Source: http://www.google.com/patents/US7739248?dq=821,393
Timestamp: 2016-04-30 00:22:51
Document Index: 111153284

Matched Legal Cases: ['ARTA1', 'ARTA2', 'ARTA3', 'ARTB1', 'ARTB2', 'ARTC1', 'ARTC2', 'ARTD1']

Patent US7739248 - Auditing of customs entry packets - Google PatentsSearch Images Maps Play YouTube News Gmail Drive More »Sign inPatentsA method for auditing HTS classifications generated from entry packets submitted electronically by U.S. Customs Brokers. A software user interface enables a user to enter the submitted entry packet into a first repository in a centralized database. Executable layers of code links the database to the...http://www.google.com/patents/US7739248?utm_source=gb-gplus-sharePatent US7739248 - Auditing of customs entry packetsAdvanced Patent SearchPublication numberUS7739248 B2Publication typeGrantApplication numberUS 10/790,513Publication dateJun 15, 2010Filing dateMar 1, 2004Priority dateDec 27, 2002Fee statusLapsedAlso published asUS7475079, US7693854, US7792863, US8015120, US8073873, US8121928, US20050004894, US20050010431, US20050015390, US20050021358, US20050033592, US20050060259, US20050177426Publication number10790513, 790513, US 7739248 B2, US 7739248B2, US-B2-7739248, US7739248 B2, US7739248B2InventorsAnthony Uy, Tom Potts, Frederic Holmes, Matt Halterman, Laurie Peach, Mark Swirt, Denise ThornOriginal AssigneeHonda Motor Co., Ltd.Export CitationBiBTeX, EndNote, RefManPatent Citations (31), Non-Patent Citations (1), Classifications (27), Legal Events (5) External Links: USPTO, USPTO Assignment, EspacenetAuditing of customs entry packets
US 7739248 B2Abstract
A method for auditing HTS classifications generated from entry packets submitted electronically by U.S. Customs Brokers. A software user interface enables a user to enter the submitted entry packet into a first repository in a centralized database. Executable layers of code links the database to the software user interface. A second repository contains information pertinent to HTS classifications. The user compares the entries in the second repository to the HTS classifications in the first repository. The user generates a report containing any discrepancies between the information contained in the entry packet to the internal classifications. The report can be used to identify errors in the importation process.
1. Computer-readable storage media embodying a program of instructions executable by a computer to perform a method for Harmonized Tariff Schedule (“HTS”) auditing by an importer using a software user interface and an importer database coupled to the software user interface using one or more layers of executable code, the method comprising:
an importer receiving from a customs broker in electronic form:
scanned images of entry packets relating to products imported by the importer which the customs broker assembled and submitted to U.S. customs, each entry packet including at least one commercial invoice, at least one shipping manifest, and at least one U.S. customs form which the customs broker prepared and which sets forth an HTS code and a duty relating to at least one of the products; and
a broker database containing information relating to the entry packets in an electronically comparable form;
the importer entering the scanned images and the information in the broker database into a first repository in the importer database;
the importer linking the scanned images and the information in the broker database to corresponding records of the importer about the products in a second repository in the importer database;
the importer electronically and methodically comparing the information in the broker database with the corresponding records of the importer;
the importer comparing information in the scanned images with the corresponding records of the importer;
the comparing including comparing an HTS code on one of the customs forms with an HTS code with the corresponding records of the importer;
the importer identifying one or more discrepancies between information in the broker database and/or the scanned images and the corresponding records of the importer based on the comparisons, thereby auditing the entry packets;
the importer generating a report identifying the one or more discrepancies between the information in the broker database and/or the scanned images and the corresponding records of the importer; and
the importer taking remedial action to correct the discrepancies.
2. The computer-readable storage media of claim 1 wherein each entry packet includes a 7501 Customs form.
3. The computer-readable storage media of claim 1 wherein the comparing includes comparing attribute classifications assigned by the customs broker to attribute classifications located in the corresponding records of the importer.
