All Q&A

  • What is ISF 10+2?

    ISF is the abbreviation of Importer Security Filing, that is, import security declaration, also known as anti-terrorism declaration. It is the requirement of US Customs for US importers. After the 9/11 incident, the US Customs and Border Protection (CBP) created something to strengthen US security. This is a declaration unique to the US , whose purpose is to improve safety regulation. The content includes 12 items: 10 items are provided by the importer, and 2 items are provided by the shipping company, so ISF is also called 10+2.
    The ISF declaration must send the electronic declaration data to the US Customs through the AMS or ABI system 24 hours before the shipment of the goods. In terms of ISF declaration operations, importers can entrust their trusted overseas agents to declare on their behalf.
     
    ●The specific content of the ISF declaration, that is, the 10+2 new regulations are as follows：
    1、The 2 mentioned in 10+2 is the declaration requirement for the shipping company：
    （1）VESSEL STOW PLAN
    （2）CONTAINER STATUS MESSAGE
    2、The 10 mentioned in 10+2 is to require 10 additional information units to be declared 24 hours before shipment：
    （1）Manufacturer name and address
    （2）Seller name and address
    （3）Buyer name and address
    （4）Ship to name and address
    （5）Importer of record number
    （6）Consignee number
    （7）Country of origin of the goods
    （8）Harmonized Tariff ScheduleNo. 6 digit
    （9）Container stuffing location
    （10）Consolidator name and address

    ●Who is the ISF sent by?
    (1) Importer
    (2) Or the freight forwarder or customs broker designated by the importer
     
    ●How the ISF is sent?
    (1) Existing AMS system
    (2) US Customs ABI Tariff System
     
    ●Sending time:
    Like AMS, revisions must be sent 24 hours before boarding the ship. Deadline: The last modification must be made 24 hours before the ship arrives at the port.
     

     

  • What is the difference between ISF and AMS filings?

    The differences between ISF and AMS declarations are simply distinguished as:
    AMS refers to the 24-hour manifest system or the American anti-terrorism manifest system. The main thing to declare is the information in the bill of lading, and the freight forwarder can control it at the time of declaration.

    ISF declarations are mainly entities in the supply chain. Part of the information is on the buyer, and part of the information is on the seller. How to effectively integrate these information is difficult at the beginning.

    If the freight forwarder helps to declare ISF, relevant information must have been collected when booking the space. And if the importer declares by himself, he must communicate with the seller some information when declaring.

  • US Bond Matters

    ●What does Bond mean in US customs clearance?

    Bond is the deposit that the US importer buys from the customs, and the US importer must purchase BOND from the customs. Once the importer is fined for some reason, the US customs will deduct money from the bond. Even if this BOND was not required by ISF before, import customs clearance must be purchased.

     

    ●Bond Classification

    1. Annual Bond Also known as Continuous Bond, it is purchased once a year and is suitable for customers who import goods multiple times within a year. It is valid for one year and requires Renew to continue the annual Bond qualification before it expires.

    2. single Bond，Inside the ISF system be known as single transaction。

     

    ●Bond customs clearance

    There are two customs clearance methods at the door-to-door point of the US DDP: customs clearance in the name of the US consignee, or customs clearance in the name of the consignor. If it is Amazon’s goods, most of them apply for BOND in the name of the consignor for import customs clearance. .
     

    Customs clearance in the name of Consignee, the consignee of the United States (this is mostly the case for traditional trade)

    1.Consignee, the American consignee, provides the power of attorney to the freight forwarder (American agent). At this time, the customs clearance will use the Bond of the American consignee for the declaration of American import customs clearance.

     

    2.Apply for Bond for customs clearance in the name of the shipper Shipper (most of Amazon's e-commerce goods are of this type)

    Shipper provides Power of attorney to the US agent, and the US agent applies for Bond in the US on behalf of the consignor and handles the Importer record of No.

    Annual /Continuous Bond requires more documents, and the application time is about 1-2 working days (depending on the completeness of the documents). It is recommended to apply before delivery；

    If it is a single bond, the bidding time is relatively fast, usually within 1-2 working days.

     

    No matter which customs clearance method is used, the tax ID of the American consignee must be used for customs clearance (Tax ID, also called IRS No). The full name of IRS No is the internal revenue service no. The tax identification number registered by the tax bureau; Bond and Tax id are indispensable. Therefore, you must confirm with your American customers whether there is Bond and whether they can use their Bond  and POA to clear customs. If the consignee does not have Bond or is unwilling to use their bond, the consignor must purchase Bond, and even then the Tax id must belong to the consignee in the United States.\
     

    ●Notice

    If you don’t purchase BOND, it means you haven’t registered with the US Customs. Even if all ten items of the ISF are correct, it will not be accepted by the US Customs, and you will be fined if you fail to clear the customs.

