How to Import into the US

Have you ever seen the letters “FOB”, “DDU”, or “CFR” marked on your freight documents but didn’t know what they were?

These abbreviations as well as a dozen or so others are called incoterms.  Incoterms are a way for a buyer and seller to clearly define who is responsible for the shipment at different points in the delivery process in a clear manner.

For example, if your container full of crystal fishbowls from China were accidentally dropped during unloading from the crane onto the deck below, who would pay for it?  If your freight terms were FOB, you would be responsible.  If they were DDP, then your supplier would be liable.

Here are some of the most common terms:

• EXW – Ex Works — Title and risk pass to buyer including payment of all transportation and insurance cost from the seller’s door. Used for any mode of transportation.
• FCA – Free Carrier — Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier.Seller is obligated to load the goods on the Buyer’s collecting vehicle; it is the Buyer’s obligation to recieve the Seller’s arriving vehicle unloaded.
• FAS – Free Alongside Ship –Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller.
• FOB – Free On Board and risk pass to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. Used for sea or inland waterway transportation.
• CFR – Cost and Freight — Title, risk and insurance cost pass to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation.
• CIF – Cost, Insurance and Freight — Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.
• CPT – Carriage Paid To — Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination. Used for any mode of transportation.
• CIP – Carriage and Insurance Paid To –Title and risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation.
• DAF – Delivered at Frontier — Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation.
• DES – Delivered Ex Ship — Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation.
• DEQ – Delivered Ex Quay (Duty Paid) — Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation. DDU – Delivered Duty Unpaid — Title, risk and responsibility of import clearance pass to buyer when seller delivers goods to named destination point. Used for any mode of transportation. Buyer is obligated for import clearance.
• DDU – Delivered Duty Unpaid — Seller fulfills his obligation when goods have been made available at teh named place in the country of importation
• DDP – Delivered Duty Paid — Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation.

Note: EXW, CPT, CIP, DAF, DDU and DDP are commonly used for any mode of transportation. FAS, FOB, CFR, CIF, DES, and DEQ are used for sea and inland waterway.

The goal of the Incoterms is to alleviate or reduce confusion over interpretations of shipping terms, by outlining exactly who is obligated to take control of and/or insure goods at a particular point in the shipping process. Further, the terms will outline the obligations for the clearance of the goods for export or import, and requirements on the packing of items. The Incoterms are used quite frequently in international contracts, and a specific version of the Incoterms should be referenced in the text of the contract.

Although the Incoterms are widely used and exceedingly handy, they are not meant for every type of contract. Specifically, the terms used in a contract state exactly when the shipper unloads and relinquishes obligation, and when the buyer takes over for carriage and insurance. The Incoterms are not meant to replace statements in a contract of sale that outline transfers of ownership or title to goods. Therefore, the Incoterms may not be of use when looking to resolve disputes that may arise regarding payment or ownership of goods.
What are some examples of Incoterms?

The 13 Incoterms fall into four different groups. These four groups are

• Departure (E)
• Main Carriage Unpaid (F)
• Main Carraige Paid (C), and
• Arrival (D)

Each group’s letter makes up the first letter of Incoterm. For example, if your agreement with a buyer calls for the release of goods by the seller to occur at the seller’s location, the Ex Works (EXW) Incoterm would be used. This term states among other things that the buyer is to take over carriage and insurance responsibilities at the sellers dock. Alternatively, if the seller were to deliver goods to the buyers dock, including all carriage and insurance, a term from the Arrival group such as DDP would be appropriate. The DDP term stands for Delivered Duty Paid and includes in its definition that the seller will deliver goods to the buyers dock with all carriage, insurance, and duties paid. DDP represents the most obligations for the seller, whereas EXW represents the least.
Caution must be exercised when using Incoterms because the Incoterms relate to particular modes of transportation. For example, some of the Incoterms deal solely with transport by sea. Terms such as FOB and CIF can be used only for ocean bound freight. FOB, meaning Free on Board, translates to the shipper (seller) having upheld his/her part of the agreement when the goods pass the ship’s rails at the port of exit. The receiving party (buyer) assumes risk and costs associated with the goods once they pass the ship’s rail in the seller’s home port. Due to the specific mention of the ship’s rails, an aircraft or other mode of transport could not be used with FOB. For a shipment scheduled for delivery by air, rail, or some other form of transport with the same agreement as FOB one would need to use the Incoterm FCA, or Free Carrier. FCA can include other modes of transportation such as road, rail, interland waterway, and air. Whereas transfer under FOB takes place when the cargo passes the ship’s rails, transfer with FCA occurs when delivery of goods has been made at a destination previously outlined by the buying party.

