KEY QUESTIONS A SHIPPER SHOULD ASK THEMSELVES WHEN
PURCHASING GOODS FROM OVERSEAS, TO BE IMPORTED INTO THE
US:
Can the goods be legally imported? Are there
restrictions on, or special forms required, for your purchase's importation?
Are you buying the item(s) for your personal use or for
commercial purposes?
Will you be responsible for shipping costs? If so, you
should discuss with the seller how your purchase will be shipped. The choices
are freight, courier service or international postal service. If you're not
careful, transportation and handling costs could far outweigh the cost of your
purchase. Sometimes, the seemingly cheaper methods can be more expensive in the
long run because they are more susceptible to theft, mis-deliveries and
logistical problems.
You should discuss with the seller what the exact
delivery arrangements will be. If the seller does not make arrangements for
postal or door-to-door delivery, you will either need to hire a customs broker
to clear your goods and forward them on to you, or go the port of entry and
clear them yourself.
Can you trust the seller to provide accurate information
about the item being shipped in the Customs section of the shipping documents?
Giving misleading or inaccurate information about the nature of the item and its
value is illegal. And it is the importer - YOU - who could face legal
action and fines for this violation!
SHIPPER'S RESPONSIBILITY AND LIABILITY WHEN IMPORTING
FREIGHT INTO THE US:
The Internet has made it easy to find and purchase
items from almost anywhere in the world. However, many people are discovering
that getting a foreign-bought item successfully delivered to the United States
is much more complicated.
When goods move from any foreign country to the United
States, they are being IMPORTED. There are specific rules and regulations that
govern the act of importing - and they can be extremely complex and confusing -
and costly.
That artisan cheese from Italy may be a snap to find and
buy on the Internet, but U.S. Customs and Border Protection (CBP) could seize
your purchase because certain regulations prohibit the importation of dairy
products from particular countries without a permit.
Your great auction purchase of gorgeous linen products?
Depending upon the country of origin, quota restrictions could hold them up in
CBP for a long time. And storage charges in such cases can be expensive.
In other words, "Buyer, Beware." When you buy goods from
foreign sources, you become the importer. And it is the importer - in this case,
YOU - who is responsible for assuring that the goods comply with a
variety of both state and federal government import regulations. Importing goods
that are unsafe, that fail to meet health code requirements, or that violate
quota restrictions could end up costing you quite a bit of money in fines and
penalties. At the very least, such goods would be detained, and possibly
destroyed, by CBP.
Knowing what is admissible is just part of the story. The
other part is knowing how to import. Depending upon what you are importing and
its value, the procedures can be very complicated.
It does not matter whether you bought the item from an
established business or from an individual selling items in an on-line auction.
If merchandise, used or new, is imported into the United States, it must clear
CBP and may be subject to the payment of duty as well as to whatever rules and
regulations govern the importation of that particular product into the United
States.
Banks are integral in the payment process but can be an
important tool in accessing supplier relationships.
Foreign Freight Forwarders (may also be Shippers Agents) in
the Import process, are firms responsible in many, but not all situations, for
packaging, documenting, consigning for carriage, insuring and assuring that the
product that you ordered is received in good condition at a US port for
clearance by US Customs.
Carriers
Carriers may operate in any mode (sea / land / air)
depending on where you source your product and how it's transported. No
matter how it's shipped, the best carriers are interested in your repeat
business and the success of your venture.
Customs House Brokers (CHB) are US firms specializing in
clearing import shipments through US Customs.
Now known as U.S. Bureau of Customs and Border Protection
(http://www.customs.ustreas.gov), a part of the newly formed Department of Homeland Security, US
Customs is the lead agency in enforcing a myriad of regulations regarding the
importation of your potential shipment and charging the appropriate duties and
taxes.
NOTE: Sefco has been in business now for over 20
years and can provide you with the following services:
-LCL shipping services to major US terminals of
discharge
-FCL services to any port in the US
-US Customs Clearance services through our own
network of Customs Brokers
-Pickup inland delivery of the freight to
anywhere in the US
-Warehousing, distribution, sort and pick, and
storage services available upon request
WHO NEEDS TO KNOW WHO THE BROKER IS?
