Customs Entry Types For USA Imports

So you’re interested in importing goods into the USA, but you’re not sure about the different customs entry types? Well, look no further! This article will provide you with a concise overview of the various customs entry types for USA imports. Whether you’re a seasoned importer or a newcomer to the world of international trade, understanding these entry types is crucial for a smooth and successful import process. From informal entries to formal entries and everything in between, this article will break down the different entry types and explain when and how to use them. So let’s get started and demystify the complex world of customs entry types for USA imports!

Types of Customs Entry

When it comes to importing goods into the United States, there are several types of customs entry that you need to be familiar with. Customs entry refers to the process of officially declaring imported goods to the U.S. Customs and Border Protection (CBP). This declaration is essential for ensuring compliance with customs laws and regulations, as well as determining the appropriate duties, taxes, and fees that need to be paid. The two main types of customs entry are formal entry and informal entry, each with its own set of requirements and procedures.

Formal Entry

Formal entry is the most common type of customs entry for commercial imports. It is required for goods valued at over $2,500 or for items subject to certain regulations, such as those controlled by government agencies like the Food and Drug Administration (FDA) or the Environmental Protection Agency (EPA).

To complete a formal entry, you must provide several key pieces of information, including a commercial invoice, a packing list, a bill of lading or airway bill, and any applicable permits or licenses. Additionally, you will need to classify the goods according to the Harmonized System (HS) code, which is an international standard for identifying and classifying traded products. Properly classifying your goods is crucial, as it determines the duties and taxes that will be applied.

The formal entry process involves submitting all the necessary documentation to CBP either manually or through an electronic filing system like the Automated Commercial Environment (ACE). Once your entry is accepted, CBP will review and assess the information provided and determine the duty and tax amount owed. You must then pay the duties and taxes within a specified timeframe, usually 10 days, to avoid potential penalties or delays in the release of your goods.

Informal Entry

Informal entry is an alternative to formal entry and is typically used for low-value shipments that do not require the same level of documentation and processing. It is available for goods valued at $2,500 or less, or for certain categories of goods that qualify for Informal Entry Exemptions, such as goods for personal use or gifts.

To qualify for informal entry, the importer or their authorized agent must present a commercial invoice or other appropriate documentation, which includes a description of the goods, their value, and the country of origin. Unlike formal entry, there is no requirement to provide a detailed packing list or bill of lading.

The entry process for informal entry is relatively straightforward. You can submit the necessary documentation to CBP either in person or electronically. CBP will then review the information and determine the duties and taxes, if applicable, that need to be paid. Once the payment is made, your goods will be released.

Additional Types of Customs Entry

In addition to formal and informal entry, there are several other types of customs entry that may apply to specific situations or circumstances. These include Importer Security Filing (ISF), Remote Location Filing (RLF), and Carnet.

Importer Security Filing (ISF)

Importer Security Filing, also known as ISF or 10+2, is a mandatory filing requirement for ocean shipments arriving in the United States. It requires importers or their agents to provide specific information about the cargo, such as the names of the parties involved in the transaction, the supplier of the goods, and the container and seal numbers. The purpose of ISF is to enhance cargo security and facilitate risk assessment by CBP.

ISF must be filed at least 24 hours before the cargo is loaded onto the vessel destined for the United States. Failure to comply with the ISF requirements can result in penalties, including monetary fines and delays in cargo release.

Remote Location Filing (RLF)

Remote Location Filing is an optional filing program that allows an authorized agent, based in a location other than where the goods physically arrive, to submit documentation and pay duties and taxes on behalf of the importer. The purpose of RLF is to streamline the entry process, saving time and effort for both importers and CBP.

To qualify for RLF, importers must meet certain eligibility criteria, such as having a valid Customs Bond and a good compliance record. Once authorized, importers can work with an approved agent to electronically file the necessary customs documentation and submit the payment. This allows for a faster customs clearance process, as the goods can be released immediately upon arrival in the United States.

Carnet

A Carnet, also known as a Merchandise Passport, is a customs document that allows the temporary importation of goods into a foreign country without the need to pay duties or taxes. It is commonly used for trade shows, exhibitions, or other temporary purposes.

There are two main types of Carnets: ATA Carnets and TECRO/AIT Carnets. ATA Carnet is recognized in over 80 countries and is used for temporarily importing commercial samples, professional equipment, and goods for display or use at exhibitions. TECRO/AIT Carnets are specifically for temporary imports into Taiwan.

The Carnet process involves obtaining a Carnet from the issuing authority in the exporter’s country, providing detailed information about the goods, and paying the required fees. The Carnet serves as a guarantee to the foreign customs authority that the goods will be re-exported within a specific timeframe, typically one year.

Summary Entry

Summary entry is a simplified customs entry process available for specific circumstances, such as returning American goods, diplomatic shipments, or emergency relief supplies. It allows for expedited clearance by providing a consolidated declaration for multiple shipments, reducing paperwork and processing time.

To use summary entry, importers need to provide a summary declaration with minimal information, including a general description of the goods, their value, and the country of origin. This allows for a quicker assessment of the cargo and determination of any duties or taxes owed. Once the summary entry is accepted and any applicable payments are made, the goods can be released.

Temporary Importation Bond (TIB)

Temporary Importation Bond, or TIB, is a customs program that allows for the temporary importation of goods into the United States without the payment of duties and taxes. It is typically used for goods that will be temporarily exported and re-imported, such as equipment for repair or exhibition.

To qualify for TIB, importers must meet certain eligibility requirements and provide a bond that guarantees the re-exportation of the goods within a specified timeframe. The bond serves as collateral to CBP in case the goods are not re-exported as promised. Once the bond is accepted, the goods can be imported and used within the United States for the approved temporary period.

Warehouse Entries

Lastly, there are several options for warehouse entries that can provide flexibility and cost savings for importers.

A bonded warehouse is a secured area where imported goods can be stored, manipulated, or manufactured without the payment of duties and taxes. The goods remain in the bonded warehouse until they are either exported or released into the U.S. market. This allows importers to defer the payment of duties and taxes until the goods are ready for final distribution.

A Foreign Trade Zone (FTZ) is a designated area within the United States where foreign and domestic goods can be stored, manufactured, or processed without being subject to customs duties or taxes. FTZs offer various benefits to businesses, including duty deferral, streamlined customs procedures, and increased global competitiveness.

Duty-Free Trade Zones, also known as Foreign Trade Zones (FTZs) or Free Trade Zones (FTZs), are specific geographic areas within a country where imported goods can be stored, processed, or re-exported without being subject to customs duties or taxes. Companies can use duty-free trade zones to provide value-added services, such as assembly, processing, or testing, while enjoying duty and tax benefits.

Temporary Importation Under Bond (TIB) allows for the temporary importation of goods into the United States for a specific purpose, such as testing, repair, or exhibition. The goods are imported under a TIB bond, which guarantees their re-exportation within a specified timeframe. This provides flexibility for importers who need to bring goods into the United States temporarily without paying duties and taxes.

Warehouse Withdrawals refer to the process of releasing goods from a bonded warehouse or FTZ for entry into the U.S. commerce. Importers can choose to withdraw their goods from the warehouse in their original condition or after further processing or manufacturing.

In conclusion, understanding the different types of customs entry is crucial for importers to navigate the complex world of international trade. Whether it’s through formal entry, informal entry, or one of the additional types such as ISF, RLF, Carnet, summary entry, TIB, or warehouse entries, knowing the requirements and procedures for each type of entry will help ensure compliance with customs regulations and facilitate the smooth movement of goods across borders.