WILDLIFE AND PETS

32. Wildlife and Pets. The importation of live wildlife (i.e., game animals, birds, plants) or any part or product made therefrom, and the eggs of birds, is subject to certain prohibitions, restrictions, permits and quarantine requirements of several Government agencies. Imports or exports of wildlife, their parts or products must be declared at designated ports of the U.S. Fish and Wildlife Service, unless an exception is granted prior to the time of import or export. The Assistant Regional Director of Law Enforcement for the region in which the import or export will take place should be contacted for additional information or to request an exception to designated port permit.

On or after January 1, 1981, most firms (with some significant exceptions) importing or exporting wildlife must obtain a license from the Fish and Wildlife Service. Applications and further information may be obtained from the U.S. Fish and Wildlife Service, Assistant Regional Director for Law Enforcement, for the state in which the importer or exporter is located.

Endangered species of wildlife and certain species of animals and birds are generally prohibited entry into the United States and may be imported or exported only under a permit granted by the U.S. Fish and Wildlife Service. Specific information concerning permit requirements should be obtained from the Fish and Wildlife Service, Office of Management Authority, 4401 North Fairfax Drive, Room 420(c), Arlington, Virginia 22203 or by calling 1-800-358-2104.

Antique articles (100 years of age or older) may be exempt from certain requirements of the U.S. Endangered Species Act. The Fish and Wildlife Service, Office of Management Authority, should be contacted for additional details.

The taking and importation of marine mammals and their products are subject to the requirements of the Marine Mammal Protection Act (MMPA) of 1972, as amended in 1994. The National Marine Fisheries Service and the Fish and Wildlife Service have jurisdiction under the MMPA for certain species and import activities. Additional requirements of the U.S. Endangered Species Act and the Convention of International Trade in Endangered Species (CITES) may apply. Prior to import, both agencies should be contacted to learn the exact permit requirements.

Regulations to implement the Convention on International Trade in Endangered Species Wild Fauna and Flora came into effect on May 23, 1977. Certain mammals, birds, reptiles, amphibians, fish, snails, clams, insects, crustaceans, mollusks, other invertebrates and plants may be prohibited without the prior issuance of a permit which may be obtained from the Fish and Wildlife Service, Office of Management Authority.

The importation into the United States of any wild animal or bird is prohibited if the animal or bird was captured, taken, shipped, possessed, or exported contrary to the law of the foreign country or subdivision thereof. In addition, no wild animal or bird from any foreign country may be taken, purchased, sold or possessed contrary to the laws of any state, territory, or possession of the United States.

The importation of feathers or skins of any bird, except for scientific and education purposes, is prohibited, except for the species noted in this paragraph. This prohibition does not apply to fully manufactured artificial flies used for fishing or to personally taken, noncommericial game birds. Feathers or skins of the following species are permitted entry: chickens, turkeys, guinea fowl, geese, ducks, pigeons, ostriches, rheas, English ring-necked pheasants and pea fowl not taken from the wild.

On October 23, 1992, the Wild Bird Conservation Act (ACT) became effective. The ACT focuses on bird species listed in the Appendices to the Convention on International Trade in Endangered Species (CITES). If you import birds, you must meet the requirements of this new law in addition to the existing requirements of CITES, the Endangered Species Act, the Migratory Bird Treaty Act, or other applicable regulations. Import permits must be obtained from the U.S. Fish and Wildlife Service.

Live birds protected under the Migratory Bird Treaty Act may be imported into the United States from foreign countries for scientific or propagating purposes only under permits issued by the U.S. Fish and Wildlife Service.

Imports of birds (pets, migratory birds, falcons) are subject to the quarantine requirements of the USDA and Public Health Service. Quarantine space must be reserved before importation. Prior to exportation, health certificates need to be obtained. Any questions should be directed to the appropriate agency.

