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Most people start by calling a Customhouse Broker.
When you do, you should have beforehand:
1. A good description of the goods, i.e. what is it made of, what does it do, how is it made?
This, of course, depends on the commodity, but have as much information as possible so the broker can best inform you. Illustrative literature is always helpful and sometimes even required by Customs.
2. Where are the goods made, manufactured or grown?
Generally, an article's country of origin is based upon where it was made, manufactured or grown and does not change simply because it was purchased in another country other than where it was made before being imported into the USA. That is unless substantial transformation has taken place, like Chinese fabric imported into France and made into a dress that is then exported to the USA. The goods would then be of French origin and not China. Simple processes like cleaning and pressing are not considered substantial transformation.
3. What are the values of your shipments and how often will you be importing?
U.S. Customs bonds are required by the U.S. Customs Service for each shipment that enters the USA on a formal entry. Formal entries are based upon the value and the kinds of goods being imported. The usual breaking point, where a formal entry with a Customs bond is required, is $2,000., but there are quite a few exceptions, such as textile goods that require a formal entry regardless of the value or shipments of handbags that are valued at $250.00 or more. To find out more, give us a call.
4. Are you planning on importing by ocean freight, airfreight, truck, rail, the mail or all the above?
The difference at first seems obvious. Ocean Freight is cheaper and takes longer. Airfreight is more expensive and takes a lot less time. But with fast sailing times from some foreign ports (you'd be surprised how fast), ocean freight may work into an importers time constraints and save money. There are times when ocean shipments are so small they are eaten up by minimum charges. Airfreight is the obvious choice for small shipments of samples, perishables, live animals, personal goods, the got-to-have-it-or-we'll-lose-our-best-customer situations or the just plain I-want-it-now situations. International Express Mail is a good way to import valuables. It is traceable plus insurable and will come delivered to your door by the U.S. Postal Service after it has cleared U.S. Customs.
If the Customhouse Broker doesn't know the answer, he or she usually knows where to find the answer. The kind of commodity you are thinking of importing will give clues to the whereabouts of the answers. Sometimes the broker will guide you to the appropriate individual or team at U.S. Customs, or the Food and Drug Administration, or possibly some other government agency. Check out the links portion of this web site.
The answer is, sometimes, you don't, but, most of the time, the fact that you are importing a commercial shipment will be reason enough for a Custom's inspector to tell you to "find a broker". The complexities of all the regulatory requirements in addition to the bond requirements make it almost impossible for the average importer to do it without the assistance of a Customhouse Broker. The broker prepares and transmits to U.S. Customs, via modem, all the details of the shipment obtained from the import documentation. Then, if U.S. Customs request the paperwork, the broker provides it to U.S. Customs and waits for the release. If there is then an examination requested by U.S. Customs, the broker may have to arrange delivery of the goods to a U.S. Customs approved examination site.
For a fee, brokers will arrange for delivery of goods anywhere requested. Usually they are delivered to the importers premises, but there are times the importer has another destination intended for the goods.
Importers also make their own arrangements for delivery of goods. In this case, the broker must be informed so contact can be made with the importer's delivery agent.
This depends on the variables of the shipment like the value, the kinds of goods, and the weight.
Here is a schedule of our fees for your review. Of course, only items applicable are charged. The list is necessary because different imports require different services.
The typical clearance time is one to three days for the clearance from the time of notification of arrival, plus a day for delivery. Delivery of loose ocean freight (that is freight not delivered in the container) is usually pick up one day and deliver the next. If U.S. Customs decides to perform an examination on the shipment, this will cause further delay, possibly another three days or so.
This is an area of particular concern to the U.S. Customs Service. When they perform an examination, this is one of the key areas of interest. The rules state that all articles imported into the USA must be marked legibly, indelible and conspicuously placed so the ultimate consumer can readily ascertain the country of origin of the merchandise. It is a consumer's legal right to know where the product is made.
The acceptable forms of marking vary from product to product. Most items simply require the country of origin to be shown. In other cases, such as wearing apparel, information such as fiber content, RN number and washing instructions are required.
The way the marking is attached is also important. Items so small as to be impossible to have a sticky label placed on them would be given some form of hangtag. Wearing apparel requires a sewn in label in a location acceptable to U.S. Customs. Simply marking a bag with the country of origin that contains bulk quantities that are not marked but are sold individually is NOT acceptable. Each item must be marked and if sold in a box then the box must be marked as well. If the box is made in a different country than the item contained inside, then both countries of origin must be shown.
Also, one must be careful when using names on import packaging that reflects a U.S. location (say, in the company name, i.e., Los Angeles Apparel Company or U.S. Import/Export Co.) and would unfairly compete with the country of origin marking. In these cases, the size and location of the marking in relation to the competing name become of primary importance and concern.
