Importing 101: Importing into the U.S. – Basic Requirements and Procedures

1. TekleSebahtu Ph.D. http://www.stcinternational.us stcintL@q.com Importing 101: Importing into the U.S. – Basic Requirements and Procedures

2. Import Requirements and Procedures Agenda • Getting started • Role of Custom House Broker • Customs Entry process • Importers responsibility under the Mod Act. • Documents Required to make Entry • What importers should tell their exporters • Q&A

3. Importing is not a right, it is a privilege, which can be revoked if rules and regulations are not followed.

4. Getting Started • Company assessment – Planning, Commitment, Knowledge and Relationship. • License or a Company to import? • File entry documents yourself or hire assistance? • Get help!

5. Role Of Custom House Brokers • Conduct Customs Business (Valuation, Classification, Admissibility & Marking ) • International documentation, packaging carrier and routing information. • Import quota information • Marine insurance rates and coverage • Customs Bonds • Must give Power of Attorney

6. What is Customs Entry? The process of filing documents with Customs at the port of entry to get goods released.

7. Types of Entry • Consumption Entry • Foreign Trade Zone Entry • Warehouse Entry (Bonded) • Transportation ( In Bond) Entry

8. Who Can Enter Merchandise • Owner of merchandise • Purchaser of merchandise • Custom House Broker (Licensed)

9. Formal VS Informal Entry • Formal Entry • Value over $2000. • Value over $250 (trade sensitive articles e.g. textiles) • Exceptions (for list visit CBP website) • Informal Entry • Value less than $2000. • Value of less $250 (trade sensitive articles e.g. textiles) • Mail shipments (Duty Paid to Postal Employee) • Major Differences -- Formal VS Informal • Bond requirements • Liquidation process

10. Customs Entry Process Entry CF3461 Step 2 Valuation Step 1 Admissibility Entry Summary CF7501 10 Working/Bus Days 15 Calendar Days One Year Arrival • Liquidation • No change • Additional duty • Duty refunded

11. Importer’s Responsibility Under The Mod Act (Informed Compliance) Accurate Transaction Documents Classification (HTS) Duty Assessment (Valuation) Marking Other Agency Requirements

12. Documents Required to Make Entry • Bill of Lading or Airway Bill or Carriers Certificate • Commercial or pro-forma invoice • Entry/Entry Summary CF 3461/7501 or Entry/Immediate Delivery • Packing list • Other agency document requirements (FDA, FCC, DOA, ATF, CPSC, FNS)

13. What Importers Should Tell Their Exporters • Invoice typed, must clearly describe imported product. • Product in the invoice to match with the packing list that will accompany the goods. • Invoice should shows all discounts and the net price. • Avoid commingling products, use separate boxes whenever possible. • Mark goods and boxes legibly with the Country of Origin. • Itemize cost of transportation and insurance

16. Thank You for participating! For additional information please visit http://www.stcinternational.us Email: stcintL@q.com