On June 9, 1989, the U.S. Fish and Wildlife Service announced a ban on the importation of most African elephant ivory and any products made from it. The ban covers all commercial and noncommercial shipments including personal baggage accompanying a tourist. There are limited exceptions for antiques, trophies, and personal household effects. For further information, contact the U.S. Fish and Wildlife Service, Office of Management Authority, 4401 N. Fairfax Drive, Arlington, VA 22203, Tel. 1-800-358-2104.

The importation of birds, cats, dogs, monkeys, and turtles is subject to the requirements of the U.S. Public Health Service, Centers for Disease Control, Quarantine Division, Atlanta, Georgia 30333, and the Veterinary Services of the Animal and Plant Health Inspection Service (APHIS) of the Department of Agriculture, Hyattsville, Maryland 20782.

The importation of turtles with carapace length of less than four inches and psittacine birds are subject to the requirements of the U.S. Department of Agriculture and the Fish and Wildlife Service.

TRADEMARKS, TRADE NAMES, AND COPYRIGHTS

30. Trademarks and Trade Names. Articles bearing countereit trademarks, or marks which copy or simulate a registered trademark of a United States or foreign corporation are prohibited importation, provided that a copy of the U.S. trademark registration is filed with the Commissioner of Customs and recorded in the manner set by regulations (19 CFR 133.1-133.7.). the U.S. Customs Service also affords similar protection against unauthorized shipments bearing trade names which are recorded with Customs pursuant to regulations (19 CFR part 133, Subpart B). It is also unlawful to import articles bearing genuine trademarks owned by a U.S. citizen or corporation without permission of the U.S. trademark owner, if the foreign and domestic trademark owners are not parent and subsidiary companies or otherwise under common ownership and control, provided the tradmark has been recorded with the U.S. Customs Service. (15 U.S.C. 1124; 19 U.S.C. 1526).

The Customs Reform and Simplification Act of 1978 strengthened the protection afforded trademark owners against the importation of articles bearing a counterfeit mark. A “counterfeit trademark” is defined as a spurious trademark which is identical with, or substantially indistiguishable from, a registered trademark. Articles bearing a counterfeit trademark which are seized by Customs and forfeited to the government may be (1) given to any Federal, state. or local government agency which has established a need for the article; (2) given to a charitable institution; or (3) sold at public auction if more than 1 year has passed since forfeiture and no eligible organization has established a need for the article. The counterfeit marks must be removed before the forfeited articles may be given away or sold. If this is not feasible, the articles are destroyed. The law also provides an exemption from all restrictions on trademarked articles (limited to one of each type) accompanying a person arriving in the United States when the articles are for personal use and not for sale.

31. Copyrights. Section 602(a) of the Copyright Revision Act of 1976 (17 U.S.C. 602(a) provides that the importation into the United States of copies of a work acquired outside the United States without authorization of the copyright owner is an infringement of the copyright. Articles imported in violation of the import prohibitions are subject to seizure and forfeiture. Forfeited articles shall be destroyed; however, the articles may be returned to the country of export whenever Customs is satisfied that there was no intentional violation. The substantial similarity test is employed to determine if a design has been copied. Copyright owners seeking import protection from the U.S. Customs Service register their claim to copyright with the U.S. Copyright Office and record their registration with Customs in accordance with applicable regulations (19 CFR Part 133, Subpart D).

PESTICIDES, TOXIC, AND HAZARDOUS SUBSTANCES

24. Pesticides. The Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) as amended, 1988, provides the statutory authority governing the importation of pesticides and devices into the United States. Promulgated under section 17(c) of this authority, the U.S. Customs Service regulations at 19 CFR Parts 12.112-.117 describe the procedure governing the importation of pesticides and devices. Among the requirements described in these regulations, importers must submit a Notice of Arrival that has been submitted for review and approved by the EPA prior to the importation. Pesticides must be registered in accordance with FIFRA section 3 or they will be refused entry into the United States. Devices are not subject to product registration, but the labeling of both pesticides and devices must bear the producer establisment number registered with the EPA. In addition, pesticides and devices will be refused entry if they are identified as adulterated or misbranded; if they in any other way violate the provisions of FIFRA, or if they are otherwise injurious to an individuals health or the environment.

