U.S customs clearance process

1.1 Obtain an Employer Identification Number (EIN)

Your EIN is a unique identifier for your business in dealings with federal, state, and local governments. Registering your business for import/export activities is essential.

• IRS EIN Application: Register here
• Contact: Call 1-800-829-4933 for assistance.

1.2 Register for an importer identity form

Before you can import into the U.S., you must file an Importer Identity Form (CBP Form 5106) with U.S. Customs and Border Protection (CBP).

• CBP Importer Registration: Register here

1.3 Consult Your Accountant

Discuss the tax implications of importing goods with your accountant to ensure you understand your responsibilities and can make informed decisions.

2.1 Determine Import Requirements

Identify if the goods are allowed and if they require special permits. Some goods may be subject to import controls, listed in the Import Control List of the Export Administration Regulations (EAR).

• Import Control List (EAR): Learn more

2.2 Research Applicable Trade Agreements

Understand any trade agreements that may apply to your goods, such as the United States-Mexico-Canada Agreement (USMCA). These agreements can offer preferential duty rates.

• USMCA: Learn more

2.3 Non-Resident Importer (NRI)

If you are a business outside the U.S., consider becoming a Non-Resident Importer (NRI). This status allows you to import goods into the U.S. without having a physical presence there.

• NRI Program: Learn more

The Harmonized System (HS) is an international nomenclature for classifying products, developed and maintained by the World Customs Organization (WCO). This system allows participating countries to classify traded goods on a common basis, facilitating international trade and ensuring a standard method of categorization across borders. With over 17,000 unique classification codes, each country has its own tariff schedule. These codes are used to ensure uniformity in the classification of goods for customs purposes.

3.1 What is an HS Code?

An HS code is a six-digit identification code used internationally for customs classification. The code is divided into chapters, headings, and subheadings:

• Chapters: The first two digits denote the chapter, representing the broader category of products.
• Headings: The next two digits define the heading within that chapter, narrowing down the product category.
• Subheadings: The final two digits specify the subheading, providing a more detailed description of the product.

For example, an HS code for a certain type of fruit might look like this:

• 08 (Chapter for Edible Fruits and Nuts)
• 08.10 (Heading for Other Fruits)
• 08.10.10 (Subheading for Strawberries)

3.2 Why Are HS Codes Important?

• Uniform Classification: HS codes ensure that products are uniformly classified in every participating country, which is critical for international trade.
• Simplifies Documentation: Accurate HS codes simplify the documentation process for importers and exporters, as they are universally recognized and understood.
• Determines Duties and Taxes: Customs authorities use HS codes to determine the applicable duties, taxes, and regulations for each product, ensuring that the correct tariffs are applied.
• Trade Statistics: Governments and organizations use HS codes to compile trade statistics, analyze trade patterns, and make informed policy decisions.
• Compliance and Regulation: HS codes help in compliance with national and international trade regulations, including import/export restrictions and quotas.

HS Codes in the United States

• U.S. Customs and Border Protection (CBP): The CBP uses the HS code system to classify goods entering the United States. This classification determines the duty rates and regulatory requirements for imported products. The Harmonized Tariff Schedule of the United States (HTSUS) provides a detailed list of HS codes and their descriptions. Importers can refer to the HTSUS to ensure correct classification.

3.3 How to Look Up an HS Code

Finding the correct HS code for your products is essential for smooth customs clearance. Here are steps to look up an HS code:

• Consult the Harmonized Tariff Schedule: The United States has a version of the Harmonized Tariff Schedule (HTS) that lists all HS codes and their corresponding descriptions.
• Use Online Databases: Various online databases and tools are available to help you find the appropriate HS code for your product. For shipments into the United States, refer to the HTSUS.
• Seek Expert Assistance: If you are unsure about the correct HS code, consulting a customs broker or trade specialist can ensure accuracy and compliance.

4.1 Required documents

Ensure you have all the necessary documents for customs clearance:

• Commercial Invoice: Includes details about the seller, buyer, value, and description of goods.
• Bill of Lading or Airway Bill: Proof of shipment and transportation details.
• Packing List: Itemized list of the cargo, including weight and dimensions.
• Import Permits: Specific permits required for certain goods.
• Certificate of Origin: Verifies the origin of the goods for duty preferences.
• Customs Declaration Form: Completed by the importer or customs broker, providing detailed information about the shipment.

4.2 Additional Documentation

Depending on the goods, you might need additional documents such as:

• Health and Safety Certificates: For food, pharmaceuticals, and consumer products.
• Environmental Compliance Certificates: For goods subject to environmental regulations.
• Technical Specifications: For machinery and electronic goods.

