Import clearance:
The official procedure for approving the admission of products into the nation is known as import clearance. It entails a variety of steps and paperwork that customs officials need to make sure that import laws and regulations are followed. To clear an import, you usually need to pay any necessary fees or taxes and provide documentation such as a packing list, customs declaration, and commercial invoice. Customs officers may examine the items to confirm their value and contents, make sure import limits or quotas are met, and determine whether any fees are due. The imported items can be distributed inside the nation after clearance is received.
Why should you know about Import clearances?
As exporters shippers should know about the import clearances for various reasons,
Document Compliance: To know the document compliance of the product in other countries and to avoid the problems that occur during the Import clearance.
HTS Code: To know the right HTS codes applicable to their products
Customs Duty: The right HTS code for the product of the code will help the exporter have a better understanding of the customs duty payable.
Entry Summary: The details mentioned in the entry duty summary depict the customs duty percentage and other charges levied during the Import clearance
Types of import clearances & the features of each:
Section 321 or Low value clearance:
The U.S. Customs and Border Protection (CBP) regulations have a clause known as Section 321 that permits the release of specific low-value cargo from formal entry procedures. It is referred to as the "Section 321 de minimis" or the "Section 321 release."
Any Invoice with a value lesser than $800 falls under this section. They are not subjected to any Customs duties as per the US laws. A Customs bond is not mandatory for a de minimis release. While the goods may be eligible for duty-free treatment, they are still subject to other regulatory requirements, such as those related to health, safety, and security.
Informal Clearance:
This type of clearance is applicable when the Invoice value is between $800-$2500. This is a simplified clearance process with fewer documentation requirements. A simplified invoice or packing list may be sufficient.
It is important to note that this type of clearance falls under the customs duties payable. As it does not come under section 321 De minimis. The customs duties are levied as per the applicable HTS codes for the products. Every product has a different duty applicable which has been published on the government website.
Formal Clearance:
Formal entry is required for shipments that exceed both the de minimis and the informal entry. If the invoice value is above $2500 it comes under formal entry. It is a crucial form of entry as the Importer on record should have a Customs bond(Single Entry Or continuous entry) on file with the registered entity to Import his goods into the US.
Formal entry is a more complex and time-consuming process compared to informal entry or Section 321 release. It is typically used for higher-value shipments or goods that require a more thorough examination by customs authorities. Importers engaging in formal entry should be well-versed in customs regulations or seek the assistance of customs professionals to ensure compliance with all requirements.