25. Toxic Substances. The Toxic Substances Control Act, (TSCA), effective January 1, 1977, regulates the manufacturing, importation, processing, distribution in commerce, use or disposal of any chemical substances or mixtures that are broadly defined in section 3 of TSCA. Section 3 specifies that certain substances are excluded from the definition of “chemical substance” based upon their use. These substances include, but are not limited to, foods, drugs, cosmetics, and active ingredients in pesticides. Importations will not be released from Customs custody unless proper certification that the import “complies with” or “is not subject to” the requirements of the Toxic Substances Control Act and is presented to Customs, or if it is already identified as a food, drug, or active pesticide ingredient. To obtain further information concering this matter, contact the Environmental Protection Agency’s TSCA Assistance Information Service at (202) 554-1404.

26. Hazardous Substances. The importation into the United States of dangerous caustic or corrosive substances in packages suitable for household use and of hazardous substances is regulated by the Hazardous Substance Act; the Caustic Poison Act; the Food, Drug and Cosmetics Act; and the Consumer Product Safety Act. The marketing, labeling, packaging, and transportation of hazardous materials, substances, wastes and their containers is regulated by the Office of Harzardous Materials Transportation of the Department of Transportation, Washington, D.C. 20590. Hazardous waste is a special sub-category of hazardous substances and is regulated by the Resource Recovery and Conservation Act (RCRA), which requires a special EPA manifest for both imports and exports.

TEXTILE, WOOL, AND FUR PRODUCTS

27. Textile Products. All textile fiber products imported into the United States shall be stamped, tagged, labeled, or otherwise marked with the following information as required by the Textile Fiber Products Identification Act, unless exempted from marking under section 12 of the Act.

• The generic names and percentages by weight of the constituent fibers present in the textile fiber product, exclusive of permissive ornamentation, in amounts of more than five percent in order of predominance by weight, with any percentage of fiber or fibers required to be designated as “other fiber” or “other fibers” appearing last. Fibers present in amounts of five percent or less must be designated as “other fibers.”
• The name of the manufacturer or the name or registered identification number issued by the Federal Trade Commission of one or more persons marketing or handling the textile fiber product. A word trademark, used as a house mark, registered in the United States Patent Office, may be on labels in lieu of the name otherwise required if the owner of such trademark furnishes a copy of the registration to the Federal Trade Commission prior to use.
• The name of the country where processed or manufactured.

For the purpose of the enforcement of the Textile Fiber Products Identification Act, a commercial invoice covering a shipment of textile fiber products exceeding $500 in value and subject to the labeling requirements of the Act is required to show the information, in addition to that ordinarily required on the invoices.

Regulations and pamphlets containing the text of the Textile Fiber Products Identification Act may be obtained from the Federal Trade Commission, Washington, D.C. 20580.

28. Wool. Any product containing woolen fiber imported into the United States, with the exception of carpet, rugs, mats, upholsteries, and articles made more than 20 years prior to importation, shall be tagged, labeled, or otherwise clearly marked with the following information as required by the Wool Products Labeling Act of 1939:

• The percentage of the total fiber weight of the wool product, exclusive of ornamentation not exceeding five percent of the total fiber weight of (1) wool, (2) recycled wool, (3) each fiber other than wool if the percent by weight of such fiber is five percent or more, and (4) the aggregate of all other fibers.
• The maximum percent of the total weight of the wool product, of any nonfibrous loading, filling, or adulterating matter.
• The name of the manufacturer or person introducing the product in commerce in the United States; i.e., the importer. If the importer has a registered identification number issued by the Federal Trade Commission, that number may be used instead of the indiviual’s name.

For the purpose of the enforcement of the Wool Products Labeling Act, a commercial invoice covering a shipment of wool products exceeding $500 in value and subject to the labeling requirements of the act.

The provisions of the Wool Products labeling Act apply to products manufactured in the United States as well as to imported products.

Pamphlets containing the text of the Wool Products Labeling Act and the regulations may be obtained from the Federal Trade Commission, Washington, D.C. 20580.

29. Fur.. Any article of wearing apparel imported into the United States and made in whole or in part of fur or used fur, with the exception of articles made of new fur of which the cost or manufacture’s selling price does not exceed $7, shall be tagged, labeled, or otherwise clearly marked to show the following information as required by the Fur Products Labeling Act.

• The name of the manufacturer or person introducing the product in commerce in the United States; i.e., importer. If the importer has a registered identification number, that number may be used instead of the individual’s name.
• The name or names of the animal or animals that produced the fur as set forth in the Fur Products Name Guide and as determined under the rules and regulations.
• That the fur product contains used or damaged fur where such is the fact.
• That the fur product is bleached, dyed, or otherwise artificially colored when such is the fact.
• That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur when such is the fact.
• The name of the country of origin of any imported furs contained in a fur product.

