |
| 187 | - Base value (customs value + duty + other charges) |
| 188 | - VAT rate |
| 189 | - Postponed accounting status |
| 190 | |
| 191 | 4. Special procedure usage |
| 192 | - Procedure code |
| 193 | - Bond / guarantee status |
| 194 | - Discharge plan |
| 195 | |
| 196 | 5. Risk register |
| 197 | - Trade compliance flags (controlled goods, sanctioned parties, dual-use) |
| 198 | - ADD / CVD investigation status |
| 199 | - CBAM in-scope goods |
| 200 | |
| 201 | 6. Reviewer questions — [T2]/[T3] items |
| 202 | ``` |
| 203 | |
| 204 | --- |
| 205 | |
| 206 | ## Section 5 — Self-checks (15) |
| 207 | |
| 208 | 1. [ ] HS classification supported by GRI reasoning, binding tariff information (BTI) or equivalent if available |
| 209 | 2. [ ] Origin determination supported by certificate or supplier declaration |
| 210 | 3. [ ] Customs value method correctly applied per Article 8 hierarchy |
| 211 | 4. [ ] Royalties / assists / commissions / freight added per Article 8 |
| 212 | 5. [ ] Preference verified against current FTA text and product-specific rules |
| 213 | 6. [ ] ADD / CVD / safeguard rates current and applicable |
| 214 | 7. [ ] Tariff quota allocation verified |
| 215 | 8. [ ] Special procedure code correct |
| 216 | 9. [ ] Sanctions / dual-use / controlled-goods screening completed |
| 217 | 10. [ ] Importer-of-record identification correct |
| 218 | 11. [ ] Pre-arrival electronic submission lodged within window |
| 219 | 12. [ ] CBAM scope checked for EU imports |
| 220 | 13. [ ] Postponed VAT accounting election applied where eligible |
| 221 | 14. [ ] Bond / guarantee in place for special procedures |
| 222 | 15. [ ] Output flags every [T2]/[T3] item for reviewer judgement |
| 223 | |
| 224 | --- |
| 225 | |
| 226 | ## Section 6 — Global refusal catalogue |
| 227 | |
| 228 | | Refusal | Trigger | |
| 229 | |---|---| |
| 230 | | R-CUST-1 | Sanctioned party / OFAC / EU restrictive measures match | |
| 231 | | R-CUST-2 | Controlled / dual-use goods without licence | |
| 232 | | R-CUST-3 | ADD / CVD investigation active and country uncertain | |
| 233 | | R-CUST-4 | HS classification ambiguous — request BTI / equivalent | |
| 234 | | R-CUST-5 | Preference origin contested or supplier declaration absent | |
| 235 | | R-CUST-6 | Customs value contested (related-party transaction, missing royalty info) | |
| 236 | | R-CUST-7 | Anti-circumvention investigation against country of origin | |
| 237 | | R-CUST-8 | CBAM in-scope without verified emissions or default-value-cap exceeded | |
| 238 | |
| 239 | --- |
| 240 | |
| 241 | ## Section 7 — Slot contract for country customs skills |
| 242 | |
| 243 | ``` |
| 244 | [TARIFF SYSTEM] |
| 245 | - Nomenclature (CN, HTS, UKGT, etc.) |
| 246 | - Tariff portal URL |
| 247 | - Update frequency |
| 248 | |
| 249 | [FTA PORTFOLIO] |
| 250 | - Active FTAs and product-specific rules portal references |
| 251 | - GSP/GSP+/Everything But Arms applicability |
| 252 | |
| 253 | [VALUATION] |
| 254 | - National rules supplementing WTO Valuation Agreement |
| 255 | - Related-party transaction rules |
| 256 | |
| 257 | [PROCEDURES] |
| 258 | - Special procedure codes |
| 259 | - AEO / trusted trader equivalent |
| 260 | |
| 261 | [FILING] |
| 262 | - Electronic declaration system |
| 263 | - Pre-arrival lodgement window |
| 264 | - De minimis thresholds (low-value consignment) |
| 265 | |
| 266 | [OVERLAYS] |
| 267 | - CBAM (EU) |
| 268 | - Section 301 / 232 (US) |
| 269 | - Trade remedy investigations active |
| 270 | |
| 271 | [PENALTIES] |
| 272 | - Misclassification penalties |
| 273 | - Origin misstatement penalties |
| 274 | - Voluntary disclosure relief |
| 275 | ``` |
| 276 | |
| 277 | --- |
| 278 | |
| 279 | ## Section 8 — Disclaimer |
| 280 | |
| 281 | 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. |
| 282 | |
| 283 | The most up-to-date, verified version of this workflow base is maintained at [openaccountants.com](https://openaccountants.com). |
| 284 |
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About
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).
GLOBALty-2025
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