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Category Archives: Customs Brokerage

Certificate of Origin Overview

certificate of origin

What is a Certificate of Origin?

As defined by the International Chamber of Commerce (ICC) “a Certificate of Origin (CO) is an important international trade document that certifies that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country. They declare the ‘nationality’ of the product and serve as a declaration by the exporter to satisfy customs or trade requirements”.

The ICC also explains that COs might be requested by customs, banks, private stakeholders and importers for several purposes. Many countries in the world require CO for customs clearance procedures: when determining the duty that will be assessed on the goods or, in some cases, whether the goods may be legally imported at all.

The ICC has its own guidelines and formats for the issuance of Certificate of Origins, as an accredited international entity that can issue and attest these documents. Also, governments might have their own requirements regarding what information and how it should be reflected in the CO. Then the United States has customized templates of CO’s applied to certain current trade agreements that you can access on the below link. 

When are Certificates of Origin required?

The most common case is when Free Trade Agreement benefits are being applied to import cargo.

The US holds Free Trade Agreements with many countries and most Free Trade Agreements (FTAs) have a particular country of origin certificate, such as the North American Free Trade Agreement (NAFTA) or the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).

These CO’s are required in the customs clearance process when the importer is claiming preferential benefits based on the rules of origin specified on the treaty and validated by the Certificate of Origin.

Benefits of the Certificate of Origin:

Here are some reasons that highlight the importance of the Certificate of Origin:

  • It helps with a smooth customs clearance process for products.
  • It helps products stand apart from the competition.
  • It offers statistical reporting.
  • It offers effective control management for exports and imports.
  • It also helps you find out whether you can export and import certain goods legally.
  • The certificate helps in the proper application of duties.

Bottom Line

Sometimes, transporting your company’s goods may seem quite confusing. You may not know about the paperwork involved in the process or you may be having trouble in determining the best course of action. Our logistics team here at Promptus is here to assist your business in making sure your shipment has the appropriate documents for a smooth shipment ‐ contact us today for a free quote.

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Understanding the Difference Between Demurrage and Detention

What These Additional Charges Mean For You

What Are Demurrage and Detention Fees

When importing:

  • Demurrage charges occur when cargo is left in possession of the terminal for longer than the agreed-upon free time. Simply put, these charges start to tack on to your final cost if you do not pick up your container in time.
  • When import containers have been pulled off the terminal or port and are not returned empty to the designated terminal within the predetermined amount of free time, then you will be subject to detention fees.

When exporting:

  • When shipping out cargo, you must provide the necessary, accurate shipping documents. If something holds up your goods at the export terminal, you may be subject to demurrage fees
  • Similar to import demurrage costs, detention fees are applied to outgoing shipments when a customer fails to drop off their container at the steamship line or shipping port within the allocated free time frame.
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How To Avoid Additional Costs

Now and then unavoidable incidents occur, causing bumps in the road and delays in scheduling. While unfortunate, it does happen to everyone. But if you find yourself having to allocate additional funds for demurrage or detention fees, you might need to sit down and figure out why.

Below are some tips to help you minimize the occurrence of these charges:

  • Plan ahead – and then, make a back-up plan! The best way to avoid set-backs or being late with pick-ups or drop-offs is to plan the entire shipment carefully. Take the time to make sure you cover all the bases – and then double-check!
  • Have an alternate trucking back-up plan.
  • On import cargo, if possible pre-clear your shipment. This will reduce the time the cargo will remain at the import terminal due to customs formalities.
  • Communication with the destination location is key to make sure unloading of the cargo is done within the allowed free time.
  • If you will be importing or exporting goods during a busy season or using a high-volume port, allow yourself extra time and schedule your shipments well in advance to ensure you get an appointment within your allowed free time.

At Promptus LLC, we take care of these headaches for you. With our freight forwarding and Customs Brokerage services, we can take care of the complicated parts and help reduce the likelihood of demurrage and detention costs. Contact us today at 305-687-1405 to get your free quote for our freight forwarding services!

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Understanding the New C-TPAT Guidelines

Explore The New Criteria and How It May Affect Your Business

Understanding the New C-TPAT Guidelines

In the shipping industry, there are many policies and governing agencies in place to help streamline efficiency among players and protect the safety and security of all parties involved. One such initiative is the ‘Customs-Trade Partnership Against Terrorism’, more commonly known as the C-TPAT.

