Importing to the US for the first time? Here are some of the questions we get asked the most:

• What is a merchandise processing fee (MPF)? (all modes)

• The MPF is a fee charged by U.S. Customs and Border Protection for processing your import paperwork. It’s a necessary part of the import process and is calculated based on the value of your goods. The fee ranges from a minimum of $27.23 to a maximum of $528.33 per entry, but it’s capped at 0.3464% of the total value of the merchandise.

• What is a harbor maintenance fee (HMF)? (ocean shipments)

• The HMF is a fee assessed on imports, domestic shipments, and passengers arriving at U.S. ports. It funds the maintenance and improvement of U.S. harbors. The fee is 0.125% of the value of the cargo. This fee helps ensure that ports remain operational and capable of handling trade efficiently.
  

• What kind of customs bond do I need?

• Customs bonds are required for importing goods valued over $2,500, or for regulated items regardless of value. There are two main types: single entry bonds for one-time imports and continuous bonds for frequent importers. The type and amount depend on the nature and volume of your imports. Continuous bonds are usually set at 10% of the duties, taxes, and fees paid over the upcoming 12 months, with a minimum of $50,000. It’s easy to get one here. 
  

• What is an HTS code?

• The Harmonized Tariff Schedule (HTS) code is a 10-digit code used to classify goods for import into the U.S. Each code determines the duty rates and import restrictions applicable to your product. The first six digits are the same globally, while the remaining four digits are country-specific. Proper classification is crucial to avoid penalties and ensure correct duty payments. If you need help with classification, connect with one of our licensed brokers here. 
  

• How do I determine the correct HTS code for my product?

• Determining the correct HTS code involves reviewing the product’s description, materials, and use. You can search the HTS database, consult a customs broker, or request a binding ruling from U.S. Customs for assurance. Misclassification can lead to fines or delays, so it’s important to get it right. If you need help with classification, connect with one of our licensed brokers here. 
  

• What documents are required for customs clearance?

• For customs clearance, you’ll need a commercial invoice, packing list, bill of lading or airway bill, and an arrival notice. Depending on the product, additional documents such as certificates of origin, import licenses, and permits might be required. Ensuring all paperwork is accurate and complete will facilitate a smooth clearance process.
  

• What are the duties and taxes applicable to my goods?

• Duties and taxes vary based on the HTS code, the value of the goods, and trade agreements in place. You can estimate these costs using the U.S. International Trade Commission’s tariff database. It’s important to consider any additional fees such as anti-dumping duties, countervailing duties, and excise taxes that may apply.
  

• How do I calculate landed costs?

• To calculate landed costs, add the purchase price, shipping costs, insurance, duties, taxes, and fees. This comprehensive total reflects the true cost of getting goods to your destination. Accurate landed cost calculations are essential for pricing, profitability, and financial planning.  Luckily we make it easy with the world's best duty calculator. 
  

• What is the process for customs clearance?

• The customs clearance process involves submitting the required documents, paying applicable duties and fees, and complying with import regulations. After submission, your shipment may be subject to inspection. Once cleared, you’ll receive a release order allowing you to take possession of your goods. Working with a customs broker can streamline this process.

• Do I need a customs broker?

• While it’s possible to handle imports on your own, a customs broker can simplify the process by navigating regulations, ensuring compliance, and handling paperwork. Brokers are especially valuable for complex shipments, large volumes, or high-value goods. They help avoid costly errors and delays.
  

• What are the penalties for non-compliance with U.S. customs regulations?

• Penalties for non-compliance can include fines, seizure of goods, and criminal charges in severe cases. Fines vary based on the violation and can be substantial. It’s critical to adhere to all regulations, accurately classify goods, and maintain proper documentation to avoid penalties.
  

• What is the difference between duties and tariffs?

• Duties are specific taxes on imported goods, calculated based on their classification under the HTS. Tariffs are broader trade policies that impose additional taxes or restrictions on imports from certain countries. Both affect the total cost of importing goods and are used to protect domestic industries and generate revenue.
  

• How do I pay customs duties and fees?

• Customs duties and fees can be paid via Automated Clearing House (ACH), check, or through your customs broker’s account. Staying on top of payments ensures smooth processing and avoids delays in receiving your shipments.
  

• What is the Importer Security Filing (ISF) and how do I comply with it?

• The ISF, also known as “10+2,” requires importers to submit 10 data elements to CBP at least 24 hours before ocean freight is loaded at the foreign port. Carriers must provide 2 additional data elements. Compliance with ISF regulations helps prevent security risks and ensures smooth processing of your shipments. 
  

• What are the restrictions on importing certain goods into the U.S.?

• Restrictions vary by product and can include quotas, bans, and special permits. Certain items, like firearms, hazardous materials, and agricultural products, are subject to stricter controls. Checking the CBP website and consulting with a customs broker can help you understand and comply with these restrictions.
  

• How do I handle customs inspections?

• Customs inspections involve a physical examination of your goods by CBP officers to ensure compliance with regulations. Be prepared by having all necessary documentation and cooperating fully with inspectors. Proper packaging and accurate declarations can help expedite the inspection process.
  

• What is the process for filing an entry summary (CBP Form 7501)?

• Filing an entry summary involves providing detailed information about your shipment, including HTS codes, values, and duties owed. CBP Form 7501 is used to document this information and must be filed within 10 working days of the shipment’s arrival. Accurate and timely filing is crucial to avoid penalties and ensure the release of your goods.
  

• How do I handle returns or re-exports of imported goods?

• To return or re-export goods, file the appropriate paperwork with CBP, including export declarations and shipping documents. Depending on the reason for the return, you may be eligible for a duty drawback, which refunds duties paid on imported goods that are subsequently exported.
  

• What is the process for resolving disputes with U.S. Customs and Border Protection (CBP)?

• Disputes with CBP can be resolved by filing a protest or request for a binding ruling. The protest process involves submitting a formal written request to review and reconsider a decision made by CBP. Accurate documentation and a clear explanation of the issue are key to a successful resolution.
  

• What is a duty drawback and how can I claim it?

• A duty drawback is a refund on duties paid for goods that are later exported or destroyed. To claim a drawback, file a drawback claim with CBP, including detailed documentation of the import and export transactions. The process can be complex, but the refund can be significant. If you would like to see if you’re eligible, connect with one of our licensed brokers today! 
  

• How do I manage recordkeeping and compliance for my imports?

• Importers must keep detailed records of all import transactions, including invoices, packing lists, and customs declarations, for at least five years. Good recordkeeping practices ensure compliance with CBP regulations and facilitate audits. Using digital tools and working with a customs broker can help maintain accurate records.
  

• What are the import requirements for specific products, such as food, electronics, or textiles?

• Import requirements vary widely by product category. For example, food products may need FDA approval, electronics must meet FCC standards, and textiles may have specific labeling and quota restrictions. Researching the specific regulations for your product category is essential to ensure compliance.
  

• How do trade agreements affect my import duties and fees?

• Trade agreements can reduce or eliminate duties on certain products from participating countries. These agreements aim to promote trade by lowering barriers and include provisions for rules of origin, which determine eligibility for preferential treatment. Familiarizing yourself with relevant trade agreements can result in significant cost savings.
  

• What resources are available for first-time importers?

• First-time importers can access resources like the CBP website, trade associations, customs brokers, and industry-specific guides. These resources provide valuable information on regulations, procedures, and best practices to help navigate the complexities of importing. We are here to help! 

Have a question we didn’t answer here? Give us a shout! We are here to help.