What we need to Know About American Customs Clearance Mode and Precautions

When the goods arrive in the United States, if the customs clearance fails, it will lead to a delay in the time limit, sometimes the goods even will be confiscated. Therefore, we need to be clear about the customs clearance mode and precautions in the United States.

There are two different way for customs clearance in the United States:

1. Clear customs in the name of the consignee in the United States.

The U.S. consignee sign the power of attorney(POA) to the U.S. Customs Broker, and provide the consignee’s BOND.

2. Clear customs in the name of the consignor of the goods.

The shipper signs the power of attorney(POA) to the U.S. Customs Broker, who will help the shipper handle the Importer Record of No. in the United States, and at the same time, the shipper needs to purchase Bond (Shippers can only buy the Annual Bond, not a Single Bond).

Notice:

1) The above two customs clearance methods, no matter which one is used, must use the Tax ID (also called IRS No.) of the American consignee for customs clearance.

2) IRS No. Is the Internal Revenue Service No.. A tax identification number registered by the US consignee with the US Internal Revenue Service.

3) Without Bond, it is impossible to clear customs in the United States.

Therefore, ship goods to the United States, we should note:

1. When doing business with the United States, please remember to confirm with the American consignee whether they have Bond and whether they can use their Bond and POA for customs clearance.

2. If the U.S. consignee does not have Bond or is unwilling to use their Bond for customs clearance, shipper must purchase Bond. But the Tax ID must be of the American consignee, not Shipper.

3. If the consignor or consignee does not purchase Bond, it is equivalent to not filing with the U.S. Customs. Even if the ten items of the ISF are complete and correct, the US Customs will not accept it and will face fines.

In view of this, foreign trade salesmen must remember to ask American customers if they have purchased BOND, this is what the cargo owner needs to prepare before customs declaration. Next time we will continue to explain the US customs clearance