1. Q. Do I need a license to import something?
A. You do not need a license to act as an importer. However, some items require a license or permit from various government agencies in order to be imported. For more complete information, please email KGB Customs. (Some common items that may require licenses or permits are food products ordered from a commercial vendor, plant, animal and dairy products, prescription medications, trademarked articles such as name-brand shoes, handbags, luggage, golf clubs, toys, etc. and copyrighted material such as CDs, DVDs and tapes).
For general merchandise (those items not specifically regulated by another agency), importers may file Customs entries for their own account without applying for an import license and without the use of a Customs Broker. This is often the case when receiving a package via the US Mail (under $2000 Value) from overseas, or travelers returning from business abroad.
Please note that IMPORTERS (and NOT their brokers or agents) are ultimately responsible for properly declaring their goods to Customs, filing the proper paperwork, and paying the appropriate amount of duty regardless of whether they import for their own account or utilize a Customs Broker. If you are an importer and are considering filing Customs entries for your own account, take the time to research your commodity, and browse this site for articles on classifying with the USHTS and properly determining the value of your goods. Also be aware that in many cases Customs port offices are not accustomed to dealing with individuals since the majority of entries are filed by brokerage houses through the electronic ABI (Automated Broker Interface) system.
2. Q. Who can legally be an Importer in the USA?
A. For customs purposes, the party who makes (or on whose behalf an agent or broker makes) the import declaration, and who is liable for the payment of duties (if any) on the imported goods. Normally, this party is named either as the consignee in the shipping documents and/or as the buyer in the exporter’s invoice. Only the “importer of record” has the right to make an entry. The importer of record is defined as the 1) owner or 2) purchaser of the goods, or when designated by the owner, purchaser, consignee,3) a licensed Customs broker.
3. Q. What is a Customs Bond?
A. 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. Another common use allows a carrier to move goods that have not been entered from one place to another.
4. Q.What documents are necessary to do an entry?
A. The documents that you will need in order for KGB Customs Broker to do your entry are, a signed Power of Attorney, Invoice, Packing List, Certificate of Origin, and Bill Of Lading.
5. Q.What is an ISF “10+2” Filing?
A. Since January 26, 2009 all ocean cargo bound for the United States are subject to an (10+2) importer security filing requirement 24 hours prior to loading of the cargo container in the foreign port. This additional cargo information will assist CBP to screen and asses’ potential risks. All importers and ocean carriers are required to provide U.S. Customs and Border Protection CBP with this advance notification for all ocean vessel shipments inbound to the United States.
6. Q. What are Import Taxes?
A.Import tax or import tariffs (also known as import duties) in the United States generally refer to the taxes and fees charged by US Customs when importers bring goods into the country. They are assessed by government employees with US Customs at the port of entry, and are paid by the importer of record.
All goods entering the United States are subject to the same import procedure and the same tariff (tax) assessment, although every product has its own duty rate and some have a duty rate of zero!
Import taxes are used to control domestic market conditions and as a political tool. US Customs and the US International Trade Commission will raise and lower import taxes on particular goods to give domestic producers an edge over foreign imports. To exert political pressure, certain countries may be assigned a higher duty rate on their exports or may be embargoed (locked out) to prevent trade.
The primary criteria for import tariffs and taxes are:
Country of origin
Commodity type
Intended use
and are determined using the USHTS, a yearly publication listing duty rates for a wide variety of import commodities. The USHTS also includes procedures and guidelines for determining import tax rates.
7. Q. What is OGA?
A. The term OGA refers to Other Government Agency. Part of the mission of US Customs is to regulate and apply duty to incoming shipments which will enter the commerce of the United States. All imports are subject to the import requirements of US Customs, but some products face additional regulations from various other government agencies. It is the responsibility of US Customs to enforce the regulations imposed by other agencies at the port of entry.
Examples of other government agencies include:
FDA – the Food and Drug Administration which regulates food, drugs, and consumer/commercial products which may have an impact on the health of the user.
BIS – the Bureau of Industry and Security which regulates the import and export of “dual-use” goods that have both civilian and military applications.
EPA – the Environmental Protection Agency which regulates imports that may have an impact on the environment.
DOT – the Department of Transportation which regulates the import of motor vehicles and other forms of transportation.
PMDTC – the Office of Political Military Defense Trade Controls which regulates the import and export of products and technology that may impact the national security of the United States.