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US Customs

Customs Form 7501 Entry Summary

November 13th, 2007

Download Customs Form 7501 (.pdf)

US Customs Form 7501 is one of two essential forms required for an import transaction. Form 7501 details origin and importer information, but its main purpose is to act as a receipt for US Customs. Blocks 27 through 40 are used for an imported item’s Harmonized Tariff Classification, the amount and quantity imported, and the value of the goods. With this information, US Customs can confirm the total amount dutiable and request payment from the importer.

Import

Wood Imports into the United States

November 13th, 2007

Question

I am considering importing items from New Zealand, made from ancient kauri wood, items ranging from jewelry pieces to coffee tables, for re-sale. What are the import/duty requirements of such an operation?

Answer

Country of Origin

New Zealand maintains normal trade relations with the US, so there are no specific trade restrictions that would interfere with imports from that country.

Duty

The duty amount payable would depend largely on the types of item being imported rather than the material they are made from. Coffee tables, for example are found in chapter 94 of the USHTS, while wooden jewelry would likely be found in chapter 71. You will need to classify each type of article being imported and assign it an HTS number to determine the rate of duty for that item.

Imports of Wood

The USDA (US Department of Agriculture) publishes regulations regarding the importation of wood products (including craft products manufactured from natural plant materials) in chapter 7 of the Code of Federal Regulations. One of their primary missions is to prevent the spread of insects and disease that could have an environmental impact on the United States.

Although there is no mention specifically of kauri wood in chapter 7, import restrictions of wood products from New Zealand are mentioned in 7CFR319.40-5, but they are with regard to logs and unrefined lumber. A list of regulated products can be found on the USDA website. To ensure your import is not regulated by the USDA, you should determine the class and genus of the wood used in your commodity and check it against this list or with your local USDA office. Some woods may be subject to a visual inspection, and if determined to be pest free, will be allowed entry into the United States. Others must be treated to ensure that they are pest free before they can be brought into the US.


Question

I am going to import solid oak floor and engineered oak floor from China. Do I need a license for doing this?

Answer

Wood from China is a tightly restricted commodity due to a concern for disease and pest carrying imports. Manufactured wood products that undergo intensive heat and pressure in their fabrication are exempted, but solid oak flooring may be subject to the USDA Suspension of Manufactured Wood Item Imports from China which states:

The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service APHIS), beginning April 1, 2005, will suspend the importation of craft items from China that contain wooden logs, limbs, branches, or twigs greater than 1 centimeter in diameter and with intact bark. Manufactured wood items that have been heat treated or fumigated with methyl bromide and have had 100 percent of the bark removed are not subject to the import suspension.


Question

Is there a requirement for fumigation for pallets made of plywood?

Answer

There is no fumigation requirement because plywood is a product of heat and pressure that by nature of its manufacturing process is free of pest and plant-born disease. You can read about the requirements for wood packaging material on the APHIS (Animal Plant Health Inspection) portion of the USDA website.


Question

I am undertaking a trip to Australia in October and a friend who is a woodworker has asked if I could bring back some native wood for him to work with in his backyard woodshop. He uses the pieces to make small bowls and things out of and doesn’t market any of the finished wood commercially at all. What would be required to bring in 3 pieces about a foot long each for him?

Answer

Regardless of whether the wood is for commercial or individual use, you will be asked to declare it to US Customs when you return to the United States. Many types of wood are subject to inspection, and if declared pest-free, will be allowed to enter the United States. Some, however, must be fumigated or subjected to heat treatment before they can be imported. Before leaving the US, you should determine the scientific name of the wood you will be importing and check with US Customs and the USDA regarding the import requirements for that species.


Question

I have shipped household goods from the U.S. to Papua New Guinea and would now like to return some of them in one of my original crates that was constructed from American plywood and dimensional lumber. I have heard that the dimensional lumber used is an issue with international shipping now. Do I have to remove and replace the 2×4 braces in my crate or would it be allowable for return shipping?

Answer

Yes, you will have to replace or treat the dimensional lumber according to the Wood Packing Material Questions and Answers (Phase II):

  1. Dimensional lumber used as a bracing in pallets/crates otherwise constructed of plywood must meet proper heat or chemical treatment to ensure that they are free from pests and disease prior to importation.
  2. Because country of origin will be nearly impossible to confirm for imported pallets and crates, all wood packing materials are assumed to be of foreign origin and are subject to the Wood Packing Material requirements.

