Archive for the ‘US Customs’ Category


 

Automated Export System Filing — Get Your Vehicle Across the U.S. Border

AES Filing - Vehicle Export from USANew export reporting requirements from the U.S.

Effective October 2, 2014, the U.S. Census Bureau (Census) Foreign Trade Regulations (FTR) mandated the filing of electronic export information (EEI) through the Automated Export System (AES) or AESDirect for all used self-propelled vehicles, regardless of value or country of destination. Importers and exporters of used self-propelled vehicles need to keep in mind that this new condition is in addition to the current 72-hour notice requirements.

What is considered a used self-propelled vehicle?

Any self-propelled vehicle that has been purchased and then re-sold (even if the vehicle is only days old) is considered a used vehicle; and includes any automobile, truck, tractor, bus, motorcycle, motor home, and any other self-propelled machinery or equipment. However, the requirement to file AES does not apply to dealer-to-dealer transactions when the equipment is brand new .

Impact on U.S. exporters?

Automated Export System filing is now mandatory. These regulations apply to all exports of any used-self-propelled vehicle from the U.S. For example, if you are planning to buy a vehicle in the USA and import it to Canada or another country, the new regulation in effect will make the export process a little more complicated. The U.S. exporter or appointed agent is now required to file electronic export information and report to the U.S. Census  through AES to provide vehicle, shipper, and consignee information.

 

Who can file through the Automated Export System?

Automated Export System (AES) filings must be handled by a U.S. domiciled company. A customs broker, freight forwarder or United States Principal Party in Interest (USPPI) can file the AES declaration. In other words, the AES filing for an Internal Transaction Number (ITN) can only be done by a resident of the United States. (i.e. the seller or an appointed agent )

 

How the Automated Export System works?

AES was created as a channel through which required export shipment information reaches the appropriate agency involved in monitoring and validating U.S. exports. Once the AES filing has been completed, an Internal Transaction Number (ITN) will be assigned. The customs broker or importer provides the ITN on the Vehicle Export Cover Sheet to U.S. Customs and Border Protection to file 72 hour notice and bring the vehicle across the U.S. border.

 

Penalties for non-compliance

It is important to understand these requirements to avoid costly penalties. The CBP will begin to issue penalties on behalf of Census in amounts up to  US $10,000 for non-compliance per violation. These penalties may be imposed for failure to file export information in AES, delayed filing, filing of false or misleading information, and any other violations of Foreign Trade Regulations. Canadian buyers of vehicles from the U.S. should start complying right now or risk having the vehicle held up at the border.

How can Pacific Customs Brokers help?

Pacific Customs Brokers can handle these filings on your behalf and offers full and partial Automated Export System (AES) filing services for commercial and individual importers. Contact us to learn how we will help you meet your AES obligations.

 

Do you have questions on exporting a vehicle from the USA? Leave them for us in the comments section below.

 

Additional Resources

What You Need to Know to Get Your FDA Regulated Product Across the Border

Customs clearing food products through the U.S. border can be challenging if you do not know how the U.S. Food and Drug Administration (FDA) works. Shipments of FDA regulated products cross the border and get delivered to U.S. consignees daily. Just because the shipment gets delivered does not mean it has been released by FDA. Let’s begin by reviewing what is required by the FDA, the entry process at the border and the different reviews a shipment may undergo before release.

Information Required by FDA for the Import of Food Products:

When sending shipments of FDA regulated products to the U.S. you need to provide the following information:

  • The FDA requires that all food facilities register. Once registered, all shipments must declare the FDA Food Facility Registration Number.
  • Imports of food products require the name, address, and FDA registration number for:
    • Manufacturer
    • Last place the product was packaged, processed or stored
  • It is also recommended that you provide the following to your customs broker for clearance:
    • Copy of label
    • Ingredient list

The Entry Process:

When a shipment of FDA regulated product crosses the border, a Customs entry is submitted by the customs broker. If regulated by the FDA, FDA Information and if required Prior Notice is submitted to FDA. The Prior Notice must be submitted at least two hours prior to the shipment arriving at the border so FDA can review the entry and decide if the product crossing is something they want to further examine.

