Regulations regarding to entry of products into the USA

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1 A Guide to Successfully Export to the Unites States of America. The US market is undeniably the most sought after market in the western hemisphere. However, there are strict laws and regulations governing the treatment, care, production, and packaging of goods intended for the US market. The USA Public Health Security and Bioterrorism Preparedness and Response Act (also known as the Ant- Bioterrorism Law) was introduced to prevent any use of biological agents and safeguard against any threats to US consumers. The act set out certain guidelines geared to protect food and drug supply and has implications for exporters intending to do business with the US. These regulations include the following: 1. The Registration of Food Facilities this requires that an exporter completes a questionnaire Facilities Registration to become registered as part of a exporter database administered by the USA Food and Drug Administration (FDA).All facilities that are engaged in the manufacture, packing or holding of foods destined to human or animal consumption within the Unite States Department o Agriculture (USDA) regulates meat, poultry and some products manufactured with eggs and is therefore not regulated by The FDA. There are no costs associated with is procedure and is only required to be done once unless there are changes in the information in which case the exporter is required to update his/her registration or register again. To obtain additional information on the process consult ( 2. Prior Notice of Imported Food Shipments The FDA requests that any shipment of food or feed subject to the Bioterrorism Act be notified into the US to determine if the products need to be inspected or not. The prior notification should be done and confirmed be the FDA no more than five days before or less than two hours prior to the arrival of the shipment by land; four hours by railroad; or eight hours if by ship. The required questionnaire and additional information on the prior notification process can be found at ( 3. Maintenance and Inspection of records for Foods The FDA requires that exporters of foods and feed products keep appropriate records related with the manufacturing, processing, packaging, transporting, receiving and storing of such products. Although some companies who do use their own transport to send the products into the US, it is still necessary for those companies to maintain their own record system to ensure proper traceability of the products. Additional information can also be found at the website under regulation # Administrative Detention this is the administrative arm of the FDA which, retain or seize food or food products based on credible evidence the products shipped represents a threat and grave consequences for the health or can death to humans or animals within the USA. This also applies to agribusiness and food safety. Additional information is available at ( and ( 5. Regulations pertaining to Wood Packing- all wood packaging material entering the USA must be treated to prevent pest infestation and be marked on two sides confirming that the wood has been treated according to the Food and Agricultural Organization s International Plant Protection Convention(IPPC) International Standards for PhytoSanitary Measures (ISPM) 15: which outlines the type of treatment acceptable for wood packaging material and the required seal (symbol).these treatments specify the use of heat and fumigation with methyl bromide. ISPM 15 establishes that any shipment that contains pallets or crates made using wood packaging material that does not meet the criteria will be3 returned to the country of origin. N: B Even if a single pallet within a container is not treated properly or market, all the contents of the container will be returned. Regulations regarding to entry of products into the USA The exporter must verify whether the products are eligible for entry into the USA or if there is any phytosanitary restriction. This process is known as product admissibility and deals with the prohibition or restriction of certain classes of products. Products falling in the prohibitory class are those for which there is no approved treatment for quarantine pests which does not guarantee complete control and are denied entry on that basis. The products which fall in the restrictive class are those which are treated or under an inspection process but are allowed entry nevertheless. Information can be sought at the specified website ( manuals.html or from USDA representative located at the US embassy in Jamaica or direct

2 contact can be made with the Animal and Plant Health Inspection Service (APHIS) of the US Department of Agriculture ( APHIS is responsible for the evaluation and assessment of risks associated with imported agricultural products). Necessary Documentations to enable entrance of Goods Exporters or importer of record i.e. person receiving the goods (owner, purchaser, or licensed customs broker designated by the owner, purchaser or consignee) is required file entry document with the port director at the goods port of entry. Goods are not legally entered until after a shipment has arrived within the port of entry, delivery of the merchandise has been authorized by the CBP and estimated duties have been paid. The exporter or importer of record needs to arrange for the examination and release of goods. Where applicable other agencies may need to be contacted concerning particular commodities. Prior to the goods arrival, arrangements for entry must be made at the CBP port of entry where you intend to file your duties and documentation. Arrangements must be made to transport the merchandise to the intended port if the merchandise arrives at another port otherwise you may attract additional fees. Right of entry Goods my only be entered by their owner, purchaser or a licensed broker to qualify for right to entry. In the case of a consignment the bill of lading must be properly endorsed by the consignor as evidence of right to entry or where the merchandise arrives by air an air bill is appropriate. N: B where the person or firm certified by the carrier bringing the goods to the port of entry (as happen in most instances) this certified entity is considered the owner of the goods for customs purposes. Other considerations for entry of goods are: Entry for consumption this deals documents for the release of the goods from the CBP custody and documents which contain information for duty assessment and statistical purposes. This documentation can be facilitated electronically via the Automated Broker Interface (ABI) program of the Automated Commercial System (ACS). Entry Documents The following documents are to be filed at a location specified by the port director within 15 calendar days of the date of arrival of the shipment: Entry Manifest CBP Form 7533) or Application and Special Permit for Immediate Delivery -where applicable (CBP Form 3461) or the required form of merchandise release. Evidence of right of entry Commercial Invoice or pro forma invoice where applicable Packing lists, if appropriate Documents to determine merchandise admissibility In addition, if the goods are to be released from CBP at the time of entry, an entry summary for consumption must be filed with the accompanying estimated duties at the port of entry within 10 days of the goods entry. Examination of Goods and Entry Documents: Examination of goods and documents is necessary to determine: The value of the goods for customs purposes and dutiable status Whether the goods must be marked with their country of origin or require special marking or labeling (if so they are marked in the manner required). Whether the shipments contains prohibited articles, Whether the goods are in excess of the invoiced quantities or a shortage exists, Whether the shipment contains illegal Whether the goods are in keeping with other US regulations Surety