As the name suggests, the C-TPAT is aimed to help combat terrorism internationally. It calls on members of the shipping industry – such as carriers, manufacturers, freight forwarders, licensed Customs Brokers, logistics agencies, and more – to help minimize security gaps and ease the threat of terrorism.

About the C-TPAT Initiative

Launched in November 2001, the C-TPAT works closely with the US Customs & Border Protection Agency (CBP) to enforce and police anti-terrorism initiatives within the shipping industry. The goal of the initiative is to help maintain the integrity and ensure the safety of the community while reducing the threat of terrorism and security gaps in the system.

Since its inception, over 10,000 members of the trade industry have become certified partners of the C-TPAT. The majority of participating members are importers, as they have the most direct relationship with the supply chain and can help implement protection and security measures most effectively. However, just about anyone involved with the shipping industry and trade community can become involved with the C-TPAT, including carriers, transportation fleets, port authorities, terminal operations, 3PL companies, and more.

Certified members of the C-TPAT can also enjoy some perks including reduced fees, faster processing times, and reduced inspections.

New C-TPAT Guidelines

On May 3, 2019, CBP and C-TPAT reviewed and released the final update to the Minimum Security Criteria (MSC) program. The new update aims to target the highest priority security threats, particularly in the fields of cybersecurity, agricultural containments, terrorism financing, and security technology. The initiative pushes members to implement the protection, prevention, and proper use of technologies and safety requirements based on the CBPs recommendations.

Throughout the rest of 2019, C-TPAT certified partners will be working to implement the MSC program internally, as per the proposed approach outlined by the CBP. It is recommended to integrate the new changes over four phases, with all members expected to be complying by 2020 (regardless of when their next validation is scheduled). The CBP has created three focus areas encompassing the 12 current MSC categories which apply across the supply chain to various groups. They are:

  • Corporate security, which oversees areas of risk assessment and business partner requirements, and will now include cybersecurity and security vision and responsibility.
  • Transportation security involves overseeing conveyance and instruments of international traffic security, seal security, procedural security, and the newly introduced agricultural security.
  • People and physical security, which refers to physical access controls, personnel and physical security, as well as education, training, and awareness.

Implementing the New Guidelines

What this means for members of the C-TPAT is that new changes may need to be addressed within your own company. It is the responsibility of all accepted partners to do their part to help ensure the safety of the supply chain among the people involved in the process. Since the new changes must be in place by 2020, members are encouraged to reach out to supply chain security specialists if they need help implementing something.

As we mentioned earlier, CBP recommends internally integrating the new MSC program in phases, to help ensure a sense of uniformity among members and ensure all the necessary steps are met.

The phases are as follows:

  1. Implementing cybersecurity programs, IIT security and seal security to combat cyberterrorism and hackers.
  2. Promoting the education, training, and awareness necessary to ensure all your employees and business partners are properly informed on areas such as business partner security and risk assessment.
  3. Introducing security vision and responsibility to your team, including highlighting the importance of physical security and physical access codes.
  4. Cracking down on agricultural security, including the prevention of containments and pests from entering the supply chain. During this phase, members should be introducing personnel security and procedural security, as well.

Staying Ahead in the Shipping Industry

Keeping the community protected from terrorist attacks via our shipping industry begins at the supply chain. By implementing well-researched, modernized security measures, the C-TPAT can help to reduce evolving supply chain threats. As the field of freight forwarding and importing becomes exponentially larger and more complex, the risk of attacks from global terror organizations and cyber-terrorists increases.

At Promptus LLC, we pride ourselves on staying at the forefront of issues affecting the supply chain and freight forwarding industry. To ensure affected parties are aware and well-informed of the proposed changes introduced by the MSC, the CBP offers webinars, weekly workshops, and workbooks. Promptus can help assist you with understanding the new C-TPAT regulations, and connect you with a Licensed Customs Broker. Call us at 1-877-776-6799 to receive your free quote today!

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What Happens When Import Cargo Is Put on Hold by Customs

Understanding the Different Types of US Customs Holds and Exams

Picture this scenario: after weeks of production at the factory and hundreds of emails and phone calls, your cargo is finally ready to ship from the manufacturing country to the US. You are rushing against the clock, working diligently to deliver to your customers. At first, everything seems to be going well; your cargo arrives at the destination port, then all of a sudden, your customs broker is advised that your shipment is on Customs Hold.