    All goods transiting the United States, goods that are shipped to other countries immediately after being shipped to the United States, and goods that are shipped to the United States and then shipped to other countries within the United States also need to declare ISF5 at the US Customs. Also like ISF10, at least ETD POL must be declared 24 hours before.

  • Customs inspection

    There will be some additional fees for customs inspection and inspection of cabinets, but the general fees are not charged by the customs, but the fees for hanging cabinets and dismantling fees charged by the wharf/counter yard. Because this fee is only for customs inspections, the wharf generally Call these fees customs inspection fees, and an invoice will be issued on site. These inspection fees are paid by customers.
    Generally, there will be an inspection notice before the customs inspection, and there will be an inspection report after the inspection. Inspection is an important means of customs supervision. Customs declaration is only one of the processes. Customs will conduct spot checks on some sensitive goods based on their own experience, the frequency of import and export of the declaring subject in the past, and national policies. Most of them are random random checks by computer.
     
    ●Customs inspection generally checks the following contents
    A.Check product name
    B.Check packaging specifications
    C.Check the quantity (number of pieces)
    D.Check weight
    E.Check the number of pieces
    F.Check wheat head
    G.Check for infringement
    H.Check the place of origin (the place where the goods are manufactured)
    I.Check tax classification
    J.Check declared price
    K.Sampling for inspection
    L.Confirmation of hidden/smuggled

  • The difference between DDP, DDU and DAP

    ●What is DDU?
    DDU (Delivered Duty Unpaid), that is, unpaid delivery (designated destination). In the actual working process, the exporter and the importer deliver the goods somewhere in the importing country, in which the exporter must bear all the costs and risks of delivering the goods to the designated place, as well as the costs and risks of going through customs procedures . Under the DDU conditions, customs duties, taxes and other official fees that need to be paid when the goods are imported are not included. The importer needs to deal with the additional costs and risks caused by the failure to handle the import customs clearance process of the goods in time.
     
    ●What is DDP?
    DDP (Delivered Duty Paid), means delivery after duty paid (designated destination), this delivery method means that the exporter will deliver the goods to the importer after completing the import customs clearance procedures at the destination designated by the importer and exporter. business. Under the terms of DDP, the exporter needs to bear all the risks in the process of transporting the goods to the designated destination, and also needs to go through customs clearance procedures at the destination port, and pay taxes, handling fees and other fees. As far as DDP is concerned, the seller needs to bear the greatest responsibility. If the seller cannot directly or indirectly obtain an import license, it is recommended to carefully consider whether to use DDP.
     
    ●What are the differences between DDU and DDP?
    The biggest difference between DDU and DDP mainly lies in the question of who will bear the risks and expenses during the import customs clearance process of the goods at the port of destination. If the exporter has the ability to complete the import declaration, then he can choose DDP. If the exporter has no ability to handle related matters, or is unwilling to go through import procedures, bear risks and costs, then he should use DDU.
     
    ●How to calculate DDU and DDP fees:
    DDU: export port fee + sea freight + destination port fee (excluding destination port tariff)
    DDP: export port fee + sea freight + destination port fee + destination port tariff
     
    ●The difference between DAP and DDU:
    DAP (Delivered at Place) is a new term in Incoterm 2010, DDU is a term in Incoterm 2000, and Incoterm 2010 has no DDU. The terms of DAP agree: Delivery at destination This term applies to one or more of any mode of transportation, and refers to delivery by the seller when the goods ready to be unloaded on the arriving means of transport are placed at the buyer's disposal at the designated destination. , the seller bears all risks of delivery of the goods to the named place. It is best for the buyer and the seller to clearly specify the location within the agreed destination, because the risk to that location is borne by the seller. It is generally recognized in the industry that DAP is almost equivalent to DDU.

  • Thirteen delivery methods are more common in international trade

    1、Ex Works (EXW)
    It means that the seller is responsible for delivering the ready goods to the buyer at its location, i.e. factory, warehouse, etc., but usually not responsible for loading the goods on the vehicle prepared by the buyer or handling the customs clearance of the goods. The buyer bears all costs and risks of transporting the goods from the seller's location to the intended destination. This term is the transaction term for which the seller bears the least responsibility. If the buyer cannot handle the export procedures of the goods, this method should not be used.
     
    2、Free Carrier (FCA)
    It means that the seller shall be responsible for delivering the goods handed over to the care of the carrier designated by the buyer at the designated place. According to commercial practice, when the seller is required to cooperate with the carrier by signing a contract, the seller may do so at the buyer's risk and expense. This term applies to any mode of transport. It should be noted that the choice of place of delivery will have an impact on the obligation to load and unload the goods at that place. Seller shall be responsible for loading if delivered at its location and shall not be responsible for unloading if delivered at any other location.
     
