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This pamphlet is intended as a general explanation of import requirements for a person interested in establishing an importing business or a person who may be importing a personal shipment whose value is in excess of $2,000.

We at Customs want to help expedite the movement of goods in international trade. Continual review of methods and procedures and the enactment of new laws create constant change. Therefore, we encourage you to obtain more specific import information from a Customs officer at the port nearest your residence.

To speed customs clearance, the import community and the Customs Service have created the Customs Automated Commercial System (ACS), which receives and processes entry documentation and provides cargo disposition information, all electronically. Cargo carriers, customs brokers, and importers may use the system, which reduces clearance time from days to hours or even minutes. Persons entering into the importing trade who intend to file their own entry documentation with Customs are encouraged to explore this method of transacting business. Also, persons importing merchandise for their own use may use a customs broker who transacts customs business using the Automated Broker Interface (ABI) with ACS.

CONTENTS:

United States IMPORT REQUIREMENTS

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1. An individual may make his own customs clearance of goods imported for personal use or business.
2. The U.S. Customs Service does not require an importer to have a license or permit. Other agencies may require a permit, license, or other certification, depending on the commodity.
3. All merchandise coming into the United States must clear customs and is subject to a customs duty unless specifically exempted from this duty by law. Clearance involves a number of steps--entry, inspection, appraisal, classification, liquidation.
4. Customs duties are, generally, an ad valorem rate (a percentage) which is applied to the dutiable value of the imported goods. Some articles, however, are dutiable at a specific rate of duty (so much per piece, liter, kilo, etc.); others at a compound rate of duty (combination of both ad valorem and specific rates).
5. The dutiable value of merchandise is determined by Customs. Several appraisal methods are used to arrive at this value. Generally, the transaction value of the merchandise serves as the basis of appraisement. Transaction value is the price the buyer actually pays the seller for the goods being imported.
6. The Harmonized Tariff Schedule of the United States (HTSUS), issued by the International Trade Commission, prescribes the rates of duty and classification of merchandise by type of product; e.g., animal and vegetable products, textile fibers and textile products.
7. The tariff schedule provides several rates of duty for each item: "general" rates for most-favored nations; "special" rates for special trade programs (free, or lower than the rates currently accorded most-favored nations); and "column 2" rates for imports not eligible for either general or special rates.
8. Processing fees may also apply.

Arrival of Goods

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Imported goods may not be entered legally until the shipment has arrived within the limits of the port of entry and delivery of the merchandise has been authorized by Customs. This is normally accomplished by filing the appropriate documents, either by you as the importer or by your agent. Customs entry papers may usually be presented, however, before the merchandise arrives.

The Customs Service does not notify you of the arrival of your shipment. Notification is usually made by the carrier of the goods. You should make your own arrangements to be sure you or your agent is informed immediately so that the entry can be filed and delays in obtaining your goods avoided.

Imported merchandise not entered through Customs in a timely manner (up to 30 days) is sent by Customs to a general order warehouse to be held as unclaimed. The importer is responsible for storage charges which are incurred while unclaimed merchandise is held at the warehouse. If it remains unclaimed at the end of six months, the merchandise is sold at auction.

You must make whatever entry is required at the first port of arrival. If you are unable to be there to prepare and file your entry, commercial brokers, known as customs brokers and licensed by the Customs Service, may act as your agent. Such brokers charge a fee for their services. A list of customs brokers may be obtained from your local Customs office or classified telephone directory.

In the case of a single noncommercial shipment, you may appoint a relative or other individual to act as your agent for customs purposes. This person must have knowledge of the facts pertaining to your shipment and must be authorized in writing to act for you.

Customs employees are prohibited by law from performing these tasks for the importing public. They will advise and give information to importers about Customs requirements, however.

Entry of Goods

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To make or file a customs entry, the following documents are generally required:

1. A bill of lading, airway bill, or carrier's certificate (naming the consignee for customs purposes) as evidence of the consignee's right to make entry.
2. A commercial invoice, obtained from the seller, which shows the value and description of the merchandise.
3. Entry manifest (Customs Form 7533) or Entry/Immediate Delivery (Customs Form 3461).
4. Packing lists, if appropriate, and other documents necessary to determine whether the merchandise may be admitted.

When the entry is filed, the importer indicates the tariff classification and pays any estimated duty and processing fee. A surety bond containing various conditions, including a provision for paying any increased duty that may be later found to be due, may also be required.