But what does this mean, and what happens next?

With thousands of tons of cargo coming into the country every day, it is the responsibility of US Customs and Border Protection to stay on top of regulating restricted, illegal, or even improperly packaged cargo many import shipments are flagged, putting process on hold and potentially subjecting the merchandise to an exam.

Now, the easiest way to reduce your risk of CBP flagging your cargo is to take the necessary precautions to make sure everything meets regulation. We can give you some tips to help make sure you check all the right boxes before importing goods into the US. However, there may be times where your cargo is randomly selected, or something about it prompts Customs to inspect it. When this happens, it can help to know what the process may be and what may happen next.

Where Does Flagged Cargo Go?

If Customs holds your cargo, two things may happen: an agent will perform the inspection at the arrival destination, or the merchandise will be transported to a Centralized Examination Station (CES). Unfortunately, in addition to delaying your cargo from arriving in a timely fashion, having it inspected could mean extra fees for you.

The CBP will notify you when placing a hold on your cargo, and during the waiting period, you will be able to contact CBP directly or through your customs broker.

Types of Cargo Holds

When cargo is imported into the United States, it is subject to specific rules. For example, certain foods, animals, or hazardous materials must be handled in a certain way or may be banned entirely from entering the country. In other cases, there are requirements for the type of paperwork, packaging, or labeling that must be followed and were not appropriately met.

If your cargo gets held for further inspection, you will receive a letter from the Customs and Border Protection agency informing you of the type of hold it is and what is needed from the importer to move forward.

These are the most frequent type of cargo holds you may encounter when importing goods into the US:

  • Manifest Hold: If your shipping documents, such as the manifest or bill of lading, are missing, incorrect, illegible, or need to be verified.
  • Commercial Enforcement Hold: This is a blanket term that can refer to any hold placed by Customs or another alphabet agency. A CBP agent can also set a commercial enforcement hold on your cargo if additional verification is required for copyright, trademark, safety standards, or licensing.
  • Statistical Validation Hold: If there are discrepancies between your shipping documents and the actual cargo, such as different weights, values, or commodity declarations.

Once a CBP agent has flagged your shipment for holding, they must perform an examination. As we stated above, they have around a month to complete this. As per Customs laws, the exam must occur at the place of arrival, unless the port director or similar authority states otherwise.

Here are the types of exams the Customs and Border Protection agency is likely to perform in the event of a cargo hold:

  • VACIS/NII Exam: Respectively, this stands for Vehicle and Cargo Inspection System Exam and Non-intrusive Inspection. This exam the easiest, cheapest, and fastest, as it merely requires that your goods go through a giant x-ray machine, giving the CBP agents a better look at its contents.
  • Tailgate Exam: This is another simple test, in which the Customs agent handling the inspection opens the freight container and performs a brief visual check of the items inside.
  • Intensive Exam: This is the ‘full monty’ – meaning your merchandise will be thoroughly inspected at a CES location. The entire cargo container will be taken to a private corporation previously appointed by CBP, where it will be unloaded, sorted, and stripped. The Customs agents may take samples, if necessary.

All in all, this process can take up to a few weeks if Customs is dragging their feet, which could result in additional storage fees for the importing party. Ocean shipments typically come back in 2 – 5 days for x-ray and tailgate exams, and 5 – 7 days for intensive inspections. When transporting cargo via air freight, however, the wait times may be shorter.

Need Help? Hire A Customs Broker!

Having trouble understanding the requirements for importing goods from another country? We can help! We are a global logistics company that offers freight forwarding services to companies all over the world. In addition to various freight transportation options, we can help organize distribution and warehouse storage and issue you a licensed Customs Broker to help sort through any necessary paperwork that is needed for your shipments. If CBP holds your cargo, our Brokers will help you understand the type of hold and what kind of fees you may be subject to pay. Contact us today at (305) 687-1405 to get a Free Quote for our services!

