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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

  • Import, Miscellaneous

    How to Import – Internet Purchases, Quota

    November 12th, 2007

    Many kinds of goods imported for commercial use may be subject to a quota limit. It is the classification number of the article as identified in the Harmonized Tariff Schedule of the United States and the country of origin that determine whether or not an item is subject to quota requirements. In some cases, the quota is absolute, meaning that once the quota is filled – because the quota has reached its limit for that particular period of time – no additional quantities of that item may be imported until the next open period. Such merchandise must be warehoused or exported. Other quotas are tariff-related, which means that a certain quantity of goods may enter at a low rate of duty, but once that threshold is reached – during a specified period of time – a higher duty rate will be assessed for any additional quantities of that particular imported good. Unlimited quantities of some merchandise subject to tariff-rate quota may, however, enter at over the quota rates.

    If you are importing goods for commercial use or resale, it’s a good idea to contact your local port of entry for more specific information.

    The Quota program is generally applied only to commercial importations. While the importation of many goods imported under “personal use” quantities are not affected by quota restrictions, there is one exception; made-to-measure suits made in Hong Kong, which are restricted for both personal and commercial use.

    Import

    How to Import a Car to the US

    November 12th, 2007

    The following provides information concerning the importation of a passenger car, truck, trailer, motorcycle, moped, bus, or MPV built to comply with the standards of a country other than the U.S. or Canada.� Importers of motor vehicles must file form HS-7 (available at ports of entry) at the time a vehicle is imported to declare whether the vehicle complies with DOT requirements. As a general rule, a motor vehicle less than 25 years old must comply with all applicable Federal motor vehicle safety standards (FMVSS) to be imported permanently. Vehicles manufactured to meet the FMVSS will have a certification label affixed by the original manufacturer in the area of the driver�s door. To make importation easier, when purchasing a vehicle certified to the U.S. standards abroad, a buyer should have the sales contract verify that the label is attached and present this document at time of importation.

    A vehicle without this certification label must be imported as a nonconforming vehicle. In this case, the importer must contract with a Registered Importer (RI) and post a DOT bond for one and a half times the vehicle�s dutiable value. This bond is in addition to the normal Customs entry bond. Copies of the DOT bond and the contract with an RI must be attached to the HS-7 form.
    Under the contract, the RI will modify the vehicle to conform to all applicable FMVSS and so certify the vehicle. Before an RI can modify a vehicle, NHTSA must have determined that the vehicle is capable of being modified to comply with the FMVSS. If no determination has been made, the RI must petition NHTSA to determine whether the vehicle is capable of being modified to comply with the FMVSS. If the petitioned vehicle is not substantially similar to a vehicle of the same model year certified for sale in the U.S., this process becomes very complex and costly. A list of vehicles previously determined eligible for importation can be found on the NHTSA web site at http://www.nhtsa.dot.gov/cars/rules/import.
    Since the cost of modifying a nonconforming vehicle, or the time required to bring it into conformance, may affect the decision to purchase a vehicle abroad, we strongly recommend discussing these aspects with an RI before buying and shipping a vehicle to the U.S.
    For federal regulations concerning vehicle emissions contact the Environmental Protection Agency, Certification and Compliance Division � Imports Program, 2000 Traverwood, Ann Arbor, MI 48105, (734) 214-4100, or http://www.epa.gov/otaq/imports/.
    For information regarding registration or operation of a properly imported vehicle in a specific State, we advise you to contact the Department of Motor Vehicles or other appropriate agency in that State since the requirements vary by State.

    Import, US Customs

    Harmonized Tariff Schedule: How to Read the Tariffs

    November 12th, 2007

    Save on import brokerage fees by downloading the US Harmonized Tariff Schedule and determining your product’s classification before you import.

    The Harmonized Tariff Schedule is broken into two major parts: notes and classification.

    The notes portion of the HTS comprises approximately one fourth to one fifth of the Tariff Schedule. It contains rules of classification, details on region-specific trade programs (NAFTA and the CBERA), recognized countries and abbreviations, and a list of recent changes to name a few. For purposes of this article we will focus primarily on the rules of classifications.