For the purpose of enforcement of the Fur Product Labeling Act, a commercial invoice covering a shipment exceeding $500 in value of furs or fur products is required.

The provisions of the Fur Products Labeling Act apply to fur and fur products in the United States as well as to imported furs and fur products. Regulations and pamphlets containing the text of the Fur Products Labeling Act may be obtained from the Federal Trade Commission, Washington, D.C. 20580.

III. SPECIAL REQUIREMENTS FOR THE IMPORTATION OF MOTOR VEHICLES AND BOATS

AUTOMOBILE, VEHICLES AND VEHICLE EQUIPMENT

Safety and Bumper Standards. As a general rule, all imported motor vehicles less than 25 years old and items of motor vehicle equipment must comply with all applicable Federal Motor Vehicle Safety Standards in effect when these vehicles or items were manufactured. A Customs inspection at the time of entry will determine such compliance which is verified by the original manufacturer’s certification permenently affixed to the vehicle or merchandise. A declaration, HS Form 7, must be filed when motor vehicles or items of motor vehicle equipment are entered. HS Form 7 can be obtained from customs brokers or at ports of entry.

If written approval is obtained from the U.S. Department of Transportation, certain temporary importations may be exempt from the requirements for certification and conformance, including vehicles brought in for research, investigation, studies, training, demonstrations or competitive racing events. Also, vehicles imported for temporary use by certain nonresidents or members of foreign governments or foreign armed forces may not be required to comply. Vehicles and motor vehicles equipment imported solely with the intention of exportation and so labeled are also exempt from these requirements.

A DOT bond in the amount of 150 percent of the dutiable value must be posted at the port of entry when a noncertified or nonconforming vehicle is imported for permanent use. This bond is intended to assure conformance of the vehicle within 120 days after entry. The importer must also sign a contract with a DOT-registered importer who will modify the vehicle to conform with all applicable safety and bumper standards, and who can certify the modification(s). A copy of this contract must be furnished to the Customs Service at the port of entry. Furthermore, the vehicle model and model year must be determined to be eligible for importation.

For further information and details on these requirements, please contact the U.S. Department of Transportation, National Highway Traffic Safety Administration, Director of the Office of Vehicle Safety Compliance (NEF-32), 400 Seventh Street, S.W., Washington, D.C. 20590. Tel. (202) 366-5313.

Emission Requirements: The Clean Air Act, as amended, prohibits the importation of any motor vehicle or motor vehicle engine not in conformity with emission requirements prescribed by the U.S. Environmental Protection Agency (EPA). This restriction applies whether the motor vehicle or motor vehicle engine is new or used, and whether it was originally produced for sale and use in a foreign country or originally produced (or later modified) to conform to EPA requirements for sale or use in the United States. In addition to passenger cars, all trucks, multipurpose vehicles (e.g., all terrain vehicles, campers), motorcycles, etc., that are capable of being registered by a state for use on public roads or that the EPA has deemed capable of being safely driven on public on public roads, are subject to these requirements. The term “vehicle” is used below to include all EPA-regulated vehicles and engines.

U.S.-Version Vehicles: Any person may import U.S.-version vehicles. All such 1971 and later models are required to have a label in a readily visible position in the engine compartment stating that the vehicle conforms to U.S. requirements. This label will read “Vehicle Emission Control Information” and will have a statement by the manufacturer that the vehicle meets U.S. EPA emission requirements at the time of manufacture. If this label is not present, the importer should obtain a letter of conformity from the manufacturer’s U.S. representatives – not from a dealership – prior to importation.

Except as noted below, U.S. – version vehicles must be entered under Customs bond. The importer has 120 days to demonstrate to EPA that all Federal emission requirements have been met.

The following U.S.-version (labeled) vehicles are not subject to EPA import restrictions and may be entered without bond under the applicable category on the EPA Form 3520-1:

• New vehicles driven less than 50 miles.
• Vehicles older than 20 years.
• Vehicles manufactured-without a catalytic converter and oxygen sensor, if accompanied by documented evidence from the manufacturer.
• Diesel-fueled vehicles.
• Gasoline – and methanol-fueled vehicles driven solely in the U.S., Canada, Mexico, Japan, Australia, Taiwan, and the Grand Bahama Island (EPA Form 3520-1 not required).
• Vehicles driven only in western Europe and fueled only with unleaded gasoline.
• Vehicles participating in an overseas EPA-approved catalyst-control program, if accompanied by appropriate certification from the catalyst control program.

