The U.S. Customs and Border Protection (CBP) has recently intensified inspections targeting shipments with multiple consignees to ensure clear ownership of imported goods. This action is in line with Section 484 of the 1930 Tariff Act, which states that only the true owner has the right to import goods into the U.S.
Ownership Issues and Inspection Risks
Some exporters have attempted to bypass inspection risks by removing or obscuring company names on packaging, but this approach is not recommended. CBP's inspection protocols extend beyond superficial packaging marks, and attempts to conceal ownership may breach customs regulations.
When CBP raises concerns about ownership, they typically request supporting documentation such as sales contracts or payment receipts. Failure to provide these documents promptly can lead to goods being returned or seized. While consolidated shipments cleared through third-party logistics companies may lower costs and streamline the process, these third parties may not be able to furnish ownership documentation upon closer scrutiny, increasing the risk of goods being returned or destroyed.
Clearing Methods: Consolidated Clearance vs. Individual Clearance
1. Consolidated Clearance
In this method, logistics providers use their own bond to combine multiple shippers' goods for clearance under a single importer of record. This process lowers costs and reduces paperwork but carries risks. Should CBP demand proof of ownership, the logistics company may struggle to provide the necessary documentation, as the listed importer is not the actual owner of the goods.
2. Individual Clearance
With individual clearance, each shipper uses their own bond and declares goods under their own importer status, providing the required clearance documents, including tax invoices. Though more expensive—typically costing $120 to $150 per entry in the U.S.—this approach ensures clear ownership, better compliance with customs regulations, and offers more security during inspections.
Customs Considerations for Different Types of Goods
1. General Trade Goods
For general trade goods, it is recommended to clear customs under the actual importer (buyer) to ensure accurate documentation and declarations that reflect the true transaction, reducing the risk of inspection.
2. Personal Items
For personal items, they cannot be cleared as commercial goods. Required documents such as passports and visas must be submitted to ensure legal declaration.
E-commerce Goods
E-commerce sellers may opt to register a company in the U.S. to import goods under a company name, simplifying procedures. For those not establishing a U.S. entity, purchasing a Customs Bond and clearing goods under their own company's name is another option. This not only speeds up clearance but also provides the required documents during ownership verification, reducing inspection risks.
U.S. Repeals $800 Duty-Free Policy, Targeting Cross-Border E-Commerce
The U.S. government has accused some Chinese cross-border e-commerce platforms of exploiting the $800 duty-free small package exemption to transport illegal or unsafe goods while bypassing U.S. health and safety standards.
Upcoming measures include:
Repealing Duty-Free Exemption: Products subject to Section 301, Section 201, or Section 232 tariffs will no longer enjoy the small value exemption. Currently, about 70% of Chinese textiles and apparel imports are subject to Section 301 tariffs.
Enhanced Data Submission: Small duty-free shipments will be required to provide additional data, including a 10-digit HTSUS code and the personal identification of the exemption applicant.
Compliance Certificates Required: Consumer goods importers (including small duty-free shipments) must submit compliance certificates electronically to CBP and the Consumer Product Safety Commission upon entry, ensuring the goods meet U.S. regulations.
Additionally, the U.S. government has urged Congress to pass comprehensive small value exemption reform, excluding sensitive products such as textiles and apparel from duty-free eligibility.
How Wakool Transport Can Assist in Addressing These Compliance Challenges
1. Customs Compliance Support:
Wakool Transport offers expert customs clearance services to help clients prepare compliant ownership documentation, avoiding delays or returns due to incomplete or unclear paperwork. For both individual and consolidated clearance needs, Wakool can provide tailored support to ensure smooth entry of goods.
2. Improving Data Submission Accuracy:
Wakool's compliance team can assist clients in completing detailed data submissions, including the newly required 10-digit HTSUS codes and related declaration information, helping businesses maintain compliance under the new policies and reduce clearance risks.
For e-commerce sellers, Wakool can assist in applying for a Customs Bond and provide CBP-compliant descriptions of goods, ensuring that each product is backed by the necessary documentation.
3. Mitigating the Impact of the $800 Duty-Free Policy Repeal:
For cross-border e-commerce sellers reliant on the $800 duty-free policy, Wakool Transport offers comprehensive import declaration solutions, helping businesses adjust their supply chain and clearance strategies to minimize additional costs imposed by the new policy.
Wakool can also help e-commerce businesses submit consumer product compliance certificates, ensuring products comply with U.S. regulations and reducing the risks posed by changes in the duty-free policy.
Conclusion
As CBP heightens scrutiny on import ownership and repeals the $800 duty-free policy, Wakool Transport provides specialized customs services, accurate data submission support, and compliance management solutions to help cross-border e-commerce sellers and importers adjust to the evolving regulatory landscape. In an era of increased oversight, Wakool Transport’s solutions offer critical safeguards for businesses navigating the complexities of U.S. import regulations.
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