    Reading the HTS: Chapters

    The Harmonized Tariff Schedule is broken into 22 different sections which are further divided into chapters. A good rule to remember is that the tariff is categorized with the most highly processed and refined goods last. That means that raw products such as live animals, lumber, and agricultural products will be found near the front of the tariff while electronics, works of art, medical devices, etc. will be found at the back.

    Reading the HTS: Notes

    Each chapter of the HTS contains notes on classifying products within that chapter. It is very important to thoroughly review these chapter notes before continuing with the classification process. Often times, these notes will list specific articles that can or can not be classified within that chapter. The notes can contain lists of acceptable definitions, clarifications to chapter headings, and other important information

    Reading the HTS: Headings and Subheadings

    A Harmonized Tariff Classification is a 10 digit number used to identify a specific product. Here’s a sample from Chapter 82 of the HTS (TOOLS, IMPLEMENTS, CUTLERY, SPOONS AND FORKS, OF BASE METAL; PARTS THEREOF OF BASE METAL)

    8201.10.00.00 is a handtool of a kind used in agriculture, horticulture or forestry; and more specifically and spade or shovel.

    The first two digits (82) of this classification are a reference to the appropriate chapter. The first four digits combined (8201) comprise the article’s heading within that chapter, while the last six digits (10.00.00) break that heading down into subheadings.

    In our example, this product is broken down in the following manner:

    Chapter 82:TOOLS, IMPLEMENTS, CUTLERY, SPOONS AND FORKS, OF BASE METAL; PARTS THEREOF OF BASE METAL

    Heading 8201: Handtools of the following kinds and base metal parts thereof: spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears, timber wedges and other tools of a kind used in agriculture, horticulture or forestry

    Subheading 8201.10.00.00: Spades and shovels, and parts thereof

    Reading the HTS: Unit of Quantity

    This is the US Customs acceptable measure of quantity for a product. This measurement must be reflected on your commercial invoice.

    Reading the HTS: Rates of Duty.

    The Rates of Duty Column determines the amount of duty you will have to pay on an imported product. Typically these rates of duty are expressed in a quantity/cost rate (e.g. $0.04/kg) or as a percentage of the value of the good (e.g. 2.5% of the value).

    Notice that the Rate of Duty Column is divided into three interior columns. These columns are interpreted as follows:

    General (aka Column 1): The typical rate of duty from the majority of the world’s countries.
    Special: Special duty rates assigned to specific countries or import scenarios.
    Column 2: The special rate of duty assigned to trade restricted countries. Cuba, North Korea, etc.

    Import, US Customs

    General Rules of Interpretation: How to Interpret the Tariff

    November 12th, 2007

    Save on import brokerage fees by downloading the US Harmonized Tariff Schedule and determining your product’s classification before you import.

    General Rules of Interpretation

    The General Rules of Interpretation (GRI’s) outline the method used to determine a product’s classification. They also address special scenarios wherein a final classification may be difficult to determine. The General Rules of Interpretation below have been taken verbatim from the HTS (current as of 11/1/04). Classification of goods in the tariff schedule shall be governed by the following principles:

    1. The table of contents, alphabetical index, and titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following provisions:

    2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.

    3. When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

    4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin.

    5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein: (a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character; (b) Subject to the provisions of rule 5(a) above, packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.

    6. For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.

    Final Note

    This article is intended to provide a general understanding of the structure of the Harmonized Tariff Schedule and the method used to determine a product’s classification. By nature of an introductory article, it does not cover special and extenuating circumstances that often arise when determining a product’s final classification. The authors of this article recommend that you consult with a licensed Customs broker or member of the US Customs Service should there be any question as to the classification of your product. As the importer of record for your product, it is your responsibility to ensure that the classification presented to Customs for the import of your shipment is the most accurate and legitimate classification. It is important to understand the process of classifying your product because as the importer of record you can be held ultimately responsible for mistakes made in classification

    Import, US Customs

    How Much Does it Cost to Import?