The
supplier overseas needs to know who your Import Broker/Agent is. They should be
consigning the shipment to you/the buyer and showing your agent as the
"also notify party", to liaise with the CHB broker for Customs clearance.
For the Importer, the agent/broker is the person to contact to find out
shipment status. You should also call them to discuss the best way to route your
shipment.
DOCUMENTS REQUIRED FOR IMPORTING COMMERCIAL FREIGHT INTO THE
US:
Any overseas supplier must provide the following documents:
-Commercial invoice in English
-MSDS (material safety data sheets)
in English required for certain types of freight coming into the
US
-Bill of lading/Arrival notice
*Note: Sometimes Non-English
paperwork gets through, but if Customs actually looks at the paperwork and sees
that it is not in English, you shipment will be delayed. Do not interpret lack
of enforcement or erratic enforcement of regulations as evidence these
guidelines can be ignored.
Importers (this would be you the
purchaser/shipper of the commercial freight) are responsible for:
Determining harmonization code (schedule B number) and advising our Customs
Broker this schedule B number for the formal entry process to be made in
the Customs Clearing process.
*Note: HARMONIZED CODES:
The United States reports import and export statistics on
a 10-digit classification system called the Harmonized System. The system is
defined at the 2-, 4-, 6-, and 10-digit level for both imports and exports. At a
six-digit level, the Harmonized System codes are the same between imports and
exports (and are the same as used by most industrialized countries of the
world). At the 10-digit level, however, there are variations between imports and
exports. In the United States, the import classification system is called the
"Harmonized Tariff Schedule of the United States" while the export system is
called the "Schedule B".
A list of US recognized harmonization codes can be found
in the US Census database at
http://www.census.gov/foreign-trade/schedules/b/. It is always a good idea to ask your supplier how they classify
their goods under the harmonized tariff, however, many times their codes don't
make sense and you will have to look it up yourself. All you need is to know, is
what the product is and to have the web address above. If you can't figure it
out, ask your broker for help.
IMPORTANT:
Improper classification of incoming
products is fineable.
OUR RESPONSIBILITY TO YOU THE IMPORTER IS TO MAKE
SURE OF THE FOLLOWING:
Filling out the Customs paperwork
Presenting
supplier and importer's paperwork to customs
Physically clearing goods
arranging transportation to final
destination
QUESTIONS ON THE IMPORTING PROCESS OF
COMMERCIAL FREIGHT INTO THE US:
Q. I didn't check the paperwork
before the goods shipped and I just noticed it's all in another language.
A. Contact supplier and ask for a revision. You should, at this late
juncture, give them the English description you want them to use on the invoice
to save time--help them as much as you can.
Q. Customs is rejecting the invoice because they say the value is too
low.
A. This happens with sample shipments which usually carry a low
value just for Customs clearance purposes. Contact the supplier and ask them to
revise the invoice with a higher value.
Q. I need my goods now and
they've been here for two days and still have not cleared Customs. How do I
contact Customs to ask them to hurry up and clear my shipment first?
A.
Only contact US Customs and ask them to hurry if you have a death-wish and never
want to see your goods. There is nothing you can do except wait. Complain to
Customs at your own risk. In fact, often your forwarder won't even give you
contact information--no one can afford to annoy US Customs. It just isn't done.
Beyond complaining to your Member of Congress, there is nothing you can do
but wait.
Q. What is an Import Bond and do you have one?
A. An
Import Bond is required by US Customs for any entity importing into the US. It
is a surety bond that guarantees the importer will pay all duties assessed. They
can be issued, for a fee, per transaction or yearly.
Most often for the
small and beginning importer, you would want to use single entry bonds
which are per shipment. Your broker can handle single entry bonds for you.
Q. So how long does it take to import something? I need to let my
manager/customer know when to expect delivery.
