Questions and Answers for Foreign Traders Importing Goods into the United States
Importing goods into the United States involves several steps and understanding the methods used by U.S. Customs and Border Protection (CBP) to appraise the value of merchandise is crucial. Here's a breakdown of the key aspects to consider.
To begin, foreign companies need an "importer number" to import goods into the U.S. This number is typically the company's IRS-issued Employer Identification Number (EIN) or, for individuals, their Social Security Number (SSN). The process of obtaining this number involves establishing a U.S. business entity or obtaining an EIN, registering with the CBP, appointing a U.S.-based customs broker or agent (if applicable), filing necessary import documentation, and considering any additional registrations or licenses as needed.
The CBP uses various methods to appraise the value of imported merchandise. The first method is the Computed Value, which is the sum of the cost or value of the materials, the fabrication and other processing, and an amount for profit and general expenses. If this method does not apply, the CBP moves on to the Deductive Value method, which has three options: the transaction value, the transaction value of identical merchandise, and the transaction value of similar merchandise.
If neither the Computed Value nor the Deductive Value methods cover the value of the imported merchandise, the CBP will deem a reasonable value for the goods. It's important to note that if the Computed Value method yields better results, a petition can be made to use this method instead of the Deductive Value method.
Certain costs and reasonable profit can be deducted when using the Deductive Value method. Additionally, sales tax is not usually paid at the time of entry of goods into the U.S. Customers pay sales tax after it has been added to the price of the product.
The price of imported goods can change depending on whether they are sold in the condition as imported or further processed. If they are not sold in the condition as imported and not sold before the close of the 90th day after the date of importation, the price is the unit price at which the goods, after further processing, are sold in the greatest aggregate quantity before the 180th day after the date of such importation.
Lastly, it's essential to understand that the fact of import by itself does not change ownership.
For foreign companies looking to import consumer products into the U.S., they can do so via a 3PL warehouse in the U.S. A Foreign Importer of Record is also allowed, and the company must have an agent, such as a customs broker, in the state where the port of entry is located.
By understanding these key aspects, foreign companies can navigate the process of importing goods into the U.S. more efficiently and ensure compliance with U.S. customs regulations.
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