fundamentals of importing
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Basics of Importing into the United States .2
Its our job to make your job EasierPedraza Customhouse Brokers, Inc. offers a wide variety of services and expertise in Customs Brokerage with more than 20 years experience, established 1989, in the customs, logistics, freight forwarding, and warehousing business.
We import/export a variety of merchandise from auto parts, electronics, food, medical equipment to furniture. Pedraza CHB is a validated partner of C-TPAT, U.S. Customs & Border Protections, Customs and Trade Partnership Against Terrorism program.
Why partner with Pedraza Customhouse Brokers? Established in 1989, Pedraza CHB has vast knowledge of U.S. CBP and international trade, compliance and ways to save your company money.
Expertise in NAFTA and NAFTA refunds.
Consulting for U.S. Customs compliance.
We can streamline your trade operation to run more smoothly and efficiently.
Computer capabilities and the ability transmit EDI. Reconciliation for NAFTA & Value on the same entries.
We produce reporting that help your trade and accounting depts. better track and manage expenses and duties by part numbers. If your plant runs on part numbers, shouldnt your Customs Broker?
Experience in Foreign Trade Zones.
As a verified partner, we can help you with C-TPAT training and C-TPAT compliance
Pedraza CHB is a Certified Minority Supplier.
BASICS OF IMPORTING INTO THE U.S. What information do you need to import into the U.S.?
Who can import into the U.S.?
What documents do you need to import?
What is the process for importing?
Definitions:BASICS OF IMPORTING INTO THE U.S. U.S. Customs & Border Protection (CBP)Duly licensed customs broker.Importer of recordCustoms power of attorney. Continuous importer bond vs. single entry bond.HTS (Harmonized Tariff Schedule) Duties and Payment
Definitions:U.S. Customs & Border Protection (CBP)Under the Dept. of Homeland security. It is CBPs job to protect the U.S. territories and revenue of the United States. Performing physical checks of travelers, cargo and vehiclesInspecting commercial trucking and passenger vehicles at land border crossingsDuly Licensed Customs BrokerVerify you are using a licensed Broker. CBP issues broker licenses. Know your Broker: Even though you are using a licensed broker, the importer of record is still held responsible for proper filing of the entry and duties, if there are any.
Definitions: Importer: is the importer of record and liable for duties and responsible to pay Custom & Border Protection (CBP) and penaltiesPower of Attorney gives the Customs Broker the authority to import on behalf of their customer. CFR 141.31 Limited or general power of attorney. A power of attorney may be executed for the transaction by an agent or attorney of a specified part or all the Customs business of the principal.Must be signed by an officer of the Company.State company IRS number. If individual state your Social Security number.
Definitions:Single entry Bond is a surety that guarantees US Customs duties and penalties will be paid if not by the importer than the surety. This bond is good only for one importation and must be for the full value of the merchandise or 3 times the amount if requires another governmental agency.Can be provided with the entry No wait time.
Continuous Bond A continuous bond is a surety that guarantees US Customs duties and penalties will be paid if not by the importer than the surety but is good for 1 year.Your customs broker can supply you with a bond. Continuous bonds take approx. 2 weeks to 4 weeks to be processed by the National Finance center.
Definitions:Harmonized Tariff System (HTS)/ classification of commodities. The HTS is the manner in which US customs classifies all commodities.
Duties: Merchandise is subject to them in accordance to the HTS commodity code. The importer of record is responsible for their payment.
111.29Diligence in correspondence and paying monies.If you are the importer of record, payment to the broker will not relieve you of liability for customs charges (duties, taxes, or other debts owed CBP) in the event the charges are not paid by the broker. Therefore, if you pay by check, customs charges may be paid with a separate check payable to the U.S. Customs and Border Protection which will be delivered to CBP by the broker.
.11Who can Import?
U.S. companies uses IRS Number.U.S. citizen Social Security.A non-U.S. citizen or company with an agent in the state where the port of entryis located that serves as resident agent in the U.S. on behalf of the foreign corporation's behalf.
What do you need to import into the U.S.? Importer: Who is the importer of record and liable for duties and responsible to pay Custom & Border Protection (CBP) and penalties?