4. The computer-readable storage media of claim 1 wherein the comparing information in the scanned images with the corresponding records of the importer includes:
displaying a screen which includes:
a link to more information about one of the invoices;
a link to more information about a product within the one invoice; and
a link to more information about an HTS code relating to the one invoice;
activating one or more of the links; and
in response to activating each link:
displaying the more information which is linked to the link; and
comparing it to at least one of the scanned images.
5. A system for auditing Harmonized Tariff Schedule (“HTS”) classifications, comprising:
a database comprising internal records of an importer relevant to HTS classifications;
a user interface accessible from the computer terminal; and
a software program suite coupled to the database and to the user interface, the software program suite configured to:
allow an importer to receive from a customs broker in electronic form:
enable the importer to:
enter the scanned images and the information in the broker database into a first repository in the importer database;
link the scanned images and the information in the broker database to corresponding records of the importer about the products in a second repository in the importer database;
electronically and methodically compare the information in the broker database with the corresponding records of the importer;
compare information in the scanned images with the corresponding records of the importer;
identify one or more discrepancies between information in the broker database and/or the scanned images and the corresponding records of the importer based on the comparisons, thereby auditing the entry packets;
generate a report identifying the one or more discrepancies between the information in the broker database and/or the scanned images and the corresponding records of the importer; and
take remedial action to correct the discrepancies.
6. The system of claim 5 wherein each entry packet includes a Customs 7501 form.
7. The system of claim 5 wherein the software program suite is configured during the comparing information in the scanned images with the corresponding records of the importer to:
display a screen which includes:
allow one or more of the links to be activated; and
display the more information which is linked to the link; and
compare it to at least one of the scanned images.
This application is a continuation of and claims priority to U.S. patent application Ser. No. 10/745,956, entitled “HARMONIZED TARIFF SCHEDULE CLASSIFICATION USING DECISION TREE DATABASE,” filed Dec. 24, 2003 now abandoned, which claims priority to U.S. Provisional Patent Application entitled “TRADE COMPLIANCE SYSTEM.” Ser. No. 60/436,679, filed Dec. 27, 2002. This application is also related to U.S. patent application Ser. No. 10/779,035, filed Feb. 13, 2004, entitled “TWO-PASS HARMONIZED TARIFF SCHEDULE CLASSIFICATION,” which is a continuation of application Ser. No. 10/745,956.
United States Customs requires that imported products be correctly classified within a complex classification system known as the Harmonized Tariff Schedule (“HTS”). Within the context of this system, the United States classifies products using 10-digit HTS codes. These codes are used, for example, for determining the applicable tariff rates on different types of products imported into the United States. The United States Customs Service is the responsible entity for administering the tariff and for processing import entries, and, as such, has significant responsibilities.
The import process itself can be extremely complex, particularly for a large business entity. At least four distinct phases of operation may exist as part of this process—namely, (i) the pre-entry or classification process, (ii) the entry process, (iii) the post-entry process (including audits and payment balancing), and (iv) the amendment process. Each such phase often includes a complicated set of procedures, many of which are dependent upon or interrelated to other procedures. These phases usually also include a complex set of data concerning importation procedures, which data contains many other relevant dependencies and interrelationships. These procedures and interrelationships must be often be integrated and managed in a coherent and meaningful way so as to ensure full compliance with U.S. import regulations.
In one aspect of the present invention, a method for HTS auditing using a software user interface and a database coupled to the software user interface using one or more layers of executable code includes receiving by an importer from a customs broker an entry packet submitted to U.S. Customs, the entry packet containing information relating to a shipment for importation, entering, by the importer, the entry packet into a first repository in the database, consulting, by the importer, a second repository in the database, the second repository containing records relevant to a plurality of imported goods, comparing, by the importer, the entry packet in the first repository with the records in the second repository, identifying, by the importer, one or more discrepancies between the entry packet and the records, and generating, by the importer, a report identifying the one or more discrepancies between the entry packet and the records.
