Properly marking the country of origin (COO) on products entering the United States is crucial for smooth customs clearances and avoiding costly delays and penalties from Customs & Border Protection (CBP). Use this information to help you understand what it takes to maintain compliance with existing regulations.
Country of origin labelling requirements
CBP regulations require all foreign goods be marked with the COO. These markings should clearly inform the ultimate purchaser of the product’s origin. According to 19 CFR Part 134.11, the marking should be:
- Clearly and conspicuously placed on the product
- Written in English in a legible and as permanent a manner as possible
Specific COO rules and exemptions
Certain goods and containers have specific marking requirements. It is essential to review these requirements in detail to ensure compliance. For instance, textiles, electronics, and automotive parts often have unique marking requirements. Additionally, some goods are exempt from the COO marking requirement all together.
For more information regarding COO requirements, forms of marking, and details on exemptions refer to CBP’s Informed Compliance Publication, “Marking of Country of Origin on U.S. Imports.”
Common mistakes to avoid
One common mistake is using abbreviations or foreign language markings that are not easily understood by the ultimate purchaser. Another is placing the marking in a location that is not easily visible. CBP officers have broad discretion to determine the compliance of markings. Ensuring that your markings are both legible and permanent can prevent issues.
What to expect when CBP finds a COO issue
If a COO marking issue is found during a review or exam, CBP will issue a Customs Form 4647 – Notice to Mark and/or Redeliver. Once issued, the importer has 30 days to comply with CBP’s demands regarding the noncompliant marking. The importer may have the opportunity to mark the goods while they are still within CBP custody or the goods may be exported or destroyed under supervision.
Each port has its own preferences and procedures regarding COO marking issues. If you receive a 4647, engage your customs broker. They can provide key insights into next best steps and facilitate communication with CBP officers. A knowledgeable broker can help you navigate the complexities of compliance and avoid potential pitfalls.
Consequences of non-compliance
Failing to comply with COO marking requirements can lead to significant consequences, including delays at the border, financial penalties, and damage to your business reputation.
If proper action is not taken in response to a form 4647, CBP may issue liquidated damages in an amount equal to the value of the articles not properly marked, and in severe cases, they have the authority to seize and destroy shipments. To avoid these issues, it’s crucial to maintain compliance and take proactive steps to ensure proper COO marking.
Let us help find solutions
Improper markings make for an easy target at the border. By understanding and adhering to COO marking requirements, you can protect your business and ensure a smoother import process.
With CBP scrutiny on the rise it is more important than ever to have airtight policies to ensure products are properly marked.
There are steps you can take to mitigate your risk:
- Review COO markings on a routine basis: Regular checks can help identify and correct any issues before they become problems.
- Set expectations and policies: Clear communication about COO marking requirements can prevent noncompliance.
- Consider a ruling request for certain markings: If you are unsure about the correct marking for a product, seeking a ruling request can provide clarity.
Navigating the complexities of COO marking and trade compliance can be challenging, but you don’t have to do it alone. C.H. Robinson offers numerous trade policy services designed to help you mitigate risks and maintain compliance. Let us help you find the right solutions to keep your business moving forward.
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