Basics of importing

BASICS OF IMPORTING INTO THE
U.S.
 Required Information
 Who can import into the U.S.
 Required Documents
 Importing Process

Definitions:
BASICS OF IMPORTING INTO
THE U.S.
 U.S. Customs & Border
Protection (CBP)
 Duly licensed customs
broker.
 Importer of record
 Customs power of
attorney.
 Continuous importer
bond vs. single entry
bond.
 HTS (Harmonized Tariff
Schedule)
 Duties and Payment

Definitions:
U.S. Customs & Border
Protection (CBP)
Under the Dept. of Homeland
security. It is CBP’s job to
protect the U.S. territories and
revenue of the United States.
Performing physical checks of
travelers, cargo and vehicles
Inspecting commercial
trucking and passenger
vehicles at land border
crossings
Duly Licensed Customs Broker
Verify you are using a licensed
Broker. CBP issues broker
licenses. Know your Broker:
Even though you are using a
licensed broker, the “importer
of record” is still held
responsible for proper filing of
the entry and duties, if there
are any.

Definitions:
Importer: is the
importer of record
and liable for duties
and responsible to
pay Custom & Border
Protection (CBP) and
penalties
Power of Attorney gives the Customs
Broker the authority to import on
behalf of their customer.
CFR 141.31 “Limited or general
power of attorney. A power of
attorney may be executed for the
transaction by an agent or attorney
of a specified part or all the Customs
business of the principal.”
• Must be signed by an officer of
the Company.
• State company IRS number.
• If individual state your Social
Security number.

Definitions:
Single entry Bond is a surety
that guarantees US Customs
duties and penalties will be
paid if not by the importer
than the surety.
This bond is good only for one
importation and must be for
the full value of the
merchandise or 3 times the
amount if requires another
governmental agency.
Can be provided with the entry
– No wait time.
Continuous Bond A continuous
bond is a surety that
guarantees US Customs duties
and penalties will be paid if
not by the importer than the
surety but is good for 1 year.
Your customs broker can
supply you with a bond.
Continuous bonds take approx.
2 weeks to 4 weeks to be
processed by the National
Finance center.

Definitions:
Harmonized Tariff System
(HTS)/ classification of
commodities. The HTS is the
manner in which US customs
classifies all commodities.
Duties: Merchandise is subject
to them in accordance to the
HTS commodity code. The
importer of record is
responsible for their payment.
§111.29 Diligence in
correspondence and paying monies.
If you are the importer of record,
payment to the broker will not
relieve you of liability for customs
charges (duties, taxes, or other debts
owed CBP) in the event the charges
are not paid by the broker.
Therefore, if you pay by check,
customs charges may be paid with a
separate check payable to the “U.S.
Customs and Border Protection”
which will be delivered to CBP by the
broker.

Who can Import?
 U.S. companies uses IRS
Number.
 U.S. citizen Social Security.
 A non-U.S. citizen or company
with an agent in the state
where the port of entry is
located that serves as resident
agent in the U.S. on behalf of
the foreign corporation's
behalf.

Define Commodity Being Imported Into U.S.?
 Importer: Who is the importer
of record and liable for duties
and responsible to pay Custom
& Border Protection (CBP) and
penalties?
 Exporter information
 Shipper information
 Consignee information
 Shipping information/Carrier
 Port of Entry
 Right to make Entry: Proof that
they have right to make entry
which is BOL, Manifest and
invoices.

Define Commodity Being Imported Into U.S.?
 Have a Customs Broker
prepare and submit the
merchandise for
consumption entry.
 Instructions for the Customs
Broker for delivery/
shipping information.
 Have invoices with
Harmonized Tariff Schedule
(HTS) and Country of Origin
(COO).
 Description of items written
on invoice with enough to
classify using the HTS.
 ISF- 149.2 Importer security
filing (a) Importer security filing required.
For cargo arriving by vessel..