It is important that your shipment crosses the border during normal FDA hours of operation to allow FDA to review or examine the shipment while it is at the port.

If you have a shipment under FDA Review, you should notify your customer to hold the product intact. Failure to follow FDA procedure can result in a penalty of up to three times the value of the product and/or refusal to enter the commerce of the United States.

Types of FDA Reviews:

There are a few types of FDA Reviews that shipments can undergo:

  1. FDA Review –  FDA analyzes the information that has been submitted electronically. As long as all the required information has been provided at the time of entry, typically FDA will release the shipment without further review.
  2. FDA Hold or Documents Required – What this means is FDA has analyzed the electronic submission and is now requesting further information. FDA will require physical copies of the documents. You would need to submit a commercial invoice, packing list, label copies and any other pertinent product information.
  3. FDA Exam Sample – This is the most thorough type of FDA review and can mean a variety of things such as FDA has examined or intends to examine the shipment. This results in a physical sample of the product or the product’s labeling.

 

No matter what type of FDA review, your shipment is not released until you receive  a “May Proceed” message from FDA after which your products may be distributed and consumed in the USA.

 

Don’t Risk Your FDA Goods Being Held Up at the Border

Gain a better understanding of how the U.S. Food and Drug Administration (FDA) and U.S. Customs and Border Protection (CBP) interact. Attend an upcoming FDA Seminar and get an overview of FDA prior notice, required documentation, penalties and other pertinent topics. Sign up for our next FDA Seminar today!

 

Post your thoughts or questions on shipping food products into the USA in our comments section below or email us at Ask Your Broker.

5 Keys to Import Successfully into the USA

Importing into the USAIf you are new to importing goods into the United States there are many requirements, restrictions, and regulations involved. From quota restrictions, other government agency permits or inspections to customs forms. Some information, such as an item being eligible for reduced rates of duty or eligible for one of the many Free Trade Agreements, or products that are not permitted to enter the commerce of the United States because they are manufactured from a facility located in an embargoed country, can only be determined if you know the products Harmonized Tariff Schedule Classification. Determining your product’s tariff number can be extremely complex. Starting out with a good understanding of customs regulations and requirements are key to importing success. Below is a brief overview of what is required when shipping goods into the United States.

Requirements for importing into the United States:

1. Determine the use of a customs broker.

Customs clearance also commonly referred to as customs release is probably the first thing to consider.  Depending on the value of your shipment you need to determine if a customs broker is required.

For shipments valued under $2500.00, U.S. Customs and Border Protection (CBP) will typically allow the goods to enter into the U.S. under an informal entry.  However, in cases where the goods are regulated by U.S. Food and Drug Administration (FDA), or if the goods fall under Anti Dumping Duty/ Countervailing Duties, quota, or other restricted goods, these goods require a formal entry and do not qualify for this exemption.

If a formal entry is required you need to have an account set up with a customs broker and documentation prepared prior to shipping. Documentation is usually completed by the exporter or supplier prior to the goods being delivered to the carrier.  The importer of record is ultimately responsible to ensure that the documentation provided is accurate and complete.  It is critical that you have all the proper documentation and information. Once paperwork is submitted to your customs broker, they will review the information for accuracy prior to the information being submitted to U.S. Customs and Border Protection.

2. Prepare import documents prior to shipping.

Documents that are typically required with each shipment are listed below:

  • Customs or Commercial Invoice
  • Bill of lading
  • Other government agency documents
  • Commodity specific requirements or documents

3. Meet commodity specific and Other Government Agency (OGA) requirements.

Commodity specific and other government agency (OGA) requirements depend on other government agencies’ safety, energy efficiency, health, standards, etc.  Many of the items cannot be imported without a permit, license or additional documentation to satisfy the agency’s requirements.

Everything imported into the U.S. must be properly marked with the country of origin. There are some exceptions to the marking requirements which are listed in the federal code of regulations 19CFR134.33 the J List exceptions. Some products are very hard, or impossible, to mark such as:

  • bolts
  • nuts
  • washers
  • cut flowers
  • firewood

If imported in a container and the container reaches the ultimate purchaser,  then it is required to be marked with the country of origin.