Other Types of Entry

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Imported goods may be sent in-bond from the first port of arrival to another Customs port. Arrangements for in-bond shipments should be made before the goods leave the country of export. In-bond entries postpone final customs formalities, including payment of duty and processing fee, until the goods arrive at the final port.

Imported merchandise may also be sent to a bonded warehouse under a warehouse entry. Duties and processing fees are not paid on warehoused merchandise until the goods are withdrawn for consumption. Storage fees are paid to the warehouse proprietor by the importer.

Customs Examination of Goods

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In simple cases involving small shipments or certain classes of goods such as bulk shipments, examination may usually be made on the docks, at container stations, cargo terminals, or the importer's premises. The goods are then released to the importer. In other shipments, representative packages of the merchandise may be retained by Customs for appraisal or classification purposes and the remainder of the shipment released. These packages will also be released to the importer after examination has been completed.

Examination of goods is necessary to determine:

1. The value of the goods for customs purposes and their dutiable status.
2. Whether the goods must be marked with the country of their origin or with special marking or labeling. If so, whether they are marked in the manner required. Generally, imported merchandise must be legibly marked in a conspicuous place and in a manner to indicate the English name of the country of origin to the ultimate purchaser in the United States. Certain specific articles are exempt from this requirement.
3. Whether the goods have been correctly invoiced.
4. Whether the shipment contains prohibited articles.
5. Whether requirements of other federal agencies have been met.
6. Whether goods in excess of the invoiced quantities are present or a shortage of goods exists.

If necessary, goods may be analyzed by a Customs laboratory to determine proper classification and appraisal.

When examination or appraisal of the goods by Customs reveals differences from the entered descriptions in terms of characteristics, quantity or value, or when Customs finds that a different rate of duty than the one indicated by the importer applies, an increase in duties may be assessed.

When all the information has been acquired, including the report of the Customs import specialist as to the customs value of the goods, and the laboratory report, if required, a final determination of duty is made. This is known as liquidation of the entry. At this time, any overpayment of duty is returned or underpayments billed.

Protest

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If an importer desires, he may, within 90 days after the date of liquidation or other decision, protest the decision and secure administrative review. Notice of the denial of a protest, in whole or in part, will be mailed to the importer or to his agent. The importer may then decide whether to litigate. If an importer wishes judicial review, he will be required to file a summons in the Court of International Trade.

Mail Shipments

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Shipments by mail which do not exceed $2000 in value, whether commercial or noncommercial importations (except for commercial shipments of textiles from all countries and made-to-measure suits from Hong Kong, regardless of value), are entered under a mail entry prepared by a Customs officer after the Postal Service submits the package for customs examination. The parcel is delivered to the addressee by the post office and is released upon the payment of the duty, which is shown on the mail entry accompanying the package. A postal handling fee in the form of postage due stamps will also be collected from the addressee at the time the package is delivered. This fee is not charged on packages sent through military mail channels. (Commercial shipments of textiles from all countries and made-to-measure suits from Hong Kong regardless of value, require a formal entry; see next paragraph.)

A formal entry is required for any commercial mail shipment exceeding $2000 in value. Formal entry is also required, regardless of value, for commercial shipments of textiles from all countries and all made-to-measure suits from Hong Kong. The parcel is forwarded to the Customs office nearest the addressee. Customs notifies the addressee of the parcel's arrival and the location of the Customs office where customs formalities may be arranged. Customs clearance will require filing an entry in the same manner as for shipments arriving by vessel or air freight.

Restricted Merchandise

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Because our officers are stationed at all ports of arrival in the United States, including Puerto Rico, they are called upon to enforce laws and regulations of other government agencies.

A license or permit from the responsible agency is necessary to import:

Certain items in these categories may also be prohibited.

Most of the above items are regulated, variously, by:

Bureau of Alcohol, Tobacco, and Firearms

Washington, D.C. 20226

(202) 927-8110 (alcoholic beverages)

(202) 927-7920 (arms and ammunition)

Animal and Plant Health Inspection Service
(animals/animal products)

USDA-APHIS-VS

Hyattsville, MD 20782

(301) 734-7885

Animal and Plant Health Inspection Service
(plants/plant products)

USDA-APHIS-PPQ

Hyattsville, MD 20782

(301) 734-8645

Agricultural Marketing Service
(fruits, vegetables & specialty nuts)

USDA-AMS-MOAB

14th & Independence Ave. S.W.
Room 2525-South,
Washington, D.C. 20250

(202) 720-2491

U.S. Fish and Wildlife Service

Office of Management Authority

4401 N. Fairfax Drive

Arlington, VA 22203

(703) 358-2093

Food and Drug Administration

Division of Import Operations and Policy

5600 Fishers Lane

Rockville, MD 20857

(301) 443-6553

Today, an increasing number of goods and products such as textiles, clothing, automobiles, boats, radios, television sets, and medical devices, are subject to special standards, declarations, certification, marking or labeling requirements.

