Expectations and Responsibilities
(When Importing with Pilotfisch Solutions)
Thank you for trusting us with your time and business. We will do our best to align ourselves to you and your business' needs and lessen the burdens of international trade and importation. It can be uncomfortable and daunting to keep up with all the industry jargon, methods and requirements; so we wanted to highlight a few key areas and best trade practices where you can help yourself avoid problems before they start, and mitigate issues when expected.
If you are uncertain or suspect that any of these prompts may describe or apply to how you conduct business, our team will guide you through any review or additional action which
may be required.
Responsibilities (to US Customs)
The following topics are critical to your importation activities and may or may not be readily apparent from publicly available information. Pilotfisch Solutions asks that you review the following CBP related topics; advising us of any uncertainty or applicability.
On Duties & Taxes
On Customs Bonding
On Goods Subject to ADD/CVD
Anti-Dumping duties (ADD) and Countervailing duties (CVD). Both ADD and CVD are two sides of the same coin: where foreign entities are artificially reducing the value of goods to disrupt US markets. Pilotfisch Solutions uses several tools to help identify potential ADD/CVD sensitivity affecting your import transaction. These duties are significantly elevated, usually more the doubling the burden, but sometimes increasing the dutiable rate by more than 1000%. Additionally, any goods subject to ADD/CVD will require special customs bonding - increasing exposure and and then costs. It is important for importers to keep ADD/CVD risk in mind when reviewing sourcing information. These deals usually seem too good to be true, and ultimately you will pay the price to over-correct the imbalance!
US Customs must be paid, and you may choose how. We cannot stress enough how important it is that CBP be paid the duties and taxes, in full and on time. The burden to pay US CBP all duties and taxes for your shipment is non-negotiable, but you do have the ability to direct how that payment is satisfied. We will gladly help you create an ACH payment relationship directly with CBP, as well as help you explore other direct payment methods. In these cases where you are paying CBP directly, Pilotfisch's invoices would not include any duties and taxes. At this stage of the transaction, Pilotfisch has affiliated our reputation with your own, and are tarnished if you experience compliance lapses (like failure to pay.) If you would prefer the duties and taxes to be included within Pilotfisch's cumulative invoice, we are happy to remit those monies onward to CBP at no additional cost, markup or disbursement. Note that in some cases where duties and taxes are significantly large, Pilotfisch may decline the remittance liability and insist that you direct those monies directly to CBP. In the exceptional event where you know that you or your company will not be paying duties and taxes, we ask that you notify us immediately so that mitigating compliance actions can be swiftly taken. We are happy to have a discussion with you and detail all the ways in which failure to pay duties and taxes is a really poor plan.
You cannot get around them, but you do have some options. Single transaction bonding is great for one-off shipments or when future estimations are more speculative than concrete. Continuous bonding is the yearly-renewing alternative for volume or convenience. Your individual business' cyclicality and product niche are where Pilotfisch begin in helping you decide the best fit. *****UPDATE: Bond Sufficiency****** This is likely not a fault of yours, but a result of tariff changes governing your imports. Simply put, CBP puts the responsibility on the Importer or Record to stay informed and There is a trend within the surety industry where importers are struggling with bonding sufficiency. The idea is that your bond coverage is an accurate representation of your current and future volume of international trade; but as tariff changes are increasing in scope and intensity, those increases are statistically biasing your future estimations (in the eyes of CBP's calculations.) Importers and sureties are experiencing unprecidentedly high frequencies of notices, each like a negative creditscore hit in the increased bond stacking obligations; reduced reputation; higher direct or collateralized costs; as well as the cost of your time to deal with the legal and operational disruptions. These bond insufficiency notices and cancellation notices are issued directly to you or your entity, and have some pretty misleading claims. For example, the notice will likely list a new bond amount described as the new minimum. This number is not really calculated, more of a template number. DO NOT trust the minimum. Do the math and know for sure.
On Foreign
Relationships
On Foreign
Value Manipulations
Does your entity receive any foreign assists or commissions? If any of the following conditions are true, you must bring it to the attention of Pilotfisch Solutions. Have you [or your entity] directly or indirectly supplied any assists, at artificially lessened or at zero cost to the foreign party of interest, in connection with the production or sale of your merchandise? Assists include: - Materials, components, parts or similarly incorporated items within your merchandise. - Tools, dies, molds and similar items used in the production of your merchandise. - Goods consumed in the production of your merchandise. - Engineering, development, artworks, design works, plans or sketches undertaken outside of the United States of America (USA) which are necessary for the production of your merchandise. (Exeption if your USA-domiciled employee does work incidental to [the above design-like works]; which was previously undertaken inside the USA.) Are there any direct or indirect comissions between you [or your entity] and the foreign party of interest which was not included within the invoiced price of your merchandise? - Any excluded commission payment to the foreign party or a seller's agent, who is related to, controlled by, working for or on behalf of the manufacturer or foreign party of interest.