Port of Entry
Right to make Entry: Proof that they have right to make entry which is BOL, Manifest and invoices.
What do you need to import into the U.S.? Have a Customs Broker prepare and submit the merchandise for consumption entry. Instructions for the Customs Broker for delivery/ shipping information. Have invoices with Harmonized Tariff Schedule (HTS) and Country of Origin (COO).Description of items written on invoice with enough to classify using the HTS. ISF- 149.2Importer security filing (a) Importer security filing required. For cargo arriving by vessel..
.14(a) Importer security filing required. For cargo arriving by vessel, with the exception of any bulk cargo pursuant to ..must submit in English the Importer Security Filing elements prescribed in .of this section via a CBP-approved electronic interchange system.
(b) Time of transmission.
(1) Seller, buyer, importer of record number / foreign trade zone applicant identification number, and consignee number(s). no later than 24 hours before the cargo is laden aboard the vessel at the foreign port.(2) Manufacturer (or supplier), ship to party, country of origin, and commodity HTSUS number .no later than 24 hours before the cargo is laden aboard the vessel at the foreign port.
Container stuffing location and consolidator (stuffer)as early as possible, in no event later than 24 hours prior to arrival in a United States port .(4) The data elements required under 149.3(b) of this part for FROB, prior to lading aboard the vessel at the foreign port.
This is just a summary and not all the requirements. .ISF149.2Importer security filing
149.2Importer security filing (ISF)(a) Importer security filing required. For cargo arriving by vessel, with the exception of any bulk cargo pursuant to ..must submit in English the Importer Security Filing elements prescribed in .of this section via a CBP-approved electronic interchange system.
(b) Time of transmission.
(1) Seller, buyer, importer of record number / foreign trade zone applicant identification number, and consignee number(s). no later than 24 hours before the cargo is laden aboard the vessel at the foreign port.
*This is just a summary and not all the requirements.
(2) Manufacturer (or supplier), ship to party, country of origin, and commodity HTSUS number .no later than 24 hours before the cargo is laden aboard the vessel at the foreign port.
Container stuffing location and consolidator (stuffer)as early as possible, in no event later than 24 hours prior to arrival in a United States port .(4) The data elements required under 149.3(b) of this part for FROB, prior to lading aboard the vessel at the foreign port.15
What needs to be on your invoices:141.86Contents of invoices and general requirements(a) General information required on the invoice(1) The port of entry to which the merchandise is destined
(2) The time when, the place where, and the person by whom and the person to whom the merchandise is sold or agreed to be sold (consignee)
(3) A detailed description of the merchandise, including the name by which each item is known
(4) The quantities in the weights and measures
(5) The purchase price of each item in the currency of the purchase
(6) If the merchandise is shipped otherwise than in pursuance of a purchase or an agreement to purchase, the value for each item, in the currency in which the transactions are usually made
(7) The kind of currency, whether gold, silver, or paper;
What needs to be on your invoices:141.86Contents of invoices and general requirements(8) All charges upon the merchandise itemized by name and amount, including freight, insurance, commission, cases, containers, coverings, and cost of packing;
(9) All rebates, drawbacks, and bounties, separately itemized, allowed upon the exportation of the merchandise;(10) The country of origin (COO) of the merchandise;
(11) All goods or services furnished for the production of the merchandise (e.g., assists such as dies, molds, tools, engineering work) not included in the invoice price.
What needs to be on your invoices:141.86Contents of invoices and general requirements
(b) Nonpurchased merchandise shipped by other than manufacturer(c) Merchandise sold in transit
(d) Invoice to be in English.(e) Packing list.(f) Weights and measures.
(h) Numbering of invoices and pages(2) Pages.(3) Both invoices and pages
(i) Information may be on invoice or attached thereto(j) Name of responsible individual.
.19What Else do You need to Import?NAFTA Cert. or other FTA for duty free treatment. Marking merchandise as to where it was made. The Country of Origin according to CFR19. Other U.S. AGENCIES that can determine entry are FDA, FCC, DOT, APHIS. INCO Terms to assist with the shipment.