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The Basics of the Harmonized Tariff Schedule of the United States

Importance of the HTSUS in the Import/Export Industry

harmonized tariff schedule

The Harmonized Tariff Schedule of the United States, aka the HTSUS or HTS, is an important manual used in just about every import or export transaction that occurs. Sometimes known as the Harmonized Tariff Schedule of the United States Annotated (HTSA), this government-issued document is created by the Office of Trade Affairs and Trade Agreements of the USITC and is regulated by the Customs and Border Protection (CBP) agency.

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The History of the HTSUS

The primary responsibility of the HTS is to dictate the tariffs, duties, and statistical categories for merchandise being imported into the United States. The national system that is used in this country is modeled off the International Harmonized System, which is used to categorize most of the world’s trade. The HS was introduced in 1988 by the World Customs Organization (WCO) and has since been adopted by most countries. From there, individual countries, such as the United States, have created their own versions to keep track of domestic imports.

Congress enacted the HTSUS in 1989, replacing the former Tariff Schedules to this uniform version. Companies can refer to the most recent version of this document to double check the current amount or classification of the goods they are importing. This can help them be aware of any tariffs that may be imposed or duties that will be required to successfully import their merchandise. To make things easier for domestic and international importers, the HS and the HTS classifications typically match up to the 6-digit level.

The HTSUS Explained

While it may seem confusing at first, the Harmonized Tariff Schedule can actually be quite easy to understand. The system is designed so that all traded goods are classified by their material composition, intended function, and/or the product name. Each article falls into only one category, and the document is thoroughly divided into chapters designated with a 2-digit number. The corresponding product categories are then identified with a specific digit number. Chapters designated by 4-digits are known as headings; chapters designated by 6, 8-, and 10-digits are known as subheadings.

While this guide is stylized and distributed by the United States International Trade Commission (USITC), only the CBP is authorized to offer legally binding advice or rulings on the classification of imports. Our Customs Brokers’ always take the time to read the newest edition of the HTS to ensure their advice is relevant and accurate.

The CBP uses the system developed by the USITC to classify imported merchandise. Since just about every single good you can think of has been classified. Over 10,000 subheadings can be referred to in order to confirm the duty of that product. Ultimately, the goal is for importers to find the product’s corresponding classification code in order to determine the up-to-date duty rate that will need to be paid in order to successfully import that item.

Updates to the HTS

You may have heard plenty of buzz about the HTS or may be in the process of updating your own copy, as the newest version of the HTSUS was released late April 2018. This copy, which is the third revision of the version, released January 1st, 2018, details some modifications that may be relevant to some importers.

When going through the change record, you will note that the products are listed using their classification numbers, so it is important to familiarize yourself with the codes relevant to your merchandise. If you find yourself confused or unsure how to read the new changes, one of our licensed Customs Brokers can help!

Navigate Duties and Taxes Like a Pro

We understand that not all companies with import/export needs have the time or background to fully understand relevant Customs laws. Documents like the Harmonized Tariff Schedule can be difficult to navigate without prior knowledge or a basic understanding of the CBP’s system. Promptus LLC is dedicated to providing expert assistance to companies large and small with a variety of global logistics needs. Contact us today to receive your free quote for our services.

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Antidumping and Countervailing Duties: Does It Affect Your International Imports?

Everything Foreign Manufacturers Need to Know About AD/CVD

antidumping and countervailing duties

In order to successfully import goods to this country, there are a number of rules and regulations that must be met. There are different organizations assigned to oversee various aspects of the import/export industry, such as the US Customs and Border Protection (CBP) agency. Other agencies that assist with regulating foreign imports are the International Trade Commission (ITC) and the Department of Commerce (DOC).

These three organizations are particularly important when it comes to enforcing antidumping and countervailing duties (AD/CVD) on foreign manufacturers. It is important to take the time to go over the extent of AD/CVD orders to ensure that your merchandise does not fall under it. If it does, you must take the necessary steps to avoid incurring this penalty.

What Are Antidumping and Countervailing Duties?

Under the Tariff Act of 1930, the United States Department of Commerce implemented a system of rules that affect all foreign manufacturers planning to import their goods into the United States. It essentially requires all international importers to sell their goods at a fair price within the market. If the DOC finds that imported goods have been sold in the US at a subsidized or drastically reduced price, the company that imported the goods will be subject to antidumping and countervailing duties.

The intention of this is to level the playing field for American manufacturers and ensure that the market is not flooded with low-cost competition, ultimately making it impossible for American companies to push their goods in their own country.

