All commercial imports to the USA must be covered by a formal customs bond in order to clear customs at their destination port.

Different types of customs bonds

There are two different types of customs bonds used in the USA:

• Single-entry bonds, which are good for one import only.
• Continuous entry bonds, which can be used to cover all imports made for one year from the date that the bond is issued. One continuous entry bond can be used by multiple different customs brokers if you use two or more brokers for your imports.

How do you get a customs bond?

Customs bonds can be purchased from surety companies that are licensed by the United States government. Unicargo can arrange the purchase of a single-entry bond or continuous entry bond on your behalf, at a very competitive rate.

We can also take care of the annual renewal for your continuous entry bond too if required, and send out a reminder notice to let you know when your renewal date is approaching.

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Customs bonds come in two different forms – single-entry bonds and continuous entry bonds respectively. Knowing the difference between the two will help you to decide which type of bond you need.

Single-entry bonds

Single-entry bonds can be used to cover one import or shipment only. If you are planning a one-off shipment or only intend to make one shipment within any given year, this is the type of bond you will need to cover it.

Continuous entry bonds

Continuous entry bonds cover every shipment you make within a year of the bond’s issue date, so that you don’t have to get a new single-entry bond each time you import another shipment.

Continuous entry bonds are the best choice if you intend to make several shipments to the USA inside of one year, or if you will be working with more than one import broker. In these situations, choosing a continuous entry bond will be more economical than buying individual single-entry bonds for each shipment, and it will also cut down on the new paperwork you need to arrange each time too.

If you’re not quite sure whether a single-entry bond or a continuous entry bond will best suit your current plans and future needs, we’ll be happy to discuss your requirements and share our advice and know-how to help you to decide.

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What is an HTS code?

HTS codes (Harmonized Tariff Schedule codes) are used by the US Customs Authority and all of the other members of the WCO or World Customs Organization as part of the Harmonized Commodity Description and Coding System. HTS codes classify different types of goods and outline their duty fees.

HTS codes used for imports to the USA are ten digits long, and the codes themselves are chosen and managed by the United States International Trade Commission.

Where can you find the HTS code for your goods?

The supplier or originator of your goods may be able to supply the HTS code you need, but this is not always the case – particularly if you work with Chinese suppliers, who often provide the Chinese version of HTS codes instead.

The first six digits of HTS codes are universal – but you may need to work out for yourself the final four digits of your finished HTS code for US imports before you can calculate the duty fee payable. You can do this by searching for the type of goods you intend to import using the United States International Trade Commission’s HTS search tool.

Completing your calculation

When you have found the right HTS code for your goods, the search tool we linked to above will tell you the rate of duty payable on goods of that type. The duty fee is usually expressed as a percentage of the value of the goods themselves – but this is not the case for all types of goods.

Some products are assigned a flat duty fee per kilogram of their weight, such as for imports of goods like vegetables or seeds.

When you know the rate of duty for your goods, you can estimate the total customs duties that will be payable for your shipment.

To calculate the duty fee for your shipment, you need to know:

• The rate of duty for the goods as determined by their HTS code.
• The total value (or weight, if relevant) of the goods you are shipping.

To calculate the estimated duty fee for a shipment where the fee is determined by percentage value, simply multiply the total value of the goods by the percentage that applies to their HTS code, and then divide this figure by 100.

For example: You wish to import an order of chopsticks with a value of $10,000. You find that the duty fee determined by the HTS code is 3.2%.

10,000 x 3.2 = 32,000.

32,000 ÷ 100 = 320.

So in this instance, the duty fee for your shipment would be $320.

To calculate the estimated duty fee for a shipment where the fee is charged as a flat rate per kilogram, you just need to multiply the total weight of your goods in kilograms by the flat rate duty fee per kilogram to get your total.

For example: You wish to import 100kg of cotton seed. You find that the duty fee determined by the HTS code is 47 cents per kilogram.

100 x .47 = 47.

So in this case, the duty fee for your shipment would be $47.

If you need any help with finding the right HTS code for your shipment or with working out the duty fee you will have to pay, contact us and we’ll be happy to help.

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The importer of the goods is responsible for drawing up the certificate after the goods have passed the relevant laboratory tests prior to import, and a certificate must be provided for each different type of children’s product contained within any shipment.

What type of products need a CPC?

Any goods that are made for or intended for use by children need a CPC. This includes children’s toys, clothing, furniture, school supplies, and anything else that is used by or made for children.

What is shown on a CPC or Children’s Product Certificate?

• Details that identify the exact product that the certificate applies to.
• Information on the specific rules and regulations that are relevant to the product in question, like the laboratory testing requirements and Small Parts Regulations
• Details (name, address and other contact information) for the importer who is providing the certificate for the goods.
• Contact information for the person or organization who holds the records for the laboratory test results for the goods – this is normally the importer.
• The date and location of the product’s manufacture.
• The date and location of the product’s laboratory testing.
• Details identifying the approved product testing facility that ran the relevant tests on the goods before the certificate was issued.

If you’re preparing a CPC and need any assistance or if you’re not quite sure how to draw up a Children’s Product Certificate, let us know and we’ll help you to get it right first time.

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These responsibilities include providing the appropriate entry documents for clearance through Customs Border Protection (CBP) at US ports, the payment of any duties, levies or fines, product classification and certification, and any other obligations that fall to the importer.

If you are not based in the USA yourself, things are a little different but still not too complicated.

Foreign Importers of Record

If you’re not based in the USA you are classed as a foreign Importer of Record, and need to be established as such before you can import your goods.

To be recognized as a foreign Importer of Record, you need to be issued with an Importer of Record number by the US Customs Authority, and to provide a customs bond for your goods.

Here is what you need to provide to be issued with a foreign Importer of Record customs-assigned number:

• A document giving you power of attorney for customs purposes, which is signed by two of your company’s officers.
• Photographs or scans of formal ID documents for the two named officers.
• A copy of the importer’s Articles of Incorporation. This document may indicate that the named signatories have the appropriate authority to hold power of attorney for import purposes, but if not, a separate document specifying this is also required.

You may want to use the services of a customs broker to apply for your customs-assigned number, and to obtain a customs bond for your imports.

If you need assistance with registering as an Importer of Record or taking care of the paperwork required, let us know and we’ll help to make sure that everything goes to plan.

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