- What is the meaning of "importation"?
- Are U.S. importers free to deal with all countries when importing products into the U.S.?
- Are U.S. importers free to import any product into the U.S.?
- Are any licenses required to import products into the U.S.?
- What is a quota?
- Are there different types of quotas?
- What is a quantitative quota?
- What is a tariff-rate quota?
- What happens if an import shipment arrives in the U.S. and the quota for the product in the shipment has already been filled?
- What is a foreign trade zone?
- What is a bonded warehouse?
- What is a free zone?
- What does the term "Customs Territory"mean?
- Is U.S. Customs the only U.S. government agency that gets involved in the administration of U.S. imports?
- What is a Customs broker and what functions does a Custom broker perform?
- What is an import entry?
- What is involved in classifying an imported product?
- What is the Harmonized Tariff Schedule of the U.S.?
- What is involved in valuing an imported product?
- Which value is most commonly used in appraising imported goods?
- What is the meaning of "importation"?
Importation is the act of bringing or causing any goods to be brought into a Customs Territory.
- Are U.S. importers free to deal with all countries when importing products into the U.S.?
No, the U.S. government has placed trade embargoes on certain countries. These embargoes prohibit U.S. importers from entering into import transactions with embargoed countries. Currently, the U.S. maintains trade embargoes against Cuba, Iran, Iraq, Libya, North Korea, Serbia and Sudan.
- Are U.S. importers free to import any product into the U.S.?
No, certain products may not be imported into the U.S. (prohibited imports) while other products are subject to import restrictions or limitations such as licensing requirements and quotas. - Are any licenses required to import products into the U.S.?
Generally licenses are not required to import products into the U.S. There are certain exceptions to this general rule however. As a result importers should always check with U.S. Customs before attempting to bring a new product type into the country. - What is a quota?
A quota is a limitation on the quantity of goods that may be imported into a country from all countries or from specific countries during a prescribed time period.
- Are there different types of quotas?
Yes, there are quantitative quotas and tariff- rate quotas.
- What is a quantitative quota?
A quantitative quota (also referred to as an absolute quota) is any pre-set quantity of given goods authorized for importation, during a specified period, beyond which no additional quantity of these goods can be imported.
- What is a tariff-rate quota?
A tariff-rate quota is any pre-set value or quantity of given goods authorized for importation, during a specified period with a reduction of the Customs duties. Once a tariff-rate quota is met, additional quantity of the goods subject to the tariff rate quota can still be imported, but higher Customs duties must be paid.
- What happens if an import shipment arrives in the U.S. and the quota for the product in the shipment has already been filled?
The product cannot be admitted into the U.S. and the importer has the option of exporting the product, destroying the product or entering the product into a foreign trade zone or a bonded warehouse until the beginning of the next quota period.
- What is a foreign trade zone?
A Foreign Trade Zone is an area in the United States that is not considered "in the U.S. Customs Territory" for certain legal purposes. Duty is not paid when goods are put into a Foreign Trade Zone, but rather when they are taken out and "entered for consumption" in the United States.
- What is a bonded warehouse?
A bonded warehouse is a warehouse that carries a special Customs bond and that is used to legally defer duty payment. There are specific types or "classes" of warehouses, and what can be done to the goods while in the warehouse is limited by the "class". Included among bonded warehouse classes are:(a) Class 1- These are warehouses owned or leased by the government;
(b) Class 2 - An importer can establish this type of warehouse for his/her own merchandise. It is exclusively for storage, however; no processing of the goods is allowed;
(c) Class 3 - These "public bonded warehouses" are for the storage of anyone's imported goods; and
(d) Class 4-These are bonded yards or sheds for storage of heavy or bulky items; stables, corrals and pens for livestock; and large tanks for storing bulk liquids.- What is a free zone?
A free zone is a part of the territory of a country where any goods introduced are generally regarded, insofar as import duties and taxes are concerned, as being outside the Customs Territory and are not subject to the usual Customs control.- What does the term "Customs Territory"mean?
Customs Territory is the territory in which the Customs law of a country applies in full. As a rule, the Customs territory of a country corresponds to its national territory including land, sea and air space. However, certain portions of the national territory may be excluded, e.g. free zones or the waters between the coastline and the country's territorial boundary at sea.- Is U.S. Customs the only U.S. government agency that gets involved in the administration of U.S. imports?
No, other U.S. government agencies that are involved in U.S. import administration include:
(1) Department of Agriculture which is tasked with keeping insect and other pests out of the U.S. to the greatest extent possible;
(2) Department of Commerce which collects statistical information about import shipments and compiles trade statistics;
(3) Department of Energy which issues license to import petroleum products
(4) Food and Drug Administration which insures that food and drug conform to certain standards;
(5) Consumer Products Safety Commission which regulates consumer products that the FDA doesn't handle directly;
(6) Fish and Wildlife Service which is interested in non-domesticated animals, and merchandise made from parts of these animals;
(7) State Department which monitors artifacts and cultural property imported from various countries;
(8) Department of Transportation, Environmental Protection Agency and the Federal Aviation Administration which regulate the import of automobiles;
(9) Bureau of Alcohol, Tobacco and Firearms which issues license and/or permits to import alcoholic beverages of all kinds, firearms, and other weaponry, and tobacco products.
(10) Foreign Assets Control which issues licenses to import products that would otherwise be prohibited (Cuban cigars, Iranian carpets);
(11) Federal Trade Commission which regulates the importation of textiles, fur, articles, and apparel.- What is a Customs broker and what functions does a Custom broker perform?
A Customs broker is a person licensed by the Customs Service to transact Customs business on behalf of an importer for a fee. A Customs Broker can:
-Prepare the import "entry" for an importer;
-Pay duty and fees, and complete the entry process; and
-Deliver cargo to the importer or arrange for transport.- What is an import entry?
An import entry is the process of clearing an import shipment through Customs. This involves preparing the requisite import entry documentation, classifying the imported product, assigning a value to the imported product and paying all Customs duties and fees owed on the imported product.- What is involved in classifying an imported product?
Classifying an imported product involves the categorization of the imported product according to the Harmonized Tariff Schedule of the U.S. (HTSUS).- What is the Harmonized Tariff Schedule of the U.S.?
The Harmonized Tariff Schedule of the United States (HTSUS) is a system of tariff classification in use in the United States. The HTSUS comprises part of a uniform system of tariff classification used by major trading partners throughout the world. Goods are classified for the purpose of calculating the appropriate import duties.- What is involved in valuing an imported product?
Valuing an imported product (also referred to as appraising an imported product) involves assigning a value to a product for duty and calculation purposes.- Which value is most commonly used in appraising imported goods?
The value most commonly used in appraising imported goods is the transaction value of the imported goods, i.e., the total price actually paid or payable for the merchandise when sold for exportation to the U.S. plus amounts for the following if not included on the price:
-packing costs
-sales commissions
-royalties and license fees
-assists