In another aspect of the present invention, computer readable media embodying a program of instructions executable by a computer program to perform a method of auditing HTS entry data for U.S. Customs data includes entering an entry packet submitted by a customs broker to U.S. Customs into a database, the entry packet directed to a shipment for importation, storing internal records relevant to the shipment, providing a software user interface for comparing, at a computer terminal, the entry packet with the internal records for discrepancies generating a report identifying one or more discrepancies between the entry packet and the internal records.
In still another aspect of the invention, a system for auditing HTS classifications includes a database comprising internal records relevant to HTS classifications, a computer terminal, a user interface accessible from the computer terminal, and a software program suite coupled to the database and to the user interface, the software program suite configured to receive electronic entry packets, enable a user at the computer terminal to compare one of the entry packets to the internal records, and enable the user to generate a report comprising discrepancies between the one of the entry packets and the internal records.
In still another aspect of the invention, an HTS classification method for auditing entry packets for U.S. Customs includes inserting, using a software user interface, an entry packet into a database, comparing data in the entry packet to internal records located in the database, identifying one or more errors between the data and the internal records; and generating a report comprising the errors.
In still another aspect of the invention, An apparatus for auditing of HTS classification for U.S. Customs importation includes a database comprising a plurality of repositories, software user interface means for accessing the database including input means for entering entry packets, comparison means for comparing entry packets with internal records in some of the plurality of repositories, report-generating means for creating reports identifying inconsistencies between the entry packets and the internal records, and a plurality of remote terminals through which the software user interface is accessible by one or more users.
In one embodiment, the customs broker has access to the Item Master 123, which may also be called the product dictionary. As needed, the customs broker can consult the product dictionary to ascertain part attributes and identify the HTS code classifications assigned to items by the importer. After the customs broker has all the necessary information from the suppliers, freight forwarders, and the customs department of the importer, the customs broker may collect and prepare the comprehensive entry packet information 135 (step 35) and submit that information to U.S. customs as the shipment enters a designated port in the United States and is received by U.S. Customs (block 145). The customs broker will typically also pay the necessary tariff on behalf of the importer. In addition to submitting the entry packet information 135 to U.S. Customs, the customs broker may also submit the entry packet to the company's Customs department (or similar group responsible for maintaining such records) (step 145). The entry packet information 135 can then be incorporated into the entry history repository 127 of the TCS database 124, where it can be subsequently analyzed and audited (see below). In sum, in the entry process of one embodiment, (i) the goods are imported into the United States, (ii) the customs broker prepares an entry packet of information describing the relevant attributes of the goods for the purpose of computing tariffs, (iii) the customs broker submits the entry packet to U.S. Customs and back to the importer, and (iv) the customs broker pays the applicable tariff on the imported goods to be subsequently reimbursed by the importer. In addition, the entry packet information supplied by the customs broker in electronic format may be integrated into the TCS database for accurate record-keeping and auditing purposes.
FIG. 5A is a flowchart illustrating the use of the decision tree in the assignment of HTS codes in accordance with an embodiment of the invention. Assume, for example, that the analyst for a motorcycle manufacturer needs to assign an appropriate HTS code to a replacement part, such as a rubber throttle grip. The method of the present invention makes the analyst's task straightforward. In step 23, the analyst selects the application classification group from a menu in the TCS. For illustrative purposes only, the classification group may be “motorcycle handlebar parts.” The analyst may then be given a list of alternatives in an exemplary subgroup #1, in step 25. One such alternative, for example, may be “throttle functions”. The analyst may then selects that alternative and thereupon may navigate to the next menu, as shown in step 27. The analyst may be presented with a further list of possibilities, one of which may be “rubber throttle grip” or the like. Associated with the part description may, depending on the embodiment, be a number of additional descriptive information such as a part number, the motorcycle brands to which the part corresponds, and other relevant information. The analyst may then select the “rubber throttle grip” in sub-group #2, and arrives at the correct HTS code for the part at issue, as shown in step 29. At that point, the correct HTS code may be assigned to the product to be imported, and the assignment may be recorded in the Item Master.
