A major consideration when importing into the US is the cost of customs clearance. Customs clearance is the process of releasing goods from customs by obtaining permission from a country’s government. In the US, importers have to comply with CBP (Customs and Border Protection). A factor that can confuse many first-time or regular importers is the cost of the clearance process. This is because numerous factors can come into play, including hidden costs and calculations that the shipper has to make. Not knowing these costs can result in penalties and greater costs. This article will explain what can determine the cost of clearance and how to begin.
What Factors Can Determine The Cost Of Customs Clearance?
The complexity of the shipment can also determine the costs, including goods with specific government agency requirements. For example, Food and Drug Administration (FDA) regulated products can be more costly due to higher service fees and additional regulatory compliance. Additional costs can include the Harbor Maintenance Fee (HMF) and Merchandise Processing Fee (MPF). The HMF is a fee for freight entering a port, and the MPF is a fee based on merchandise value. The clearance cost can also increase from penalties if the process is done incorrectly. A small mistake in paperwork may lead to demurrage charges, which are fees for containers staying in ports past the allowed time.
Customs Made Easy
Numerous factors can determine the cost of clearance, including taxes. Taxes or tariffs can differ based on numerous factors, including the country of origin. Some countries may face higher or lower tariffs than others and have regulations for importing. Examples include countries with Free Trade Agreements that lower clearance costs or Anti-Dumping regulations increasing costs. Another factor impacting taxes is the type of cargo, which can determine the Harmonized Tariff Schedule (HTS) classification. An HTS code is a number used in the US to classify goods and determine the tax applied. Failure to have the correct HTS code could lead to fines, audits, and seizure of the cargo.
Along with the article, there are other hidden costs to be aware of when clearing goods from customs. Failure to understand these could lead to disruptions that can strain a supply chain. This can be especially detrimental if the importer is a business with customers. An ideal way to begin is by speaking to a customs brokerage company like Customs Made Easy. Customs Brokers are intermediaries between shippers and the CBP. They do this by ensuring regulatory compliance, providing documentation, calculating duties, filing entries, and more. Brokers also give an estimate of the cost of clearing your goods from customs. Speak to a broker at 305-506-1348 or info@customsmadeeasy.com to ensure a successful customs clearance.