.20Imported merchandise that is NAFTA qualified will pay duty at the NAFTA duty rate which in most cases is zero. MPF payment is also avoided. Significant savings from using NAFTA preferential treatment. NAFTA Duty and MPF Savings
21NAFTA CERTIFICATEOR OTHER FREE TRADE AGGREEMENT (FTA)North American Free Trade Agreement (NAFTA) 181.11Certificate of Origin.(a) General. A Certificate of Origin shall be employed to certify that a good being exported either from the United States into Canada or Mexico or from Canada or Mexico into the United States qualifies as an originating good for purposes of preferential tariff treatment under the NAFTA. (b) Preparation of Certificate in the United States. An exporter in the United States who completes and signs a Certificate of Origin for the purpose set forth in paragraph (a) of this section shall use Customs Form
(b).Where the U.S. exporter is not the producer of the good, that exporter may complete and sign a Certificate on the basis of: (1) Its knowledge of whether the good qualifies as an originating good; (2) Its reasonable reliance on the producer's written representation that the good qualifies as an originating good; or (3) A completed and signed Certificate for the good voluntarily provided to the exporter by the producer.
.22NAFTA CERTIFICATEOR OTHER FREE TRADE AGGREEMENT (FTA)(c) Submission of Certificate to Customs. An exporter in the United States, and a producer in the United States who has voluntarily provided a copy of a Certificate of Origin to that exporter pursuant to paragraph (b)(3) of this section, shall provide a copy of the Certificate to Customs upon request.
(d) Notification of errors in Certificate. An exporter or producer in the United States who has completed and signed a Certificate of Origin, and who has reason to believe that the Certificate contains information that is not correct, shall within 30 calendar days after the date of discovery of the error notify in writing all persons to whom the Certificate was given by the exporter or producer of any change that could affect the accuracy or validity of the Certificate.
.23NAFTA reconciliation is used when merchandise was imported without having a valid NAFTA certificate on file.
It allows for the REFUNDING of Duty and MPF paid. CBP even pays interest.
The reconciliation can include up to 9999 entries..NAFTA Reconciliation
.25MARKING RULES134.1Definitions(b) Country of origin. Country of origin means the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the country of origin within the meaning of this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.
134.11Country of origin marking required.Marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article, at the time of importation into the Customs territory of the United States. Containers of articles excepted from marking shall be marked with the name of the country of origin of the article unless the container is also excepted from marking.134.33J-List exceptions.Articles of a class or kind listed below are excepted from the requirements of country of origin marking.
.26Other U.S. PARTNERS AGENCIESFOOD AND DRUG ADMINISTRATION FDA, The Food and Drug Administration requires that a copy of the CBPF-3461 and supporting FDA documents be filed for merchandise subject to their review.
FEDERAL COMMUNICATIONS COMMISSION FCC, The Federal Communications Commission (FCC) requires that a FCC740 (Statement Regarding the Importation of Radio Frequency Devices Capable of Causing Harmful Interference) be filed for merchandise identified as containing radio frequency devices.
DEPARTMENT OF TRANSPORTATION DOT, The U.S. Department of Transportation (DOT), National Highway Traffic Safety Administration (NHTSA), requires a Declaration for Importation of Motor Vehicles and Motor Vehicle Equipment Subject to Federal Motor Vehicle Safety, Bumper and Theft Prevention Standards (HS7) be filed for merchandise subject to their review.
.27Other U.S. PARTNERS AGENCIESDEPARTMENT OF AGRICULTURE Allows the filer to electronically query the health inspection certificate as it is transmitted to the U.S. government from the foreign government.
U.S. FISH AND WILDLIFE SERVICE The U.S. Fish and Wildlife Service (FWS) requires that the FWS Form 3177 (Declaration for Importation or Exportation of Fish or Wildlife) be filed for fish, wildlife, or any commodity containing a fish or wildlife product.
