So you’ve decided to sell your product across borders? Congrats! You’re about to take the plunge into an exciting new venture. But, now, there is a lot to learn, and relevant than proper customs knowledge, you’ll be able to navigate the customs process efficiently.
But wait, did you know how costly it is to sell across borders? Well, simply put, it can be rewarding if you are willing to put in the extra effort.
But first, you should consider hiring an attorney specializing in international shipment sales, paying for translation services, or having a representative (your importer) on the other end.
Any product (no matter the value) shipped across country borders and sold to an end-user requires import customs documentation.
However, the importer is responsible for filing the necessary forms and documentation to customs and paying any applicable duties or fees.
International orders come in various forms, and it is necessary to be familiar with the most common types. The following article provides an overview of some of the most common types.
To help make your customs brokerage a success, here’s a list of customs brokerage “dos and don’ts.”
Customs Brokerage Dos
Do: Plan Ahead – research customs regulations and be consistent across all your customs forms.
Do: Use customs software to consolidate your data – it will simplify the customs process and save you money.
Do: Use customs brokers to take care of the dealings for you – your customs broker can act as an intermediary between customs and yourself. They can help you with customs brokerage, compliance, and customs clearance.
Do: Take advantage of customs programs – there are many customs programs available, such as customs duty drawback and customs compliance for brand owners. These customs programs can help you with customs brokerage and customs compliance.
Do: Get customs help – customs brokers can offer brokerage services, compliance consulting, and customs duty drawbacks.
Customs Brokerage Don’ts
Don’t: Be disorganized – customs forms need to be clear, and customs officials like organized customs forms. Filling out customs forms is one of customs brokerage’s most essential customs brokerage customs functions. They like it when the appropriate customs forms are filled out, and customs offices like it when you give them the correct information.
Don’t: Get customs procedures wrong – customs procedures are significant, and it’s an offense to misrepresent information on customs forms. Suppose customs officials believe you have made customs errors or customs omissions. In that case, they can charge you with customs fraud and customs violations.
Don’t: Forget customs permit requirements – customs permitting is very important when importing and exporting your goods. Many countries require customs permits for specific customs procedures, so make sure you apply for customs permits early.
Don’t: Make customs errors – customs brokerage is about customs compliance, which means you must abide by customs laws and regulations. Suppose customs officials believe you’ve made customs errors or customs omissions. In that case, they can charge you with customs fraud and customs violations.
Don’t: Use customs brokers who don’t have customs knowledge – customs brokerage is very important when importing and exporting your goods. Many customs brokers can provide customs brokerage customs functions, customs advice, customs services, and customs guidance. Make sure you use a customs broker that is knowledgeable and experienced.
Now let’s explore further what you need to know when selling across borders.
1. Classification
Knowing how to classify your goods is one of the first things you need to consider when selling across borders. The first step in that process is familiar with Customs Valuation and Duty rates. The United States and Canada have specifically defined nomenclature to classify goods for customs purposes. The United States has the Harmonized Tariff Schedule (HTSUS), and Canada has the Customs Tariff.
2. Export vs. Import Country Laws
It’s essential to be familiar with the laws of both the export and import countries. You should know the most common things are duty rates, quotas, permits, licenses, and tariffs. The next step is to be familiar with documentation requirements.
3. Customs Brokerage Program Requirements
Many customs programs can help your company save money on customs duties or benefit from duty drawbacks. These customs programs include the Forfeited Corporate Property Act, International Import Certificate, and Duty Deferral Program. Before signing up for a customs program, the best thing is to familiarize themselves with their requirements.
4. Customs Brokerage Costs
Since customs brokerage costs can vary so much between companies, it’s essential to be familiar with the different types of customs brokerage and their associated costs. The most common types of customs brokerage include FCL (Full Container Load) and LCL (Less than Container Load).
5. Customs Brokers vs. Customs Agents
Customs brokers and customs agents are two different things because a customs agent can offer customer service while a customs broker cannot. The best way to determine who you should use is to evaluate your customs brokerage needs.
6. Customs Brokers vs. Customs Consultants
Customs brokers and customs consultants are two different things because a customs consultant provides customs consulting services. The main difference is that customs brokers are interested in a customs brokerage relationship. In contrast, a customs consultant is more interested in a consulting relationship.
7. Customs Brokers vs. Customs Expediters
Customs brokers and customs expediters are two different things. A customs expediter provides various customs-related services, such as brokerage, consulting, and more. A customs expediter can also help facilitate or streamline your supply chain processes. A good place to start is evaluating your customs brokerage and consulting needs.
8. Personal vs. Company Accounts
Many customs brokers offer two types of accounts: personal and company. Personal accounts are for individuals, while company accounts are for companies. The most significant difference is that personal accounts cannot offer commercial customs brokerage services.
9. Customs Brokers vs. Customs Consultants
Customs brokers and customs consultants are two different things because a customs consultant provides customs consulting services. The primary purpose of the consultant is to identify the best customs brokerage solution for you.
10. Customs Brokers vs. Foreign Trade Zone Operators
Customs brokers and foreign trade zone operators are two different things because a foreign trade zone operator can provide services to importers and exporters. The foreign trade zone operator will do everything the customs broker does, including foreign trade zone activities.
11. US Census Bureau
The US Census Bureau collects and provides customs data between the import/export industry and government agencies. The data can help businesses, government officials, and other individuals learn about import/export activity.
Conclusion:
Now that you know the things to know when selling across borders, you should better understand customs brokerage. Although it’s a complex industry, a good customs brokerage company can ensure you meet all your customs obligations.
