How to Import into the US

If the value of your purchase(s) is less than $2000 and your goods are being shipped by mail or freight, they may, in most cases, be imported as an informal entry. However, there are exceptions to this. For instance, if the importation is determined to be for commercial purposes, the value limit for filing an informal entry for many textile items is either $250 or $0 – depending on whether or not the item is subject to Quota (see below). Clearing goods through Customs as an informal entry is less arduous a process than clearing them by filing a formal entry. Essentially, when goods are cleared as an informal entry, Customs will prepare the paperwork, including determining the classification number and duty rate for your merchandise. The duty rate for many items typically bought in an on-line auction is zero, however, Customs may charge a small processing fee for mail imports that do require the payment of duty.

If your goods are sent by a courier or express service, their brokers will usually handle the paperwork, and bill you for their services.

If your goods are being shipped by freight, and you want to clear them through Customs yourself, be sure the shipping company has instructions to deliver them to a port near you. Otherwise, you will need to arrange for someone else to clear the goods for you when they arrive. Your alternative is to ask the seller to make arrangements to have your goods forwarded to your door, in which case you should expect to pay for the services of the customs broker who coordinates this when your goods arrive in the U.S.A.

Customs does not inform importers of the arrival of cargo or freight. When cargo or freight arrives at a U.S. port of entry, it is the responsibility of the shipper or a designated agent to inform the importer of its arrival. However, proper notification does not always happen, particularly, if the shipper has incomplete contact information for you, the importer. Therefore, it is important to find out the scheduled arrival date of your import and follow-up. If you are not notified that your goods have arrived and you or your broker have not presented the proper paperwork to Customs within 15 days of your goods’ arrival, your goods will be transferred to a warehouse, and you will be liable for storage charges. If you have not claimed your goods within six months of their arrival in the USA, they could be sold at auction.

There are three ways goods can be sent to you from abroad. In order to avoid costly problems, you and the seller of your goods should agree on which will be used the international postal service, a courier service, or freight carriers. International Postal Service: Merchandise shipped through the international postal service is forwarded upon its arrival in the United States to one of Customs International Mail Branches for clearance. If the item is less than $2,000 in value and is not subject to a quota or is not a restricted or prohibited item, a Customs official will usually prepare the paperwork for importing it, assess the proper duty, and release it for delivery. This procedure is generally referred to as a mail entry.

Packages whose declared value is under $200 ($100 if being sent as a gift to someone other than the purchaser) will generally be cleared without any additional paperwork prepared by Customs. However, Customs always reserves the right to require a formal entry for any importation and generally exercises this option if there is something unusual about the importation, or if important documents such as an invoice or bill of sale do not accompany the item.

If any duty is owed, Customs will charge a processing fee for clearing your package. Duty and the processing fee are usually paid at your local post office, where your package is forwarded.

If your goods are valued at more than $2000, or for commercial textile shipments (clothes/materials) regardless of value, you will be required to file a formal entry, which can require extensive paperwork and the filing of a Customs bond. As mentioned above and for various reasons, Customs may require a formal entry for any importation. Customs, however, rarely exercises this right unless there is a particular concern about the circumstances surrounding an importation. Because filing a formal entry can be complicated, the Customs Service recommends importers consider hiring a customs broker to complete the transaction. Lists of brokers can be found on the port pages of Customs web site.

One of the most difficult things about filing formal entries is accurately identifying the correct classification number of the item being imported. The Harmonized Tariff Schedule of the United States (HTSUS) lists classification numbers for every conceivable item under the Sun. The HTSUS is the size of an unabridged dictionary, and specialists train for months to learn how to correctly classify goods.

The classification number of an item determines many requirements pertaining to that item’s importation such as it’s duty rate, eligibility for special import programs like the Generalized System of Preferences (GSP) or the North American Free Trade Agreement (NAFTA), and whether or not the item is subject to quota restrictions.

Failure to correctly classify an item can result in fines and/or delays in delivery. You may write to Customs for a binding ruling, and/or contact an import specialist at your local port for help to identify the proper classification number for your imported item.

Goods imported for commercial purposes must comply with a variety of special requirements, such as marking of country of origin, which vary depending upon the particular commodity. Please see our publication, “Importing Into the United States,” for more detailed information. Be particularly aware that an invoice should always accompany commercial shipments.

If you are sending goods to someone outside the United States, you should be aware that most countries have similar regulations governing the importation of goods into their territory. If you are selling goods on a “Payment on Delivery” basis, you might want to contact the Customs authority of the country where the goods are being shipped to make sure they can legally be imported into that country. In addition, some commodities sold for export are subject to enforcement requirements of the Customs Service and other U.S. government agencies. In particular, cars and goods with potential military applications, including some electronics and software, must be cleared through Customs before they are exported. And if you export goods worth more than $2,500, you will have to follow formal export procedures.

All paperwork for sending packages internationally has a section for providing Customs information. A Customs Declaration is a form obtainable at most foreign post offices. This declaration form should include a full and accurate description of the merchandise, and should be securely attached to the outside of your shipment. Declaration forms vary from country to country, and they don’t all ask for the information required by the U.S. Customs Service. You should ask the seller to provide the following information, whether or not it is asked for on the paperwork. Seller’s name and address. Description of the item(s) in English (a legal requirement). For example, antique silver teapot, silk kimono, 18-karat gold rope necklace. It is very important that this information be detailed and accurate. What is described here will determine the classification number and duty rate that Customs assigns the item when it arrives in the United States. If this information is inaccurate, you could end up paying the wrong duty rate for what you purchased. If it is inaccurate enough to seem deliberately misleading — keep in mind that Customs does randomly inspect packages — your goods could be seized and you may be assessed a fine.