This means that if you are a foreign manufacturer and have received subsidies or tax breaks for your government for importing goods into the US at unfairly low prices, you may be subject to AD/CVD.

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How Do I Know If My Merchandise is Subject to AD/CV Duties?

As an international importer of goods into the United States, it is your sole responsibility to make yourself fully aware of the current market for your merchandise. The scope of your merchandise in regards to AD/CVD is at the discretion of the agencies administering the antidumping laws, however, you can refer to different resources to get a better understanding of AD/CVD operations.

Ultimately, as long as you do your homework and check the current duty rates of imported merchandise from your country into the United States, you should be able to avoid any unexpected taxes or fees.

Hire a Customs Broker to Help

A great way to ensure that you don’t miss anything is to hire a Licensed Customs Broker who has experience with international imports. At Promptus LLC, we have a number of qualified Customs Brokers available to help you sort through all the necessary paperwork and regulations to legally import goods into the United States. Contact us today to receive your Free Quote for our services!

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Foreign Importer of Record For International Shipments

Exporting Goods to the US? Here’s What You Need to Know

Are you a business owner located outside of the United States but are looking to import your goods into the country? You are not alone. Many international companies aim to have a presence in the US to help expand their business and increase revenue. To do so, you will need to take the time to file the necessary paperwork with the United States Customs and Border Protection (CBP) Agency.

Can a foreign company export to the United States without an importer of record based in the U.S.?

As explained by the CBP, the answer is yes, your company “must have an agent in the state where the port of entry is located that serves as resident agent in the U.S. on behalf of the foreign corporation’s behalf. For instance, a Customs Broker that has been named in a Customs and Border Protection’s Power of Attorney may make entry on behalf of the exporter or his/her representative.”

 You May Also Like:4 Tips for More Successful International Shipments 

But What Exactly is a Foreign Importer of Record?

Promptus, LLC has a number of experiences US customs brokers available to help companies all over the world go through the necessary motions to get their merchandise over to the US.

Rather than sending a representative from your company to the United States to act as the foreign importer of record, you can hire a customs broker. You will need to provide your Customs Broker the following information:

  • A Customs Power of Attorney document signed by two officers of the business.
  • A copy of your Articles of Incorporation, including a copy of the document that specifies the authority of the officers signing the Power of Attorney.
  • Copies of the photo IDs of the two signing officers.

Upon submission of these documents to your customs broker, they will be able to apply for the Customs Assigned Number, which will allow you to obtain a customs bond. From there, you will be able to ship your goods to the US, assuming any other relevant stipulations are met. For example, if you are importing trademarked goods or items regulated by the FDA, FCC, or similar entities, please be sure all the necessary registrations and documentation are filed.

You will also need the ultimate consignee’s U.S. address and Tax ID number, which must be noted on the customs entry.

Let An Expert Help You!

Don’t stress yourself spending extra time, money, and energy on trying to understand certain CBP regulations and rules. We want our clients to be able to put their efforts back into what really matters: their business.

We will work with you to provide all the necessary paperwork and obtain all the accompanying documentation to ensure your shipments arrive smoothly and without incurring additional fees or penalties. Contact us today to get your free quote for any of our global logistics services.

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Temporary Import Bond (TIB) for Import/Export Companies

What is a Temporary Importation Under Bond and When Do You Need One?

If you are in the import/export business, it is likely that you will need to obtain a number of different customs bonds throughout your operation. It is highly recommended to get assistance to help you work through all the necessary paperwork and understand what type of bonds you will need for certain shipments.

One of these bonds is a temporary import bond (TIB), which can allow you to bring goods into the United States duty-free.

What Does a Temporary Import Bond Allow?

A temporary import bond is an addition to a preexisting customs bond that will allow importers to bring a specific list of goods into the country without having to pay the traditional customs taxes and tariffs. Instead, the importer will be allowed to post a bond for (typically) twice the amount of the duty, taxes, and any additional fees.

Who Can Obtain a TIB?

As defined by Customs and Border Protection, only items defined in the Harmonized Tariff Schedule of the U.S. (HTSUS) between subheadings 9813.00.05 through 9813.00.75 are eligible for TIB entry. The exception to this is if these items are being brought into the country with the intent of being sold or distributed. Any merchandise being imported for commerce within the US will not be eligible for temporary importation unless it is sold to a foreign purchaser for exportation.

