When your shipment arrives to your destination, your city
where you reside or your business is located, or simply where you wanted the
shipment to be shipped to, you will receive an Arrival Notice from the US
Customs.
It is best to have your shipments addressed to you or your company name in care
of your customhouse broker. This way your broker gets the notification first and
can immediately begin the entry process to clear your goods through the US
Customs, notifying you of the same.
When your shipment leaves the country of origin by sea (ocean freight) it
arrives to a US seaport from where it then may continue to the final destination
(your hometown) by air, rail or truck. Whichever carrier brings the shipment to
its final destination last, it will end up in their US Customs bonded warehouse
where you will go to pick it up after it has cleared the US Customs.
It is the responsibility of the importer to arrange for the examination and
release of the goods thus hiring a customs broker he/she can start the process
for you. In other words, Entry of Goods can be undertaken only by the owner of
goods, or by a licensed Customs Broker.
To start the entry process, you or your broker must have the evidence of the
right to make an Entry. This requirement is satisfied with having an airway bill
or bill of lading in your or your broker’s name.
Request product sourcing, find suppliers overseas, supplier evaluation,
product design, development , outsourcing manufacturing of your
product overseas
Your goods can clear the US Customs under a Formal or an Informal Entry process.
If the invoice value of your goods is less than $2,000, then
you can clear it as an Informal Entry. If your goods are over $2,000 invoiced
value, then you’ll have to file a Formal Entry.
Even though in theory you are allowed to fill out all of the pertinent
documentation for Formal Entry yourself, it’s best to hire a customs broker to
do it for you.
Customs Brokers are licensed by the US Customs and trained to prepare the
entries the way US Customs wants them to be prepared. In other words, US Customs
will not likely assist you much in the process of the preparation of the entry
documents and make sure you have them filled out correctly. Having mistakes in
your paperwork will only delay your entry process and possibly target all of
your future shipments for extra scrutiny if not delays. The extra expense that
hiring a customs broker will entail is well worth the peace of mind and speedy
and professional entry process.
To start the entry process, you or your broker must have all the documents
necessary to clear the US Customs. If, for example, you are bringing in ‘pillow
cases,’ your shipment must be accompanied by a textile visa. If this document is
missing, you won’t be able to clear US Customs until you or your broker will
procure this document from your shipper or directly from the trade authority in
the country of origin. The waiting process will result in your shipment being
assessed storage charges and thus inherently increase the landed cost of your
goods and diminish your profit.
If all the documents are present, then the only other thing you’ll need to be
able to start an entry process is an evidence of a bond being posted.
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Typically, you must buy a bond or your broker will automatically post the bond
for you and bill you for the use of it.
The minimum bond that must be posted is 2% of the invoice value of your goods or
$50,000 bond minimum.
The bond is required to assure that damages, if any, duties, taxes, or penalties
can be covered in the event that the importer wouldn’t have the funds. |
As part of the entry process, your broker will fill out many documents, from an
Entry Manifest, Form 7533, to an Entry Summary, Form 7501. If customs agree to
the classifications used in the entry process, they’ll stamp the documents
Passed Customs and you can go ahead and pick up your goods.
If customs, however, doesn’t agree with the classifications used by your broker,
they’ll send the paperwork back to your broker for reclassification. This can
constitute further delay in the clearing process which can be made even more
time consuming if customs once again won’t agree to the classification used
based on the invoice description of the goods. Often in such a case US Customs
orders a physical inspection. Another reason, as already noted above, that may
trigger an inspection is when your invoice and packing list show discrepancies -
your invoice is not corresponding with the packing list.
US Customs inspection is performed in a bonded warehouse or requires a move to a
special inspection site. In essence, the inspection results in a proper
classification of goods. In any case, the inspection constitutes delays in the
clearing process as well as results in inspection charges being assessed to be
paid by you, the importer; typically those charges are billed as Move to an
Inspection Site and you’ll see it on your broker’s bill. Often, the inspection
process can also entail damages incurred in the process of the inspection.
Customs stipulates that you should pack in such a way so as to facilitate an
inspection. Beware, if damages to your goods occur during the inspection, you
won’t be reimbursed as Customs is not liable for damages sustained during
inspection.
Once the inspection is completed and/or the customs is satisfied with the Entry
Summary as presented by your broker, a Release Form, stamped Passed Customs, is
issued by the Customs; at this point you can pick up your goods.
Learn the import export
business the right way:
Insider's Guide to
Successful Importing
from the Third World
9-hours
MP3
or WMA
Classroom
Audio
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Learn How-to Get Started
in Import Export Business -
- Intensive Workshop
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Import export business startup
considerations;
cost of doing business;
sourcing product supply and outsourcing
manufacturing to the Third World.
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Where to go
and what to buy, facts and opportunities; ideas associated
with
product
design and development, and lots of inside
info you never get elsewhere.
Yes indeed, you must think Italian sausage
from Bangkok!! There really is more to this
business than meets the eye! (What I just
said,
Italian sausage from Bangkok,
is meant figuratively, not literally! Or is
it really?)
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How to
find overseas suppliers,
whom to buy from and
whom not to buy from, and
how much should you pay for
the product you want to import.
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Product price overseas vs.
landed price in the US;
how to cost-analyze your import venture and calculate your
product landed cost.
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Dealing with shippers
and freight forwarders
overseas, your purchases and
shipping logistics, packing
pratices, dealing with licensed vs.
unlicensed exporters, freight
insurance and claims
and
surprises that will give you more than
Goosebumps and how to avoid them!
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Financing and paying
for your purchases - cash, credit cards,
debit cards, wire transfers, letters of
credit, documents against payment, and
what
strategy to use in dealing with your
suppliers that's best for your cash flow,
assures you get what you ordered, get it on
time and make a profit.
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Customs entry
process; pitfalls of handcarrying
your commercial purchases,
Harmonized Tariff Schedule
and the classification process,
tax issues and
Liquidated Entry,
and information you won't get by calling
your local Customs office.
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Find the best strategy for financing your
deal and avoid problems in shipping and
customs clearance to insure that you make a
profit.
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F
or
more on how to import from developing nations
and clearing US Customs without problems, go to:
Insider's Guide to Successful Importing from the Third World