Quantity of each type of item being shipped. For example, two watches (14-karat gold, 17 jewel), one leather purse.

Purchase price in U.S. dollars. Provide both the unit price, and if more than one unit was purchased, the total value for all like items. Fudging or miscalculating the price paid for goods is a bad idea. Many sellers offer to misrepresent costs in an effort to save the purchaser from having to pay duty, but this is illegal. Others sellers are wary of package handlers and do not want them to know how valuable something may be, which could result in its theft. The most common legal precaution against theft is to insure the package when sending it. You should discuss insurance options with your seller, keeping in mind that misrepresenting the value of an item on the Customs declaration is illegal.

Weight of the item(s).

Country of origin of the product itself. Be aware that this is not necessarily the country where the item was purchased.

Note: It is important to know that foreign shipments that are not accompanied by a Customs declaration form and an invoice may be subject to seizure, forfeiture or return to sender.

Keep the following questions in mind before you buy something from a foreign source. The answers will have far-reaching Customs implications (explained below) that could influence your decision to buy.

• Can the goods be legally imported? Are there restrictions on, or special forms required, for your purchase’s importation?
• Are you buying the item(s) for your personal use or for commercial purposes?
• Will you be responsible for shipping costs? If so, you should discuss with the seller how your purchase will be shipped. The choices are freight, courier service or international postal service. If you’re not careful, transportation and handling costs could far outweigh the cost of your purchase. Sometimes, the seemingly cheaper methods can be more expensive in the long run because they are more susceptible to theft, misdeliveries and logistical problems.
• You should discuss with the seller what the exact delivery arrangements will be. If the seller does not make arrangements for postal or door-to-door delivery, you will either need to hire a customs broker to clear your goods and forward them on to you, or go the port of entry and clear them yourself.
• Can you trust the seller to provide accurate information about the item being shipped in the Customs section of the shipping documents? Giving misleading or inaccurate information about the nature of the item and its value is illegal. And it is the importer – YOU – who could face legal action and fines for this violation! The following is a brief primer on the various factors that can impact the clearance of your goods through Customs. Follow the links for more detailed information.

The Internet has made it easy to find and purchase items from almost anywhere in the world. However, many people are discovering that getting a foreign-bought item successfully delivered to the United States is much more complicated. When goods move from any foreign country to the United States, they are being IMPORTED. There are specific rules and regulations that govern the act of importing – and they can be extremely complex and confusing – and costly.

That artisan cheese from Italy may be a snap to find and buy on the Internet, but the U.S. Customs Service could seize your purchase because certain regulations prohibit the importation of dairy products from particular countries without a permit.

Your great auction purchase of gorgeous linen products? Depending upon the country of origin, quota restrictions could hold them up in Customs for a long time. And storage charges in such cases can be expensive.

In other words, “Buyer, Beware.” When you buy goods from foreign sources, you become the importer. And it is the importer – in this case, YOU – who is responsible for assuring that the goods comply with a variety of both state and federal government import regulations. Importing goods that are unsafe, that fail to meet health code requirements, or that violate quota restrictions could end up costing you quite a bit of money in fines and penalties. At the very least, such goods would be detained, and possibly destroyed, by Customs.

Knowing what is admissible is just part of the story. The other part is knowing how to import. Depending upon what you are importing and its value, the procedures can be very complicated.

It does not matter whether you bought the item from an established business or from an individual selling items in an on-line auction. If merchandise, used or new, is imported into the United States, it must clear Customs and may be subject to the payment of duty as well as to whatever rules and regulations govern the importation of that particular product into the United States.

China is one of the most rapidly developing global players in the international economy. With a population in excess of 1.3 billion, approximately four times the size of the United States and geographically similar in size, China has been described as a sleeping giant of international trade. In 2005 China claimed and estimated 752 trillion dollars in exported goods, just shy of 927 trillion exported by the United States. In 2006, this number is expected to increase dramatically.

What percentage of Chinese exports come to the US?

Because of the reduced production costs associated with Chinese origin commodities and the infrastructure to effectively produce many of the most sought after goods in the US, the United States remains the largest importer of Chinese goods. The US alone imports 21.4% of Chinese exports compared to their next largest trading partner Hong Kong which imports 16.3%.

What should I import from China?

China’s primary export commodities include machinery and equipment, iron and steel, medical and optical equipment, and plastics. The Chinese have significant natural resources at their disposal as well as the manpower to manufacture large quantities of refined and unrefined goods.

What are China’s quota restrictions?

To avoid market disruptions from the over-importation of Chinese origin goods, China and the United States have entered into a voluntary agreement to limit the amount of goods (primarily textiles from chapters 50 to 63 of the US Harmonized Tariff Schedule) that may be imported into the US from China. Textiles leaving China must have an endorsement in the form of a visa from the Chinese government in order to obtain import clearance by US Customs and Border Protection. Information regarding the status of textile safeguards from China may be obtained from the Office of Textiles and Apparel.

Is China at risk for anti-dumping?

Yes. China is involved in the largest number or anti-dumping cases over the past few years. Anti-dumping is the practice of importing goods at below fair market value in order to drive competitors out of the marketplace.

How can I meet Chinese exporters?

Fortunately for US importers, Chinese exporters make an effort to seek out international business partners and are active users of the internet. Prospective importers can make industry contacts on message boards like the Informed Trade International community forum, or on other websites designed to help importers and exporters meet. Some resources we found included:

http://www.chinese-suppliers.com/
http://www.alibaba.com/
http://www.chinabusinessworld.com/