General Information About Importing to USA

The following are general comments about the Customs Brokerage business. It is intended as an information tool only. It is the importer’s responsibility to understand and comply with all US customs regulations.

 » Customs Brokers
 » Power of Attorney
 » Importer of Record
 » Customs Bond
 » Commercial Invoice Requirements
 » Types of Entries
 » Marking
 » Downloads

Customs Brokers

A & A Contract Customs Brokers USA Inc. is a licensed US customs brokerage firm.
Customs Border Protection regulates brokers. Only licensed Customs Brokers are allowed to transact Customs business on behalf of others. Each licensed firm is required to have at least one licensed broker on staff. The broker acts as the agent between the shipper, the consignee, Customs and other government agencies. It is the broker’s job to be sure that the importer of record is in compliance with all Federal and State laws.

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Power of Attorney

All customs brokers are required to have a valid Customs power of attorney on file prior to transacting any Customs business on the behalf of the importer of record. This instrument allows the broker to transact Customs business only. The power of attorney must indicate the US tax reporting number for the importer, it must specify if the importer is a corporation, partnership, sole proprietor or an individual. If the importer is a Limited Liability Corporation (LLC) or limited partnership, Customs requires that a copy of the LLC or partnership agreement accompany the power of attorney showing the persons allowed to sign for the corporation/partnership. If the importer is not a US corporation, a second officer is required to sign the Corporate Certification. Unless an expiration date is shown on the power of attorney, it is good until revoked, except for a partnership, which automatically expires in two years from signing.

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Importer of Record

This is the entity responsible for the importation of goods into the US. The importer of record is the party legally responsible for payment of duty, fees, fines or penalties issued by Customs or other government agencies. The importer of record is the party that issued the power of attorney to the broker. This party can be the foreign shipper, the buyer in the US or the ultimate consignee in the US, or any interested party in the transaction who has the right to make entry.

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Customs Bond

All importations into the US with a value of more than $200 (USD) require a bond to be filed with Customs at the time of entry. This is to protect the revenue and compliance with the regulations of the Federal Government. It insures that the importer of record will pay any revenue due the Government, or they go to the bonding company for reimbursement. This is a non-refundable expense. There are two types of Customs Bonds. One is a Single Entry Bond. The SEB covers only the shipment it is written for. The other type of bond is a Continuous Bond. The Continuous Bond covers all shipments, in any port in the US for a period of one year. The Continuous Bond requires that an application be filed with US Customs and once it has been approved it is automatically renewed yearly until the principal requests that it be cancelled.

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Commercial Invoice Requirements

Generally, all invoices must contain the following information:

• Shippers full name and address
• Buyers full name and address
• Consignees full name and address and U.S. tax number
• Detailed description of the product, including packing marks and numbers
• Country of origin
• Purchase price and currency of purchase
• Terms of sale
• Related charges, such as, but not limited to freight, insurance, rebates, licensing fees, buying or selling commissions, discounts and assists

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Types of Entries

A consumption entry is the usual type of entry. This means that goods released from Customs enter the commerce of the US for consumption. If goods were not destined for consumption in the US other types of entry types would be made such as a temporary import, entries into Foreign Trade Zones or bonded warehouses. If goods are only moving through the US they are put under bond and are not considered under the consumption entry.

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Marking

All merchandise entering the commerce of the US must be marked with the country of origin of manufacture. It must be marked indelibly, conspicuously and legibly and in English. For upper body ware, such as shirts or jackets, the country of origin label must be in the neck. The marking must be such that the ultimate consumer in the US is able to determine the originating country. There are some exceptions to marking. US Customs can seize merchandise not properly marked.

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Downloads

The following forms are available for download in Adobe PDF format. These forms can be viewed and printed using the Adobe Acrobat Reader.

US NAFTA Certificate of Origin [PDF]

US Customs Invoice [PDF]

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