Some Billing Verification Activities Considered 'Customs Business,' CBP Tells DHL

The review of financial details including CBP entry and entry summary forms in order to verify billing is considered to be "customs business" and therefore would require a licensed customs broker, said CBP in a June 28 ruling. CBP addressed the issue in HQ H167815 at the request of DHL Americas, which inquired in 2011 about billing verification activities used to resolve Delivered Duty Paid (DDP) billing disputes.

The company said it wanted to move its billing verification overseas and wanted to know whether such activities constitute "customs business," which, under CBP regulations, would require a CBP licensed customs broker. DHL's Customer Finance Service Center looks into billing disputes to determine the correct billing party. The billing verification employees that resolve the billing disputes do not prepare documents that are submitted to or make payments to CBP, said DHL. The company provided two scenarios to CBP and asked the agency to rule on whether they fall under "customs business."

The first scenario involves billing verification employees that review information previously given to CBP. The information includes detailed CBP entry and entry summary forms and documents that include invoice value, HTS number, name and address of the ultimate consignee and importer of record, as well as air waybill numbers and commercial invoices. While DHL said the information reviewed wouldn't lead to corrections in entry and entry summary forms, once an employee finds an inaccuracy, the broker has a duty to advise the client of the inaccuracy because it has to do with the entry of merchandise, said the agency. Therefore, billing verification that includes a review of detailed CBP entry and entry summary forms is considered to be "customs business," said CBP.

The next scenario would include only a review of a bill of lading or air waybill, commercial invoice and other commercial documents. In that case, there is no possibility that the review would result in a corrected entry or entry summary, said CBP. "The potential for a corrected entry or entry summary does not exist because the employee does not see the entry and entry summary and so would not know whether they were erroneous," it said. "Only after the discrepancy was referred back to a broker would the broker be able to confirm whether erroneous information was submitted to CBP." This type of verification is not "customs business," the agency said.