A. It varies. I never
recommend promising a delivery date to anyone when it comes to importing (or
exporting) there are way too many things that can go wrong, especially with
hazardous goods.
I would limit correspondence to things you know such as:
-you will have
a better idea after the shipment arrives at a Sefco facility. Production
delays by manufacturers is not unusual.
-the forwarder will let you know
what plane or boat the goods are on and the ETA (expected time of arrival).
-Sefco can confirm when goods are on board (did they actually fly out on the
plane or sail out on the boat as intended?)
-US Customs Clearance should not
take longer than 5 business days, but can, sometimes, take longer than a week or
so.
-don't forget, after customs clearance you need to allow time for
transport and delivery of goods to final destination.
Sefco will give you an estimate on the original
quote of the transit time to US port/terminal of discharge and then add in the
additional days for US c/c customs clearance and inland transport to US
destination, but as noted many factors in the transportation of the freight can
cause delays. Sefco responsibility to you the shipper will be to keep you
constantly updated and informed on the status of your freight.
IMPORTANT:
With new security laws on the books CBP (US
Customs) is now conducting random inspections on inbound freight into the
US. Whose freight will be inspected? One time only shippers of
household goods (HHG) and first time shippers of commercial are practically
guaranteed to have their freight inspected. There are 2 types of
inspections:
-VACIS (x-ray)
-PE (intensive physical exam)
These exams and the charges associated with them
are the responsibility of the shipper/consignee of the freight. In
addition to these inspection fees there may well be demurrage charges for the
container (groupage or exclusive) being inspected by US Customs. Note that
most inbound freight into the US is given 3-5 days free of demurrage
charges. This includes weekends and holidays and begins the moment the
vessel pulls into the port/terminal of discharge.
It is important that at this juncture in the
shipping process that Sefco be able to contact you and update you on the
status of your shipment and any additional accessorial fees
associated with US Customs.
You will note on all quotes that are forwarded out
to perspective shippers, that under additional charges we note the
following:
-import duties
-customs inspection fees
-demurrage charges associated with the inspection
process
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 "G.O." government
order warehouse, and you will be liable for high storage charges. If you have
not claimed your goods within six months of their arrival in the USA, they could
be sold at auction
Unfortunately, this process - known as "GO" -
happens a lot to first time purchasers and unprepared shippers of commercial
freight into the US. They think that the seller is providing them with
everything they need regarding the shipping of their freight when the opposite
holds true.
Another thing that needs to be pointed out to first
time shippers is the following:
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 freight through CBP are covered by the seller. They don't
realize that destination port terminal charges, brokers fees and CBP duties may
be an additional charge that the buyer is responsible for.
E.g.. Sefco was contacted by a shipper who has purchased
some furniture from a UK-based company, whose manufacturing
facilities are in China. The company shipped the freight in a
groupage container to the US terminal only and quoted the shipper a price of
under $1000.00 up to arrival at the US terminal of discharge.. The
buyer/shipper of the freight contacted Sefco to handle US Customs and inland
delivery to their door. We did and our charges for US Customs + inside
delivery came to $1600.00 + the charges for Customs inspection, and demurrage
charges incurred during the inspection process came to $700.00 + the
import duty on the furniture valued at 10k. The shipper was stunned
not just by the costs of all these additional scharges but by being kept in the
dark about the import process and how it works here in the US.
In presenting this information to the general public we
hope that our web site will help our new clients to better understand the
process and how we work to serve and protect your
best interests.
We hope this info. helps you, and makes the
process more understandable. We hope that when you decide to ship
your next import into the US, you consider Sefco. Sefco will be there
for you and your freight throughout the whole shipping process.
Peter DeStefano
Vice President,
Sales
Sefco Export Management Company, Inc.
Corp HQ: New York, NY
Main Tel: 888-268-0565
Main Fax: 718-732-2863
Email:
info@sefco-export.com
Sales Office: Westchester, NY
Phone:
(888) 268-0565
Admin: Forest Hills, NY
