Step 1. Importer Security Filing (ISF)
Importer Security Filing (ISF) comes before importing or paying customs duty. If the goods are shipped by sea, ISF must be transmitted to CBP at least 24 hours before the cargo is laden aboard the vessel. Although ISF is not a part of import clearance, it is a necessary step in the process of legal entry of the merchandise into the United States.
The maximum penalty for ISF filing violations is $10,000. To cover that liability, the importer must acquire the ISF bond directly from a surety or through a customs broker. However, importers with an annual customs bond on file with the CBP don’t have to submit the ISF bond.
Step 2. Import Clearance: Determine Form of entry
Informal entry, no customs bond required.
Commercial merchandise eligible for informal entry when shipments are not exceeding $2,500 in value, except:
- Goods above $250 subject to temporary modifications established according to trade legislation, as described in Chapter 99 Subchapter III. Examples: products of China subject to an additional 25% rate of duty imposed in 2018 and 2019;
- goods over $250 subject to safeguard duties as described in Chapter 99 Subchapter IV. Safeguard duties cover certain products of agriculture. Examples: beef, milk, cheese, peanuts, cotton.
Formal entry: all shipments that do not qualify for Informal entry. The importer must acquire a customs bond for formal entry and hire a customs broker to help him import clearance.
Step 3. Determine ether the shipment is dutiable or free of duties and taxes
CBP shall clear free of duties and taxes (release under Section 321) any shipment of merchandise having a fair retail value in the country of shipment not exceeding $800. Regardless of the value, U.S. CBP reserves the right to deny section 321 and demand a formal customs entry.
Shipments that can not be released under Section 321:
- Merchandise subject to anti-dumping / countervailing duty (AD/CVD);
- Alcoholic beverages, perfume containing alcohol, cigars, cigarettes;
- Merchandise regulated by federal agencies: FDA – food and drugs; FSIS – food safety; NHTSA – vehicles; CPSA – standards and bans (examples: coffee makers, toys, lawnmowers); USDA – agriculture products, live plants, and live animals.
Step 4. Paying Duties
Duty on formal and informal entries is assessed based on how goods are categorized in the Harmonized Tariff Schedule of the U.S. Also, other processing fees may be assessed as applicable. For instance, most entries are subject to Merchandise Processing Fee (MPF). Also, most seaports charge Harbor Maintenance Fee (HMF). MPF is 0.3464%, and HMF is 0.125% of the value of the merchandise.
Besides, CBP collects various fees on imports on behalf of other Federal agencies and excise taxes on behalf of the Internal Revenue Service.
The U.S. Customs accepts many forms of payment, including personal checks drawn on a U.S. financial institution. Travelers or passengers can pay duties and fees by credit cards at some CBP locations.