Please note: This article is intended for informational purposes only and is not specific legal advice. As an importer, it is your responsibility to meet all the legal requirements for importing goods.

Import

What should I consider before importing something?

November 13th, 2007

Requirements for importing specific commodities depend on a wide variety of things. Some information, such as whether an item is subject to quota restrictions, eligible for reduced rates of duty, or restricted from entry because they originate in an embargoed country, can be determined only if you know the item’s Harmonized Tariff Schedule classification number. Determining an item’s HTS number can be extremely complicated. Please see our information under Duty Rates in the Import section of this web site.

Other requirements depend on other agencies’ safety, energy efficiency, health, etc. standards. Many of the items governed by these various rules cannot be imported without a permit from the related agency. See the chapter on Special Requirements in our publication “Importing Into the U.S.” for more information.
Another thing to consider is marking of county of origin. Everything imported for use in the U.S. must be marked with the country of origin, but some things are very hard, or impossible, to mark, such as diamonds, flowers, or water.
Finally, the distribution of many trademarked and copyrighted items in this country is restricted by contractual agreements that give exclusive rights to specific companies or individuals to distribute the product in this country. If you attempt to import a product covered by such an agreement, it could be seized at the border. For more information please see our information on Intellectual Property Rights.
We have attempted to give some thumbnail guidelines about things to consider in this Q&A format. However, circumstances change every day, and it is advisable to call your local port for specific guidance in importing your particular commodity. We also advise you to review our series of Informed Compliance Publications. They provide very detailed guidance on importing a variety of items, only some of which are listed in the FAQ category for Requirements for Importing Certain Goods.

How To, Import

How to Start an Import Business in Jewelry and Clothing from India

November 13th, 2007

Question

I am trying to start a business in jewelry and clothes from India. I do not know how and where to start from. I want to make sure I have all the necessary licenses or documents that I may need in order to do this….please advice. Where do I start from? Which licenses do I may need? Any legal documents I may require to prove that I do have a small business in items such as jewelry, clothes home decor, etc. The jewelry is all artificial and clothes are our everyday usage type, nothing pricey or outrageous. All answers are welcome - thanks for your time.

Answer

India is an excellent choice for trading. They have a thriving textile industry (textiles are items made of fabric or cloth like clothing, table cloths, etc.) and are eager to do business with the United States. Before starting your business, you’ll want to check with your city, county, or state resources to confirm what requirements you’ll need to meet in order to operate. That’s outside the scope of this article, so I will leave that part to you. So far as importing your items are concerned, you’ll need the following:

Vendors

If you do not have one already, locating a reputable vendor will be a difficult part of the process. One of the advantages of dealing with Indian importers is the widespread use of English, which should make things easier. Once you have found a vendor, consider placing a sample or small quantity order to get an idea of transit times, quality of the goods, actual pricing after shipping, insurance, etc.

Licensing

No license is required to import the items you have described from India (or most countries). You can file the import paperwork yourself at your local port office, but since the process can be complicated, I highly suggest you consult with a Customs broker who is licensed to transact business on your behalf.

Documentation

All import shipments coming into the United States must be accompanied by the following documentation:

  • Commercial Invoice stating the country of origin of the goods, their value, the currency used, and the number of units being imported.
  • Packing List - listing quantity and weight for the goods.
  • Customs form 3461 - A formal paper request to Customs to allow the entry of your import. A licensed Customs broker will be able to provide one to you.
  • Customs form 7501 - This form serves as a receipt for US Customs and yourself. It lists the items being imported, their value and the approximate duty you will be expected to pay. This will also be provided by a Customs broker.

Other considerations

Before importing, take some time to research or pay for a sit down visit with your import broker. Talk to them in detail about the type of goods you intend to import (including pictures or samples) and where they will be coming from. They will be able to provide an estimate for the amount of duty you will be responsible for, the classifications for your merchandise, and will be able to advise you on any special trade programs that might be applicable.

Please note: This article is intended for informational purposes only and is not specific legal advice. As an importer, it is your responsibility to meet all the legal requirements for importing goods.

Trade Notices

How to Import Granite

November 13th, 2007

Question

How Do Import Granite?

I am interested in importing granite slabs into the U.S. for fabrication and re-sale purposes. I would like to know the following:

  • What license or permits are required?
  • What forms are necessary to obtain the licenses/permits?
  • Where can I find the necessary forms?
  • How much does it cost to obtain the licenses/permits?
  • How long does it take to receive the licenses/permits?
  • What is the likelihood of receiving the necessary license/permits?
  • Is it necessary to obtain separate credentials for each country from which I would like to import the material or will one set of credentials will allow me to import from various countries?

