A Customs Broker is licensed and regulated by U.S. Customs and Border Protection (“CBP”) to facilitate importers and exporters in the customs entry and in-bond handling of cargo imported into the U.S. A Customs Broker prepares, files and processes import entry documents with CBP, obtains the appropriate bonds, deposits duties and taxes owed to the U.S. Government, secures the release of the cargo and arranges delivery to the importer or a bonded warehouse.
Importing goods into the U.S is an ever-changing complex and multifaceted process, that requires the knowledge and expertise of a Customs Broker to accurately classify cargo according to the Harmonized Tariff Schedule (“HTS”), calculate the applicable duties and fees, ensure the imported goods are in compliance with applicable government laws and regulations, and to provide other invaluable technical assistance.
Customs Brokers can also provide bonded warehouse, local trucking, customs bonds and cargo insurance, as well as guidance and assistance with imports involving trademark, copyright and other intellectual property right issues.
Before goods can be entered into the U.S. and its territories, the goods must first be cleared by CBP. This is called the “entry” process, and does not occur until the import has arrived to the U.S. port of entry, the entry of the goods has been authorized by CBP, and any estimated duties and taxed owed on the goods have been paid.

The entry process entails the preparation and presentation of entry documents to CBP. Once the goods have arrived and the entry documentation transmitted, CBP will either release the goods or subject them to examination by CBP and/or other federal agencies. Once released, CBP still retains jurisdiction over the goods until it has liquidated the entry.

The main documents that a Customs Broker will require to clear a shipment include:

  1. A Customs Power of Attorney. Customs brokers are required to have a valid Customs POA on file before handling any customs transactions on behalf of the importer of record.
  2. Commercial invoice(s) for the goods. The invoices must be in English, contain the name of the seller and buyer, describe the products, terms of sale, and the currency and purchase price FOB origin. Where the country of origin is other than one purchased from, the actual country of origin of the goods much be reflected on the invoice.
  3. The ocean bill of lading or air waybill that the goods were transported under from origin to the U.S. port of entry.
  4. Country of origin makings.
  5. The cooperation of the importer.
Depending on the type of goods you are considering to import, major criteria and potential issues include whether the goods are subject to quota restrictions, countervailing or anti-dumping duties, compliance with applicable safety, health and energy efficiency requirements, eligible for preferential rates of duty, or otherwise restricted or prohibited entry because it originates from an embargoed country.
The U.S. Government regularly establishes and modifies quotes to control the import of certain merchandise for a certain time period. There are two types of quotas, absolute and tariff-rate.
In addition to CBP, there are over 40 U.S. Government agencies that regulate imports, and may require special permits or certificates. This is why it’s imperative to confirm if there are any special requirements before goods are imported. In the event that an issue or problem should arise with a regulatory agency after the goods have been imported, the goods can be transferred to a bonded warehouse pending a resolution.
Unless otherwise exempt, commercial goods imported into the U.S. are required to pay duties and taxes. Import duties and taxes vary from product to product, and can range from zero to as high as 100% or more of the declared value, depending on the specific commodity being imported, the country of origin, any countervailing or anti-dumping duties and quotas.

To calculate the applicable duties and taxes, the Customs Broker must determine the proper classifications under the Harmonized Tariff Schedule (“HTS”). The Broker must also determine whether the goods are subject to other taxes, whether it be excise duties or taxes, or countervailing or anti-dumping duties.

Both informal and formal customs entries are subject to the Merchandise Processing Fee (“MPF”). CBP requires the importer to pay the fee at the time the entry is transmitted to CBP. Effective October 1, 2011, the MPF for formal entries is an ad valorem fee of 0.3464%, and based on the commercial value of the goods being imported, exclusive of duties, freights and insurance. The minimum MPF is $25.67, with a maximum of $497.99.
The Harbor Maintenance Fee (HMF) is designed with the intended purpose of requiring importers who benefit from the maintenance of U.S. ports and harbors to share in the cost. The HMF is currently .125% of the commercial value of the goods.
Goods imported into the U.S. must be properly marked with the country of origin. The overseas supplier must legibly and permanently mark the goods with the country of origin in such a way to ensure that the ultimate purchaser is aware of the goods’ origin. For goods such as fruit and vegetables that are incapable of being marked, its sufficient to market the outer packaging or container with the country of origin.
Before importing goods or packaging bearing a U.S. registered trademark, you must first confirm that its genuine and not prohibited or restricted for importation under “gray market” or U.S. import requirements under 198 CFR § 133.21, and that you have authorization from the trademark holder to import the goods.

Goods or packaging containing counterfeit trademarks are subject to seizure, forfeiture and destruction. A counterfeit trademark is defined as a spurious trademark that is either identical with, or is substantially indistinguishable from, a registered trademark.

If importing goods or packaging containing registered copyright material, you must first confirm that the material is genuine and authorized to be imported. Items determined to have a pirated or counterfeit registered copyright are subject to seizure and forfeiture.

CBP may levy civil fines and penalties when merchandise is seized and forfeited pursuant to 19 U.S.C.§ 1526(e).

