1 00:00:00,250 --> 00:00:02,252 ( ♪♪♪ ) 2 00:00:02,252 --> 00:00:06,256 Commercial goods arriving into the U.S. by air, land, or sea 3 00:00:06,256 --> 00:00:09,593 are subject to import laws, duty taxes, and fees. 4 00:00:09,801 --> 00:00:12,262 What are some examples of commercial goods? 5 00:00:12,638 --> 00:00:15,557 A purse bought online from a retailer in Italy. 6 00:00:15,682 --> 00:00:18,852 Glasses manufactured by a factory in China. 7 00:00:18,852 --> 00:00:21,021 Or even a souvenir sent back to the U.S. 8 00:00:21,021 --> 00:00:23,398 but purchased while traveling abroad. 9 00:00:23,524 --> 00:00:27,194 To lawfully enter foreign imports into a U.S. port of entry, 10 00:00:27,194 --> 00:00:31,198 which can be air, land, or sea, you must obtain approval from CBP 11 00:00:31,198 --> 00:00:35,118 through the import process, which varies based on the merchandise. 12 00:00:35,244 --> 00:00:38,455 You should always reach out to a CBP import specialist 13 00:00:38,455 --> 00:00:40,749 at the Center of Excellence and Expertise 14 00:00:40,749 --> 00:00:42,876 before importing into the U.S.A. 15 00:00:43,001 --> 00:00:46,755 Let's take a closer look at the CBP import process. 16 00:00:47,422 --> 00:00:50,092 The first step is when someone purchases foreign goods 17 00:00:50,092 --> 00:00:53,303 with plans to have those items come into the U.S. 18 00:00:54,012 --> 00:00:57,224 Once those goods are available, the seller, or manufacturer, 19 00:00:57,224 --> 00:00:59,268 ships them to the United States. 20 00:00:59,434 --> 00:01:03,230 For example, small shipments may be consolidated into a container 21 00:01:03,230 --> 00:01:05,983 or sent by airplane, truck, or rail. 22 00:01:05,983 --> 00:01:09,444 These smaller packages are often cleared through the CBP import process 23 00:01:09,444 --> 00:01:12,239 by logistics companies hired by online sellers 24 00:01:12,239 --> 00:01:14,241 and may arrive right to your door. 25 00:01:15,617 --> 00:01:18,036 Larger shipments are loaded into containers 26 00:01:18,036 --> 00:01:20,664 and placed on different modes of transportation. 27 00:01:21,331 --> 00:01:23,625 When the vessel operator receives the goods, 28 00:01:23,625 --> 00:01:25,877 they provide the shipper with the bill of lading, 29 00:01:25,877 --> 00:01:27,629 which serves as a receipt. 30 00:01:27,838 --> 00:01:31,508 This is required for the importer to file an entry with CBP. 31 00:01:32,092 --> 00:01:35,470 An Electronic Cargo Declaration must be transmitted to CBP 32 00:01:35,470 --> 00:01:38,807 twenty-four hours before the cargo is laden aboard the vessel. 33 00:01:39,016 --> 00:01:43,729 CBP then determines whether the shipment requires further examination upon arrival. 34 00:01:44,855 --> 00:01:48,817 Once the vessel arrives and CBP has permitted the release of the cargo, 35 00:01:48,817 --> 00:01:51,945 the containers are offloaded and transported from the port. 36 00:01:53,155 --> 00:01:56,325 The importer receives a notice of arrival when the cargo arrives 37 00:01:56,325 --> 00:01:58,035 with details for pick-up. 38 00:01:59,036 --> 00:02:01,288 With the notice of arrival and bill of lading, 39 00:02:01,288 --> 00:02:04,166 the importer can file entry documents with CBP 40 00:02:04,166 --> 00:02:06,126 at the port where the goods arrived. 41 00:02:06,335 --> 00:02:09,338 This is the Formal Request for Customs Release. 42 00:02:09,963 --> 00:02:13,300 The importer may enter goods themselves as owner of the cargo 43 00:02:13,300 --> 00:02:15,302 or they may hire a customs broker. 44 00:02:16,219 --> 00:02:19,056 As a shipper of goods, you may elect to have a broker. 45 00:02:19,056 --> 00:02:23,352 Brokers are licensed by CBP and are experts in these procedures. 