UNITED STATES CUSTOMS IMPORT INDUSTRY GUIDE - DHL

U.S. Customs Import Industry GuideGENERAL REQUIREMENTSREQUIRED PAPERWORKThe Air Waybill (AWB)The Air Waybill accompanies the shipment and forms part of the paperwork set. It may also includevaluable information not mentioned on the invoice.80% of delayed shipments can belinked directly to missingConsignee information, poordescriptions or incompleteinformation.The most common errors when completing paperwork(See description table below)The description must be detailed and accurate. For example, ‘computer parts’would require the words ‘computer parts’ AND brand name, model, serialnumber of the computer, list of all parts and serial numbers, easily understooddescriptions (no technical terms)Shipment documentation is incompleteSometimes not all the pages of an invoice are received – values or quantities aremissingIncorrect product codeIncorrect product code on the Air WaybillNot in EnglishInvoice or description is not in EnglishImproper value or quantityGoods are deliberately under-valued to avoid duties or taxesContent description is vagueBad descriptionOK descriptionGood descriptionBest descriptionSpare PartsAuto Spare PartsAuto Parts – PumpAuto Spare Pump, from plasticSampleSample ComputerSample lap top, HP123Part Number XL456Printing press partAssay for Printing PressPart for Printing Press – metal10

11U.S. Customs Import Industry GuideGENERAL REQUIREMENTSREQUIRED PAPERWORKThe InvoiceA “Commercial Invoice” is required for most imports into the United States. A “Pro FormaInvoice” may be used for certain transactions such as goods not intended for further sale,returned merchandise and goods intended only for temporary import among otherpurposes.The Pro Forma InvoiceMost shipments travel with a label.A Commercial or Pro Forma invoice must contain:Complete name and address of the:– Consignee– Seller or Manufacturer– Importer, if different from ConsigneeDetailed description of the merchandiseNumber of pieces (quantities)Value per ItemTotal ValueCountry of OriginReason for Export (e.g. resale or inter company transfer)

U.S. Customs Import Industry GuideGENERAL REQUIREMENTSREQUIREDPAPERWORKThe InvoiceListing all partiesinvolved in thetransactionDescription of: Contents Items in theshipmentTransport costsThe ‘Commercial Value’and currencyManufacturer of goodsThe terms of tradeDeclaration and signature12

13U.S. Customs Import Industry GuideGENERAL REQUIREMENTSBINDING RULINGSOffered through U.S. Customs and BorderProtection (CBP), the binding ruling programenables importers and other interested parties toobtain classification decisions prior to importinga product. Additionally, this service providesbinding guidance about other CBP regulationssuch as country of origin marking and valuationquestions.Binding classification advice can only be given bythe Office of Regulations and Rulings. Theimporter submits a letter describing the productin detail and provides a sample to the CBPInformation Exchange, National CommoditySpecialist for a ruling. The importer generallyreceives a response within 30 days.While tariff classifications are binding, duty ratesare not. The object is to promote importcompliance, uniformity and accuracy inclassification of products. The importer shouldkeep in mind that the Binding Ruling Program isjust that- binding. Once CBP issues their decision,it is legally binding and enforceable by law. Whilethe initial ruling may be protested, once adecision is finalized it must be incorporated intothe importing process.When submitting a ruling request, include thenames, address and other identifying informationof all interested parties including themanufacturer. Identify the ports in which themerchandise will be entered and provide adetailed description of the transaction. It alwayshelps to submit a sample of the product whenpractical.Before submitting the request, be certain thatthere are no issues on the commodity pendingbefore either CBP or any court, and check tosee whether classification advice had previouslybeen sought from a Customs officer.Ruling requests for Tariff Classificationrulings should be addressed to:Director, National Commodity SpecialistDivision U. S. Customs and Border ProtectionAttn: CIE / Ruling RequestOne Penn Plaza 10th floorNew York, NY 10119Further informationFor additional ruling information please see the belowlink: http://rulings.cbp.gov