Non-U.S. Version Vehicles: Individuals are not permitted to import non-U.S. version vehicles (unless otherwise excluded or exempted). These vehicles must be imported (entered) by an Independent Commercial Importer (ICI) having a currently valid qualifying certificate of conformity for each vehicle being imported. The ICI will be responding for performing all necessary modifications, testing and labeling, as well as providing an emissions warranty identical to the emissions warranty required of new vehicles sold in the U.S.

Excluded Vehicles: Vehicles manufactured before EPA requirements took effect (e.g., gasoline-fueled passenger vehicle manufactured prior to 1968 and mortorcycles manufactured prior to 1978) are excluded from import restrictions and may be imported by any person without bond under the applicable declaration category on the EPA Form 3520-1.

WORDS OF CAUTION:

• Not all nonconforming vehicles are eligible for importation, and ICIs are not required to accept vehicles for which they have qualifying certificates of conformity.
• EPA certification of ICIs does not guarantee the actions or work of the ICIs, nor does it regulate contractual agreements and working relationships with vehicle owners.
• EPA strongly recommends that prospective importers buy only U.S. version (labeled) vehicles, because of the expense and potential difficulties involved with importing a nont-U.S. version vehicle.
• EPA strongly recommends that current owners of non-U.S. version vehicles sell or otherwise dispose of those vehicles overseas rather than ship and import them into the U.S. because of the expense and potential difficulties involved with importing a non-U.S. version vehicle.
• Before shipping a non-conforming vehicle for importation, EPA strongly recommends that the importer either make final arrangements with an ICI for modifications and testing, or obtain EPA apporval in writing for importation. Storage fees at the ports are costly, and the vehicle may not be eligible for importation.
• The EPA policy that permited importers a one-time exemption for vehicles at least five years old has been eliminated.
• EPA considers a U.S.-version vehicle that has had modifications to its drive train or emission control system to be a non-U.S.-version vehicle, even though it may be labeled a U.S.-version vehicle.

  To obtain further information and assistance on these matters, please contact the Environmental Protection Agency, Investigation/Imports Section (6405-J), Washington, D.C. 20460. Tel. (202) 233-9660. Fax (202) 233-9596.

  Final word of caution. Modification to bring a nonconforming vehicle into conformity with the safety and bumper standards and/or emmission standards may require extensive enginering, be impractical or impossible, or the labor and materials may be unduly expensive. It is highly recommended that these modifications be investigated before a vehicle is purchased for importation.

  BOAT SAFETY STANDARDS

  Imported boats and associated equipment are subject to U.S. Coast Guard safety regulations or standards under the Federal Boat Safety Act of 1971. Products subject to standards must have a compliance certification label affixed. Certain hulls also require a hull identification number to be affixed. A U.S. Coast Guard import declaration is required to be filled with entries of nonconforming boats. Further information may be obtained from the Commandant, U.S. Coast Guard, Washington, D.C. 20593.

  DUTIABILITY

  Vessels brought into the United States for use in trade or commerce are not dutiable. Yahts or pleassure boats brought into the United States by nonresidents for their own use in pleasure cruising are also not dutiable. Yahts or pleasure boats owned by a resident or brought into the United States States for sale or charter to a resident are dutiable. Further information may be found in a pamplet published by the U.S. Customs Service entitled “Pleasure Boats”.

  RESTRICTIONS ON USE

  Vessels that are foreign-built or of foreign registry may be used in the United States for pleasure purposes and in the foreign trade of the United States. However, Federal law prohibits the use of such vessels in the coastwise trade, i.e., the transportation of passengers or merchandise between points in the United States, including carrying fishing parties for hire. Questions concerning the use of foreign-built or foreign-flag vessels should be addressed to Chief, Carrier Rulings Branch, Office of Regulations and Rulings, U.S. Customs Service, 1300 Pennsylvania Avenue., N.W., Washington, D.C. 20229.

