GOIN INTO US
Postal Service, Couriers and Freight
Informal Entries: 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 CBP 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, CBP 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, CBP 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 CBP 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.
Formal Entries: 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 U.S. Customs and Border Protection bond. As mentioned above and
for various reasons, CBP may require a formal entry for any importation. CBP, 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 U.S. Customs and Border Protection recommends importers consider
hiring a customs broker to complete the transaction. Lists of brokers can be found on the port pages of CBP 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 U.S. Customs
and Border Protection 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.
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 U.S. Customs and Border Protection 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 CBP 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 CBP. However, CBP 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, CBP 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.
Hint: To speed a package through CBP examination at a port's International Mail Branch, the seller should
affix a completed CN 22 or CN 23 (U.S. Customs and Border Protection Declaration Form) to the outside of the package. This
form may be obtained at local post offices worldwide.
Plus: Pretty economical.
Pitfalls: If the item's value is more than $2,000, it may be held at the mail facility until you can arrange
for a formal entry. This may require either hiring a customs broker to clear your goods or you may file the paperwork yourself.
Lost packages are hard to find. Since most packages sent through the mail do not have tracking numbers unless they
are insured or you've paid to have a tracking number, it can be impossible to trace a "lost" package. If a package is lost
a "tracer" should be initiated by the sender of the package.
Courier Shipping: Goods shipped by courier, express, or other commercial service usually are expedited through
CBP by a customs broker hired by that commercial service and then delivered seamlessly to your door. Customs brokers are not
CBP employees. There are a number of different charges associated with these services, including shipping and handling, the
fees charged by the service for clearing the merchandise through CBP, as well as any Customs duty and processing fees that
may be owed on your importation.
Pluses: Get seamless delivery. All you have to do is sign for the package when it arrives. In most cases
delivery is quick and reliable. When there's a problem, there is a tracking number that can help resolve the matter.
Pitfalls: Many people have found the various charges and fees levied to be higher then they expected, and
sometimes exceed the cost of their purchase(s).
Buyers often have the misunderstanding that when the purchase price includes shipping and handling, all the costs
associated with clearing the package through CBP are covered by the seller. They don't realize that brokers fees and CBP duties
may be an additional charge that the buyer is responsible for.
Freight Shipping: Merchandise shipped by freight can arrive in the United States at an air, sea or land
port. If your goods are being shipped by freight, you should ask the seller to instruct the freight company to forward them
to your doorstep, which may entail the shipper's use of a customs broker to clear your goods. Alternatively, ask that the
goods be forwarded to a port of entry near where you live so that you can clear or "enter" them yourself (advisable only if
the shipment is under $2000 in value. See Formal Entry below.)
Pluses: Can be economical, particularly, if you're prepared to handle the logistics of clearing the goods
through Customs yourself.
Also, the best way to handle large bulky purchases.
Pitfall: If the freight company has not been instructed to forward your goods, they could end up sitting
on the dock at the port where they first entered the country. If this is the case....
Heads-Up
U.S. Customs and Border Protection 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 CBP 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.
(See the Checklist under item #3.)
Importing Process
Paying Duty: The importer is ultimately responsible for paying any duty owed on an import. Determining duty can be
very complicated, and while shipping services will often give an estimate for what the duty rate on an item might be, only
CBP can make a final determination about what is owed. You should not be misled into thinking your purchase price includes
duty because the seller cannot say with absolute certainty what the duty will be. As a rule, a purchase price that includes
shipping and handling does not include duty or any costs associated with clearing the goods through CBP. First time importers
are often surprised by bills they receive for duty, U.S. Customs and Border Protection merchandise processing fee, and something
referred to as "customs fees," which are actually charges for the services of the broker who cleared your goods through CBP.
How you pay duty depends on how your goods were shipped. If your goods were shipped through the International Postal
Service, you will need to pay the mail carrier and/or go to your local post office to pay any duty and processing fees owed
when your package arrives at that post office. If your goods were sent by a courier service, that service will either bill
you for the duty they paid on your behalf or require payment on delivery.
If your goods were sent by freight, there are two possible scenarios for paying duty.
- If no arrangements were made to forward the goods to your door, you will need to either clear them through CBP yourself,
in which case you will pay duty directly to CBP at the port where your goods arrived. Alternatively, you will need to arrange
for a broker to clear your goods. If you hire a broker, they will bill you for their services and any duty they paid on your
behalf.
- If arrangements were made to forward your goods to you, you will be billed for any duty owed, and for the services of
the broker who cleared them through CBP.
Reminder: U.S. Customs and Border Protection holds the importer - YOU - liable for the payment of duty not the seller.
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