Export Compliance Daily is a Warren News publication.

Financial Interest of Wine Intermediary Enough to Act as Importer of Record, CBP Says

A selling agent working as intermediary between European wineries and U.S. wine wholesalers has enough of a financial interest to be the importer of record, CBP said in a June 30 ruling. Quality Brand Imports requested a ruling from CBP on whether it is able to serve as the IOR even though it never acts as a buyer or takes ownership of the goods, acting only as a facilitator.in the import and sales process.

Sign up for a free preview to unlock the rest of this article

Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.

To determine whether Quality can serve as IOR, CBP must determine if the company "has a financial interest in the wine at the time of entry, sufficient to constitute a nexus between its financial welfare and the imported goods," the agency said. The agreement between Quality and the wineries includes "a flat fee per bottle imported; a flat fee per bottle for customs clearance and entry services provided by the licensed broker; a fee per [Tax and Trade Bureau Certificate of Label Approval/Exemption] and reimbursement for label approvals paid by Quality Brand Imports; and deposit [of] all duties, taxes, and fees applicable to the importations, to be provided to Quality Brands Imports prior to shipment" to the U.S., upon request.

The agency relationship for selling the wine on behalf of the wineries for a fee is similar to scenarios in other rulings in which CBP found there to be enough of a financial interest for the agent to be an IOR. "Because Quality Brand Imports receives a fee for its services performed in connection to the imported wine, we find that there is a sufficient financial nexus between Quality Brand Imports and the imported goods so that Quality Brand Imports may act as importer of record," CBP said. "Moreover, under 19 U.S.C. § 1484(a)(2)(B), Quality Brand Imports would have the right to designate a broker to make entry on its behalf."