Step-by-Step Process for How to Import Goods into the USA

Importing goods into the United States involves navigating a complex web of regulations, paperwork, and compliance requirements. Whether you’re an individual entrepreneur or a large business, understanding the process is crucial for smooth operations. This guide will help beginners understand the critical steps, documents, and regulations to successfully import goods into the U.S.

Understanding the Import Process

The import process in the United States is designed to ensure compliance with laws and regulations while protecting domestic industries and consumers. It involves multiple stages, from purchasing goods overseas to their final clearance by U.S. Customs and Border Protection (CBP). Here’s a step-by-step breakdown:

1. Purchasing and Shipping

The process begins when a buyer (importer) in the United States places an order for goods from an overseas supplier. The goods are then shipped to the U.S. through planned modes of transportation, such as ocean freight or air freight.

Once the shipment is dispatched, the shipper provides a bill of lading, which serves as a receipt for the goods. This document is essential for registering the shipment with CBP and tracking its journey.

2. Filing Importer Security Filing (ISF)

For ocean freight shipments, the Importer Security Filing (ISF), also known as the 10+2 rule, must be submitted electronically to CBP at least 24 hours before the cargo is loaded onto the vessel. The ISF helps CBP evaluate potential risks and determine if the goods require examination upon arrival.

Failure to comply with ISF regulations can result in penalties of up to $5,000, increased inspections, and delays in shipment clearance.

3. Arrival and Notification

Once the shipment arrives in the U.S., it is placed temporarily in a shipyard while awaiting clearance. The CBP assesses the goods to ensure they meet U.S. import regulations.

The importer is notified of the shipment’s arrival, and pickup details are shared. At this stage, the importer must ensure all required documentation is in order for the customs entry process.

4. Customs Entry Filing

The importer or their Importer of Record (IOR)—who could be the owner, purchaser, or a licensed customs broker—must file entry documents with CBP at the port of arrival. This formal request initiates the customs clearance process.

Entry documents are submitted via the Automated Commercial Environment (ACE) system and must be filed within 15 days of the shipment’s arrival. Essential documents include:

• Commercial Invoice
• Packing List
• Bill of Lading
• Entry Manifest (CBP Form 7533)
• Evidence of Bond
• Entry Summary (CBP Form 3501)

If the shipment exceeds $2,500 in value, a Customs Bond is required for formal entries.

Also Read: Everything You Need to Know to About CBP Form 7501

5. Inspection and Clearance

CBP may select shipments for inspection to ensure compliance with U.S. regulations. Goods found to be non-compliant can be detained, seized, or re-exported depending on the circumstances.

Once the shipment is cleared, the importer files the entry summary documentation and pays estimated duties within 10 working days. The key document in this stage is the CBP Form 7501, which serves as proof of duty payment.

Also Read: What is CBP Form 5106? Understand the Importer Identity Form

6. Final Review and Liquidation

CBP conducts a final review called liquidation to finalize duty assessments. Any discrepancies may lead to refunds, additional duties, or requests for more documentation.

The import process is considered complete when CBP approves the shipment, and all duties and fees are settled. Importers must retain records of the entire process for at least five years.

Key Concepts in the U.S. Importing

1. Types of Entries

Understanding the type of entry is crucial for determining the level of documentation and fees:

• Formal Entries: Required for goods valued over $2,500. A customs bond is mandatory to ensure payment of duties and compliance with U.S. regulations.
• Informal Entries: Applicable for goods valued under $2,500. These have fewer requirements and typically don’t need a customs bond.
• Section 321 Entries: For shipments valued under $800, these entries are exempt from duties and fees, enabling faster and cost-effective clearance.

2. Valuation and Classification

Accurate valuation and classification of goods are critical for duty calculations:

• Valuation: Customs determines the shipment’s value, typically based on the Free on Board (FOB) price, including the cost of goods and transport to the export port.
• Classification: Goods must be classified using the Harmonized Tariff Schedule (HTS), a 10-digit code that dictates duty rates and compliance. Incorrect classification can lead to penalties or delays.

3. Product Marking Requirements

Imported goods must include a clear country of origin marking:

• Markings should be legible, permanent, and placed where visible to consumers.
• Non-compliance can lead to fines, rejection, or detention of goods at the port.

4. Government Agency Regulations

Certain products require additional approvals from other U.S. government agencies:

• FDA: For food, cosmetics, and medical products.
• CPSC: For consumer goods like electronics or toys.
• FWS: For items involving wildlife or endangered species.

Failing to meet these regulations can result in shipment seizures or rejections.

5. Role of Free Trade Agreements (FTAs)

FTAs can significantly reduce or eliminate import duties:

• Examples include USMCA, AUFTA, and SGFTA.
• Importers should confirm if their goods qualify for benefits under these agreements to save costs.

The Role of Licensed Customs Brokers

Customs brokers are professionals licensed by CBP to assist importers with documentation, regulations, and clearance. Hiring a broker is recommended for formal entries, as they:

• Ensure all paperwork is accurate and complete
• Provide guidance on regulations and compliance
• Expedite the customs clearance process

Brokers charge a fee for their services, but their expertise can save time and reduce the risk of costly errors.

Free Trade Agreements (FTAs)

FTAs are treaties between countries designed to reduce or eliminate trade barriers like tariffs and quotas. For U.S. importers, FTAs such as USMCA (with Canada and Mexico), AUFTA (with Australia), and SGFTA (with Singapore) offer significant benefits. These agreements allow eligible goods to be imported at reduced or zero-duty rates, lowering overall costs. Importers must ensure their products meet specific rules of origin and document requirements to qualify for FTA benefits. Proper utilization of FTAs not only enhances competitiveness but also streamlines supply chain efficiency by fostering smoother cross-border trade and fostering economic collaboration between nations.

Common Pitfalls to Avoid

• Incomplete Documentation: Missing or inaccurate documents can lead to delays, penalties, or rejection of goods. Always double-check paperwork before submission.
• Non-Compliance with ISF Regulations: Late or missing ISF filings can result in hefty fines and shipment delays.
• Ignoring Product-Specific Regulations: Failure to comply with regulations from agencies like the FDA or CPSC can result in goods being detained or destroyed.
• Overlooking Duty Refund Opportunities: CBP offers duty drawback programs for certain re-exported goods. Familiarize yourself with these programs to maximize savings.

Also Read: CBP Form 7512 for Goods Transport Manifest

Conclusion: Simplify Your Import Process with Expert Help

Importing goods into the United States is a detailed and regulated process, but with proper planning and compliance, it can be executed smoothly. Start by educating yourself on the basic requirements and seek professional assistance if needed.

One company that stands out for its expertise in global supply chain solutions is Credlix. With their cutting-edge tools and services, Credlix helps businesses navigate the complexities of international trade, from financing to logistics. Whether you’re a first-time importer or an experienced trader, partnering with Credlix can streamline your operations and ensure compliance with U.S. import regulations.

By adhering to the guidelines in this article and leveraging the support of experts like Credlix, you can successfully import goods into the United States with confidence.