Customs clearance work involves the preparation and submission of documentation required to import into the United States. Our customs broker represents clients through the entire import process of customs clearance, including examining the merchandise, assessment, and duty payment. Also, we help to coordinate the delivery of cargo after clearance.
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What is Customs Clearance
When you import your merchandise into the U.S., you must clear it through Customs and often get permits from participating government agencies (PGA). In short, customs clearance is the preparation and submission of import documentation. Import clearance process includes:
- Entry: Consumption, Warehouse, Mail
- Importer Security Filing ’10+2′ (ISF)
- Continuous Bonds Filing. Depending on the volume of your import, we can help your company to obtain an annual or single bond for your shipments;
Coordination of Customs Examinations; - Other Government Agency Filing: FDA, USDA, FCC, DOT, EPA, F&WL;
- In-Bond Entry;
- Specialized Tariff Classification;
- Application for Importer ID;
What is a Formal Entry
According to U.S. regulations, all merchandise imported into the United States must be formally entered unless specifically excepted. In general, the exception covers special cases, such as the import of some vessels, instruments of international traffic under certain conditions, railway locomotives, and undeliverable articles.
Importers have to file a Formal Entry for every importation over $2,500 in value.
If the merchandise value does not exceed $2,500, CBP may or may not require a formal entry.
The regulations describe merchandise that qualifies for informal entry. In most cases, an importer doesn’t need professional help with informal entry. Examples of merchandise that can qualify for informal entry include shipment of fair retail value in the country of shipment not exceeding $800.
However, importers cannot use informal entry procedures for prohibited or restricted merchandise. That includes merchandise subject to a quota or other quantitative restraints, and any articles precluded from informal entry procedures by regulations.
The Process of Customs Clearance
We check product-specific import requirements to make sure your product meets participating government agencies (PGA) criteria.
Our experts evaluate your commercial documents to see if they are compliant with regulatory requirements before their submission.
Your customs broker will properly classify your goods and determine all import duties and taxes.
We assist in the acquisition of the necessary customs bond.
Our broker prepares and submits the necessary information and payments to the Customs and Border Protection (CBP) on our client’s behalf.
We represent clients during cargo examination.
Trade agreements
There are many ways to bring goods into the United States. A well thought out import strategy can help you to achieve the best results for your projects. Understanding the requirements of different trade agreements is part of a successful import strategy.
To prove eligibility of imported merchandise for preferential treatment, the importer must have documentation on the merchandise production. In particular, information on cost and origin of materials or substance. The direct cost of production, labor costs, and other details of the production of the goods.
Meeting requirements of the trade agreements to get preferential treatment is not an easy task. Nevertheless, the savings on duties and taxes that those trade agreements provide can be significant.
Types of Entry
Our experts understand trade agreements and types of entry. Therefore, they can provide clients with the necessary expertise to refine their import strategy. Most companies cannot afford to have such experts on staff. A professional customs broker can help importers create an import strategy or reevaluate and optimize current procedures. Different types of entry include:
Consumption entry – Goods are imported for use in the United States. They are delivered directly to the consumer, the wholesaler, or retailer, without any time or use restrictions placed on them.
Warehouse entry – Goods on a bond can be stored without payment of tariffs or duties for a certain period. This entry type also covers temporary importation under bond, for a trade fair, or a permanent exhibition. After that, the importer can pay import duties to withdraw his goods from the warehouse for consumption in the U.S.
Other types of entries available to importers Include Government entries, entries for Immediate Transportation, Transportation and Exportation, Immediate Exportation. As well as Quota/Visa entry, Anti-dumping/Countervailing Duty, and Foreign Trade Zone.
Importer Security Filing, ISF (10+2)
For cargo arriving by vessel, importation starts with the Importer Security Filing, also known as ISF 10+2, or ISF-10 and ISF-5. An importer, or authorized agent, must submit ISF no later than 24 hours before the cargo is laden aboard the foreign port vessel.
An Importer Security Filing is not required for bulk cargo. For breakbulk cargo, the ISF is required 24 hours before arrival.
CBP may issue liquidated damages of $5,000 per violation to submit any inaccurate, incomplete or untimely ISF. If goods for which an ISF has not been filed arrive in the U.S., CBP may withhold the cargo’s release or transfer.
Entry Documentation
When a shipment reaches the United States, the importer, or a customs broker, has to file entry documents at the entry port. They must file the entry summary at the time of entry or Customs Release form (CBP Form 3461).
Importers can submit entry documentation before the merchandise arrives within the limits of the port. However, they have to file entry within 15 calendar days after landing from a vessel, aircraft, or vehicle.
The import documentation includes Form 3461; evidence of the right to make an entry, such as a bill of lading or air waybill; a commercial invoice; a packing list. CBP or other Federal agencies may require other documents for a particular shipment.
The entry summary must be on the CBP Form 7501 or its electronic equivalent.
Customs will release merchandise from its custody only if the importer or broker has filed a single entry bond or continuous bond on Customs Form 301.
Imported goods are not legally entered until after the shipment has arrived within the port of entry. CBP has authorized delivery of the merchandise, and the importer has paid estimated duties.
HTS Classification
Classification is one of the most important parts of customs clearance. CBP pays close attention to classification to protect revenue. They may determine that they cannot liquidate the entry due to incorrect tariff classifications. U.S. Harmonized Tariff Schedule (HTS) sets the classification of all imported goods. Imported items can be classified as subject to duty or duty-free. HTS also sets the rates of duty.
Finding an appropriate HS Number for products is not always easy. While your vendors may specify a 10-digit HTS code on the commercial invoice, the 10-digit number you use for U.S. import purposes may be different than the 10-digit number they need to use in their country for their export purposes.
Why are they different? The first six digits of the HS are called the international level. It is uniform for all countries that agree to the Harmonized System. However, individual countries have the authority to add to the HS system to create 10-digit codes. Any digits beyond those six are country-specific and, as a result, are generally different for every country.
Because classification isn’t always easy, the process can result in some disagreement between you and your vendor. Nevertheless, only the importer is responsible for the right classification of merchandise. Therefore, errors in classification may result in overpayment of duties, penalties, and delay of shipments. A professional broker can help you to avoid costly mistakes.
Get a Broker for Customs Clearance
Customs clearance is a complex process. We are constantly updating our system to ensure compliance with all changes to regulatory procedures. As a National Permit holder, we provide customs clearance service at all entry ports in the United States.