46 00:02:23,352 --> 00:02:27,022 A list of customs brokers can be found on CBP.gov. 47 00:02:27,564 --> 00:02:31,193 Within 15 days of arrival, an electronic filing must be completed 48 00:02:31,193 --> 00:02:34,863 on the Automated Commercial Environment, or ACE system. 49 00:02:35,614 --> 00:02:38,408 Depending upon the situation, the importer may need to present 50 00:02:38,408 --> 00:02:41,203 other documents, such as a customs bond, 51 00:02:41,203 --> 00:02:43,872 which is a contract between customs and an importer 52 00:02:43,872 --> 00:02:46,625 for any given import transaction to guarantee payment 53 00:02:46,625 --> 00:02:50,045 of import duties, taxes, and fees to the U.S. 54 00:02:52,047 --> 00:02:54,674 While there are different types of entries, it's important, 55 00:02:54,674 --> 00:02:59,054 especially for first-time importers, to be aware of several key concepts. 56 00:02:59,054 --> 00:03:00,889 Let's review some of them now. 57 00:03:01,139 --> 00:03:04,559 Types of entry: formal entries and informal entries, 58 00:03:04,559 --> 00:03:08,105 including packages that qualify as Section 321 shipments. 59 00:03:08,438 --> 00:03:11,775 The documents for each entry type have separate requirements. 60 00:03:12,067 --> 00:03:15,987 An informal entry may involve goods valued less than $2,500, 61 00:03:15,987 --> 00:03:19,908 while a formal entry covers goods valued at $2,500 or more; 62 00:03:20,283 --> 00:03:24,454 though just the value may not be the only determining factor of entry type. 63 00:03:24,454 --> 00:03:27,499 Formal entries also require a customs bond. 64 00:03:28,208 --> 00:03:31,378 Duty on formal and informal entries is assessed based on 65 00:03:31,378 --> 00:03:35,507 how goods are categorized in the Harmonized Tariff Schedule of the U.S. 66 00:03:35,507 --> 00:03:38,427 Other processing fees may be assessed as applicable. 67 00:03:38,969 --> 00:03:41,638 Importers are not required to pay duties or fees 68 00:03:41,638 --> 00:03:45,559 on goods less than $800 and qualify as Section 321. 69 00:03:46,977 --> 00:03:49,354 If goods are selected for examination, 70 00:03:49,354 --> 00:03:52,774 CBP will inspect the shipment to determine if they’re admissible. 71 00:03:52,941 --> 00:03:56,361 If applicable, they will be detained and may be seized. 72 00:03:57,362 --> 00:04:01,450 In some instances, importers may be permitted to re-export the goods 73 00:04:01,450 --> 00:04:03,994 or they may be brought into compliance upon determination 74 00:04:03,994 --> 00:04:07,330 that all import requirements have been ultimately satisfied. 75 00:04:07,330 --> 00:04:10,917 Once the goods are released with all duties, taxes, and fees paid, 76 00:04:10,917 --> 00:04:14,129 and the CBP Form 7501 filed electronically 77 00:04:14,129 --> 00:04:16,673 within ten working days from the release date, 78 00:04:16,673 --> 00:04:20,510 the importer may pick up the goods at a destination arranged with the shipper. 79 00:04:21,428 --> 00:04:25,515 In some instances, CBP may choose to conduct an entry review. 80 00:04:26,391 --> 00:04:29,561 This may result in a duties refund, additional duties, 81 00:04:29,561 --> 00:04:32,105 or a request for additional documentation. 82 00:04:32,939 --> 00:04:36,193 The final step is known as liquidation process, 83 00:04:36,193 --> 00:04:39,529 which occurs when CBP finalizes the duty assessment. 84 00:04:40,280 --> 00:04:43,909 When liquidation is finalized, the entry process is complete. 85 00:04:43,909 --> 00:04:47,829 However, importers must keep all documentation for five years. 86 00:04:48,580 --> 00:04:53,502 More detailed resources and helpful guides can be found at CBP.gov.