When considering importing and prior to shipping of goods, if any doubt
exists as to the acceptability of marking by U.S. Customs, then the importer
should contact U.S. Customs directly and consult with them on what will be
acceptable. The last thing an importer and U.S. Customs wants or needs is to
require an entire shipment of however many thousands of unmarked units to be marked
at the importers expense prior to
release by U.S. Customs. The Customs Service can fine an importer for continued
marking violations. Distribution of the merchandise can not take place
until a marking violation is corrected.
For more information on marking
here is a customs publication in WORD.doc format.
To start with, a commercial invoice
is required. It must be in English or be provided with an English translation.
It must contain the complete name and address of the seller and the buyer. It
can be in whatever currency the goods were purchased in. Quantities must be
indicated and a good description for each kind of item provided. Then comes the
unit values, extended values and the grand total. If any price deductions are
taken or special services added, they must be shown as well.
If airfreight and or insurance are a part of the invoice, they
should be broken out as separate line items. Air freight and insurance, when a
part of the value, are deducted from the total before duty is calculated. They
are a non dutiable factor.
Certain goods being imported into the USA require additional
information. Customs' regulations contain the list of goods, i.e.
woven textiles and footwear, and the additional
information required on the invoice or a separate attachment. Care must be taken to insure that all required
information is provided because anything less can cause extra expense and delay
in processing.
Customs bases the dutiable factor of an invoice on the price paid
or payable including any packing, royalties, assist's (This is when the importer
provides certain items to the manufacturer, i.e. molds or other materials needed
to make the product.), and amounts that accrue back to the seller. Certain
commissions are also dutiable. If your transaction with the seller is not a
simple one, a consultation with the U.S. Customs Service is advisable prior to
importing anything in order to insure all rules and regulations will be complied
with.
Next, a packing list should be provided. When you or a customs inspector wants to know where a specific style or type of item is, a packing list will give the details. It will also give other details such as gross and net weights and possibly size of containers. Some ports and even some different government agencies in these ports are more strict on requiring a packing list. Each port has there own port policy and they are not always the same.
Next, an air waybill for air
shipments or an ocean bill of lading for ocean
shipments will be provided.
If an air waybill is used, it should be consigned to you or your
company with your correct address. It helps to have your Customhouse Broker
listed as a party to notify with their telephone number on the waybill. That
way, whoever receives the shipment will know to call the broker instead of
trying to call the importer to find out who their broker is. All the import documents
for the clearance will be attached to the back of the waybill. Air
waybills that are consigned to a bank require a bank release (usually an
original) before the carrier
or agent will release the documents to the importer or the importer's broker.
Air shipments are sometimes consigned to banks because there is a bank draft
that has to be satisfied/paid before the bank release for the shipment can
be given. A
broker cannot start to work processing the shipment through customs until they
are in possession of the documents.
If you are buying foreign goods and the "arm's length
transaction" is between you and the buyer and you ship those goods directly to the party you are, in turn, selling them to, care should be taken not to consign air waybills to the party the
goods are being delivered to, if other than yourself. You can consign an air
waybill to your company in New York and still have the goods shipped to
Los Angeles. Your company then instructs the broker where to deliver the cargo.
When an ocean bill of lading is used, if it is not, by virtue of
the transaction, consigned "to order" or "to order of the shipper", it should be
consigned to you or your company with a correct address. If it is consigned "to
order" or "to order of the shipper", you and possibly your Customs
Broker will
be listed as parties to notify with correct addresses. That way when the carrier
or agent sends out an arrival notice, it will go to you and/or your Customs
Broker.
Bills of lading are issued after the departure of the vessel from
the port of loading. Depending on your arrangements for payment, bills of lading
and associated documents are either, mailed directly to the importer, or
transferred through the banks if their is a letter of credit or bank draft
involved. Either way, when the documents are received by the importer, they must
then be sent to the broker. The importer should retain at least one original
bill of lading and copies of the rest of the documents in case the others are
lost in transit to the broker.
Normally, three original bills of lading are issued with any number
of non-negotiable copies. If they are consigned "to order" or "to order of the
shipper", then the shippers' endorsement must appear on the back of the bill of
lading. The importer/ consignee or Customs Broker for the importer/consignee
must also endorse the back of the bill of lading. One fully endorsed bill of
lading with whatever collect charges are due must be surrendered to the carrier
or shipping agent to obtain release of the goods. Then, after the
goods have cleared Customs, they can be picked up and delivered.
In the "what-about-all-the-other-documents" category, it depends on what you are importing. The above document requirements are for most basic goods. However, all kinds of things require special documentation and, in a lot of cases, they must be originals. They include, but are not limited to, visas, single or multiple country declarations, quota charge statement, Toxic Substance Control Act (TSCA) statement, Material Safety Data Sheets, other government agency forms, and many more.