Self-Testing

1
Self-Testing
2
Self-Testing Plans

• Unique to each company based upon risk factors
  associated with its business, process
  procedures, and commodities.
• Must be documented and submitted with as part of
  the Importer Self-Assessment (ISA) application
  package.

3
Example Risk Factors to Consider

• Number of Customs brokers utilized
• Classification of merchandise
• Valuation methodology
• Related party transactions
• Additional payments (e.g., assists, royalties,
  undeclared payments)
• Special trade programs
• New employees, Customs brokers, special trade
  programs, etc.
• Imports subject to other government agencies

4
Frequency of Reviews

• Daily
• Monthly
• Quarterly
• Annually

5
Review Tools

• Risk Assessment / Risk Matrix
• Transactional Testing
• Statistical
• Non-Statistical

6
Questions to Consider Document

• Will a risk assessment/risk matrix be used in
  conjunction with transactional testing?
• Frequency of review (i.e., daily, monthly,
  quarterly, and/or annually)?
• Who will conduct the review?
• Note Individuals should NOT be reviewing their
  own work.
• How many items will be reviewed?
• What areas (e.g., classification, valuation,
  special trade programs, other government
  agencies, etc.) will be included in the review
  and how will the areas be tested?
• How will the reviewed items be tracked?
• How will errors be handled?
• Who will the results be reported to?

7
Self-Testing Results

• Should be maintained for a 3-year period.
• Should be available for review by your Account
  Manager and/or the ISA team upon request as part
  of the annual notification process.
• Should be reported, at a high level summary, to
  U.S. Customs and Border Protection as part of the
  companys Annual Notification Letter.

8
CBP Contact Information

• Richard Wallio, Chief, Partnership Programs
  [phone]
• Albert Queen, Trade Liaison, Partnership Programs
  [phone]
• Anita Harris, Trade Liaison, Partnership
  Programs [phone]
• Leon Sample, Field Director, Regulatory Audit
  [phone] ext.101
• Customs Web-site
• http//www.cbp.gov/xp/cgov/trade/trade_programs/tr
  ade_compliance/importer _self_assessment/