Here is a few critical things you must know before you proceed.
1. Broker: You are not compelled to employ a broker or freight forwarder. The broker is the importer’s AGENT responsible for filing documents, paying duties and fees and clearing the merchandise.
Why use brokers? They are familiar with the port operations They are familiar with the laws and procedures Make no mistake – the broker is YOUR AGENT!
The Broker has the Importer’s Power of Attorney - Customs Form 5291 Beware of Broker P/A’s they often have language in them that is not required by law but disadvantages the importer in favor of the broker. Find the Form 5291 in custom service website. If your P/A does not look like theirs you might want to read it carefully.
2. Posting Bond Importers must pay the US Customs Service to import merchandise. Those fees typically include duties, merchandise processing fees and harbor maintenance fees. Prior to import the Importer must obtain a bond to ensure Customs will receive those fees it is lawfully due.
Types of Bonds Bonds come in Single Entry and Continuous Import Varieties. The decision as to which bond to use important and should be based upon the types of imports in which you engage. Refer to custom service's website for more details on import bonds.
3. Your Importer Number US Customs uses the importer number to track all import transactions and importer compliance. The Importer Number for a Company is usually your Federal Employer Identification Number (FEIN). The Importer Number for an individual is usually the Social Security Number.
4. Other Issues of Concern Import Quotas The US Government imposes quotas or quantity limitations, on certain merchandise imported into the United States. Absolute Quantitative Tariff-rate.
Quota Differentiation Absolute Quota: a limitation of the number of units that can be entered or withdrawn for consumption during a specified period. Tariff Rate Quota: permit a specified amount of product to be entered or withdrawn for consumption at a reduced duty rate.
Duty Calculation Based upon the tariff classification of the imported merchandise and the value of the merchandise. Several sites offer calculators for duties and tariffs but may only be used when you know all the elements of your calculation. Provides the Harmonized Tariff System Number, Description and Duty Rates. Calculating Duty is a science and experts spend years learning their craft. You must know your import to calculate properly.
