The United States is among the most appealing foreign markets for small companies and ecommerce retailers to expand into. However, before the products can get to American consumers, they must go through customs, and that’s where many shipments get stuck, are taxed unnecessarily, and even get sent back.
When you’re shipping your first parcel to the USA, it’s not just a matter of knowing the customs process, it’s a necessity. One wrong form or declaration can create a major and expensive issue that causes delay in the delivery.
The challenge of small businesses with Customs:
You’d think shipping internationally would be the same as domestic shipping, but with a longer delivery period. In fact, each time you send parcel to USA your parcel will be subjected to the U.S.
Customs and Border Protection (CBP) inspection and examination of the contents, value, and source of the goods. Parcels can be detained for inspection, duties imposed on parcels without notice, or be refused entry if the necessary documentation is not provided.
These delays can negatively impact customer satisfaction and return rates, especially for e-commerce brands that ship on a regular basis.
Ensure that your documents are correct.Ensure your paperwork is correct:
When you send parcels to the USA, the most critical thing is to prepare accurate customs documentation. This usually consists of a commercial invoice, a customs declaration form and a certificate of origin (as required by the carrier).
Ensure that product description, quantity, value and HS (Harmonized System) code is clearly written on the invoice.
Remember to be as specific as you can – vague terms such as “gift” or “merchandise” are often causes of shipments getting flagged.
Be familiar with the De Minimis Threshold:
The U.S. had a de minimis exemption that formerly permitted low-dollar shipments to be imported into the U.S. with minimal or no duties.
However, with recent policy changes this threshold has been broken, especially for goods coming from certain countries and it is advisable to refer to the current CBP guidance before sending shipments.
As these rules may change, it is best practice for small businesses to check with their carrier or customs broker to ensure that they are aware of the latest regulations.
Selecting an appropriate carrier and services:
Not every shipping carrier deals with customs in the same manner. Others provide Delivery Duty Paid (DDP) service wherein responsibilities and taxes are worked out and paid ahead of schedule, leaving your customer with a smooth buying system and no last minute charges in delivery.
Others use Delivery Duty Unpaid (DDU), which may cause the recipient to be billed later on a frustrating experience for the recipient and frequently will lead to refused packages.
E-commerce companies that ship often can greatly decrease their customs related problems by using a carrier with experience in shipping to the United States.
Packaging and Labeling Best Practices:
Labeling is another aspect of avoiding delay. Be sure to exactly match the information on your shipping label with the information on your customs form; including the sender and recipient addresses, product specifications and declared value.
If the information on the label is inconsistent with what is on the paperwork, it’s a red flag for customs officials and could cause a manual inspection which will delay your and your customers’ delivery.
Working with a Customs Broker
If your business ships in large quantities or higher dollar items, then it may be a good business investment to work with a licensed customs broker. Brokers are familiar with the current regulations, they can pre-clear shipments and can assist you in avoiding expensive classification errors.
This costs them a little per shipment, but in most cases is worth the expense as it minimizes delays and returns.
Conclusion
With a little understanding, you can pass through U.S. customs without any hassle. With careful planning and compliance with the latest regulations, small businesses and e-commerce companies can reliably deliver packages to the USA without any hassles or surprises. This attention to detail will save you time, money and customer goodwill in the long run.