Answer

These questions are all very common for first time importers. Because you did not state otherwise, we’re going to have to assume that you’re importing granite from a country that maintains normal trade relations with the US (not Cuba or North Korea) and that you have not been previously restricted or barred from importing by US Customs.

What license or permits are required?

     Licensing

No licensing is required to import granite into the US. You can file the import paperwork yourself without obtaining any kind of license. Since the process can be cumbersome, it is recommended that you consult with a licensed Customs broker. A Customs broker will have to have a special license that allows them to transact Customs business on behalf of others. This is a confusing point for many importers.

     Permits

Since you are importing an agricultural commodity - you may be asked to fumigate your shipment. Granite slabs are potentially home to slugs and other parasites that might impact the US ecosystem. A Customs broker or freight forwarder can get you a quote for any fumigation that is required.

What forms are necessary to obtain the licenses/permits?

Again, no licensing is required. The basic paperwork that accompanies an import includes:

  • A commercial invoice and packing list (that you or your vendor must produce). For granite be sure to detail the quantity you are importing in both metric tons and cubic meters on the invoice.
  • The traveling paperwork created by the carrier (either an airline or steamship line). This if often referred to as a Bill of Lading.
  • Customs form 3461 (which a Customs Broker will fill out for you) that serves as a formal request to Customs to allow import of the shipment.
  • Customs for 7501 (which the Customs Broker will also fill out) that serves as a worksheet/receipt for US Customs detailing the amount of duty you owe.

Where can I find the necessary forms?

Your local Customs port office will have all the forms on hand that you need or will be able to direct you if you need anything unusual.

How much does it cost to obtain the licenses/permits?

Instead of a licensing fee, US Customs collects revenue based primarily as percentage of the total value of goods being imported. Unworked granite slabs will be between 0-3% depending on their level of workmanship (totally unworked or cut into blocks for shipping). The classification for granite is found in chapter 25 of the US Harmonized Tariff Schedule.

How long does it take to receive the licenses/permits?

It may take a few days for your broker to arrange a Customs bond, but no additional approval will be required.

What is the likelihood of receiving the necessary license/permits?

Unless you’ve previously been denied importing privileges by Customs or you are dealing with an unscrupulous vendor who has had problems in the past, chances are good.

US Customs is there to administer and facilitate international trade while protecting the economy of the United States and will not deny your shipment unless they have good reason.

Note: first time importers stand a higher chance of having their shipment detained by US Customs for exam. You may want to pad your budget/timeline to allow for the possibility.

Is it necessary to obtain separate credentials for each country from which I would like to import the material or will one set of credentials will allow me to import from various countries?

No licensing is required. You can import freely from Canada, Brazil, Italy, South Africa, etc. with the same process.

Additional information

If you’re looking for a supplier, here are the trade statistics for unworked granite or granite cut into rough blocks for 2005. This list contains country of origin and quantity in metric tons for your product to give you an idea of where most imported granite is coming from.

Customs Value where quantities are collected in metric tons
Brazil 10,559
India 6,763
China 4,649
Italy 4,180
South Africa 464
Canada 442
Mexico 392
Spain 276
Vietnam 161
Saudi Arabia 141
France 96
Hong Kong 57
Australia 43
Zimbabwe 40
Taiwan 39
Subtotal Product Group (Quantities Collected in metric tons) 28,302
All Other: 89
Total 41,177

Please note: This article is intended for informational purposes only and is not specific legal advice. As an importer, it is your responsibility to meet all the legal requirements for importing goods.

Import, Q&A

What is the duty rate on rechargeable revitalizing skin care product using LED’s?

November 13th, 2007

Question

I plan to import on a commercial basis late this year a newly developed consumer product that uses Light Emitting Diodes and gentle vibration to revitalize facial skin. This is a consumer product similar to hair dryers and the Sonicare toothbrush that draws less than 500 W and is rechargeable with an electric charger. What will be the duty on these products?

Answer

It can be especially difficult to assign a Harmonized Tariff Number to manufactured goods, especially those based on an emerging technology because the Harmonized Tariff Schedule may not specifically account for the item being imported. As this is a manufactured or refined product, it will be found in the later chapters of the Tariff (as opposed to imports like wheat, steel, etc. which are found in earlier chapters). The more refined a good, the further back it will be listed in the tariff. This prevents us from classifying your LED skin-care tool as simply an article of plastic or metal.