• (a) Importer security filing required. For cargo
arriving by vessel, with the exception of any
bulk cargo pursuant to ……..must submit in
English the Importer Security Filing elements
prescribed in ….of this section via a CBP-
approved electronic interchange system.
• (b) Time of transmission.
• (1) Seller, buyer, importer of record number
/ foreign trade zone applicant identification
number, and consignee number(s)…. no later
than 24 hours before the cargo is laden
aboard the vessel at the foreign port.
• (2) Manufacturer (or supplier), ship to party,
country of origin, and commodity HTSUS
number …….no later than 24 hours before
the cargo is laden aboard the vessel at the
foreign port.
• Container stuffing location and
consolidator (stuffer)……as early as
possible, in no event later than 24 hours
prior to arrival in a United States port …….
• (4) The data elements required under
§149.3(b) of this part for FROB, prior to
lading aboard the vessel at the foreign
port.
• This is just a summary and not all the
requirements.
ISF
149.2 Importer security filing
149.2 Importer security filing (ISF)
 Importer security filing required. For
cargo arriving by vessel, with the
exception of any bulk cargo pursuant to
……..must submit in English the
Importer Security Filing elements
prescribed in ….of this section via a
CBP-approved electronic interchange
system.
 Time of transmission.
 Seller, buyer, importer of record
number / foreign trade zone applicant
identification number, and consignee
number(s)…. no later than 24 hours
before the cargo is laden aboard the
vessel at the foreign port.
*This is just a summary and not all the
requirements.
Manufacturer (or supplier), ship to party,
country of origin, and commodity HTSUS
number …….no later than 24 hours
before the cargo is laden aboard the
vessel at the foreign port.
Container stuffing location and
consolidator (stuffer)……as early as
possible, in no event later than 24 hours
prior to arrival in a United States port
…….
(4) The data elements required under
§149.3(b) of this part for FROB, prior to
lading aboard the vessel at the foreign
port.

Required Information-Invoices
§141.86 Contents of invoices and general requirements
 (a)General information required on
the invoice
 The port of entry to which the
merchandise is destined
 The time when, the place
where, and the person by
whom and the person to
whom the merchandise is sold
or agreed to be sold
(consignee)
 A detailed description of the
merchandise, including the
name by which each item is
known
 The quantities in the weights and
measures
 The purchase price of each item in
the currency of the purchase
 If the merchandise is shipped
otherwise than in pursuance of a
purchase or an agreement to
purchase, the value for each item,
in the currency in which the
transactions are usually made
 The kind of currency, whether
gold, silver, or paper;

(8) All charges upon the merchandise
itemized by name and amount,
including freight, insurance,
commission, cases, containers,
coverings, and cost of packing;
(9) All rebates, drawbacks, and
bounties, separately itemized,
allowed upon the exportation of the
merchandise;
(10) The country of origin (COO) of
the merchandise;
(11) All goods or services furnished
for the production of the
merchandise (e.g., assists such as
dies, molds, tools, engineering work)
not included in the invoice price.

(b) Nonpurchased
merchandise shipped by
other than manufacturer
(c) Merchandise sold in
transit
(d) Invoice to be in English.
(e) Packing list.
(f) Weights and measures.
(g) Discounts.
(h) Numbering of invoices and
pages—
(2) Pages.
(3) Both invoices and
pages
(i) Information may be on
invoice or attached thereto
(j) Name of responsible
individual.

Additional Information To Import?
 NAFTA Cert. or other FTA for
duty free treatment.
 Marking merchandise as to
where it was made. The Country
of Origin according to CFR19.
 Other U.S. AGENCIES that can
determine entry are FDA, FCC,
DOT, APHIS.
 INCO Terms to assist with the
shipment.

Imported merchandise that is NAFTA qualified
will pay duty at the NAFTA duty rate which in
most cases is zero.
MPF payment is also avoided.
Significant savings from using NAFTA
preferential treatment.
NAFTA Duty and MPF Savings

NAFTA CERTIFICATE
OR OTHER FREE TRADE AGGREEMENT (FTA)
North American Free Trade
Agreement (NAFTA)
§181.11 Certificate of Origin.
• (a) General. A Certificate of Origin
shall be employed to certify that a
good being exported either from the
United States into Canada or Mexico
or from Canada or Mexico into the
United States qualifies as an
originating good for purposes of
preferential tariff treatment under
the NAFTA.
• (b) Preparation of Certificate in the
United States. An exporter in the
United States who completes and
signs a Certificate of Origin for the
purpose set forth in paragraph (a) of
this section shall use Customs Form
• (b)….Where the U.S. exporter is not
the producer of the good, that
exporter may complete and sign a
Certificate on the basis of:
• (1) Its knowledge of whether the
good qualifies as an originating
good;
• (2) Its reasonable reliance on the
producer's written representation
that the good qualifies as an
originating good; or
• (3) A completed and signed
Certificate for the good
voluntarily provided to the
exporter by the producer.

