Importing for Distributors – B2B Wholesale

It is common for distribution companies to import products into the United States. Even with the cost of shipping internationally, buying in bulk and importing is still the most cost effective way to make a profit per item sold. Businesses that import containers every month should form a relationship with a licensed customs broker. A customs broker will help obtain a customs clearance at the port of entry, sometimes even before the freight has arrived. 

Importing containers of products into the United States to resell can range from small items such as sunglasses to large machinery such as a bulldozer. Cargo is packed into a container and loaded onto a boat. Once the freight arrives into the U.S. a customs clearance will need to be obtained in order for your freight to be released from customs. Using a customs broker that is also a freight forwarder can be easier because then one company is managing the shipment door to door. The most cost effective way to import products is to ship via sea freight. It may take anywhere one to four months to receive the freight, but it costs less than shipping it via air. It has become more common for retailers to import directly from overseas manufacturers skipping the middleman distribution company. International trade websites such as abibaba.com and aliexpress.com are connecting wholesalers to overseas manufacturers allowing new connections that were previously not possible.

Distribution companies that are thriving on the low cost of importing products from China and India form a relationship with a licensed customs broker that is able to obtain customs clearances at any port in the U.S. A customs clearance will be required for LTL and full containers coming into the United States. Regulations vary upon commodity, so consulting with a customs broker before scheduling your import shipment is a financially wise decision. 

Freight that has special shipping requirements can be imported with care. Perishable goods such as meat, poultry, dairy and vegetables may need refrigeration door to door along with an FDA clearance before it can be delivered. This can all be arranged ahead of time. Using an experienced freight forwarder will help cargo meet the specific shipping needs.

Importing and exporting heavy machinery to and from the U.S. is becoming more common. Overseas construction contracts often require machines such as helicopters, bulldozers, excavators, trucks, drilling rigs and cars to be imported to a job site. Each shipment will need to be managed by a customs broker that has experience shipping large equipment. Companies that specialize in importing and exporting heavy machinery will often provide the best sea freight rates because they deal with large volumes of equipment. 

For the best rates on importing and exporting freight visit www.serviceshipping.com

How to import 20’ and 40’ foot containers into the United States

It has become more and more common for businesses to buy wholesale products overseas and import them into the U.S. to resell for a profit. Due to the cost of importing a full container, it is advisable to order larger quantities of cargo and ship less frequently than it is to order less than container loads of freight and import more frequently. This is where it becomes more cost effective to import a full container load of freight.

Shipping containers vary in size giving importers a few to choose from.  They are:

·  20 FT Container
·  40 FT Container
·  40 FT High Cube Container

Importing a full container makes transportation easier because the freight does not leave the container and it stays together during transit. Since it is being shipped in a metal container, if it is packed correctly, your freight will be less likely to be damaged.

All containers will need to obtain a customs clearance before the imported freight can be released for delivery in the United States. A customs clearance at any port in the United States can be obtained by hiring a customs broker. Importers will be required to submit documentation about their freight before it is released from customs. This documentation includes:

•      Power of Attorney 
•      Commercial Invoice
•      Bill of Lading

A customs broker will make sure that all imported freight meets government regulations and will take care of filing the entry into customs for a clearance. If pre-arranged trucking has not been made for the delivery of your container to its final destination, ask your customs broker for a trucking rate. Once a customs clearance has been issued, it can be immediately delivered from the port to its final destination into the U.S.

Importing perishables or foodstuffs? A FDA release will be required in order for perishable or other foodstuffs  freight to be allowed into the U.S. Unique criteria will need to be met depending on the type of commodity that is being imported. An inspection may be required prior to obtaining an FDA release which is why it is always wise to use an experienced customs broker.

Refrigerated containers can be arranged to maintain required temperatures during transit. An experienced customs broker will ensure the timely clearance and delivery of perishable cargo. The broker that you end up working with will be able to obtain FDA customs clearances at any port within the U.S. if they are a remote location filer. 

For customs clearances in Chicago and FDA clearances visit www.ChicagoCustomsBroker.com

 

Requirements for Export Shipments to Mexico

The following documents must be provided BEFORE The pickup of any cargo: 

•  Commercial Invoice - Must Include all items shipped, and having individual value indicated, INCLUDING No Charge Items. If No charge, the value must be declared, and then stated that it is furnished at no charge. It Must Indicate the INCOTERMS Of sale, and the consignee name, address, contact and phone and email. The Customs Broker must be shown as the Notify Party, with their full details included. Each Item MUST have the Harmonized Classification indicated on each line item. Country of origin of each piece must be indicated. Any Freight, packing or transportation charges paid by the shipper must be included on this document. It must include a License declaration, and a Diversion Clause, signed by the preparer of the invoice.

• Packing List – Must include individual weights and dimensions, showing each piece from the commercial invoice, and the piece number that it is loaded into.

