Full Guide to Importing Commercial Goods Into the US

• Customs and Border Protection (CBP)
  CBP is a government agency responsible for regulating international trade entering and exiting the United States. Their core functions include collecting import duties, enforcing U.S. trade regulations, and securing the nation’s borders;

• Customs Brokerage
  This specialized service aids importers in navigating the complexities of international trade regulations and associated paperwork. Customs brokers assist with tasks such as filing import documentation, ensuring smooth customs clearance for imported goods, and facilitating duty payments. As an example, Atlantic Project Cargo provides customs brokerage services;

• Foreign Trade Zones (FTZs)
  These areas within the United States function similarly to free trade zones. Legally considered outside U.S. customs territory, goods stored within an FTZ haven’t yet undergone formal customs clearance;

• Free Trade Agreements
  These are international contracts between the US and other countries. FTAs typically reduce or eliminate tariffs (taxes) on imports, making them more attractive to US businesses and consumers. Additionally, FTAs may address non-tariff barriers like quotas and regulations, creating a smoother trading environment. The US has FTAs with many countries, including Canada, Mexico, South Korea, and Australia;

• Formal Entry
  Commercial imports typically require this process with a declared value exceeding USD 2,500. Formal entries involve more detailed documentation and procedures;

• Harmonized Tariff Schedule (HTS) Codes
  These are unique 10-digit codes assigned to classify imported goods. HTS codes are used by U.S. Customs and Border Protection (CBP) to determine the appropriate tariff rates for each specific product;

• Identification Number
  The importer must provide a valid identification number for customs purposes. This can be either an Employer Identification Number (EIN) assigned by the IRS, a tax identification number, or a Social Security Number (SSN) for individual importers;

• Imported Merchandise
  These are goods or products brought into the U.S. from another country, typically for resale. This broad category encompasses a wide range of items, from consumer electronics and textiles to foodstuffs;

• Importer of Record
  This entity (individual or company) is legally responsible for all import documentation submitted to CBP. This includes product classification, duty payment, and fulfilling all other import obligations;

• Informal Entry
  Informal clearance is generally used for goods valued below USD 2,500 intended for personal use and not considered commercial quantities. Informal entries involve less complex procedures;

• Tariff
  Tariffs are essentially taxes levied on imported merchandise. The specific rate of duty is determined by the type of commodity being imported. Understanding Harmonized Tariff Schedule (HTS) codes is crucial for accurately determining the applicable tax and duty rates;

• Ultimate Consignee
  From CBP’s perspective, this is the individual or company that ultimately purchases goods from an overseas supplier. The ultimate consignee can personally clear the goods through customs or appoint a customs broker to handle the process on their behalf.

Successfully navigating the import process into the United States requires following a series of essential steps. Here’s a breakdown of the key stages involved:

1. Research and Product Selection

Identify your product, determine the specific goods you intend to import, and research their marketability within the U.S.

Ensure the product complies with U.S. regulations and safety standards set by relevant government agencies. As we mentioned before, certain items require special permits for import.

2. Supplier Sourcing and Communication

Find and establish a relationship with a reputable overseas supplier who can provide the goods you require.

Moreover, negotiate pricing, payment terms, and INCOTERMS that clearly define responsibilities for shipping and insurance. You can read more about it in our article “SHIPPING INCOTERMS: A COMPREHENSIVE GUIDE TO HOW THEY ARE USED”.

3. Import Classification and Duties

Identify the appropriate Harmonized Tariff Schedule (HTS) code for your product. This 10-digit code determines the applicable import duty rate.

Research and calculate the estimated import duties and taxes payable to U.S. Customs and Border Protection (CBP).

4. Import Documentation and Licensing

Obtain an Importer Number from the IRS if have a formal entry. This number is required on all import paperwork.

Prepare a detailed commercial invoice, packing list, bill of lading, and additional permits if needed.

5. Shipping and Logistics

Organize international freight forwarding with a reputable carrier, considering factors like cost, transit time, and insurance coverage.

6. Customs Clearance and Entry

Determine whether a formal or informal entry process is applicable based on your goods’ value and purpose (commercial vs. personal).

Atlantic Project Cargo can assist with navigating customs regulations, paperwork, and duty payments.

7. Delivery and Payment

Your goods will undergo inspection by CBP. Once cleared, they will be released for domestic delivery. Finalize any outstanding freight and duty payments upon delivery.

Additional Considerations

Secure necessary financing to cover import costs, including product purchase, shipping, duties, and potential storage fees. Also, we suggest obtaining appropriate cargo insurance to protect your goods during international transport.

By following these steps and conducting thorough research, you can streamline the import process and ensure a smooth entry of your goods into the United States.