NAFTA CERTIFICATE
OR OTHER FREE TRADE AGGREEMENT (FTA)
• (c) Submission of Certificate to
Customs. An exporter in the
United States, and a producer
in the United States who has
voluntarily provided a copy of
a Certificate of Origin to that
exporter pursuant to
paragraph (b)(3) of this
section, shall provide a copy of
the Certificate to Customs
upon request.
• (d) Notification of errors in
Certificate. An exporter or
producer in the United States
who has completed and signed
a Certificate of Origin, and
who has reason to believe that
the Certificate contains
information that is not correct,
shall within 30 calendar days
after the date of discovery of
the error notify in writing all
persons to whom the
Certificate was given by the
exporter or producer of any
change that could affect the
accuracy or validity of the
Certificate.

 NAFTA reconciliation is used when
merchandise was imported without having a
valid NAFTA certificate on file.
 It allows for the REFUNDING of Duty and
MPF paid. CBP even pays interest.
 The reconciliation can include up to 9999
entries.
NAFTA Reconciliation

MARKING RULES
• §134.1 Definitions
• (b) Country of origin. “Country of
origin” means the country of
manufacture, production, or
growth of any article of foreign
origin entering the United States.
Further work or material added
to an article in another country
must effect a substantial
transformation in order to render
such other country the “country
of origin” within the meaning of
this part; however, for a good of a
NAFTA country, the NAFTA
Marking Rules will determine the
country of origin.
• §134.11 Country of origin marking
required.
• “Marked in a conspicuous place as
legibly, indelibly, and permanently as
the nature of the article (or
container) will permit, in such
manner as to indicate to an ultimate
purchaser in the United States the
English name of the country of origin
of the article, at the time of
importation into the Customs
territory of the United States.
Containers of articles excepted from
marking shall be marked with the
name of the country of origin of the
article unless the container is also
excepted from marking.”
• 134.33 J-List exceptions.
• Articles of a class or kind listed below
are excepted from the requirements
of country of origin marking.

Other U.S. PARTNERS AGENCIES
 FOOD AND DRUG ADMINISTRATION – FDA, The Food and Drug
Administration requires that a copy of the CBPF-3461 and supporting FDA
documents be filed for merchandise subject to their review.
 FEDERAL COMMUNICATIONS COMMISSION – FCC, The Federal
Communications Commission (FCC) requires that a FCC-740 (Statement
Regarding the Importation of Radio Frequency Devices Capable of Causing
Harmful Interference) be filed for merchandise identified as containing
radio frequency devices.
 DEPARTMENT OF TRANSPORTATION – DOT, The U.S. Department of
Transportation (DOT), National Highway Traffic Safety Administration
(NHTSA), requires a Declaration for Importation of Motor Vehicles and
Motor Vehicle Equipment Subject to Federal Motor Vehicle Safety, Bumper
and Theft Prevention Standards (HS-7) be filed for merchandise subject to
their review.

Other U.S. PARTNERS AGENCIES
• DEPARTMENT OF AGRICULTURE – Allows the filer to electronically query
the health inspection certificate as it is transmitted to the U.S.
government from the foreign government.
• U.S. FISH AND WILDLIFE SERVICE – The U.S. Fish and Wildlife Service
(FWS) requires that the FWS Form 3-177 (Declaration for Importation or
Exportation of Fish or Wildlife) be filed for fish, wildlife, or any commodity
containing a fish or wildlife product.

