Here are some ways to prepare for importing.
- Familiarize yourself with import controls and regulatory requirements. The sources emphasize the importance of understanding government Customs policies and procedures, as well as any other agency requirements that may apply to your specific products. For example, the Food and Drug Administration (FDA) may require a license or permit to import certain food or medical products. You also need to research whether your product is subject to any quotas.
- Know how to classify your products for tariffs. Each product has a tariff classification number, which determines the duty rates that will be applied to your imports. The Harmonized Tariff (HS code) is the primary resource for determining duty classifications. You can use the HS code to determine your product’s tariff classification number, Customs duty, and any applicable rules or regulations. You can also request an informal tariff classification from Customs or a binding ruling.
- Check to see whether you qualify for preferential duty programs. The trade agreements of many countries that offer reduced or eliminated duty rates on certain products. To qualify for these programs, you will need to provide documentation that your products meet the rules of origin requirements. You can find out whether your products qualify for preferential duty programs by contacting Customs or a trade specialist.
- Find out if you need an import license. While the Customs Service does not require a license to import, other agencies may require a permit, license, or other certification depending on the commodity. For example, if you’re importing fruits or vegetables, your goods would be subject to inspection by the Department of Agriculture to ensure they are safe for human consumption.
- Research the reputation of your foreign seller. Before you import from a foreign seller, you should check their reputation, reliability, and financial status. You can request references, but you can also get more information through a Commercial Service program called the International Company Profile.
- Understand INCOTERMS. INCOTERMS are international commercial terms that define the responsibilities of the buyer and seller in an international sale. It is important to understand the specific INCOTERM that is used in your import transaction, as it will determine who is responsible for things like shipping costs, insurance, and customs clearance.
- Analyze your insurance coverage. You should have adequate insurance coverage for your imported goods in case of loss or damage. If the foreign seller quotes using the term CIF (cost, insurance, and freight), the seller is responsible for obtaining insurance. If any other shipping term is used, insurance is your responsibility.
- Have a written purchase contract. You should have a written purchase contract with your foreign seller that outlines the terms of the sale, including the price, payment terms, shipping terms, and any other important details.
- Consider hiring a Customs broker. A Customs broker is a licensed professional who can help you clear your goods through Customs. Customs brokers can be particularly helpful for first-time importers, as they can help you navigate the complex import process and avoid potential problems.
- Understand the benefits of a freight forwarder. An international freight forwarder acts as your agent and ships your cargo to an overseas destination. They can provide assistance in packaging, labeling, documentation, insurance, and compliance with foreign government regulations. You should research and select a freight forwarder that has experience in the country from which you will be importing.
- Understand recordkeeping requirements. You are required to keep all documents relating to imports for five years. Customs can inspect these documents to ensure that you have complied with Customs laws.
The sources provide a great deal of information about preparing to import. You should consult the full text of the sources for more in-depth guidance on these topics.