Questions for foreign companies importing goods into the United States
Importing into the US Without a US Company: A Guide for Foreign Businesses
Importing goods into the United States can be a straightforward process, even for foreign companies without a US entity or Social Security Number. Here's a simplified guide on how to navigate this process.
The Importer of Record Number
A foreign company, without a US presence, cannot directly obtain an Importer Number. Typically, a US-based Customs broker or freight forwarder acts as the importer of record, using their Importer Number for the shipment.
Customs Bond and CBP Form 7501
The Importer of Record must have a customs bond to guarantee payment of duties, taxes, and compliance with customs regulations. This is mandatory for commercial imports valued over $2,500. The Importer Number appears on CBP Form 7501, the Entry Summary document submitted to CBP to clear merchandise through customs.
Engaging a Customs Broker
Working with a licensed Customs broker is critical, as they are required to clear imports and can assist with obtaining an Importer Number and compliance with tariff and duty requirements.
Applying for an EIN
If a foreign company wants its own Importer Number, it may apply for an Employer Identification Number (EIN) from the IRS without forming a US entity or obtaining an SSN. This EIN can serve as the Importer Number for customs purposes but does not constitute forming a US company.
The Role of a US Customs Broker
By working with a US Customs broker, a foreign company can avoid the need to form a US legal entity while meeting all import reporting, bonding, and duty payment obligations required by US Customs.
The Deductive and Computed Value Methods
Customs are required to use six methods to appraise the imported merchandise, with the transaction value being the predominant method for the vast majority of all imports. However, foreign businesses can petition for the computed value method instead of the deductive value method at the time the entry summary for the merchandise is filed with the port director.
Under the deductive value method, you are allowed to deduct certain costs and reasonable profit from the price. If the merchandise concerned was not sold in the condition as imported and not sold before the close of the 90th day after the date of importation, the price is the unit price at which the merchandise, after further processing, is sold in the greatest aggregate quantity before the 180th day after the date of such importation.
Importing Consumer Products via a 3PL Warehouse
Foreign businesses are allowed to import consumer products into the US via a 3PL (Third Party Logistics) warehouse in the US.
Becoming a Foreign Importer of Record
A foreign company can be a Foreign Importer of Record. You are not required to have an importer of record in the US, but you are required to have an agent (e.g. Customs Broker like Flexport) in the state where the port of entry is located.
For more information on the deductive value method, visit https://www.law.cornell.edu/cfr/text/19/152.105. For details on the computed value method, you can find the law at https://www.law.cornell.edu/cfr/text/19/152.106.
Remember, it's always advisable to consult a professional before signing any contracts that transfer ownership title.
[1] US Customs and Border Protection. (n.d.). Importing Goods into the United States. Retrieved from US Customs and Border Protection
[2] US Customs and Border Protection. (n.d.). Customs Bond. Retrieved from US Customs and Border Protection
[3] US Customs and Border Protection. (n.d.). CBP Form 7501 - Entry Summary. Retrieved from US Customs and Border Protection
[4] US Small Business Administration. (n.d.). Importing Goods into the United States. Retrieved from US Small Business Administration
Engaging in US Business and Lifestyle:
Importing goods into the United States for a foreign business can be a strategic move, influencing both financial aspects and consumer lifestyle preferences.
The Importance of Prudent Shopping Decisions:
Understanding the values, methods, and regulations associated with importing merchandise is crucial for a foreign business, as it can significantly affect the financial bottom line and overall business operations.