    November 12th, 2007

    Importers are expected to pay an import tax on virtually every item they import, but few know how much they owe until their shipments arrive in the US.

    Many importers are overcharged by US Customs at the border because they did not purchase a copy of the US Harmonized Tariff Schedule and properly classify their imports.

    Import taxes are based on the type of item you are importing and where it’s coming from.

    How do I know how much I will owe for my imports?

    Import taxes for every item imaginable can be determined using the United States Harmonized Tariff Schedule (HTSUS, USHTS, or HTS for short).

    This exceptionally large book breaks down into categories virtually every product and commodity imported into the United States. Each line item contains a ten digit classification number, a product description, and a duty rate. Find your item and apply its rate to calculate what you will owe.

    Do I have to classify my item?

    Every item that comes into the US must be classified with the Harmonized Tariff Schedule. If you don’t classify your item, US Customs will charge you a fee to do it for you.

    Before you let Customs classify your product, remember that import tariffs are the second largest source of revenue next to the IRS.

    What are Import Taxes?

    Import tax (also known as an import duty or import tariff) is collected by US Customs on every import that comes into the US.

    Import taxes are a source of income for the US Government and are a way to restrict or facilitate the import of certain commodities.

    There are three primary purposes behind the USHTS:

    1. The US Harmonized Tariff Schedule is used to assess import duties and taxes on imports. The US Customs Service is the second largest source of revenue for the US Government, second only to the Internal Revenue Service.

    2. The HTS is used to track import and export statistics for the US Department of Census. Each month hundreds of billions of dollars in goods and services are imported and exported from the United States. The Tariff Schedule is designed so that the Federal Government can effectively track the import and export of individual product groups into and out of the United States.

    3. Lastly, the USHTS is a tool to enforce the United States political agenda. By raising and lowering duty rates and import restrictions from specific countries or around the world, the United States can exercise a certain amount of economic influence.

    You can use the Tariff Schedule to calculate duties and taxes on imports. All imported products must be classified with the HTS before they will be allowed into the United States.

    Miscellaneous

    Where are you from?

    November 12th, 2007

    This website gets visitors from all over the world! Presumably, they’re all interested in international trade, import/export, or government compliance, but we don’t know for sure. If you’re visiting us for the first time, or if you’re a regular, please take a moment to share your experiences about your country, importing, exporting and trading in general. We’d love to hear from you!

    This month we’ve had visits from Germany, Canada, The United States, France, Belgium, Sweden, Poland, Spain, Brazil, Colombia, The United Kingdom, Great Britain, Australia, Austria, Thailand, Hungary, Italy, The Netherlands, Mongolia, New Zealand, and Venezuala to name just a few!

    DE, CA, US, FR, BE, SE, PL, ES, BR, CO, UK, GB, AU, AT, TH, HU, IT, NL, MN, NZ, VE

    Government

    UN Development Business

    November 12th, 2007

    UN Development Business is an official publication of the Outreach Division of the Department of Public Information of the United Nations. The publication specializes in the dissemination of information on projects in the developing countries and economies in transition, funded by the following multilateral banks: The World Bank, The Inter-American Development Bank, The Caribbean Development Bank, The European Bank for Reconstruction and Development, Asian Development Bank, The African Development Bank, The North American Development Bank, The Nordic Fund and the UN system of organizations. Our publication is officially listed in the guidelines of the World Bank and the Inter-American Development Bank. Due to the prestige of the United Nations and the guaranteed impartiality of our organization, multilateral Banks and individual governments feel very comfortable disseminating information through us rather than the private sector. The information we publish includes procurement notices, monthly operational summaries, approved projects, contract awards, etc. In 2005, our subscribers received information on more than 30 billion USD business opportunities.

    UN Development Business is available by subscription and it has more than 5000 subscribers worldwide. Most of them are consulting, engineering and manufacturing companies specializing in international procurement.

    Visit their site at: http://www.devbusiness.com