Anti-Dumping & Countervailing Duties
 Under the Tariff Act of 1930, U.S. industries may petition the government
for relief from imports that are sold in the United States at less than fair
value ("dumped") or which benefit from subsidies provided through
foreign government programs. …...
 Additional duties will be required for that commodity. Can be percentage
of the value of the merchandise.
 Can be prohibitively expense, such as 182% of the value of the
merchandise.
 Check to see if your imports could be AD or CV duties. Examples of AD/CV
duties are Bedroom furniture, ball bearings, or steel.
 “Visa" is an endorsement by a foreign government or its representative
that authorizes the export of textile shipments to the United States.

Quotas & Visas
Several key considerations determine whether a shipment is subject to quota
requirements associated with eligibility for preferential trade benefits:
 HTSUS classification (based on merchandise description);
 Textile category number (associated with HTSUS classification and used to
determine proper quantity in square meter equivalents (SMEs) to apply to
a quantitative restraint);
 HTSUS chapter notes and additional U.S. notes to HTSUS chapters;
 Country of origin (where the goods were grown, produced, or
manufactured); and
Date and time of importation/presentation.
 “Visa" is an endorsement by a foreign government or its representative
that authorizes the export of textile shipments to the United States.

INCO TERMS
• Group 1. Incoterms® that
apply to any mode of
transport are:
• EXW Ex Works
• FCA Free Carrier
• CPT Carriage Paid To
• CIP Carriage and Insurance
Paid To
• DAT Delivered at Terminal
• DAP Delivered at Place
• DDP Delivered Duty Paid
• Group 2. Incoterms® that
apply to sea and inland
waterway transport only:
• FAS Free Alongside
Ship
• FOB Free on Board
• CFR Cost and Freight
• CIF Cost, Insurance,
and Freight

Truck presents E-Manifest crosses
and clears CBP
Possible CBP examination
required.
E-manifest can be done by the U.S.
Broker or transport Company.
Ship and Air Shipments a
Manifest/ Bill of Lading/airway bill
is needed and send to Notify
PARTY.
*HTS’s:
Some HTS’s require other forms/permits and
must have information before it crosses, such
as:
1.Quota or Visa and “Live Entries”
2.FDA, FCC, DOT, APHIS Other Gov’t Agency
information
3.Countervailing and Anti-Dumping Duties (CVD
& ADD) must be “Live” entry.
CARGO Release ( 3461)
In order to be released by CBP
• ISF for vessel/ship
• Manifest / BOL /AWB at Port of
entry.
Invoices must have:
1. Exporter, Importer, Consignee
2. Invoices must be in English and
legible.
3. Value and currency clearly stated.
4. Description of merchandise.
5. Classify with a current U.S.
Harmonized Tariff System (HTS)
number which is 8 digits long.
6. Rate of Duty, % of duty
7. Country of Origin (COO) based on
the CFR19’s COO.
8. Price per piece
9. Number of pieces/unit count or
unit of measure required by the
HTS.
10. Weight, net and gross
11. Invoices are to be number with
number of pages and page
number for example: 1 of 4 pages
etc.
Other requirements:
• Importer Bond, either a single
transaction bond, or a continuous
bond.
• Broker must have Power of
Attorney with IRS# of importer.
• NAFTA certificate or FTA CERT..
• Merchandise must be marked with
COO.
7501 Consumption Entry
Summary
• Truck has crossed into U.S. or
Cargo is cleared for
consumption. Entry
Summary/ 7501is due to CBP
within 10 business days
including duties owed to
CBP.
• After the due date, a Post
Entry Amendment (PEA) is
required with a possible
“prior disclosure”.
Port of Entry into the U.S.

AUDIT PAPERWORK FROM CUSTOMS BROKER
Check and Verify:
 Duties that you are paying.
 COO, HTS and Value of your
shipments.
 Check if FDA, FCC, DOT was
claimed properly.
 Check for AD/CV duties and
Quotas & Visas.
 Notify broker before the
entry due date for
corrections. Entry summary
is due 10 business days
after the Cargo Release and
must be paid at this time or
you.
 Must keep CBP records for 5
years after the entry
summary.
 NAFTA Certificates must be
kept 7 years.

Basics of importing

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