My first thought with this was to look in section XVIII, chapter 90 of the tariff which covers medical items. After looking at your description again, you’ve listed it as a consumer item and not a medical tool which makes this chapter unsuitable. Chapter 90 covers medical devices like dentist drills, medical diagnostic tools and other items you might find in a doctor’s or veterinarian’s office.

From there, the next logical choice is Section XVI, chapter 85 which encompasses

Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles

The unit contains a light-emitting diode (which is specifically accounted for in the tariff), but it also vibrates and functions as a hand-held appliance. Based on your description, I believe the essential character of the item is less an LED, and more an appliance or piece of electrical machinery. With this assumption, I would classify this item under:

8509.80.0095 - which provides for electromechanical domestic appliances, with self-contained electric motor, and parts thereof, other appliances, other.

Assuming your import is coming from a country that maintains normal trade relations with the United States (China, India, Great Britain, etc.) this item carries 4.2% duty rate and is eligible for several reduced rate of free trade programs.

Other things to consider are the possible import restrictions placed on consumer cosmetic devices by the FDA as well as the possible implications of shipping hazardous materials in the form of rechargeable batteries.

Please note: This article is intended for informational purposes only and is not specific legal advice. As an importer, it is your responsibility to meet all the legal requirements for importing goods.

Import

Do I Need an Import License?

November 13th, 2007

For general merchandise (those items not specifically regulated by another agency), importers may file Customs entries for their own account without applying for an import license and without the use of a Customs Broker. This is often the case when receiving a package via the US Mail from overseas, or travelers returning from business abroad.

Filing Customs paperwork for your personal business imports can be a way to reduce overhead, especially for importers brining in the same merchandise from the same vendors time after time. Please note that importers (and not their brokers or agents) are ultimately responsible for properly declaring their goods to Customs, filing the proper paperwork, and paying the appropriate amount of duty regardless of whether they import for their own account or utilize a Customs Broker. If you are an importer and are considering filing Customs entries for your own account, take the time to research your commodity, and browse this site for articles on classifying with the USHTS and properly determining the value of your goods. Also be aware that in many cases Customs port offices are not accustomed to dealing with individuals since the majority of entries are filed by brokerage houses through the electronic ABI (Automated Broker Interface) system.

Import

Do I need a license to import something?

November 13th, 2007

You do not need a license to act as an importer. However, some items require a license or permit from various government agencies in order to be imported. For more complete information, please see our publication “Importing Into the U.S.” The chapter on “Special Requirements” provides very complete information. (Some common items that may require licenses or permits are food products ordered from a commercial vendor, plant, animal and dairy products, prescription medications, trademarked articles such as name-brand shoes, handbags, luggage, golf clubs, toys, etc. and copyrighted material such as CDs, DVDs and tapes)

Customs paperwork does require an “importer number” as a means of identifying who the final recipient of the goods is. If you have a business tax number with the IRS, this number should be used as the importer number. If you do not have a business tax number, you may use your Social Security number. If you do not wish to give your SSN to a shipper, and your importation is for personal use, is under $2000, and is being cleared by a Customs Broker (very common for goods shipped by courier services) please see our information about using a third party’s Importer Number by typing Social Security Number in the word search field above. If you have neither a business tax number or a social security number, and you are a non-resident of the U.S., you may contact the port where your goods will enter the country and ask them to assign an importer number to you.

A license is required to act as a Customs broker, which is someone who clears goods through Customs on behalf of importers who do not want to handle the various technicalities that are involved in importing themselves.

For more information about the process of clearing goods through customs, please see our series “U.S. Import Requirements”.

If you have ordered something from an overseas seller over the Internet for your own personal use, you should also see our information on Internet Purchases.

Miscellaneous

Import Export Forum

November 12th, 2007

Informed Trade International has made their import/export trade forum available to the public!

Ask a Question

If you have a question related to importing, exporting, or international trade, please feel free to post it in our online import forum or search through the database of import questions.

Mission Statement

Informed Trade International is an import/export compliance community devoted to US Customs import and export practices. Our goal is to facilitate international trade with the United States by assisting individuals in their efforts to manage the trade process.

Membership

Informed Trade International is one of the largest import export communities on the internet. We have a rapidly expanding member base, and provide our services at no charge in order to promote its growth and work toward the goal of informed trade.

Our membership includes licensed US Customs brokers, experienced freight forwarders, and professional importers. Please post your questions and comments to our community and let one of our members assist you today.

