Importing Step by Step
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1 Importing Step by Step Joseph J. Wyson, LCHB Executive Vice President Kelly L Heureux. LCHB General Manager OCEANAIR Portland Pamela Davis- Account Executive January 21, 2015
2 Today s Agenda Identify the product being imported Go through the steps of Classification Determine Valuation Select proper Incoterm Commerical Invoice Packing List Power of Attorney ISF (Ocean Only) Bill of Lading Customs entry Customs release Billing packet
3 Parties Involved In The Process Sourcing Purchasing Marketing Accounting Contracts Manufacturer Buying Agent Foreign Bank Trucker Consolidator Freight Forwarder Freight Carrier Foreign Customs U.S. Customs at port of export Carrier at Port of Export Carrier at Port of Import Deconsolidator U.S. Customs at port of import Importer of Record Bonding Company Foreign Bank Customs Broker Trucking Company
4 Identify The Products Being Imported
5 Classify Products Valuation and Classification Seminar November 13
6 Classification Determination of Harmonized Tariff Number for duty purposes Determines eligibility for treatment under trade agreements Provides Department of Commerce with Balance of Trade Statistics Used as an enforcement tool by Customs.
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8 Valuation Provides value for duty purposes Provides valuation for balance of trade Valuation determines eligibility for preferential treatment under trade agreements Valuation is an exact science Remember to included; Assists & Royalties
9 The Country of Origin The country where merchandise was grown, mined, or manufactured.
10 Incoterms 2010 (International Commercial Terms) As They Relate to The Contract of Sale The Purpose Of Incoterms Is To Provide A Set Of International Rules For The Interpretation Of The Most Commonly Used Trade Terms In Foreign Trade Trade Terms Determine Risk To The Parties Involved In The Transaction Governed By The ICC - International Chamber Of Commerce Effective January
11 11 Incoterms 2010 Rules Rules for any mode or modes of transport EXW EX WORKS FCA FREE CARRIER CPT CARRIAGE PAID TO CIP CARRIAGE AND INSURANCE PAID TO DAT DELIVERED AT TERMINAL DAP DELIVERED AT PLACE DDP DELIVERED DUTY PAID
12 Commercial Invoice Elements Name/Address Of Seller Invoice Number Name/Address Of Buyer Sold to Party Ship to Party Seller Order/Ref. No. Buyer Order/Ref. No Terms of Payment. Harmonized Code No. Ship Via: Forwarder Currency. Marks/Numbers Incoterms Quantities Generic Description Of Goods Country Of Origin (Manufacture)
13 Packing List Elements Package Numbers Number Of Pieces In Each Package Part Numbers In Each Package Gross Weight Of Each Package Net Weight Of Each Package Weight In Pounds And Kilos Dimensions. +
14 Customs Power of Attorney A written legal document by which one person (principal or offices) authorizes another person (Customs Broker) to perform stated acts on the principal's behalf when related to U.S.Customs activity
15 IRS OR EIN # CORPORATION ACME MANUFACTURING USA 186A LEE HWY, REVERE, MASS. MASSACHUSETTS TYPE OF COMPANY This Power of Attorney to Remain Full force and effect until Revocation in writing Joseph J. Wyson SIGNATURE CORPORATE OFFICER DATE CORPORATE OFFICER Or Empowered Individual
16 Customs Bonds A Customs bond is a contract that is given to insure the performance of an obligation or obligations imposed by law or regulation. A bond is like an insurance policy that is paid to the U.S. Customs Service if a required act is not performed. Bonds have a number of uses in the Customs Service. The most common use allows importers to take possession of their goods before all Customs formalities are completed.
17 Most Common Customs Bonds Single Entry Bond A bond is generated by the broker for each import shipment. The amount of the bond is determined by adding the entered value of the shipment to the duty amount for most shipments Always a 24 hour delay in customs clearance
18 A Continuous Bond A continuous bond covers all entries filed for a period of one year and continues into succeeding years so long as the annual premium is paid. The amount of a continuous bond is based upon 10 percent of all duties paid by the importer in the previous year. If no duty was paid in the previous year, estimates are given for the upcoming year. Continuous bonds are written in $1000 increments. Customs regulations state that a continuous bond must be at least $50,000. A surety will normally require a financial statement before approving a continuous bond. Additional financial information or security may be required to obtain necessary bond for Customs at the discretion of the surety. A continuous bond can be used in any port in the United States
19 ISF (Import Security Filing) Seller Name and Address Buyer Name and Address Importer of Record and EIN Consignee EIN Manufacturer Name and Address Ship to Party Name and Address Country of Origin Harmonized Tariff Number (to Six Digits) Container Stuffing Location Consolidator name and Address
20 PARTIES INVOLVED FLIGHT AND ROUTING OF SHIPMENT PRODUCT INFORMATION Dimensions COST
21 1 2 EXPRESS OCEAN BILL OF LADING 3 1 OCEANAIR REF NO. 2 CARRIER BOOKIN NO. 3 FORWARDER 4 VESSEL AND VOY NO. 5 ON BOARD DATE 6 OCEANAIR S AGENT BILLS OF LADING NUMBERS / 1 40 CONTAINER 9 16 & 40 SKIDS RESPECTIVELY 10 EXPRESS RELEASE 10
22 The Entry Process The broker receives a prealert from overseas or notification from the importer that a shipment is destined for the United States The importer or the overseas agent provides the broker with the following documents Bill of Lading or Air Waybill Commercial Invoice Packing List (if more than one package)
23 Rated Commercial Invoice
24 CF 7501
25 Air versus Ocean Freight In the case of air freight, the entry is filed once the physical arrival of the freight is known For ocean freight, the entry can be filed 5 days in advance for direct arrivals 2 days for inbond freight Customs transmits the release information to the broker
26 Two Types Of Primary Release Messages Paperless Shipment is cleared and ready to be picked up Documents Required Customs wants to review the actual commercial invoice and other documents Normally release within 1 business day
27 The Final Steps Contact the trucker to pick up the freight Pay Customs in nine business days any applicable duty and fees Send the importer the Entry Package Customs Liquidates the entry IF all is in order
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31 OCEANAIR Is Your Focal Point For Information
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