FIG. 5B is a flow diagram that depicts an exemplary pre-entry process in accordance with an embodiment of the invention. In this example, “Co. Customs” represents a division of a company that is responsible for obtaining product information from other divisions of the company and applying appropriate classification information for importation purposes. This step is described in more detail in the pre-entry process above. “Co. Customs” may obtain relevant information (step 504) from other company divisions 502 and customs brokers 503. As discussed above, various additional sources may trigger classification adds or changes. Notifications requiring action include the introduction of new models, customs ruling changes, self-audit discovery, or codes missing at entry. Using this information, the importer may perform appropriate classifications (step 505). That is, “Co. Customs” may assign HTS codes to products, along with other required information such as extended customs descriptions, legal rationale, and timestamps. “Co. Customs” may track Questions and Answers (501A, 501B) with other company divisions during the notification process. A Q/A log 508 may be created that contains information pertinent to product classification. “Co. Customs” may also perform the classification step and any subsequent audits to identify errors or discrepancies (step 506), as deemed appropriate. All classification information, associated bases for classification, and errors discovered during a subsequent audit may be entered into the TCS classification information repositories 515 which may be linked to an interface to customs tariff system 514 which may be linked to co. division systems.
In addition, other links may provide more general navigational capability. “Coweb” link 703 may provide a link to the home page of the corporate intranet of the importer. “US Customs” link 704 may provide a link to the U.S. Customs web page. “Fedex Trade Networks” link 705 provides a link to the web page of a customs broker. “Japan” link 706 may provide links to networks of the corporation located in Japan. “QA log” link 707 may provide a link to the log created by virtue of correspondence between the customs division of the importer and the customs broker. “Toolset” link 708 may allow a user to navigate to the PWC tool set. An online user guide may also be available via link 709.
FIG. 8 shows another screen 802 to enable a user to access information from the Item Master. In this example, the user has accessed the Item Master by clicking on the “Item Master” link 701 in FIG. 7, thereby arriving at the screen 802 in FIG. 8. As shown by the area encompassed by 801, the TCS screen 802 in this embodiment contains a “headline” logo which may include a plurality of navigation commands to all functions (e.g., “Home”, “Sys Admin”, etc.). Underneath the general navigation commands in area 801 lies the sub-functions within the group selected (in this case the Item Master Classification).
In other embodiments, mappings may be created within the TCS which link various internal classifications only to commodity groups, or only to HTS codes. FIG. 14 is an illustration of a database map 1401 wherein internal classifications based on function are all linked directly to HTS codes. “FCN1” corresponds here to three items, labeled for illustrative purposes “PARTA1” “PARTA2” and “PARTA3”. These parts correspond, respectively, to 10-digit HTS codes “CODEA1”, “CODEA2” and “CODEA3”. Likewise, “FCN2” contains parts “PARTB1” and “PARTB2”, which are linked respectively to “CODEA4” and “CODEA5”. “FCN3” links to “PARTC1” and “PARTC2”, which respectively map 1401 to “CODEA6” and “CODEA7”. Finally, “FCN4” links to “PARTD1” which is mapped to HTS code “CODEA8”.
FIG. 18 shows another example of a screen 1802 that can be accessed by selecting the “HTS Detail” link 1703 in FIG. 17. FIG. 18 also illustrates the utility of the TCS by its advanced navigational capabilities and its user-friendly applications screens. These screens may be part of an integrated application which overlaps and links to the underlying database repositories which provide for uniform and easy access to and editing of information pertinent to U.S. Customs. Here, the HTS code 1804 of the selected product can be identified and readily compared with the information in the entry packet submitted by the customs broker to U.S Customs. Further, the screen 1802 provides information about any necessary product attributes (if applicable), such as whether an anti-dumping duty 1805 or a countervailing duty 1806 may apply to items in the shipment. These records can be quickly and easily compared with the information in the electronic entry packet provided by the customs broker. Any errors can thereby be identified and appropriate remedial measures may be taken. Links 1803 to View Audit Results and Add line Item may be provided.