Other merchandise must be examined for fitness of use, freedom from contamination, or may be subject to quotas on the quantity imported.

All these requirements must be met before the merchandise may be released by Customs.

Foreign Assets Control

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The regulations administered by the Office of Foreign Assets Control (FAC) generally prohibit the unlicensed importation of merchandise--except information and informational materials--of Cuban, Iranian, Iraqi, Libyan, or North Korean origin. Goods may not be imported from or through commercial entities owned or controlled by the governments of Cuba, Iran, Iraq, Libya, or North Korea, or owned or controlled by any commercial entity in those areas, regardless of the location of the entity. Vessels or aircraft under the registry, ownership, or control of the governments of, or commercial entities in, the above areas may not import merchandise into the United States.

Specific inquiries concerning FAC Regulations, including any recent changes, should be made to the Office of Foreign Assets Control, U.S. Treasury Department, Washington, D.C. 20220. Telephone: (202) 622-2500.

Publications

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Persons intent on going into the importing business will find the following publications invaluable. They may be purchased from the Superintendent of Documents, Government Printing Office, Washington, D.C., 20402, (202) 512-1800. Prices are subject to change.

Information on the Customs Automated Commercial System (ACS) can be found in the pamphlet "Yes You Can . . . on ABI" and the more detailed "ABI Overview," obtainable free of charge from the Documentation Branch, Office of ACS Operations, U.S. Customs Service, 1301 Constitution Avenue, NW., Washington, D.C. 20229.

The Office of Rulings & Regulations also publishes a series of electronic brochures that are very valuable. These Informed Compliance Publications offer very specific guidance on importing certain goods and on following various procedures.

Customs Regulations of the United States

Loose-leaf volume containing regulations published for the purpose of carrying out customs, navigation, and other laws administered by the U.S. Customs Service. Price: $68 includes revised pages for subscription year; $85 foreign mailing (surface). Note: Customs regulations are also contained in the Code of Federal Regulations, Title 19, Chapter 1.

Customs Bulletin

A weekly pamphlet containing regulations, rulings, decisions, and notices concerning Customs and related matters, decisions of the United States Court of Appeals for the Federal Circuit and the Court of International Trade. Price: $155 a year, domestic mailing; $193.75 a year, foreign mailing.

Harmonized Tariff Schedule of the United States (Annotated)

A technical document for use in classification of imported merchandise for rates of duty and statistical purposes. Price: $56 domestic, $70 foreign.

Importing Into the United States

A highly technical 88-page book providing extensive details on the topics covered in this pamphlet. Aimed at those contemplating commercial importing, it also contains sample forms and lists of quotas and other restrictions on a variety of generic merchandise (fibers, fabric, metals, food-stuffs, vehicles, etc.) of interest to commercial importers. For a free copy, write to the U.S. Customs Service, P.O. Box 7407, Washington, D.C., 20044. Additional copies can be ordered from the Government Printing Office, Washington, D.C., 20402, (202) 512-1800 for $6.50 each; $8.13 for foreign mailing.

Import Quotas

"Import Quotas" (Customs publication no. 519) describes the merchandise subject to U.S. import quotas, as administered by the U.S. Customs Service.

The Customs electronic bulletin board (CEBB) contains status reports and quota book telegrams (QBTs), which identify new and revised quotas. Your ACS client representative can assist you in gaining access to the CEBB.

North American Free Trade Agreement (NAFTA): A Guide to Customs Procedures

This NAFTA guide (Customs publication No. 571) explains the rules of origin and procedural obligations relating to Customs administration of NAFTA. It summarizes various terms of the agreement and gives an overview of the benefits to and requirements of importers. Price: $5 domestic, $6.25 foreign.

Revised April 1997 Customs Pub. No. 517

DEPARTMENT OF THE TREASURY

U.S. CUSTOMS SERVICE

WASHINGTON, DC

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