U.S. Customs Import Industry GuideGENERAL REQUIREMENTSINCOTERMS 2020 CLASSIFICATIONIncoterms are three-letter trade terms that helpfacilitate a common language in international anddomestic buying and selling. Consider incoterms asan integral part of the buying and sellingtransaction, but not a complete contract of sale.Think of incoterms as a “best practice” application.By clearly defining obligations, Incoterms help toenhance trade. Incoterms are categorized both byterms applicable to any mode of transport, and byterms only to be used by ocean freight/waterway:The chart below provides a more detailedexplanation of each term.In summary, for proper use of Incoterms:1) Choose the appropriate Incoterms rule. Theterms must clearly reflect the following: Should be appropriate for the goods Should be consistent with the mode oftransport Should be reflective of the agreed buyer/seller obligations2) Be Specific:References to named ports, terminals, places,etc. should be specific and used in conjunctionwith the term.Ex: “DAP 123 Main St., Montclair, NJ 07042,Incoterms 2010”DHL Express standard recognized terms areDTU and DTP.IncotermsEXWExworks(named place)- seller delivers when it places the goods at the disposal of the buyer at theseller’s premises or at another named place. The seller does not need to load the goods onthe collecting vehicle, nor does it need to clear the goods for exportFCAFree Carrier(named place of delivery)- seller delivers the goods to the carrier or another personnominated by the buyer at the seller’s premises or another named placeCPTCarriage Paid To(named place of destination)- seller delivers the goods to the carrier or another personnominated by the seller at an agreed place and that the seller must contract for and pay thecosts of carriage necessary to bring the goods to the named place of destinationCIPCarriage andInsurance Paid toDAPDelivered at Place(named place of destination)- seller delivers when the goods are placed at thedisposal of the buyer on the arriving means of transport ready for unloading at thenamed place of destinationDDPDelivered DutyPaid(named place of destination)-seller delivers when the goods are placed at the disposal of thebuyer on the arriving means of transport ready for unloading at the named place ofdestination. The seller bears cost for any duty for both export and importCustoms formalitiesDPUDelivered at PlaceUnloaded(named place of destination)-seller delivers when the goods unloading at the namedplace of destination(named place of destination)- seller delivers the goods to the carrier or another personnominated by the seller at an agreed place and that the seller must contract for and pay thecosts of carriage necessary to bring the goods to the named place of destination. The selleralso contracts for insurance cover against the buyer’s risk of loss of or damage to the goodsduring the carriage14

15U.S. Customs Import Industry GuideGENERAL REQUIREMENTSMARKING REQUIREMENTSMost imported articles of foreign origin arriving inthe United States are required to be markedidentifying its country of manufacture. The marksmust be in the English language, as legibly,indelibly and permanently as the nature of thearticle will permit and must be of adequate size.This requirement informs the ultimate purchaserof the article in the United States where the articlewas manufactured, processed or grown.U.S. Customs and Border Protection (CBP) allowsa number of exceptions to this rule. While notcomprehensive, below is a list of some of the mostcommon exceptions: Incapable of being marked, such as needles,or marking the item would damage it orcause the importation to be economicallyprohibitive Items for which the marking of thecontainers will reasonably indicate the originof the articles Strictly for the use of the importer, notintended for sale in their imported or anyother form Imported for the use of furthermanufacturing or incorporation into anotherarticle Goods imported under USMCA, withcertain limitations Produced 20 years prior to their importation U.S. Goods exported and returned Duty exempt items valued at less than 200.00 or a ‘bona fide’ gift valued at lessthan 100.00 (Subject to other restrictions)It should be noted that even with exceptions, thepackaging and containers still must be markedwith the country of origin.The following is a variety of approved markingmethods. The type of method varies with thearticle or packaging to be marked. Die Stamping, Etching, Engraving, EngravedMetal Plates permanently affixed to the article Cast-in-the-mold lettering Fabric Labels Hang Tags (Plastic, metal) Pressure-Sensitive Label or permanent,reliable adhesive paper stickerWhen articles are not legally marked, CBPwill notify the importer in writing to eitherproperly mark, export or destroy themerchandise.

U.S. Customs Import Industry GuideINTERNET PURCHASESONLINE PURCHASESThe Internet has made it easy to find and purchasea variety of items from almost anywhere in theworld. However, many people do not realize thatpurchasing foreign items through the Internet mayrequire declaring and clearing the item throughU.S. Customs and Border Protection (CBP).Many Internet purchases are shipped by expresscarriers like DHL Express. Most shipments thathave a value of less than 800.00 can be declaredand released through CBP without the payment ofduty and taxes or the filing of additionalpaperwork. DHL Express will then deliver the itemto you. If the value of the purchase is over 800.00or is an item which, due to its nature, requires aformal entry then DHL Express will notify you ifyou are required to make arrangements for theentry requirements and will hold the item untilproper clearance arrangements are made.Internet purchases can be very complicated andcostly if you aren’t aware of the process andrestrictions. Special requirements, documentationand other government agency participation maybe required in order to import items like these: Food, plant and dairy products Alcohol and tobacco products Birds, fish, animals or productsthereof Goods from embargoed countries Firearms and ammunition Copyrighted materials Prescription DrugsHere are some questions to keep in mind if youwant to purchase from a foreign supplier via theInternet: Can you import this productlegally? Are there any restrictions orspecial forms that you need toknow about? Will other government agencies, like theFDA or USDA have to be involved? Will you need a “permit” to importwhat you are purchasing? Are you buying the item for your personaluse or to put up for sale in your shop? What are your “terms of purchase”? Who ispaying for the costs such as internationalfreight, Customs clearance services, duty,taxes, delivery? What charges and fees are included in thetotal purchase price? Do you KNOW who and where you arebuying from to avoid any potential trademarkviolations? Do you KNOW for sure what the countryof origin of this item is and does it bearcorrect country of origin markings? Is the item being shipped from a foreigncountry and will Customs clearance berequired?16