• NAFTA Certificate of Origin - Items that were made within the NAFTA Territories must be shown on this document, completely executed with all fields completed, and signed by the preparer. Items not made in NAFTA Countries are not to be shown on this document. Tax Identification numbers for all parties must be included. Preference Criterion must indicate the method of knowledge as per the instructions for the preparation of the form.

All Goods must be marked with the shipper’s name, consignees name, and individual items MUST be marked with the country of origin.

A copy of the Truck Bill Of Lading must be provided in advance, to allow it to be sent with the documents to the Border Broker prior to shipment. 

If Insurance is to be required, a request in writing must accompany the documents.

If any hazardous materials are included in the shipment, they must be packed, and documented in accordance with CFR49. MSDS Sheets will then also be required.

To arrange the export shipments of freight to Mexico from the United States please visit www.ServiceShipping.com. When importing and exporting freight to and from the U.S. it is advisable to consult a customs broker to ensure legal compliance and fast delivery. Legal requirements will vary from shipment to shipment.  

What are Customs Bonds?

Only import shipments valued over $2,500 are required to obtain a customs bond. The bond is a guarantee to CPB to guarantee payment on any duty, fees and penalties levied by the Customs Service. In the case that an importer does not honor their obligation to Customs, a demand is made for payment to the bond company, then the bond company pursues the principal on the bond. With this statutory requirement on all imports, it eliminates the need for the Federal Government to ever collect money. The money is paid by the Surety that issued the bond, and Customs never has to enter the issues of bad debt collection.

There are two types of Import Custom Bonds that can be purchased from through your customs broker.

A Single Transaction Bond, as the name indicates is written to cover a single shipment. The bond premium is determined by adding the value plus the duty and fees, and the premium is paid on that amount. In the event of regulation by Other Regulatory Agencies (ORA), the bond amount is triple the value plus duty/fees. This type of bond is less secure for the Customs Service, so electronic entries, and electronic release are not authorized with this bond.

A Continuous Bond, is the second type, and is put in place before an importers importation and can be used for multiple import shipments, in all ports of the United States The bond is the property of the importer and can be used with multiple brokers. It allows for greater security for Customs, so electronic entry is allowed for importers possessing a Continuous Bond. An annual premium is paid for the Surety to insure this risk to the Customs Service. As this bond is based on annual; duty alone (Not the value of the goods), the minimum bond of $50,000.00 is sufficient for most new importers. If you import freight regularly, a continuous bond will be the best choice. Talk to Service Shipping Inc to determine which bond is best for you.

Other Customs bonds exist for special purposes. Freight can be transported within the U.S. for inland clearance by bonded transportation companies. These carrier bonds are convenient for importers, as it allows flexibility and inland movement for your cargo.

Want to store your goods before it has cleared? Defer the duty until cargo is needed? Bonded Warehouses have warehouse bonds to allow your goods to be in the USA, and not incur the duty obligation due.

Other special bonds, such as Importer Security Filing, Temporary Import and others are available for special situations, and again Service Shipping can guide you through the world of Customs Bonds.

Get a Customs Bond Now

How to Import Heavy Machinery

Need to import heavy machinery? Any piece of heavy equipment will most likely need to be shipped with special requirements. Depending on the size of the machine it may need to be partially disassembled or shipped internationally using a larger container. Shipping oversized freight can become complicated if not done correctly.

Documents Required for Importing Heavy Machinery

1. Bill of Lading
2. Commercial Invoice (supplied by shipper)
3. Packing List

What type of duty or other taxes will I have to pay when I import heavy machinery? The amount of duty that will be owed to the government when you import heavy machinery will vary from case to case. The type of engine that the machine has, what the machinery is used for and how much it weighs are all factors that go in to how much duty will be assessed. Duty is required to be paid before a customs clearance is issued to the importer.

It is vital to have a customs broker classify and clear heavy machinery equipment through customs to ensure the easiest experience possible. A customs broker acts as an attorney on behalf of the importer and will file a customs clearance on your behalf. They are also experts on classifying heavy machinery or expensive equipment which ensures importers will pay the least amount of duty legally allowed. This could potentially save the importer thousands of dollars.

The role of a customs broker is important when importing heavy machinery especially if it is a sensitive shipment with special needs. Often times the equipment must be shipped in pieces or in larger containers. Shipping oversized freight requires vast attention to detail and close oversight of the shipment from start to finish. Door to door delivery of heavy machinery consists of getting several transportation companies working together to get your freight to its final destination. Since your heavy machinery freight cargo is a special needs shipment, it is important to work with a company that has experience shipping heavy machinery.

Most customs brokers also act as freight forwarders. This is an advantage for the importer because if a customs broker handles the shipment from origin to destination, they act as the middle man who will communicate with each transportation company from start to finish. It is much easier for the importer to track their shipment by making a phone call to one person, rather than several trying to figure out where their freight is. Using a customs broker when importing heavy machinery is highly recommended.

For more information on shipping heavy machinery overseas please visit www.ServiceShipping.com