OTHER MISCELLANEOUS PROHIBITED OR RESTRICTED MERCHANDISE

33. Foreign Assets Control Restrictions. The Office of Foreign Assets Control administers regulations (31 CFR, Chapter V) which generally prohibit the importation of merchandise or goods that contain components from the following countries: Cuba, Iran, Iraq, Libya, North Korea, and the Federal Republic of Yugoslavia (Serbia and Montenegro). These restrictions apply to the country of origen, regardless of where the item was purchased. An Iranian rug purchased in England, for example, is still prohibited. In addition, it must be noted that origin can be conferred by entering the commerce of a sanctioned country: an American-made television that has been used in Iran may be considered to be of Iranian origin if returned to the United States.

The proscriptions do not apply to informational materials such as pamphlets, books, tapes, films, or recordings, except those from Yugoslavia or Iraq.

Specific licenses are required to bring prohibited merchadise into the United States, but they are rarely granted. Foreign visitors to the United States, however, may usually be permitted to bring in small articles for personal use as accompanied baggage, depending upon the goods’ country of origin.

Travelers should be aware of certain travel restrictions that may apply to these countries. Because of the strict enforcement of these prohibitions it is highly recommended that those anticipating foreign travel to any of the countries listed above should write in advance to the Office of Foreign Assets Control, Department of the Treasury, Washington, D.C. 20220, or call (202) 622-2500 for further information and guidance.

34. Obscene, Immoral, and Seditious Matter. Section 305, Tariff Act of 1930, as amended, restricts the importation of any book, writing, advertisement, circular, or picture containing any matter advocating or urging treason or insurrection against the United States, or forcible resistance to any law of the United States, or containing any threat to take the life of or inflict bodily harm upon any person in the United States, or any obscene book, writing, advertisement, circular, picture or other representation, figure, or image on or of paper or other material, or any instrument, or other article which is obscene or immoral, or any drug or medicine for causing unlawful abortions unless otherwise authorized by law (e.g., FDA approved).

35. Petroleum and Petroleum Products. Importations of petroleum products are subject to the requirements of the Department of Enegy. An import license is no longer required, but an import authorization may be needed. These importations may be subject to an oil import license fee collected and administered by the Department of Energy. Inquiries should be directed to the Department of Energy, Washington, D.C. 20585.

36. Products of Convict or Forced Labor. Merchandise produced, mined, or manufactured by means of the use of convict labor, forced labor, or indentured labor under penal sanctions is prohibited importation, provided a finding has been published pursuant to section 12.42 of the Customs Regulations (19 CFR 12.42), that certain classes of merchandise from a particular country, produced by convict, forced, or indentured labor, were eithter being, or are likely to be, imported into the United States in violation of section 307 of the Tariff Act of 1930, as amended (19 U.S.C. 1307).

37. Unfair Competition. Section 337 of the Tariff Act, as amended, prohibits the importation of merchandise if the President finds that unfair methods of competion or unfair acts exists. This section is most commonly invoked in the case of patent violations, although a patent need not be at issue. Prohibition of entries of the merchandise in question generally is for the term of the patent, although a different term may be specified.

Following a section 337 investigation, the International Trade Commission may find that unfair methods of competition or unfair acts exist with respect to the importation of certain merchadise. After the International Trade Commission has issued an order, the President is allowed 60 days to take action; should the 60 days expire without Presidential action, the order becomes final. During the 60-day period or until the President acts, importation of the merchadise is allowed under a special bond but it must be recalled by Customs if appropriate under the conditions of the order when it becomes final. If the President determines that entry of the merchandise is not in violation of section 337, the bond is canceled.

38. Machine Tools. Certain types of machine tools from Japan and Taiwan are subject to Voluntary Restraint Arrangements (VRAs) negotiated by the United States Trade Representative and the individual countries. These are agreements by which the level of exports of the covered products are voluntarily limited by the exporting country. The VRAs are administered by the Department of Commerce and presentation of an export certificate or license by the country of origin is a condition of entry.

I. PROHIBITIONS, RESTRICTIONS, AND OTHER GOVERNMENT AGENCY REQUIREMENTS

The importation of certain classes of merchandise may be prohibited or restricted by the United States to protect the economy and security of the country, to safeguard consumer health and the well-being of it’s population, and to preserve domestic plant and animal life. Some commodities are also subject to an import quota or a restraint under bilateral trade agreements and arrangements.