Is your entity related to the foreign party of interest? If any of the following conditions are true, you must bring it to the attention of Pilotfisch Solutions: - Do you share members of the same family, including (whole or half) brothers, sisters, spouses, ancestors or lineal descendants with the foreign party? - Do you share any officers or directors with the foreign party? - Do you share any officers or director with [Entity C], and [Entity C] shares any other officers or directors with the foreign party? - Are you and the foreign party business partners, or in a partnership agreement? - Are you and the foreign party in an employer-employee relationship? - Is any person directly or indirectly owning or controlling 5% or more stock or shares in both organizations? - Are any two or more persons directly or indirectly controlling, controlled by, or under common control of any other person in the foreign party? Again: You must alert Pilotfisch Solutions if any of the above apply to your situation.
Responsibilities (to Pilotfisch Solutions)
The following topics are still critical to your importation activities and Pilotfisch Solutions asks that you review the following topics; advising us of any uncertainty or applicability.
On the Accuracy of Information
On Curiosity or Concern
Your questions and concerns are the key to unlocking better experiences. International trade can be daunting, especially when so many of the links within supply chains seemingly profiteer on shipper's assumptions, ignorance or misfortune. Instead of being another broker and intermediary who readily asserts that something is "not their job" in gleeful revulsion, Pilotfisch Solutions has a culture of curiosity and has made it "our job" to offer you guidance or assistance on your behalf. We may not always know the answer right away; and when we don't know: we will find out and follow up with more!
You need to be the expert of your business' or shipments' information. In assisting you, Pilotfisch Solutions will use a concert of industry and proprietary tools as well as our expertise to scrutinize, guide, and to make compliance corrections as appropriate. US CBP will hold you, as Importer of Record (IoR,) responsible for knowing and reporting the facts [not the intentions] of your shipment. Similarly, the responsiblity will be yours to ensure all deadlines and obligations are satisfied correctly. Pilotfisch can't and won't accept the responsibilities for you, but we will do our best to support you toward avoiding issues and crafting solutions strategies. Pilotfisch suggests taking care in vetting your source agents in their business, practices and specific risk assessment. We will help guide you toward the critical details of your goods rather than local descriptions or insufficient oversimplifications. HTS codes for example are country specific, so your foreign supplier's code may mis-align with the United States' HTS codes. We want to help get things right from the beginning, and build confidence in you as well as your actual international interests.
On Pilotfisch Communications
On Pilotfisch Invoices
Our invoices are "Due Upon Receipt" and freight becomes available afterward. Our billing structure is designed to be one final invoice at the second-to-last facility. Keeping in mind that these penultimate locations are going to have their own free time allowance, the rapidity of pace doesn't end until after US Customs has their monies and you have your goods. As soon as Pilotfisch has been paid, the final hold on your goods will be lifted; leaving only pickup or delivery. Note that we are not a prepayment margin or disbursement business model. Pilotfisch Solutions does not want to profit from your delays or failures of intermediaries; instead we thrive from the second degree effects of your success!
The information and decisions are yours. We provide insights and relay instruction. Your preferences on communication are important, and we are going to be aligning to them as best as possible. Additionally, Pilotfisch is ready to lead or follow your instructions when communicating with internal or external parties. We can focus with your staff specialists to address technical concerns as well as curate or relay your logistics plan to external providers. You control how much or little activity Pilotfisch advises or manages on your behalf, and we will always strive to do so with courtesy and respect, as well as sensitivity for information security and discretion. Whether we are communicating conversationally or as an emergency responder: Pilotfisch will keep you empowered with an intensity appropriate to the circumstance. If there is something you'd like Pilotfisch to do or communicate differently, we will do our best to accommodate your preference.
Expectations (for Best Practices)
The following additional topics are included as tips and insights so that you can better equip yourself for success. Although none of the below are specific obligations required of you [or your entity], we highly suggest reviewing and incorporating these topics into your standard operating practices. These should help streamline the information pipeline for your support intermediaries, as well as lessen costly delays along the way.
Additionally, we'd sure appreciate your help in making both of our lives easier!
On Using Incoterms
On Proactivity
On Designating
Pilotfisch Solutions
We ask you designate us as Notify Party or Customs Broker. We cannot stress enough how helpful these designations are! Please use the following information: Pilotfisch Solutions, Inc. Phone: 855-745-6834 Email: notify@psichb.com Due to security and privacy reasons, information is not automatically shared between supply chain intermediaries. It is especially helpful if shippers designate a "Notify Party" to the appropriate carrier(s) so that they will share information. In some cases, carriers will also let you designate a "Customs Broker" party in addition to your Notify Part[ies]. When Pilotfisch is designated as your notify or broker, the carrier or freight forwarder will automatically include Pilotfisch with import-related notices as well as signal that Pilotfisch is actively involved. The bottom line here is that our mutual agility and responsiveness to importing issues will be undercut by the additional time taken to secure that information. Not only does it take several hours to wait on hold with these international carriers, they may decide to withhold the information because they are unsure of affiliation. You are losing precious time because Pilotfisch must chase down the information. As detention and demurrage charges increase, you are effectively surrendering one or more free days just to identify what actions are needed. This is a huge waste of your precious time, and these carriers are looking for any reason to charge you more. Don't help them hurt you; help us help you! We really appreciate your help to designate Pilotfisch Solutions!
