The United States is a major market for international trade, offering immense opportunities for non-U.S. businesses seeking to break into global markets. However, navigating U.S. customs can be a complex and confounding task. This article is designed to untangle some of the complexities surrounding U.S. customs regulations so that prospective importers can make an informed decision on how best to approach a lucrative expansion into the mother lode of international markets. 

Understanding U.S. Customs Regulations 

This brief overview of the authorities and regulations associated with U.S. customs is a good place to start: 

The role of U.S. Customs and Border Protection (CBP)

The U.S. Customs and Border Protection (CBP) enforces regulations governing the import of goods into the United States. Their duties include ensuring compliance with trade laws, protecting the country against illegal imports, and collecting duties.

Customs valuation 

Customs valuation is a customs procedure applied to determine the economic value of imported goods for the purposes of calculating customs duties and other taxes, which helps the American government collect revenue.  

There are six methods for determining customs value prescribed by the General Agreement on Tariffs and Trade (GATT) Valuation Code, of which the United States is a member. These methods are: 

1. Transaction value 
2. Transaction value of identical goods
3. Deductive value 
4. Computed value 
5. Fall-back value 

Customs duties and taxes

All goods imported into the U.S. are subject to customs duties and taxes, including: 

• Tariffs: Duties are calculated based on the Harmonised Tariff System of the United States (HTS), the codes of which can be slightly longer and more detailed than the HS codes used by the European Union. Accurate classification is critical to determining which duties apply 
• Other customs fees: In addition to duties, certain goods may be subject to ad valorem tax like the Merchandise Processing Fee (MPF), which is charged by the CBP in order to offset the cost of processing goods that enter the country 

The improper classification of goods can lead to overpaying duties or hefty penalties, so take special care to determine the correct HS codes for your goods before attempting to import them into the U.S. Alternatively, consider working with an experienced logistics partner to validate your tariff codes so that you can 

Key documentation for U.S. imports 

Diligent, well-organised documentation is the key to smooth customs clearance the world over, and the United States is no exception. Below is a non-exhaustive list of the standard documents typically required for imports into the United States: 

• Commercial invoice: Lists the value, description, and origin of the goods 
• Packing list: Details the packaging, weight, and volume of the shipment 
• Air Waybill or Bill of Lading (for road freight): The transport document issued by the carrier
• Entry manifest (CBP Form 7533): For road freight, this form declares the arrival of goods at the U.S. border 
• Customs entry form (CBP Form 3461 or 7501): Required to initiate the customs clearance process 
• Certificate of Origin (if applicable): Necessary for claiming preferential tariffs under trade agreements 

Navigating U.S. customs procedures 

The actual process of navigating U.S. customs procedures may entail the following steps:

1. Customs bond

Importers must secure a customs bond to guarantee payment of duties and remain compliant with the relevant regulations. Bonds are available either as single-entry bonds (for one-time shipments) or continuous bonds (for frequent shipments). 

2. Automated Commercial Environment (ACE) 

All customs declarations must be submitted electronically through the ACE system. If you choose to work with a customs broker or freight forwarder, ensure that they are ACE-certified. 

3. Duty-free or reduced tariffs

Products eligible under U.S. trade agreements or special programs (such as the Generalised System of Preferences of the USMCA) may qualify for duty-free or reduced tariffs; thorough documentation is required to claim these benefits. 

Complying with U.S. customs regulations 

Goods belonging to a certain class, especially food, pharmaceuticals, and electronics, must comply with additional regulations from authorities like the Food and Drug Administration (FDA) and the Environmental Protection Agency (EPA). It is prudent to check for additional permits, certifications, or testing requirements before attempting to ship goods of this nature into the States. 

It’s also good to note that the CBP may inspect shipments to verify compliance. Common reasons for shipment inspections include missing or inaccurate documentation or goods that have been flagged as high risk for non-compliance or risk. 

Classifying your goods accurately, keeping meticulous records, and ensuring full compliance with CBP regulations are key to avoiding fines, delays, or the seizure of your goods. Leveraging technology to automate customs documentation, track shipments, and ensure compliance with CBP requirements is a savvy move towards hassle-free shipping. 

Clear U.S. customs with full compliance by partnering with re:TRADE 

Enjoy seamless booking, real-time tracking, and assured compliance through re:TRADE’s Freight Compliance Hub. We specialise in customising solutions for shipping from the EU and UK to the U.S. and importing and exporting from the U.S. to any other country in the world. Export, transit, and import goods with the assurance of full compliance through our technology-forward portal. 

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