17U.S. Customs Import Industry GuideINTELLECTUAL PROPERTY RIGHTSPROTECTION AGAINST COUNTERFEIT GOODSIt is vital that the importing community understandthe impact of the explosive growth in the sale ofcounterfeit goods, also known as IntellectualProperty Rights (IPR), directly to consumers. U.S.Customs and Border Protection (CBP) takes anactive role in the protection of stolen businessprofits, threats to national security and the seriousrisk of injury these products pose to the consumer.Intellectual property refers to creations of themind: Inventions, literary and artistic works, andsymbols, names, images, and designs used incommerce. Under U.S. law, a trademark is definedas any word, name, symbol, device, color orcombination thereof used to identify anddistinguish goods from those manufactured orsold by others and to indicate the origin and sourceof goods.A copyright is a form of intellectual property thatprotects “original works of authorship,” whichinclude literary, dramatic, musical, artistic, pictorial,graphic and sculptural works, motion pictures andother audio visual works, sound recordings, andarchitectural works. Copyright protection for U.S.works commences the moment the work is fixed inany tangible medium of expression, and extendsonly to the expression of ideas - words, pictures,and sounds - but not to the ideas themselves.Stopping the flow of goods that upon infringe U.S.intellectual property rights (IPR) is a priority for theU.S. Government. CBP is taking a comprehensiveapproach to the enforcement of IPR that includesseizing volatile goods. CBP also partners withindustry and other government agencies toenhance these efforts.According to CBP, the top 10 categories of IPRinfringing products are pharmaceuticals, health/personal care, eyewear/parts, critical technologycomponents, electronic articles, cigarettes,perfumes/colognes, batteries, exerciseequipment and transportation/parts.DHL understands the importance of keeping ourcustomers informed of IPR and the potentialconsequences. While DHL and other expresscarriers do not have either the authority or themeans to enforce IPR, DHL works proactivelywith Customs authorities and law enforcementagencies to address IPR violations.

U.S. Customs Import Industry GuideTOXIC SUBSTANCES CONTROL ACTWHAT IS TSCA?Congress enacted the Toxic Substances ControlAct (TSCA; the Act) in 1976, giving theEnvironmental Protection Agency (EPA) broadauthority to issue regulations designed to gatherhealth/safety and exposure information onchemical substances, chemical mixtures, andarticles. If you import any of these items, you aresubject to TSCA and generally must meet thesame requirements under TSCA as a chemicalmanufacturer in the United States.Common types of industries and sectors coveredunder TSCA include: companies that are engagedin chemical production and importation,petroleum refining, paper production and microelectronics manufacturing. Sectors include:organics, inorganics, plastics and chemicalpreparations. It’s important to understand thatonly those involved in the buying and selling ofpotential TSCA-applicable products maydetermine whether or not TSCA applies.Certification of TSCA compliance, must bepresented to the EPA under the authority of USCustoms and Border Protection in writing at thetime of importation.EPA expects that this certification will be basedupon actual knowledge of the importer in mostcases. However, EPA realizes that sometimesimporters may not have actual knowledge of thechemical composition of imported mixtures. Inthese cases, the importer should attempt todiscover the chemical constituents of theshipment by contacting another party to thetransaction.If parties to the transaction are unable todetermine TSCA applicability, assistance can beobtained from the EPA by contacting:Director, Environmental Assistance Division(7408) Office of Pollution Prevention and ToxicsU.S. Environmental Protection AgencyRoom E-543B1200 Pennsylvania Ave., NWWashington, DC 20460Telephone: (202)554-1404TDD: (202)544-05511818

19U.S. Customs Import Industry GuideTEXTILESTEXTILES AND CONSUMER GOODSTextile, wearing apparel and flat goodsgenerally require very specific information ordocumentation to properly classify and processfor entry. The textile manufacturer’s completename and address must also be included on thecommercial invoice.Additional documentation may be required(depending on type of goods): Fabric DetailsSheets

U.S. Customs Import Industry GuideTEXTILESCOMMODITY DETAILSThe following details are required for shipments of the goods listed below:FLAT GOODS Type of flat good Outer surface type– leather or plastic If leather, does it containreptile origins If plastic, is it structured orridgedCARPETS Name and address ofmanufacturer Indicate if:– knotted– woven– tufted or flockedHATS & HEADGEAR Beaded or otherwise If textile – include specificdetails Value Lining If it is casing used to transportcompact discs (CD) or CDplayers– of pile construction– hand-knotted, hooked orwoven Size– in meters squared Net weight Fiber content byweightTypeTrimming and liningsMaterial type and detailsGenderIf safety headgear, providedetailsGLOVES, MITTENS AND MITTS Knitted or woven designation Fabric, leather, plastic orrubber Type of leather Type of plastic Type of fabric Type of rubber Seamless, disposable,surgical, medical orlined Gender designation20

21U.S. Customs Import Industry GuideTEXTILESCOMMODITY DETAILSApparelTextiles FabricsThe following details are required forshipments of textil

such, DHL Express USA normally will not require proof of EIN when an importer has a Customs bond on file. GENERAL REQUIREMENTS Acceptable Proof (Companies) Copies of IRS forms Form 147C Form 1040 Form 2363 Form 941/941-V Form SS-4* Form 1065 Form 8109/8109-C Form 7004 Form 355-ES