| The term "import" is derived from the conceptual | | | | the posting of a bond and goods are liquidated on |
| meaning as to bring in the goods and services into | | | | the spot. After the importer receives notification of |
| the port of a country. The buyer of such goods and | | | | the arrival of merchandise from the carrier and it is |
| services is referred to an "importer" who is based in | | | | determined that all shipping charges are satisfied an |
| the country of import whereas the overseas based | | | | invoice is presented to Customs. When an informal |
| seller is referred to as an "exporter". Thus an import | | | | entry is being made, the inspector, not the importer, |
| is any good (e.g. a commodity) or service brought in | | | | is responsible for determining the classification number |
| from one country to another country in a legitimate | | | | of the goods being imported. The inspector also |
| fashion, typically for use in trade. | | | | completes the Customs forms used for informal |
| Import License | | | | entry. |
| An import license is a document issued by a national | | | | Classification |
| government authorizing the importation of certain | | | | All goods that enter the United States are |
| goods into its territory. An import license is just a | | | | categorized according to the Harmonized Tariff |
| formal document allowing a person or group to bring | | | | Schedule. The act of placing goods into the correct |
| in goods from outside their own borders. According | | | | category is called classification. Classification |
| to the United States Department of Commerce, a | | | | determines how much duty will be collected. |
| person does not always need to get an import | | | | Classification is more than simply looking up an item in |
| license. They may still need governmental | | | | an index. It is a very complicated process requiring |
| authorization, however. U.S Customs and Border | | | | the application of the General Rules of Interpretation; |
| Protection (CBP), is the primary agency that deals | | | | the section, chapter and subheading notes; and the |
| with licensing and governmental import authorizations. | | | | Explanatory Notes. The importer is responsible for |
| There are offices located throughout the U.S. | | | | properly classifying his merchandise before entry. If |
| This article is intended as a general explanation of | | | | he is not sure how to properly classify an item, he |
| import requirements for a person interested in | | | | can submit a request, in writing, for a binding |
| establishing an importing business in the USA or a | | | | classification ruling to the National Commodity |
| person who may be importing something for personal | | | | Specialist Division, U.S. |
| use only (not for resale) into the USA. | | | | Examination of goods is necessary to determine: |
| Import Requirements | | | | 1. The value of the goods for Customs purposes and |
| An individual may make his/her own Customs | | | | their dutiable status. |
| clearance of goods imported for personal use or | | | | 2. Whether the goods are properly marked with the |
| business. All merchandise coming into the United | | | | country of their origin. Special marking or labeling may |
| States must clear Customs and is subject to a | | | | apply. Generally, imported merchandise must be |
| Customs duty unless specifically exempted by law. | | | | legibly marked in a conspicuous place and with the |
| Clearance involves a number of steps: entry, | | | | English name of the country of origin. |
| inspection, appraisement, classification and liquidation. | | | | 3. Whether the goods have been correctly invoiced. |
| The U.S. Customs Service does not require an | | | | 4. Whether the shipment contains prohibited articles. |
| importer to have a license or permit. Other agencies | | | | 5. Whether the requirements of other federal |
| may require a permit, license, or other certification, | | | | agencies have been met. |
| depending on what is being imported. Customs entry | | | | 6. Whether the amount of goods listed on the |
| forms do ask for your importer number. This is either | | | | invoice is correct, and no shortage or overage exists. |
| your IRS business registration number, or if your | | | | If necessary, goods may be analyzed by a Customs |
| business is not registered with the IRS or you do not | | | | laboratory to determine proper classification and |
| have a business, your social security number. | | | | appraisal, to determine that the goods meet safety |
| The importer must declare the dutiable value of | | | | requirements, or to ensure that they are not |
| merchandise. The final appraisement is fixed by | | | | counterfeit or otherwise in violation of U.S. laws. |
| Customs. Several appraisement methods are used to | | | | Restricted Merchandise |
| arrive at this value. If formal entry is required - the | | | | A license or permit from the responsible agency may |
| importer may have to post a surety bond. It is the | | | | be necessary to import: |
| importers responsibility to ensure that his or her | | | | • alcoholic beverages |
| goods being imported meet admissibility requirements | | | | • animal and animal products |
| - such as proper marking, safety standards, etc. - | | | | • certain drugs |
| and that the proper permits, if required, have been | | | | • firearms and ammunition |
| obtained in advance of the goods arriving in the | | | | • fruits, nuts |
| United States. | | | | • meat and meat products |
| Arrival of Goods | | | | • milk, dairy, and cheese products |
| Imported goods may not legally enter U.S. commerce | | | | • plants and plant products |
| until the shipment has arrived within the port of entry | | | | • poultry and poultry products |
| and Customs has authorized delivery of the | | | | • petroleum and petroleum products |
| merchandise. This is normally accomplished by filing | | | | • vegetables |
| the appropriate documents, either by the importer or | | | | There are also restrictions on the importation of |
| by the importer's agent. | | | | certain trademarked and copyrighted articles. Certain |
| The Customs Service does not notify the importer | | | | items in these categories may also be prohibited. |
| of the arrival of the shipment. The carrier of the | | | | The following items must comply with applicable |
| goods usually makes notification of arrival. | | | | regulations of other agencies: |
| In the case of a single noncommercial shipment, a | | | | • art materials |
| relative or other individual may act as the importer's | | | | • cultural property |
| agent for customs purposes. This person must know | | | | • hazardous/toxic/flammable materials |
| the facts pertaining to the shipment and must be | | | | • household appliances |
| authorized in writing to act for the importer. | | | | • some electronics products |
| Formal vs. Informal Entry | | | | • toys and children's articles |
| Informal entries cover personal shipments, | | | | Most of the above items are regulated, variously, by: |
| commercial shipments and mail shipments that are | | | | • Bureau of Alcohol, Tobacco, and Firearms |
| being entered for consumption, i.e. for use or sale. In | | | | • Animal and Plant Inspection Service |
| most cases informal entry can be used if the | | | | • Animal and Plant Inspection Service |
| merchandise is valued at $2000 or less. There are | | | | • U.S. Fish and Wildlife Service |
| some exceptions such as textiles, certain types of | | | | • Food and Drug Administration |
| footwear and other goods subject to quota/visa | | | | • Consumer Product Safety Commission |
| restrictions. Personal shipments valued over $2000 will | | | | Today, an increasing number of goods and products |
| also require a formal entry. The difference between | | | | such as textiles, clothing, automobiles, boats, radios, |
| an informal entry and a formal entry is the bond | | | | CD players, television sets, and medical devices, are |
| requirement and the liquidation process. Liquidation is | | | | subject to special standards, declarations, certification, |
| the final computation of duties or drawback accruing | | | | marking or labeling requirements. |
| to an entry and is the final step in the entry process. | | | | Other merchandise must be examined for fitness of |
| Formal entries are generally commercial shipments | | | | use, freedom from contamination, or may be subject |
| supported by a surety bond to ensure payment of | | | | to quotas on the quantity imported. |
| duties and compliance with Customs requirements. A | | | | All these requirements must be met before the |
| bond is like an insurance policy that is payable to | | | | merchandise may be released by Customs. Finally, |
| Customs in the event that the importer does not | | | | many categories of goods are subject to quota or |
| comply with import requirements. | | | | visa restrictions. |
| Goods admitted as informal entries do not require | | | | |