.29Anti-Dumping & Countervailing DutiesUnder the Tariff Act of 1930, U.S. industries may petition the government for relief from imports that are sold in the United States at less than fair value ("dumped") or which benefit from subsidies provided through foreign government programs. ...Additional duties will be required for that commodity. Can be percentage of the value of the merchandise.Can be prohibitively expense, such as 182% of the value of the merchandise. Check to see if your imports could be AD or CV duties. Examples of AD/CV duties are Bedroom furniture, ball bearings, or steel.Visa" is an endorsement by a foreign government or its representative that authorizes the export of textile shipments to the United States.
.30Quotas & VisasSeveral key considerations determine whether a shipment is subject to quota requirements associated with eligibility for preferential trade benefits:HTSUS classification (based on merchandise description);Textile category number (associated with HTSUS classification and used to determine proper quantity in square meter equivalents (SMEs) to apply to a quantitative restraint);HTSUS chapter notes and additional U.S. notes to HTSUS chapters;Country of origin (where the goods were grown, produced, or manufactured); andDate and time of importation/presentation.Visa" is an endorsement by a foreign government or its representative that authorizes the export of textile shipments to the United States.
.31INCO TERMSGroup 1. Incoterms that apply to any mode of transport are:EXW Ex WorksFCA Free CarrierCPT Carriage Paid ToCIP Carriage and Insurance Paid ToDAT Delivered at TerminalDAP Delivered at PlaceDDP Delivered Duty Paid
Group 2. Incoterms that apply to sea and inland waterway transport only:FAS Free Alongside ShipFOB Free on BoardCFR Cost and FreightCIF Cost, Insurance, and Freight
.32.Truck presents E-Manifest crosses and clears CBPPossible CBP examination required.E-manifest can be done by the U.S. Broker or transport Company.Ship and Air Shipments a Manifest/ Bill of Lading/airway bill is needed and send to Notify PARTY.*HTSs: Some HTSs require other forms/permits and must have information before it crosses, such as: Quota or Visa and Live EntriesFDA, FCC, DOT, APHIS Other Govt Agency information Countervailing and Anti-Dumping Duties (CVD & ADD) must be Live entry.CARGO Release ( 3461) In order to be released by CBP ISF for vessel/shipManifest / BOL /AWB at Port of entry.Invoices must have: Exporter, Importer, ConsigneeInvoices must be in English and legible. Value and currency clearly stated.Description of merchandise. Classify with a current U.S. Harmonized Tariff System (HTS) number which is 8 digits long. Rate of Duty, % of dutyCountry of Origin (COO) based on the CFR19s COO.Price per pieceNumber of pieces/unit count or unit of measure required by the HTS.Weight, net and grossInvoices are to be number with number of pages and page number for example: 1 of 4 pages etc. Other requirements:Importer Bond, either a single transaction bond, or a continuous bond. Broker must have Power of Attorney with IRS# of importer. NAFTA certificate or FTA CERT.. Merchandise must be marked with COO.
7501 Consumption Entry Summary
Truck has crossed into U.S. or Cargo is cleared for consumption. Entry Summary/ 7501is due to CBP within 10 business days including duties owed to CBP.
After the due date, a Post Entry Amendment (PEA) is required with a possible prior disclosure.
Port of Entry into the U.S.
33AUDIT YOUR PAPERWORK FROM YOUR CUSTOMS BROKERCheck and Verify:
Duties that you are paying.
COO, HTS and Value of your shipments.
Check if FDA, FCC, DOT was claimed properly.
Check for AD/CV duties and Quotas & Visas.
Notify your broker before the due date of your entry for corrections. Entries summary is due 10 business days after the Cargo Release and must be paid at this time or you.
Must keep CBP records for 5 years after the entry summary.
NAFTA Certificates must be kept 7 years.
.34More InformationContact Pedraza Customhouse Brokers, Inc.:Mary Frances Allen, Licensed Customs Broker,Phone: 915-791-5511Email: [email protected] chb.com El Paso Office & Warehouse9701 Pan American Dr. Ste. DEl Paso, Texas 79927915-791-5500Laredo Office 201 W. Hillside Road Ste. 21 Laredo, Texas 78041956-764-4900Visit our website for more information and C-TPAT training materials: www.pedrazachb.com