Importing into the US: All You Need to Know

The US is currently the world's largest consumer market. For two reasons, most of the world's most successful entities have built a mainstay within the US territory. The reasons are the advantage of a broad consumer base and a generally healthy purchasing power. As a result, the US has maintained its position as a global hub for commercial success. However, many US companies are increasingly looking toward sourcing products from overseas markets. 

According to a report by Kearney, a global consulting firm, many American corporations have resorted to offshore manufacturing and are heavily invested in product importation. However, there is an even bigger picture. American businesses have focused on sourcing services and products from China in the past decade. The primary reason for this outsourcing wave is the considerably low cost of producing or purchasing goods from Asia.

However, reports have shown that in light of the recent COVID-19 pandemic, American businesses are now looking to alternative Asian countries as sourcing destinations. Countries like India and Japan are at the forefront. 

This article provides a detailed guide on how to go about importing into the US and the necessary documents you need to possess. 

Steps on Importing into the US

• Get a Reliable Supplier: While it is true that sourcing from overseas markets is generally cheaper than purchasing in the US, it can be pretty risky. This is because there are high risks that bad actors could pose as suppliers to dupe unsuspecting importers. Thus, it is crucial to establish contact with a reliable supplier to ensure your goods are duly imported in good condition. It is often challenging to discover reliable suppliers through physical connections, especially in a foreign country. However, digital trade marketplaces are viable for purchasing goods from reliable suppliers. Few e-commerce platforms function as an export-import link to connect US importers to reliable suppliers in Asian countries. A notable one is Doocan, a global marketplace that connects US buyers to Indian suppliers. KYC checks are conducted on all suppliers to reduce the occurrence of fraud. 

• Ensure You Are an Importer of Record: One of the primary challenges with international trade in the US is the requirement for an importer of record. An importer of record is the owner or purchaser of the imported products. Occasionally, the owner can outsource this position to a customs broker with legal authorisation. Regardless, the ability to successfully import the products is dependent on the availability of an importer of record who will be responsible for providing the necessary paperwork to clear the goods. 

• Submit a Customs Entry: Your products must be cleared before being released into US territory. The Customs and Border Protection (CBP) is in charge of this clearance. Before clearing your goods, you must file an entry with the CBP. Generally, goods below $2,500 only require an informal entry, while goods above this value must go through the formal entry. Formal entry requires the engagement of a customs broker's services, while the owner of the products can conclude an informal entry. It is important to note that your imported products may be subject to oversight by agencies aside from the CBP. For example, the Food and Drug Authority (FDA) must inspect imported food products before one can import them. 

• Pay the Required Import Duties: After the entry has been filed, the last stage in the importation process is the payment of duties. At this stage, it is essential to note that not all goods are subject to import duties. Some goods are duty-free due to import incentives established by the US government. For example, the US has a duty-free provision for goods shipped via e-commerce. This provision applies to goods valued at $800 and below. Regardless, it is advisable to check with the CBP to determine the duty rate for your goods. After paying the duties, the goods are released. You can arrange for them to be dispatched to a location of your choice. 

Necessary Documents for Importation into the US

• Commercial Invoice: The Commercial Invoice is one of the most crucial import documents in the US. It is proof of transactions between the seller (exporter) and the buyer (importer). The document includes details like the importer's information, type of shipment, and quantity. Customs authorities mainly use the CI as proof that the importer of record purchased the shipment. It is also a prerequisite to clearing imported goods at the port.

• Entry Manifest (CBP Form 7533): This import document provides cargo details to the customs. It includes information on the physical contents and actual ownership of the cargo. Besides customs clearance at the importation stage, it is also required for activities like cargo unloading. An importer can obtain the form on the CBP's official website. 

• Customs Bond: Customs bonds are import documents that guarantee the payment of import duties. This document ensures a faster clearance process, as the customs authorities are assured that importers would pay any additional duties. The US required a customs bond for goods valued at $2500 or more. Also, you can obtain the bonds for either a single shipment or an annual subscription. Annual customs bonds will cover goods imported over 12 months.

• Packing List: The packing list is issued with the commercial invoice. It is a document that contains information on the importer’s invoice, and the CBP uses it to authenticate cargo ownership. Both the commercial invoice and the packing list are required as original documents. 

 The importation process can be challenging and tiresome. However, the process can get significantly smoother when you are well informed about the steps and the required documents. 

Going through a reputable B2B marketplace is the safest way to import across international markets. E-commerce sourcing does not only guarantee the safety of imports; it also gives you access to government-sponsored e-commerce importation benefits. A US e-marketplace like Doocan connects you to credible Indian suppliers that sell a wide range of goods, from apparel to food products.