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Commercial goods arriving into the U.S. by air, land, or sea
are subject to import laws, duty taxes, and fees.
What are some examples of commercial goods?
A purse bought online from a retailer in Italy.
Glasses manufactured by a factory in China.
Or even a souvenir sent back to the U.S.
but purchased while traveling abroad.
To lawfully enter foreign imports into a U.S. port of entry,
which can be air, land, or sea, you must obtain approval from CBP
through the import process, which varies based on the merchandise.
You should always reach out to a CBP import specialist
at the Center of Excellence and Expertise
before importing into the U.S.A.
Let's take a closer look at the CBP import process.
The first step is when someone purchases foreign goods
with plans to have those items come into the U.S.
Once those goods are available, the seller, or manufacturer,
ships them to the United States.
For example, small shipments may be consolidated into a container
or sent by airplane, truck, or rail.
These smaller packages are often cleared through the CBP import process
by logistics companies hired by online sellers
and may arrive right to your door.
Larger shipments are loaded into containers
and placed on different modes of transportation.
When the vessel operator receives the goods,
they provide the shipper with the bill of lading,
which serves as a receipt.
This is required for the importer to file an entry with CBP.
An Electronic Cargo Declaration must be transmitted to CBP
twenty-four hours before the cargo is laden aboard the vessel.
CBP then determines whether the shipment requires further examination upon arrival.
Once the vessel arrives and CBP has permitted the release of the cargo,
the containers are offloaded and transported from the port.
The importer receives a notice of arrival when the cargo arrives
with details for pick-up.
With the notice of arrival and bill of lading,
the importer can file entry documents with CBP
at the port where the goods arrived.
This is the Formal Request for Customs Release.
The importer may enter goods themselves as owner of the cargo
or they may hire a customs broker.
As a shipper of goods, you may elect to have a broker.
Brokers are licensed by CBP and are experts in these procedures.
A list of customs brokers can be found on CBP.gov.
Within 15 days of arrival, an electronic filing must be completed
on the Automated Commercial Environment, or ACE system.
Depending upon the situation, the importer may need to present
other documents, such as a customs bond,
which is a contract between customs and an importer
for any given import transaction to guarantee payment
of import duties, taxes, and fees to the U.S.
While there are different types of entries, it's important,
especially for first-time importers, to be aware of several key concepts.
Let's review some of them now.
Types of entry: formal entries and informal entries,
including packages that qualify as Section 321 shipments.
The documents for each entry type have separate requirements.
An informal entry may involve goods valued less than $2,500,
while a formal entry covers goods valued at $2,500 or more;
though just the value may not be the only determining factor of entry type.
Formal entries also require a customs bond.
Duty on formal and informal entries is assessed based on
how goods are categorized in the Harmonized Tariff Schedule of the U.S.
Other processing fees may be assessed as applicable.
Importers are not required to pay duties or fees
on goods less than $800 and qualify as Section 321.
If goods are selected for examination,
CBP will inspect the shipment to determine if they’re admissible.
If applicable, they will be detained and may be seized.
In some instances, importers may be permitted to re-export the goods
or they may be brought into compliance upon determination
that all import requirements have been ultimately satisfied.
Once the goods are released with all duties, taxes, and fees paid,
and the CBP Form 7501 filed electronically
within ten working days from the release date,
the importer may pick up the goods at a destination arranged with the shipper.
In some instances, CBP may choose to conduct an entry review.
This may result in a duties refund, additional duties,
or a request for additional documentation.
The final step is known as liquidation process,
which occurs when CBP finalizes the duty assessment.
When liquidation is finalized, the entry process is complete.
However, importers must keep all documentation for five years.
More detailed resources and helpful guides can be found at CBP.gov.