A customs bond is a contract to ensure full performance of a legal obligation. On a customs bond, the importer is the principal on the bond, with an insurance company as the surety. The importer agrees to pay duties, taxes, fees, and otherwise comply with obligations required by law in a timely manner. Should the importer default on the performance of these obligations, CBP shall proceed again the bond, whereby the surety on the bond then goes against the importer for the amount paid to CBP. Though an importer can post cash in a sum equal to the required bond amount, such funds will not be released until the entry is liquidated, which is often months, if not years. In addition to the customs bond for the customs entry, a separate bond is required for the Import Security Filing (“ISF”)  for importers and ocean carriers to ensure the timely and accurate electronic transmission of data to CBP for in-bound ocean shipments.
The Import Security Filing (ISF”) requires importers and ocean carriers to electronically transmit key data elements to CBP for in-bound ocean shipments. The ISF must be filed at least 24 hours prior to the lading aboard a vessel at the foreign port destined to the US. The party importing the goods into the U.S. is the “ISF Importer.” It can be the owner, purchaser, consignee or agent (i.e., a customs broker). Where the shipment consists of foreign cargo that will remain onboard (FROB), the party will be the ocean carrier. The party filing Immediate Entries (IEs) and Transportation and Exports (T&Es), or Foreign Trade Zone (FTZ) documentation is the ISF importer.

For entries other than IEs and T&Es, a Customs Broker will require the following information from the importer to file the ISF:

  1. Manufacturer or supplier’s name and address. This is the name and address of the last entity that manufactured, assembled, produced, or grew the commodity, or the name and address of the supplier of the finished goods in the country from where the goods are being exported to the U.S. Alternatively, the name and address of the manufacturer or supplier that is currently required by U.S. import laws, rules and regulations may be provided; specifically, the information that is used to create the existing Manufacturer Identification Number (MID) for entry purposes.
  2. Seller’s name and address. This is the name and address for the last known entity by whom the goods were sold. If the goods are imported other than pursuant to a purchase, then the name and address of the owner of the goods much be provided.
  3. Buyer’s name and address. This the name and address of the last known entity whom the goods are sold to. If the goods are imported other than pursuant to a purchase, then the name and address of the owner of the goods much be provided.
  4. Ship to name and address. This is the name and address of the first delivery-to party scheduled to receive the goods upon release by CBP.
  5. Container stuffing location. This is the name and address(es) of the physical location(s) where the goods are loaded into a container. In the case of break bulk shipments, this would be the name and address(es) of the party who made the goods “ship ready” or the party who arranged for the goods to be made “ship ready”.
  6. Consolidator name and address. This is the name and address of the party who stuffed the container or arranged for the stuffing of the container. In the case of break bulk shipments, this would be the name and address(es) of the party who made the goods “ship ready” or the party who arranged for the goods to be made “ship ready”.
  7. Importer of record number/FTZ applicant identification number. The Internal Revenue Service (IRS) number, Employee Identification Number (EIN), Social Security Number (SSN), or CBP-assigned number of the entity liable for payment of all duties and otherwise responsible compliance with all the legal requirements for the import. For good destined for a Free Trade Zone (FTZ), the IRs number, EIN, SSN or CBP-assigned number of the party filing the FTZ documentation with XCBP must be provided.
  8. Consignee number(s). IRS number, EIN, SSN or CBP-assigned number of the individual(s) or entity(ies) in the U.S. on whose account the merchandise is shipped.
  9. Country of Origin. The country where the goods were manufactured, produced or grown.
  10. Harmonized Tariff Schedule (HTS) Number. The HTS number under which the article is classified. This can be either the 6-digit level or full 10-digit HTS number.
  11. Bill of lading number. The lowest level of bill of lading number manifested by the ocean carrier with CBP. The bill of lading used to file the ISF must exactly match the bill of lading manifested by the carrier in AMS.

For Immediate Exports (IEs) and Transportation and Exports (T&Es), a Customs Broker will require the following information from the importer to file the ISF:

  1. Booking party name and address. The name and address of the party who is paying the cost to transport the goods.
  2. Foreign port of unlading. The port code for the foreign port of unlading at the intended final destination.
  3. Place of delivery. City code for the place of delivery.
  4. Ship-to name and address. The name and address of the first delivery-to party scheduled to physically receive the goods upon release by CBP.
  5. Harmonized Tariff Schedule (HTS) Number. The HTS number under which the article is classified. This can be either the 6-digit level or full 10-digit HTS number.

Failure to timely and accurately file the ISF at least 24 hours prior to lading aboard a vessel destined to the U.S. may result in a penalty of $5,000 per infraction. The importer of record is ultimately responsible for the ISF and any violation penalties. Though an importer can designate an agent to file ISFs on their behalf, this does not relieve the importer of liability.

Duty drawback is the refund of duties when goods imported into the U.S. are re-exported or destroyed before sold or used in the commerce of the U.S. The refund can amount to 99% of the duty paid, and requires proof that the goods were either re-exported from the U.S. within 3 years (for unused goods), or 5 years (for manufacturing).
No different than automobiles manufactured in the U.S., imported motor vehicles are subject to the same safety standards enforced by the U.S. Department of Transportation (“U.S. DOT”), and air pollution emission controls enforced by the U.S. Environmental Protection Agency (“EPA”).

Often times, unless a vehicle was specifically manufactured for the U.S. market, it probably does not meet U.S. safety and emission standards, whereby it must either be modified to comply with relevant standards, exported or destroyed. Motor vehicles which are 25 years or older are typically exempt from safety and emission standards.

Nonresidents are allowed to import a personal vehicle duty-free for a maximum period of one (1) year, provided that its imported in conjunction with the owner’s arrival into the U.S., and otherwise complies with safety and emission standards.