Importing goods into the USA can be a daunting task, but with the right knowledge and preparation, it can be a smooth process. Understanding importing regulations, documentation requirements, tariffs, and duties are essential steps to navigate the complexities of importing.
Choosing the right importing method, whether it be air freight or sea freight, can impact the cost and speed of delivery. Navigating customs clearance is another crucial aspect, involving customs brokerage and handling customs inspections.
View Video: Understanding Entry Types for US Imports
Ensuring compliance with import regulations, such as product standards and labeling requirements, is vital to avoid penalties and delays. Our team helps you stay ensure your success of importing to the USA.
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In this post, we review the following concepts:
Anyone receiving goods from outside the USA are most likely the Importer of Record or IOR. The IOR is broadly defined as the person or entity who owns the goods at the time of import.
US Customs regulations mandate compliance from all importers regardless of how often they import. The mandate includes the concept of "informed compliance." Not knowing of a regulation is not accepted as a reason for non-compliance.
Importer of Record Accompanying PDF
Importers using formal entries must complete a CBP 5106 form.The businesses Employer Identification Number (EIN) is a necessary field. Individuals need to supply their Social Security Number.
The paperwork necessary for import to the USA starts with the commercial invoice and bill of lading or waybill.Other documentation and approvals may be necessary as it relates to Food and Drug, Wildlife, and other partner government agency requirements.
The Bill of Lading / waybill and commercial invoice are the most fundamental to cross border shipping.
Duty rates to the USA most commonly express as a percentage of the value. Sometimes it can calculate on the quantity, weight or volume. Duty free is accessible for many goods importing with a value under $800. Goods qualifying as originating via a free trade agreement - such as USMCA - can import duty free regardless of value.
The HTSUS is the The Harmonized Tariff Schedule of the United States. It sets out the tariff rates and statistical categories for all imports. The HTS is based on the international Harmonized System, which is the global system of nomenclature applied to most world trade in goods.
Goods shipping to the USA must pass security screening prior to export. This process is the AMS system for Air and Importer Security Filing for Ocean.
For ocean shipments, the ISF processes (or 10+2) facilitate the notification requirement. The "lowest level" bill of lading number is is transmitted into the ACE system.. The bill of lading number serves as a link between ISF and manifest data.
The best way to transport your goods to the USA depends primarily on the nature of your goods, size and weight of the consignment and shipping volume.
The benefits of air freight is both speed of delivery. E-commerce importing via air can benefit from express consignment clearance processes.
The cost advantages of sea freight works for larger/ container size imports. Less than container load can work as well but requires additional transit time.
Generally speaking, most goods with a value under US$2,500 can import without a customs bond. Most goods under US$800 can import duty free.
Importers can assign a customs broker to clear the goods on their behalf. This authorization is via a Power of Attorney or POA. Authorization can be for a single shipment or for all an importers shipments.
Generally speaking, shipments arriving to the USA via air courier (namely FedEx, UPS and DHL) include entry preparation for most imports under $2,500. Shipments arriving via FedEx or UPS ground are subject to an "entry preparation fee."
Custom inspections by the very nature are unpredictable. They can target by area commodity, origin, carrier or port of entry. A specific shipper or importer may also be a target of a higher level of inspections.Increasingly, US ports use a CES (Central Exam Station) for any examinations. This adds additional costs.
The main importing costs include import duty, brokerage charges, customs bond, and local facility charges.
The shipping costs are usually lower from the exporting country. In general:
The list of import fees can include:
Stay on top of import regulations to avoid penalties and delays. The concept of "inform compliance" makes it clear that not knowing of a regulation does not excuse an importer from compliance.
Product standards, labeling requirements, and certifications relate mostly to Partner Government Agencies. Most common are standard put forth by the Food and Drug Administration.See links to Partner Government Agencies
The US tariff schedule is available online and built via the World Customs Organization principles. The US classifications are similar in structure to the HS classification of other countries.
Read more about HS Codes and Tariff classification
The first 6 digits of a harmonized code generally are the same.The remaining digits are unique to each country.
Understanding HS codes helpful video
In general, the most common method for importing goods is via the Transaction Method.
The transaction value of importing merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts equal to:
Note that US customs does not consider transport costs as part of the transaction value.
Just shipping goods from a specific country is not the same as their country of origin. The country of origin more commonly refers to the country of manufacture. Goods of a specific origin may qualify for duty import via a free trade agreement. However, from where goods ships can impact such things as quotas and target of enforcement.
Every article of foreign origin entering the United States must be legibly marked with the English name of the country of origin unless an exception from marking is provided for in the law.
The general rate of import duty to the USA are lower than to most countries. In most cases is ad valorem or a percentage of the value. In some cases, import duty can assess on a unit of weight, volume and quantity.
The general rates of import duty to the USA are available in the US tariff. Duty free import is possible under the following conditions:
Antidumping (AD) and Countervailing Duties (CVD) are becoming more common. These rates are meant to be punitive and, as such, are significantly higher than what is shown in the tariff schedule. Often, the AD/ CVD rates are not shown in the column 1 duty rate. Or they are not abundantly clear in the section notes. The best way to guard against an unexpected AD/CVD duty is to get a binding ruling from customs.
Over 80 percent of North American trade cross via land borders. The processes are unique regarding truck transport requirements. However, the fundamentals of customs clearance remain the same. Contact our team for Canada -USA cross border shipping.
In addition the USMCA with Canada and Mexico, the USA has free Trade Agreements with 20 countries in total. The programs facilitate trade in merchandise by allowing originating goods to import duty free. Each agreement has "rules of origin" outlining how the goods can qualify. To benefit from these programs, qualifying goods much include a Certificate of Origin (or certification of origin).
The Commercial Invoice is among the most important documents for importing to the USA. Data from the invoice is useful for customs entry information, certifications, value, and admissibility.
* The name and complete address of the foreign individual or firm who is responsible for invoicing the merchandise.Ordinarily the manufacturer/seller. If not, the party who sold the merchandise for export to the United States or made the merchandise available for sale.
Note: The manufacturers name and address is necessary for any wearing apparel entries. If the country of origin is China,the full name and address of the manufacturer including the zip code is necessary for entry.
Useful Information regarding a commercial invoice for customs.
There are three basic entry types for importing goods to the USA.
A formal entry requires a customs bond and record keeping years following import.
Clearing US Customs often requires approval from another government agency. Most notably are cosmetics, food, drugs, wildlife goods etc.
PDF presentation of Partner Government Agencies
The best shipping option depends primarily on the size and weight of consignments along with volume of shipments. If you wish to receive samples from a supplier in a small packages, the best option is usually via FedEx, UPS or DHL. Postal options may be useful as well.
The best pricing for shipping is often from the country from where the goods ships. This is referred to as "in country pricing." In other words, the best price for shipping cargo from Thailand, for example, is usually via a carrier or forwarder in Thailand. The advantage of getting a local quote is better communication. This is especially true when it comes to import recovery, fees and final delivery.
In general, small packages best ship via courier. Several packages up to a pallet or two generally are best via air freight. As the weight goes beyond around 500 kilograms, ocean freight becomes the lowest cost option. Ocean freight has many accessorial fees with minimums. This makes sea freight more expensive for lower weight shipments. For high volume parcel flows, consider air freight to an express consignment (ECCF) or container freight station (CFS). Contact Jet's team for assistance.
Timothy Byrnes gave a presentation to the New York Small Business Development Corporation.
A link to this presentation was available for 48 hours following the presentation. For a copy of the presentation, email your request: t-byrnes@jetworldwide.ca.
Benefit from a consultation or presentation with our team: info@jetworldwide.com