5.1 Submit Documents to CBP

Submit all required documents to U.S. Customs and Border Protection (CBP) or relevant Participating Government Agencies (PGAs). This can often be done electronically through the Automated Commercial Environment (ACE).

• ACE: Learn more

6.1 Customs Inspection

Customs officials may conduct a physical inspection to verify:

• Accuracy of Documentation: Ensuring goods match descriptions provided.
• Compliance with Regulations: Checking for prohibited or restricted items.
• Health and Safety Standards: Ensuring goods meet U.S. standards.

6.2 Be Prepared for Inspections

Have all documentation ready and accessible, and ensure your goods are packed in a way that facilitates easy inspection.

7.1 Customs inspection

Customs officials calculate duties and taxes based on:

• Harmonized Tariff Schedule (HTS) Code: Classification of goods to determine the applicable tariff.
• Declared Value: Transaction value of the goods.Applicable Trade Agreements: Preferential rates under agreements like USMCA.
• Customs Duties and Excise Taxes: Applicable taxes on imported goods.

7.2 Estimate Duties and Taxes

Use tools like BorderBuddy’s Duty Calculator to get an estimate of the duties and taxes on your goods.

• Duty Calculator: Estimate My Duty

8.1 Pay Duties and Taxes

Importers must pay all calculated duties and taxes promptly to avoid delays. This can be done through various methods, including electronic payment systems.

• Payment Methods: Learn more

8.2 Keep Payment Records

Maintain records of all payments made for future reference and compliance purposes.

9.1 Notification and final steps

Once duties and taxes are paid, and all documents are verified, CBP will release the goods. The importer or their customs broker will receive notification, and the goods can proceed to their final destination.

9.2 Coordinate Final Delivery

Arrange for the transportation of your goods from the customs warehouse to your final destination.

10.1 Learn About Importing into the U.S.

Before importing, determine whether your goods can be imported and if they require special permits.

• Import Control List (EAR): Learn More

10.2 Customs Inspections, Holds, and Seizures

1. Managing Customs Holds: Goods can be held at customs for various reasons, including the need for additional information, verification of documentation, or payment of duties and taxes. If your goods are placed on hold, follow these steps to resolve the issue:
   • Identify the Reason for the Hold: Review the hold notice provided by customs.
   • Provide Required Information: Submit any additional documents or information requested by customs.
   • Pay Duties and Taxes: Ensure all applicable customs duties and taxes are paid.
   • Engage a Customs Broker: A customs broker can assist in communicating with customs officials and expediting the release of your goods.
2. Handling Customs Seizures: If customs officials seize your goods, it typically means there is a violation of U.S. import regulations. Here’s what to do if your goods are seized:
   • Review the Seizure Notice: Understand the specific reason for the seizure.
   • Determine the Type of Violation:
     • Restricted or Prohibited Goods: These cannot be released and may need to be returned to the exporter or destroyed.
     • Documentation Discrepancies: Provide corrected documents and pay any applicable fines or duties.
   • Provide Additional Information or Payments: Work with a customs broker to submit the necessary information or make required payments.
   • Appeal the Seizure: If you believe the seizure was unwarranted, submit a written request to CBP to appeal the decision.

10.3 Special Considerations

• Alcohol and Tobacco: Personal exemptions for alcohol and tobacco are strictly regulated. Check specific regulations before importing. See more information about importing for personal use.
• Gifts: Gifts valued at USD $800 or less each can be imported duty-free. Higher value gifts are subject to duties and taxes. See more information about importing for personal use.
• Vehicles: Special regulations apply if you purchase a vehicle abroad. Ensure compliance with import regulations as vehicles are subject to duties and taxes.V
• ehicle Importation: Learn more

10.4 Participating Government Agencies (PGAs)

Certain imports may be subject to regulations from PGAs, which enforce health, safety, and environmental protection standards.

• U.S. Customs and Border Protection (CBP): CBP
• Food and Drug Administration (FDA): FDA
• Environmental Protection Agency (EPA): EPA
• Department of Transportation (DOT): DOT
• Nuclear Regulatory Commission (NRC): NRC
• Bureau of Industry and Security (BIS): BIS
• Federal Communications Commission (FCC): FCC
• U.S. Fish and Wildlife Service (FWS): FWS
• Consumer Product Safety Commission (CPSC): CPSC
• Centers for Disease Control and Prevention (CDC): CDC
• U.S. Department of Agriculture (USDA): USDA