CBP Finds International Mover of Household Goods Unable to Serve as Importer

A relocation service that brings household goods into the U.S. cannot serve as the importer of record for the goods because it lacks "sufficient financial interest," CBP headquarters said in a Feb. 6 ruling. The company, Masterpiece International, provides moving services for employees of multinational companies moving into the U.S. The company claimed that "the services offered give Masterpiece an interest in the imported household goods that goes beyond a mere nominal consignee," said CBP in HQ H242069.

The company would need to qualify as an owner or purchaser to be the importer of record because it's not a licensed customs broker, but the Masterpiece's role is closer to that of a freight forwarder, said the agency. "The extent of Masterpiece’s financial interest in the goods is similar to that of a freight forwarder because it effectively possesses no other right, title, or interest in the goods beyond the contract calling to arrange for the transportation, storage, and delivery of the merchandise." The company disputed the similarity to a freight forwarder "due to the written contract that is signed including the responsibility to represent the employee in all aspects of the relocation process including insuring, safeguarding, and transporting the household goods." But the company gave no evidence showing a relationship between its compensation and the merchandise being correctly imported, which is necessary to show a sufficient financial interest exists, the agency said.

While Masterpiece says it is more than a nominal consignee because it exercises "domain and control" over the goods for the employee and has a similar job to a company importing goods for a trade fair or repair or alteration, CBP disagreed."Masterpiece does not exhibit at a trade fair, or repair, alter, or further fabricate," CBP noted. As such, these analogies are not appropriate." While the company claimed there also wouldn't be any CBP revenue loss because the goods aren't commercial, "there is no exception regarding who may make entry for non-dutiable merchandise," said CBP. Since "Masterpiece does not have a sufficient financial interest, but instead, simply arranges for the transportation, storage, and delivery of the goods, it is a nominal consignee not authorized to file entries," CBP ruled. "Therefore, Masterpiece may not be the importer of record on either the entries or entry summaries of the imported household goods," though it may still hire a licensed broker to file the entries.