FIG. 25 shows an example of a TCS screen 2505 containing links to the electronically recorded entry packet information. In this example, an “Entry History” number 2504 is assigned to the entry packet for subsequent identification purposes. The entry packet shown has three elements. The user may navigate to the CF7501 Customs form by clicking on the link 2501. The user may also access directly the Commercial Invoice of the shipment associated with the entry packet by simply clicking on the link 2505. The user may also navigate to the EDI by selecting link 2503. The entry packet may be linked in other embodiments to additional information. An illustration of the 7501 form related to the entry packet is shown in the screen 2602 of FIG. 26.
FIG. 27 shows an screen illustrating the utility of linking entry packets to shipment information in accordance with an embodiment of the present invention. The TCS screen 2702 in this embodiment provides the user with the ability to navigate to various desired aspects of a particular shipment. “Entry Packet Info” link 2701 may allow the user to navigate back to the entry packet screen 2502 in FIG. 25. The user may also examine information regarding the shipment(s) at issue based on criteria including “Header/CI” (2703), “HTS” (2705), “Product” (2707), and “Event” (2709). The user is also provided in this embodiment with a comprehensive list 2711 of information linked to and directly relevant to the entry packet at issue. From this description, the advantages associated with the linkage of information are readily apparent. Audit times may be decreased. Records may be more easily found. Shipments may be examined using a variety of criteria.
In the accounts payable department according to the disclosed embodiment, an employee reviews the summarized payment request received from the customs department (step 260). The employee may also compare the request with its own summary of payments to ensure accuracy and that duplicative reimbursements are avoided. The employee may also process the electronic broker invoices through the company's weekly A/P payment cycle. Payment is then transmitted to the customs broker. Typically, the employee also creates remittance information for entry into the TCS to reflect the reimbursement and to “complete the picture” within the TCS. A payment remit file 258 may be used.
The main menu 3004 further provides a number of additional TCS System Links 3008. In this example, “Coweb” may bring the user to the company's intranet, which may include a suite of functions dedicated to importation and U.S. Customs processing. Link 3007B may take the user directly to a U.S. Customs web site, or other repository of U.S. Customs related information for use in classification and other purposes. Link 3007C provides in this embodiment a link to a customs broker, which in this instance is Fedex Trade Networks. A link 3007D to the web site of the United States International Trade Commission may be provided. A link 3007E to a corresponding division of the corporation in Japan may exist for, among other things, perusal by the analyst of the internal classifications of items. A Q/A log 3007F may also be obtained that may record questions and answers received from and provided to customs brokers and other third parties. A separate toolset link 3007G may provide the user with a plethora of other tools and links for navigating through the integrated data repository and finding information relating to a desired shipment, payment, audit, amendment, etc. A link 3007H to a user guide may conveniently enable the user to consult online help with respect to understanding various features or functions of the TCS. A link 3007I may also allow the user to contact U.S. Customs, or, depending on the implementation, another division of the corporation or similar entity.
In addition to the set of available links 3008, the analyst in this implementation may access from the main menu a variety of TCS application functions 3013. The specific functions available will depend on the specific implementation; however, functions relating to at least some of the four main phases of operations may be presented. The user may access Classification functions 3009, entry-related functions 3010, entry packet related functions 3014, Internal Entry Audits 3011 and post-entry Amendments 3012.
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ASSIGNOR(S) HEREBY CONFIRMS THE NAMES WERE WRITTEN CORRECTLY ON THE ORIGINAL COVER SHEET AND ON THE ASSIGNMENT RECORDED SEPTEMBER 23, 2004.;ASSIGNORS:UY, ANTHONY;POTTS, TOM;HOLMES, FREDERIC;AND OTHERS;SIGNING DATES FROM 20040902 TO 20040913;REEL/FRAME:023911/0720Jan 24, 2014REMIMaintenance fee reminder mailedJun 15, 2014LAPSLapse for failure to pay maintenance feesAug 5, 2014FPExpired due to failure to pay maintenance feeEffective date: 20140615RotateOriginal ImageGoogle Home - Sitemap - USPTO Bulk Downloads - Privacy Policy - Terms of Service - About Google Patents - Send FeedbackData provided by IFI CLAIMS Patent Services