Import

How to Import Textiles into the US

November 12th, 2007

Textiles products have the benefit of inexpensive overseas production sources as well as a large US market demand and can be a highly profitable and popular import commodity. Due to the over-saturation of overseas textile manufacturers and the US socio-political agenda, however, the United States has developed a complicated system designed to regulate the importation of textiles. If you are looking to import textiles into the United States, this guide is for you. Webster’s Dictionary defines Textile as: Pertaining to weaving or to woven fabrics; as, textile arts; woven, capable of being woven; formed by weaving; as, textile fabrics.”

For import purposes, this definition extends to a wide variety of clothing, bedding, and fabric related products. Articles of nightwear, hosiery, sportswear, and apparel are all considered textile products.

Where to buy:

Wholesale: Nightwear, Hosiery, Sportswear, and Apparel

China and India currently dominate the international market for textile imports.

Classification and Duty Rates

Textiles and textile products are listed in their own section in the Harmonized Tariff Schedule of the United States found (as of 10/18/04) here:

SECTION XI: TEXTILE AND TEXTILE ARTICLES.

The HTS is the source used by the United States Government and US Customs to determine duty rates.

When classifying textiles for import, it is important to note the following:

  • Material of composition silk, wool, man-made fiber, etc.
  • The origin of the material textiles from some regions qualify for special import programs. Read more about special import programs under General Note 3 of the USHTS.
  • The end use of the textile product.

    Once the initial category for your textile has been determined, it is the importer’s responsibilty to consult the USHTS to determine the specific classification and duty rate of their product.

    Help

    First time importers are encouraged to contact a freight forwarder or licensed US Customs broker for assistance with filing import entries and arranging transportation. When dealing with a freight forwarder or broker, it is important to research your product and its import regulations. As the importer, you will ultimately be responsible for all facets of your import shipment.

    Example Textile Classifications

    Sportswear

    62032210.–Men’s or boys’ judo, karate and other oriental martial arts uniforms, not knitted or crocheted, of cotton–01/01/2004
    62032230.–Men’s or boys’ ensembles, not knitted or crocheted, of cotton, other than judo, karate and other oriental martial arts uniforms–01/01/2004
    62042210.–Women’s or girls’ judo, karate and other oriental martial arts uniforms, not knitted or crocheted, of cotton–01/01/2004
    62042230.–Women’s or girls’ ensembles, not knitted or crocheted, of cotton, other than judo, karate and other oriental martial arts uniforms–01/01/2004

    Hosiery

    61152010.–Women’s full-length or knee-length hosiery, measuring per single yarn less than 67 decitex containing 70% or more by wt of silk, knit/croc–01/01/2004
    61152090.–Women’s full-length or knee-length hosiery, measuring per single yarn less than 67 decitex containing under 70% by wt of silk, knitted/croc–01/01/2004
    61159100.–Hosiery nesoi, knitted or crocheted, of wool or fine animal hair–01/01/2004
    61159914.–Hosiery nesoi, of artificial fibers, containing lace or net–01/01/2004
    61159918.–Hosiery nesoi, knitted or crocheted, of artificial fibers, other than those containing lace or net–01/01/2004

    Nightwear

    61072920.–Men’s or boys’ nightshirts and pajamas, knitted or crocheted, of wool or fine animal hair–01/01/2004
    61072950.–Men’s or boys’ nightshirts and pajamas, of textile materials (ex cotton, mmf or wool), containing 70% or more by wt of silk, knitted or croc–01/01/2004
    61072990.–Men’s or boys’ nightshirts and pajamas, of textile materials (ex cotton, mmf or wool), containing under 70% by wt of silk, knitted or croc–01/01/2004
    61083100.–Women’s or girls’ nightdresses and pajamas, knitted or crocheted, of cotton–01/01/2004
    61083200.–Women’s or girls’ nightdresses and pajamas, knitted or crocheted, of man-made fibers–01/01/2004

    Apparel

    39262090.–Articles of apparel & clothing accessories, of plastic, nesoi–01/01/2004
    40159000.–Articles of apparel and clothing accessories, excluding gloves, of vulcanized rubber other than hard rubber–01/01/2004
    42031020.–Articles of apparel, of reptile leather–01/01/2004
    42031040.–Articles of apparel, of leather or of composition leather, nesi–01/01/2004
    43031000.–Articles of apparel and clothing accessories, of furskins–01/01/2004