3 The entry must be accompanied by evidence that a bond has been posted with CBP to cover any potential duties, taxes and charges that may accrue in the event that a broker is employed for the purpose of making entry. (The broker may permit the use of the bond to provide the required coverage). Entry for Warehouse If the exporter wishes to postpone release of goods they may be placed in a CBP bonded warehouse under a warehouse entry. The goods may remain in the bonded warehouse up to five years from date of importation. At any time during that period warehoused goods may be re-exported without paying duty, or they may be withdrawn for consumption upon paying at the duty rate in effect on the date of withdrawal. N: B Perishable goods or prohibited importations may not be placed in bonded warehouse. Unentered Goods In the event no entry has been filed for the goods at the port of entry with 15 days after their arrival, the goods may be released in a general-order warehouse at the importer s risk and expense. If the entry is not done within six months from the date of importation, they can be sold at a public auction or destroyed. Perishable goods or goods subject to depreciation may be sold sooner Storage fees and other associated costs will be deducted from the proceeds of the sale. The exporter will need to file a claim for the surplus of the proceeds of sale with the port director at whose instruction the merchandise was sent to sale. Goods sent by Mail Mail entries involve the use of the US national postal service rather than courier services. Merchandise valued at US $ is eligible for use of this service. Some of the benefits to be derived are: 1. Ease in clearing shipment through CBP. The duties are collected by the letter carrier who delivers the parcel to the addressee upon payment of duty. 2. Savings on shipping charges 3. No formal entry required on duty-free merchandise 4. No need to clear shipment personally Packages other than parcel post for example samples of merchandise must bear on the address side a label, form Cl, provided by the universal Post Union or the endorsement may be opened for customs purposes before delivery or similar words waiving the privacy of the addressee. If these guidelines are not adhered to the goods can be forfeited. If the mail importation is valued over US$ the addressee will be advised to file a formal CBP entry (also called a consumption entry) at the nearest port to the exporter. In such a case a CBP processing fee will be assessed on each item. The following item are not eligible and hence are exceptions to the US$ limit: The limit for these items is US$ except for textiles (fibers and products). Articles classified under the harmonized tariff schedule Billfolds and other flat goods Feathers and feather products Flowers and foliage, artificial or preserved Footwear Fur, articles of, Gloves Handbags Headwear and hat braids Leather, articles Luggage Millinery ornaments, Pillows and cushions, Plastics, miscellaneous articles of, Textile fiber and products, Toys, games and sport equipment, and Trimmings Transportation of Merchandise in bond Some merchandise exported to the United States and intended for domestic commerce are not entered at the port to which they arrive and are sent to other ports at the request of the exporter. Theses goods must travel in a bonded status to the intended port of entry.

