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Goods imported for commercial purposes must comply with a variety of special requirements, such as marking of country of origin, which vary depending upon the particular commodity. Please see our publication, "Importing Into the United States," for more detailed information. Be particularly aware that an invoice should always accompany commercial shipments.
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.
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.
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.
A Customs Broker acts as an agent for an importer in conducting Customs business on their behalf. A Customs Broker can either be a private individual or a company. In order to be a Customs Broker one must be licensed by the Customs Service, U.S. Department of the Treasury. Specifically, a Customs Broker prepares and files the necessary Customs entries, arranges for the payment of duties found due, takes steps to effect the release of the goods in Customs custody, and represents their clients in custody matters.
A Customs Broker must have an excellent understanding of trade requirements and procedures and customs and tariff regulations. Furthermore, the Customs Broker will assist the client with advise on transportation options, types of carriers, and shipping routes. The Broker will also assist the client with exchange rates, appraisals, and proper classifications and duties. In dealing with Customs, the broker must be aware of any potential problem involving every entry item represented, including cargo handling. This includes all factors affecting appraisement, exchange rates and the many regulations concerning calculation of duties.
The complexities and dynamics of international trade are such that an importer will find it extremely advantageous to obtain the services of a customs broker in order to facilitate the importation of goods. The complexity of the job is evident when one considers that for every shipment entering the United States there are 500 pages of Customs regulations and thousands of tariff items to consider. The broker must be well-versed in determining proper classifications and dutiable value, and be fully aware of the vast number of commodities subject to quotas.
The customs broker must also possess a thorough knowledge of tariff schedules and Customs regulations and keep abreast of the amendments made through constant changes in the law and administrative regulations. The broker’s operation often transcends Customs, calling for contact with over 40 other government agencies, such as the U.S. Department of Agriculture (USDA) on meat importation, the Environmental Protection Agency (EPA) on vehicle emission standards or the Food and Drug Administration (FDA) on product safety.
For these reasons, the services of a Customs Broker are highly recommended to the importer.
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