Many of these prohibitions and restrictions on importations are subject, in addition to U.S. Customs Service requirements, to the laws and regulations administered by other United States Government agencies with which the U.S. Customs Service cooperates in the enforcement of these laws and regulations. These laws and regulations may, for example, prohibit entry; limit entry to certain ports; restrict routing, storage, or use; or require treatment, labeling, or processing as a condition of release. Customs clearance is given only if these various additional requirements are met. This applies to all types of importations, including those made by mail and those placed in foreign-trade zones.

The foreign exporter should make certain that the United States importer has provided proper information to (1) permit the submission of necessary information concerning packing, labeling, etc., and (2) that necessary arrangements have been made by the importer for entry of the merchandise into the United States.

It may be impracticable to list all articles specifically; however, various classes of articles are discussed below. Foreign exporters and U.S. importers should consult the agency mentioned for detailed information and guidance, as well as for any changes to the laws and regulations under which the commodities are controlled.

GOLD, SILVER, CURRENCY, AND STAMPS

20. Gold and Silver. The provisions of the National Stamping Act, as amended (15 U.S.C. 291-300) are enforced inpart by U.S. Customs and by the FBI. Articles made of gold or alloys thereof are prohibited importation into the United States if the gold content is one-half carat divergence below the indicated fineness. In the case of articles made of gold or gold alloy, including the solder and alloy of inferior fineness, a one-carat divergence below the indicated fineness is permitted. Articles marked “sterling” or “sterling silver” must assay at least 0.925 of pure silver with a 0.004 divergence allowed. Other articles of silver or silver alloys must assay not less than 0.004 part below the indicated finess thereof. Articles marked “coin” or “coin silver” must contain at least 0.900 part pure silver with an allowable divergence therefrom of 0.004 part below.

A person placing articles of gold or silver bearing a fineness or quality mark such as 14 K, sterling, etc., in the mail or in interstate commerce must place his name or registered trademark next to the fineness mark in letters the same size as the fineness mark. The trademark or name is not required at the time of importation; therefore, Customs has not direct responsibility for enforcement of the law. Persons making inquiry or seeking advice or interpretation of the law should consult with the Department of Justice.

Articles bearing the words “United States Assay” are prohibited importations. Articles made wholly or in part of inferior metal and plated or filled with gold or silver or alloys thereof and which are marked with the degree of fineness must also be marked to indicate the plated or filled content, and in such cases, the use of the words “sterling” or “coin” is prohibited.

All restrictions on the purchase, holding, selling, or otherwise dealing with gold were removed effective December 31, 1974, and gold may be imported subject to the usual Customs entry requirements. Under the Hobby Protection Act, administered by the Bureau of Consumer Protection of the Federal Trade Commission, any imitation numismatic item must be plainly and permenently marked “copy”; those that do not comply are subject to seizure and forfeiture. Unofficial gold coin restrikes must be marked with the country of origin. It is advisable to obtain a copy of the legal proclamation under which the coins are issued or an affadavit of government sanction of coins should be secured from a responsible banking official if the proclamation is unavailable.

21. Counterfeit Articles. Articles bearing facsimiles or replicas of coins or securities of the United States or of any foreign country cannot be imported. Counterfeits of coins in circulation in the United States; counterfeited, forged, or altered obligations or other securities of the United States or of any foreign government; plates, dies, or other apparatus which may be used in making any of the foregoing are prohibited importations.

22. Monetary Instruments. Under the Currency and Foreign Transactions Reporting Act, 31 U.S.C. 5311 et seq., if a person knowingly transports, is about to transport, or has transported, more than $10,000 in monetary instruments at one time to, through or from the United States; or if a person receives more than $10,000 at one time from or through a place outside the United States, a report of the transportation (Customs Form 4790) must be filed with the U.S. Customs Service. Monetary instruments include U.S. or foreign coin, currency; traveler’s checks in any form, personal and other checks, and money orders, either in bearer negotiable form or endorsed without restriction; and securities or stocks in bearer form. A bank check or money order made payble to a named person but not endorsed, or which bears a restrictive endorsement, is not considered to be a “monetary instrument.” The Department of Treasury regulations governing the report of monetary instruments are set forth at 31 CFR part 103.

23. Postage Stamps. Facsimiles of United States postage stamps are prohibited except those for philatelic, educational, historical, or newsworthy purposes. Further information should be obtained from the United States Secret Service, Department of the Treasury, Washington, D.C. 20223.