How To Import Into The Us Redacted
- 1. How to Import into the U.S. Presented by Chas W. Watson LCB, CCS
- 2. What we will cover: -’Inco terms’ and why they are important -Basic documentation -The HTSUS and classification -The ‘mechanics’ of an import transaction -NAFTA and other special trade provisions -Informed Compliance and Reasonable Care -Marking and other issues -Embargos and Sanctions -Security -New/Pending Issues
- 3. Inco terms Mode of Transport and the Appropriate Inco term 1990 ANY MODE OF EXW Ex Works (…Named Place) TRANSPORT FCA Free Carrier (…Named Place) INCLUDING CPT Carriage Paid to (…Named place of destination) MULTIMODAL CIP Carriage and Insurance paid to place of destination) DAF Delivered at Frontier (…Named Place) DDU Delivered Duty Unpaid (…Named Place of destination) DDP Delivered Duty Paid (…Named place of destination) AIR TRANSPORT FCA Free Carrier (…Named Place) RAIL FCA Free Carrier (…Named Place) TRANSPORT SEA AND INLAND FAS Free Alongside Ship (…Named Port of shipment) WATERWAY FOB Free on Board (…Named Port of shipment) TRANSPORT CFR Cost and Freight (…Named Port of destination) CIF Cost, Insurance and Freight (..Named port of destination) DES Delivered Ex Ship (…Named Port of destination)
- 5. Basic Documentation 1. Commercial Invoice 2. Packing List 3. Shipping Documents 4. Insurance Certificate
- 9. What is your classification/ rate of duty? 1. Found in HTSUS 2. Role of a Customs Broker 3. Caution-Your supplier may be giving you incorrect information! 4. Binding Rulings
- 11. Order your Product Use a Purchase Order, not just an e-mail. This PO should cover: Terms-EXW, FOB Cover with own insurance. CIF, DDP, DDU, Shipper covers. Who to ship by, name of forwarder? Who to consign to? What document to prepare & where to send?
- 12. Methods of Payment 1. Cash in Advance 2. Open Account 3. Bank Draft 4. International Irrevocable Letter of Credit Note: In many cases you may be required to pay for the product before the supplier will ‘release’ the Bill of Lading to you.
- 13. Typical Air Freight Import Ship per your purchase order either by your chosen forwarder (FOB or EXW) or their forwarder (CIF,DDP) Document distribution simple Moves from airport to airport Less handling=Good thing Pick up documents upon notification File entry/obtain Customs release Delivery via truck
- 14. Typical Ocean Import Ship per your purchase order Document distribution/procedures In-bond/Paired/’Outport’/RLF Payment of THC/Collect Freight/Loading charges Lots of handling Exams! VACIS/APHIS/Tailgate/Full strip/Radiation
- 15. Entry Process CBP3461 Entry/Immediate Delivery Delivery Order CBP7501 OGA’s! Payment of duty CF28/29 Liquidation
- 19. Methods of reducing duty liability TIB Carnets Warehouse Entry Foreign Trade Zone Duty Drawback
- 20. Informed Compliance & Reasonable Care Q.-How to stay compliant??? Have a reliable Customs broker Communicate with your broker Importer is responsible! Multiple brokers/Ports=Consistency concerns
- 21. Informed Compliance & Reasonable Care Record keeping think taxes(5 years) Country of origin marking each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the U.S. the name of the country in which the article was manufactured or produced.
- 22. Special Tariff Provisions NAFTA-CA and MX GSP Other FTA-(IL, D, E, J, JO,MA, etc) Returned Goods of U.S. origin Foreign Goods returned after repair
- 23. FTA Key Points Qualification Criteria Direct shipment Proper marking Penalties for incorrect information Country of shipment is not always the country of origin!
- 24. NAFTA ‘CERT’
- 25. NAFTA Criteria
- 26. Valuation Method of payment Terms of sale Assists/rebates/royalties Relationship to shipper/seller Keep your transaction documented
- 27. Other Customs Issues Textiles Quota/Visa restrictions Firearms/munitions Anti-dumping/Countervailing duty Special steel remedy Embargoed goods
- 28. Some current trade Embargos/Sanctions Cuba Iran North Korea Sudan Syria Burma /Myanmar Note: Not all articles or all trade, but you need to perform due diligence before you engage in trade
- 29. Security C-TPAT Expand the borders Know your supplier Report suspicious activity 10+2 (Importer Security Filing)
- 30. New/Pending Issues First Sale/Earlier Sale Softwood Lumber Act 2008
- 31. Questions?
Editor's Notes
- #15: Talk about document distribution