4 Excess Goods and Shortages Goods are to be packaged in an orderly fashion; properly marked and packages in which the goods are contained are numbered; list each page s content on the invoice; and place marks and numbers that correspond to those packages. Damage and Deterioration Goods that the CBP officer finds to be entirely without commercial value at the time of arrival in the United States because of damage or deterioration are treated as a nonimportation. No duties are assessed on these goods. If only part of the shipment is damaged or deteriorated, allowance in duties is made only if the importer segregates the damaged or deteriorated part from the remainder of the shipment under CBP supervision. In the case of fruits or vegetables or other perishable goods the importer files the application for the allowance within 96 hours of uploading of the merchandise. Tare This applies to the allowance for a deficiency in the weight or quantity of the merchandise caused by the weight of the box, cast, bag or the receptacle that contains the merchandise. Additional information on schedule tares is available under CBP regulation. For example: apple boxes 3.6 kilograms (8ib) per box inclusive of paper wrappers if any, on the apples. Fresh tomatoes 113 grams (40z.) per 100 paper wrapping. Packaging of Goods Commingling Information on how to pack goods for the purpose of transporting goods for the purpose of transporting may be obtained from shipping manuals, carrier, forwarding agents, and other sources. Orderly packing and invoicing will speed up the clearance of the goods through CBP. The following concerning packing is advisable: Invoice your goods in systematic manner, Show the exact quantity of each item of goods in each box, bale, case or other package, Put marks on each package, Show those marks or numbers on your invoice opposite the itemization of goods contained in the package that bears marks and numbers A critical aspect of facilitating inspection is how the cargo is loaded. Palletizing cargo- loading it onto pallets or other consolidated units is an effective way to expedite such examinations. Complying with proper weigh requirements will simplify the ascertainment of tare and reduce the number of samples to taken for laboratory analysis or for customs purposes Commingling Whenever articles are subject to different rates of duty they are to be packed to enable CBP officers to readily determine the quantity or value of each package. If the shipment of the contents of any package has to be physically separated to determine the quantity and value the combined articles will attract the highest rate of duty applicable to any part of the commingled lot, unless the consignee or his agent separates the merchandise under CBP supervision. This must be dome within 30 days and will be at the risk and expense of the consignee. The three methods of ready ascertainment specified by General Note 3 (f) of the Harmonized Tariff Schedule are: Sampling Verification of packing list or other documents file at the time of entry Evidence showing performance of commercial settlements test generally accepted in the trade and filed in the time and manner as prescribed in the CBP regulations An agent or Consignee can be eligible for lower rates if satisfactory proof is furnished that: Such part is commercially negligible, is not capable of segregation without excessive cost, and will not be segregated prior to its use in a manufacturing process or otherwise; and The commingling was not intended to avoid the payment of lawful duties. In addition, the highest rates do not apply to any part of a shipment if satisfactory proof is furnished that: The value of the commingled articles is less than the aggregate value would be if the shipment were segregated;

5 The shipment is not capable of segregation without excessive cost and will not be segregated prior to its use in a manufacturing process or otherwise; and The commingling was not intended to avoid the payment of lawful duties. Quantity Standards The USDA s agricultural marketing Service (AMS) promotes the program known as Product Classification and Quality Certification as a means to facilitate the marketing of fresh fruits and vegetables within the USA. Quality standards have been defined for more than 158 products. The utilization of these norms is not mandatory for export (products imported to the US) unless specific reference to a quality defined by AMS or included within a marketing order. Maximum Permission Limits for Pesticides Residue Allowed in Food The Federal Insecticide, Fungicide and Rodenticide Act authorizes Environmental Protection Agency EPA to oversee the registration of all pesticides used in the USA and establish limits of tolerance for pesticide residue found in domestic or imported food products. The tolerance limits (maximum permission limits) of pesticide products can be identified in two ways: 1. By agricultural product which allows determining the maximum limits to different agrochemical in a specific product; or 2. By chemical product which allows determining the maximum tolerance in a specific agricultural product. Additional information can be found at ( Requirements for the Entry of Processed Products All food products marketed in the USA must comply with the health and safety standards defined by the Food, Drug and Cosmetic Act (FDCA). Food and Drug Administration FDA regulates the additives and colorants that can be used in foods. GOOD Manufacturing Practices (GMP) Both the FDCA and the FDA collaborate to establish sanitary norms for the production, processing, handling and other measures dealing with food products. The FDA requires food processors apply good manufacturing practices (GMP) in labour, buildings, facilities, equipment and production process, to assure that all the food produced is safe and free from contamination. Additional information can be found at ( Food Labelling A summary of the general and nutritional labeling requirements can be found at ( For legislation on the parameters that must be met information can be found at ( FDA had approved a list of all substances that have been approved used as colorants. This information is available at ( Direct and indirect additives Direct additives are considered to be those additives directly added to the food, while indirect additives relate to those substances that indirectly enter in contact with the food, for example packaging materials. For additional information consult ( HACCP (Hazard Analysis and Critical Points) FDA has adopted this food protection system the system is mandatory for all seafood products and orange juice production. For additional information on HCCP consult ( Thhee JJaamaai iccaa EExxppoorrtteerrss Assssoocci iaatti ioonn (JJEEA) ( Was established over forty years ago to promote the growth and development of the export sector. Its membership represents a range of sub sectors including fresh produce, processed foods, apparel, building products, chemicals, cosmetics, electronics, furniture, giftware and allied services. The JEA is; COMMITTED TO NATIONAL DEVELOPMENT THROUGH EXPORTS We invite exporters and related businesses to come in and talk with us. We are constantly adding new services and we re always anxious for new input.