There are 14 subheadings in the HTSUS that describe what goods importers are allowed to bring in under a TIB. They are as follows:

  1. Items to be repaired, altered, or processed.
  2. Women’s models for use solely as models in their own locale.
  3. Items imported by illustrators and photographers intended only for use as models in their own enterprise, or within catalogs, pamphlets, or similar advertising materials.
  4. Samples intended only for taking orders of goods.
  5. Items intended solely for assessment with a view to reproduction and movie ads, excluding photoengraved printing plates for examination and reproduction.
  6. Items imported exclusively for testing, experimentation, or review, including specifications, photos, and articles to be used for study and experimentation purposes.
  7. Cars, airplanes, airships, balloons, motorcycles, bicycles, boats, racing shells, and the like; including equipment brought temporarily into the country by nonresidents with the intention of taking part in races or similar contests.
  8. Locomotives and similar train equipment brought into the US temporarily for emergency purposes, such as fighting fires, clearing obstructions, or doing repairs.
  9. Containers for compressed gasses, both empty or filled, as well as containers for use in converting or holding goods useable for this purpose.
  10. Professional equipment, repair tools, tools of trade, camping equipment, and brought by nonresidents staying in the country temporarily.
  11. Items of special designs temporarily imported specifically for use of the manufacturer or production of goods for export.
  12. Animals, livestock, and poultry brought into the country for the exclusive purpose of breeding, exhibition, or prize-earning competitions.
  13. Works of art such as engravings, photographs, philosophical or scientific apparatuses brought by foreign artists, scientists, or lecturers with the intention of exhibition or similar encouragement of the subject.
  14. Automobile chassis and bodies and cars, or any portion of them, with the sole intention of show and exhibition.

Any article imported under the TIB provision must be exported within one year from the date of importation. However, upon application to the director of the port where the entry was filed, this one-year period of exportation may be extended for further periods, which, when added to the initial one year, shall not exceed a total of three years. There are two exceptions to the above time limitations:

  1. In the case of articles covered under Subheading 9813.00.75 (autos and parts for show purposes), the period of importation may not exceed six months and may not be extended;
  2. Articles covered under Subheading 9813.00.50 (tools of trade), if seized for reasons other than by suit of private persons, have the requirement of exportation suspended during the period of seizure.

It is important to keep in mind that all situations may vary and you may not always qualify for a TIB. The best way to ensure that you have sorted through any confusing practices is to consult with a Licensed Customs Broker.

Conduct Your Business With Confidence

We can work closely with you to ensure you truly understand CBP’s import/export requirements and policies. Our goal is to help your business avoid costly fees, liquidated damages, or penalties due to improper shipping practices. Call us at 1-877-776-6799 to get your free quote today!

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The Practical Benefits of a Foreign Trade Zone

Why Companies Prefer to Use a FTZ For International Trade

Shipping and logistics can often span to multiple areas throughout the world, which means dealing with international trade laws and global market rules. This includes customs duties, taxes and tariffs, and other bureaucratic regulations. For US-based shippers, this can mean expensive costs and complicated instructions. The U.S. Customs and Border Protection (CBP) created secure areas outside of their typical jurisdiction, known as Foreign-Trade Zones (FTZ).

Understanding Foreign Trade Zones

The Foreign Trade Zones Act was established in 1934, during the Great Depression, to help expedite foreign trade while lower costs for US operations that were engaged in international commerce. In this day, an FTZ is an area that operates under CBP supervision in areas where special procedures can be used to encourage US trade activity. These zones are located within or adjacent to CBP ports of entry in the United States. They are known internationally by many names, most commonly free trade zones.

Essentially, an FTZ is an area where goods can be traded internationally without being subjected to the typical quotas and tariffs. They are subject to the rules and regulations of the US in addition to the area in which the merchandise is located.

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Benefits of Foreign Trade Zones

As you may know, producing a finished product usually requires raw goods from a variety of manufacturers, often located in various parts of the world. Without the FTZ agreement, companies trying to import their finished goods into the United States would be forced to pay tariffs on all the components to the assembly location as well as into the US. Instead, an FTZ offers the advantage of avoiding all import duties as long as the goods are stored, repackaged, or prepared in an FTZ.

