How to Import into the US

Agents at the 86 Traffic Checkpoint, located approximately 8 miles north of Westmoreland, California, encountered the 1997 Peterbuilt tractor-trailer around 4:00 AM Sunday morning. Immediately keying in on suspicious details concerning the trucks manifest, the primary inspection agent sent the truck and driver to secondary inspection. During secondary inspection, 64 illegal occupants were discovered locked inside the trailer along with several large boxes placed toward the back of the trailer. After having secured all 64 persons, a Border Patrol K-9 was brought in to sniff the trailers interior and consequently alerted its handler to the possible presence of an illegal substance. Further inspection of the boxes revealed they contained 78 individually wrapped packages of marijuana weighing in excess of 451 pounds; an estimated street value of $361,280.

Below are most of the initial HTS classification categories that precious stones and gems will fall into.

Diamonds, gems, and gemstones are a highly sought after commodity available from a variety of regions around the world. Due to the number of locations where stones are available, the high value of gemstones and their limited availability, they are often subject to very high US duty rates and stringent import regulations. If you are looking to import gemstones into the United States, this guide is for you.

Where to buy:

Diamonds

90% of the import market is tied to diamonds. They originate primarily from Africa but can be found in almost any part of the world.

Garnets

Garnets are found in the United States, Sri Lanka, Brazil, India, and various parts of Africa

Amethyst

Amethyst is found mainly in Brazil, Uruguay and Zambia.

Aquamarine

Aquamarine is found mainly in Brazil, Nigeria, Zambia, Madagascar and Ukraine.

Emeralds

Emeralds are found mainly in Colombia, Brazil, Zambia and Zimbabwe.

Rubies

The finest rubies emanate from Myanmar (Burma, having been mined there since ancient times). Other sources include Thailand, Vietnam, Sri Lanka, Kenya, Tanzania, Cambodia, Afghanistan and India.

Peridot

Large sizes are mined in Myanmar (Burma) and peridot is also found in China.

Sapphire

Sapphire is found in Sri Lanka, Thailand, Cambodia, Myanmar (Burma), Kashmir, Australia, Nigeria, Kenya, Tanzania, China and the United States.

Opal

Opal sources are Australia, Mexico and the United States.

Citrine

While most citrine is mined in Brazil, other sources include Africa, Australia, Russia and Myanmar.

Topaz

Most topaz is mined in Brazil; other important sources include Africa, Australia, China, Japan, Mexico, Myanmar, Nigeria, Pakistan, Russia, Siberia, Sri Lanka, and the United States.

Classification and Duty Rates

Precious stones, semi-precious stones, pearls, and jewelry are listed in their own chapter in the Harmonized Tariff Schedule of the United States found (as of 09/29/04) here:

USHTS Chapter 71: Natural or cultured pearls, precious or semiprecious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewelry; coin.

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

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

• general condition of the stone – rough cut vs. finished stones,
• the origin of the stone – stones from some regions qualify for special import programs. Read more about special import programs under General Note 3 of the USHTS. Pay particular attention to those programs related to the African Growth Opportunity Act
• Whether the stone is a part of a piece of jewelry.

With these main points in mind, most precious and semi-precious stones fall into the initial categories listed here. Once the initial category 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.

Many items cannot be imported into the United States unless the importer has the proper permit or license from the appropriate regulatory authority. Some of the most common restricted items include food, plant and dairy products; alcohol and tobacco products; birds, fish or animals and products thereof, goods from embargoed countries, firearms and ammunition, cultural artifacts from certain countries, and copyrighted materials. The entry of prescription medicines is restricted and subject to the approval of the U.S. Food and Drug Administration (FDA). Depending on the FDA review of the medicine, it may be released to the addressee or seized. There are, however, provisions allowing passengers to hand carry prescription drugs into the United States if they enter through a land border with Canada or Mexico.

Purchasers should also be aware that some products might be considered contraband and cannot be brought into the United States under any circumstances. This includes the obvious, such as narcotics and child pornography, as well as less obvious items such as tainted food products, and other items, a list of which can be found in “Importing Into the United States.” Such merchandise can be seized by Customs, and attempts to import it may subject the importer to civil or even criminal sanctions. If you have any question at all about your purchase, you should contact your closest Customs port and get an opinion before you complete the transaction.

Many import regulations only apply to goods imported for commercial – business or resale – purposes. For instance, most goods imported for personal use are not subject to quota. The one exception to this is made-to-measure suits from Hong Kong, which are subject to quota restrictions regardless of the use they are imported for. On the other hand, import restrictions that are based on health, safety and protecting endangered species apply across the board. Note: Customs is authorized to make judgment calls about what qualifies as personal use. Several suits that are identical or a number of very similar handbags will have a hard time passing the credibility test as items for personal use.

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.