These international terms simplify liability and responsibilities. As global trade has increased in volume and complexity, the International Chamber of Commerce (ICC) established and codified the transition of liability and responsibility into internationally standardized terms of sale. The 2020 convention of Incoterms defines 11 different terms of sale which help traders understand and protect themselves as appropriate. Although there is no substitute for a contractual agreement including terms of sale between you and your foreign supplier, these Incoterms will be recognized by international courts and most national authorities. You may be familiar with some Incoterms already: Free on Board (FOB), Cost of Insurance and Freight (CIF) or Delivered at Terminal (DAT) to name a few. Pilotfisch suggests reviewing the ICC's 2020 convention on Incoterms (or Incoterms2020) so that you are empowered to negotiate and make better arrangements with your foreign agents. Pilotfisch also wants to ensure that our clients receive the full benefits of their terms and don't double-pay for any charges due to ignorance.
The sooner we begin preparing, usually the better for everyone. The international freighting industry is structured to operate in a way that heavily skews in the carrier or operator's favor. If your goods cause any delays: detention and demurrage charges are heavily punative; if they cause delays or issues: your recourse is limited, and it's an ordeal to accomplish. Pilotfisch Solutions wants your shipments to flow swimmingly and we highly prefer guiding you to avoid obstacles rather than speeding to stymie capital losses while seeking solution opportunities. This also includes being prepared for the inevitable examinations or spontaneous issues that sometimes happen despite flawless planning. The sooner you engage with Pilotfisch, the sooner we can provide you with insights to make decisions, and the better we can swiftly act on your behalf. We ask that our clients limit themselves and our time for genuinely intended shipments. If you would like Pilotfisch Solutions to facilitate in speculative analysis or project investigation work, we will gladly organize an engagement agreement for the scope and needs of your project(s) on a consulting basis.
On Logistics:
Monitoring & Management
On Payment Advances
(made on your behalf)
Everyone in the suppy-chain wants a buck, but paying them may not be so simple. As Pilotfisch montitors your importation, so too are we monitoring for charges and holds due to intermediary facilities. Despite intution, US Customs does not directly operate any cargo facilities, examination sites or modes of conveyance. Instead, these facilities are owned by third parties, each demanding their own payment for processing and handling. Whether it is an exam site, warehouse, or some other intermediary handling your shipment, Pilotfisch can again distinguish iteslf from other customs brokerages in that we are willing to advance payments on your behalf for a processing fee (for a cumulative invoice at the end of your importation, including supporting materials detailing each advance.) Many of these facilities and intermediaries will have specific rules and limitations on how to accept payment. In many instances, terminals are unable or unwilling to accept payments directly from the importer. Sometimes, however, you should find the process simple and straightforward. As a licensed customs brokerage, our payments are able to penetrate these barriers and expedite treatment of your goods regardless of facility. Alternatively if you experience a dead-end with a payment, Pilotfisch can still step in to assist when you need us. Pilotfisch offers this service as a convenience to you, and we acknowledge that this will marginally increase your bottom line. The critical trade-off lies primarily in minimizing delay risk, but also maximizing your time and where you spend it. As an additional note: Pilotfisch suggests always using a trackable courier to deliver any payments you send. Knowing your payment has delivered is as important as knowing you paid the correct amount!
Pilotfisch will be monitoring state-side logistics; we think it is important for indirect effects. Most customs brokerages limit their interests to the one specific function of Customs business, leaving the burden and liability of all other supply-chain functions sitting unacknowledged at the feet of the importer. Unlike these other brokerages, Pilotfisch Solutions will always include logistics monitoring during the high-intensity periods of your importation. By monitoring your shipment's progress, (or lack thereof,) we are decreasing the likelyhood of additional issues damaging the value of your arbitrage. We find that by helping you stay ahead of issues or liabilities, you are less likely to make [poor] choices under pressure and jeopardize your compliance composure. That's a win for us both! Beyond monitoring, Pilotfisch is licensed by the FMCSA as a property broker for the purpose of supporting our import customers' logistics management. You are under no obligation for logistics management though Pilotfisch, but we are available if and when you need us. If you already have a logistics plan in place, we look forward to helping you achieve it; if not, we look foward to helping you establish your next plan.