This way, companies only have to pay the import tariff into the United States. This provides an obvious financial benefit for companies who may be subjected to inverted tariffs or duties on waste or yield loss. Without a zone, after all, all items entering the area will be subject to import tax. For companies that generate a lot of scrap or waste to create their merchandise, this means having to pay tariffs on everything, even if some will be lost in the production process. With an FTZ, you will only be required to pay taxes on the finished product, which saves you tariffs on any materials that are lost during the yield of your goods.

Inverted tariffs pose an issue for companies that wish to make their products in the United States. This is another reason why companies utilize the FTZ program. In many cases, a raw good can have a higher import tax than the finished product itself would. This gives people creating goods outside of the U.S. an unfair financial advantage over their domestic competition. The FTZ program allows for duty reduction on these inverted tariff situations to help level the playing field.

Not to mention, storing your goods in an FTZ gives you the safety and reliability of a CBP supervised facility. Systems are implemented to help companies that make multiple deliveries save money by only having to pay for weekly Customs entries, versus having to pay for each individual one. Promptus, LLC has licensed Customs Brokers available on staff to help ensure your company submits all necessary paperwork to avoid any penalties or additional duties.

Choosing the Right Type of FTZ

There are two types of foreign trade zones available for global logistics needs: general-purpose zones and special-purpose zones.

  • A general-purpose zone must be available to multiple companies and is only available for warehousing. These are better suited for smaller companies and corporations that do not need an ongoing FTZ arrangement.
  • A special-purpose FTZ is available exclusively for to a single company for a carefully designated purpose. These are better for manufacturing plants or distribution facilities too far from other industrial areas.

This is where a 3PL comes in handy. If you are not sure which type of FTZ is best for you, we are happy to offer you a consultation and quote for services. Promptus, LLC works closely with each business to understand exactly what type of logistics services they need to maximize efficiency. We provide full-scale freight forwarding services, including ocean shipping for companies of all sizes. Together, we can determine where and how you should be using FTZs to your advantage.

Promptus, LLC Delivers the Future of Freight Forwarding

Promptus, LLC can help you to save money and take advantage of a number of benefits that you can achieve by using an FTZ. We allow you the technology to track your inventory, keep up with manufacturing progress, and manage high-volume operations from within the FTZ. With over 15 years of service, Promptus can provide importer and exporters with all their global logistics needs. Call us today at 305-687-1405 to get your free quote today!

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What You Need To Know When Importing Apparel

Familiarize Yourself With the Necessary Steps to Maximize Productivity

importing apparel


Apparel is one of the most important import industries in America, bringing in around $80 billion in clothing and other apparel per year. Naturally, there are a number of regulations that your business is expected to comply with if you wish to import any type of apparel or textile into this United States of America. Missing a step or failing to submit the necessary documents, could put your business at risk for incurring hefty tariffs or penalties.

To take better precaution, we invite you to contact us and speak with one of our licensed Florida Customs Brokers who will be more than happy to assist you every step of the way.

Recognize Compliance Agencies

Aside from the Customs Border Protection (CBP), there are a number of other official acronyms that you will have to familiarize yourself with in order to successfully import apparel into the United States. Here are a few you’ll definitely see when declaring your goods and submitting any necessary paperwork:

Understand Labeling Requirements

Some of the most important things you must familiarize yourself with when it comes to apparel imports are labeling laws and requirements. As mentioned above, the FTC enforces these with cooperation from the CBP.

Basically, these laws dictate that manufacturers and importers must include the following information on all of their imports as clearly as possible:

  • Proper care instructions
  • Country of origin
  • Fiber content
  • Manufacturer identity

Why Chose A Customs Broker?

While it is completely possible for a business to dedicate the time and research to go through all the necessary motions to successfully clear an import shipment into the United States, you always run the risk of making a damaging shipping mistake. After all, your business is apparel, not imports!

Promptus LLC is an established global logistic provider with over 3 decades of experience. We are well acquainted with apparel import regulations and our agents work alongside CBP agents on a daily basis. When you trust the experts, you can rest assure that your apparel will never incur any fees due to failure to meet compliance regulations. We are based near one of the biggest shipping hubs in America, the Port of Miami, however we can clear your shipment at any port or airport of entry in the United States. Contact us today at 305-687-1405 for your personalized quote.

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