4. Pay import duty fees and taxes.

Duty rates are fees that are paid to U.S. Customs and Border Protection.  Duty rates are based on the classification of the products that are entering the USA.  The Importer of Record is responsible for paying these fees.  Your customs broker has the authority to pay the duty fees on your behalf and invoice you for them or set up an automated clearing house account for you to pay the duty directly to U.S. Customs.

 

5. Determine correct harmonized tariff schedule.

Products that enter the U.S. are classified according to the Harmonized Tariff Schedule of the United States.  Goods are placed in a product category called classification, the number used to classify the product is more commonly referred to as a Harmonized Tariff Schedule or HTS number. The classification number is 10 digits and that number determines the rate of duty that will be applied to your product.  U.S. Customs has an online version of the most current HTS codes available.

Classification can be a very difficult process that generally requires a lot of research and product information.  As the Importer of Record (IOR), you are ultimately responsible for providing the correct product classification to U.S. Customs and Border Protection.  Entering goods into the United States with an incorrect classification or duty rate could result in penalties or increased duty bills. Many importers choose to hire a customs broker to assist them with the classification of their goods. Do not be surprised if your customs broker asks for ingredient lists or written literature on your product when assisting you with your product classification.

In conclusion, it is the Importer of Record’s responsibility to make sure that their goods meet all the requirements for entry into the United States.  A customs broker is there to lend a hand and assist you with the various requirements and regulations.  Always plan ahead and be sure to know before you go to ensure a hassle free importation into the U.S.

 

If you are importing or exporting goods into the USA, Pacific Customs Brokers can help. We work with all types of importers from a broad range of industries offering U.S. and Canadian customs brokerage, trade compliance consulting, freight forwarding, warehousing and distribution services.

 

Learn more about importing into the USA:

Get a comprehensive understanding of the process involved when importing into the USA at our upcoming webinar Basics of Importing into the USA. Take your learning a step further by attending the Part II. Importing into the USA webinar and delve into the details previously touched upon in part one of the series.

Our in-house seminar on U.S. Customs Compliance is another great way to understand the movement, compliance and regulations around goods imported into the USA.

 

Have questions or comments regarding importing to the USA? Leave them in our comments section below or email  Ask Your Broker.

 

Additional Reading:

Video: The Importance of Complying with U.S. Customs Regulations

Licensed Customs Broker and Certified Customs Specialist, April Collier, walks importers through the importance of complying with U.S. Customs regulations and what they can do to assure they are meeting all of the requirements governing the movement of commercial goods

 

 

As customs brokers, we make every effort to provide the trade community with the right tools and information to ensure that your company is as proactive as possible with the CBSA and CBP. As part of our ongoing efforts, we offer a number of  Trade Compliance Seminars and Webinars throughout the year on compliance and customs audit among other subjects. Our upcoming U.S. Customs Audit Seminar might be of particular interest. This seminar will focus on the differences between voluntary and enforced compliance, the expectation of “reasonable care”, the potential cost risks of non-compliance, and best practices. For more details on this seminar and registration visit – U.S. Customs Audit Seminar.

Whether you are just starting out or have an existing business, our experienced trade compliance specialists can assist you. To learn how Pacific Customs Brokers’ customs trade compliance and customs audit consulting can help your business; speak with one of our trade compliance specialists today.

 

Is your company trade compliant? Do you have questions about complying with U.S. Customs regulations? Drop us a comment or question below or email  Ask Your Broker.

Additional Resource:

 

Video: Importing U.S. Goods Returning

Goods manufactured in the United States that have been previously exported and are now returning require a formal declaration called American Goods Returned (AGR) also referred to as U.S. made goods returned (USGR).

In this video, Aimee Miller, explains when an American Good Returned is eligible for duty-free treatment and the documents that are required.

 

 

Do you have questions about U.S. Goods Returning? Drop us a comment or question below or email  Ask Your Broker.

 

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