    3、Free Along Ship (FAS)
    It means that the seller delivers the goods to the side of the ship at the designated port of shipment or on a barge. From then on, the buyer must bear all the costs and risks of loss or damage to the goods. In addition, the buyer must go through export clearance procedures. This term applies to sea or inland waterway transport. Note: If the ship sent by the buyer cannot dock, the seller shall be responsible for transporting the goods to the side of the ship by barge and still delivering the goods by the side of the ship. Responsibility and expense of shipment are borne by the buyer.
     
    4、Free on Board(FOB)
    It means that the seller delivers the goods over the ship's rail at the designated port of shipment. After the goods have passed the ship's rail, the buyer must bear all the costs, risks, loss or damage of the goods, and requires the seller to go through the customs clearance procedures for the export of the goods. That is to say, the buyer is responsible for sending the ship to pick up the goods, and the seller should load the goods on the ship designated by the buyer at the port of shipment and within the specified time limit specified in the contract, and notify the buyer in time. The risk is transferred from the seller to the buyer when the goods are loaded on board the named vessel at the port of shipment. This term applies to sea or inland waterway transport.
     
    5、Cost and Freight(CFR or C&F)
    It means that the seller must pay the expenses and freight required to transport the goods to the designated port of destination, but after the goods are handed over to the deck of the ship, the risk of loss or damage to the goods and the additional expenses caused by accidents, after the goods have passed the designated port After the ship's rail, it is the responsibility of the seller to the buyer. In addition, the seller is required to go through customs clearance procedures for the export of the goods. That is, it means delivery on board at the port of shipment, and the seller needs to pay the cost of transporting the goods to the named port of destination. But the risk of the goods is transferred upon delivery on board at the port of shipment. This term applies to sea or inland waterway transport.
     
    6、Cost, Insurance and Freight(CIF)
    It means that in addition to the seller having the same obligations as the cost-plus-freight term, the seller must also purchase marine insurance and pay the insurance premium for the loss or damage of the goods during transportation. Therefore, in addition to having the same obligations as those in CFR terms, the seller also needs to purchase cargo insurance for the buyer and pay the insurance premium. According to general international trade practice, the seller’s insured amount should be based on the CIF price plus 10%. If the buyer and the seller have not agreed on the specific insurance, the seller only needs to obtain the minimum minimum insurance. If the buyer requires additional war insurance, the seller should provide additional insurance under the premise that the insurance premium is borne by the buyer. When the seller buys the insurance, If this is possible, insurance must be insured in the currency of the contract. This term applies to sea or inland waterway transport.
     
    7、Carriage Paid to: tid to (… named place of destination)(CPT)
    This term means that the seller pays for the carriage of the goods to the named destination. The risk of loss of or damage to the goods and any additional costs arising from events occurring after the goods have been delivered to the carrier pass from the seller to the buyer from the time the goods have been placed in the care of the carrier. In addition, the seller must go through customs clearance procedures for the export of the goods. Carrier means any person who, in a contract of carriage, undertakes to perform carriage by rail, road, air, sea, inland waterway or a combination of the above or to have the carriage performed by another person. If a subsequent carrier is also used to transport the goods to the agreed destination, the risk passes when the goods are handed over to the first carrier. This term applies to all modes of transport, including multimodal transport.
     
    8、Carriage and Insurance Paid to(… named place of destination)(CIP)
    It means that in addition to the seller having the same obligation as the CPT term to pay the freight to (... the designated destination), the seller must also apply for marine insurance and pay the insurance premium for the risk of loss or damage to the goods that should be borne by the buyer during transportation. During this period, the seller must pay for the freight to deliver the goods to the destination, and the buyer bears all risks and additional costs after the seller's delivery. This term applies to any mode of transport.
     
    9、Delivered at Frontier(...named place)(DAF)
    It means that the seller undertakes the following obligation to transport the ready goods to the designated place on the frontier, before the customs border of the adjacent country, to hand over the goods that are still on the delivery vehicle and unloaded goods to the buyer, and complete the goods Delivery is complete when the export customs clearance procedures have not yet been processed. The term border can be used for any border, including the border of the exporting country. It is therefore of the utmost importance to precisely define the frontier in question with designated places and specific points of delivery. The term applies primarily to goods transported by rail or road, but may also be used by other modes of transport.
     
    10、Delivered Ex Ship(… named port of destination)(DES)
    It means that the seller fulfills the following obligation to hand over the ready goods to the buyer without going through customs clearance procedures for the import of the goods on the deck of the ship at the designated port of destination, so the seller must bear all costs including the transportation of the goods to the designated port of destination and risk. The term DEQ should be used if the parties wish the seller to bear the risk and expense of discharge. The DES trade term can only be used when the goods are unloaded on board a ship at the port of destination by sea or inland waterway transport or multimodal transport. This term only applies to sea or inland waterway transport.
     
    11、Delivered Ex Quay (Duty Paid)(…named port of destination)(DEQ)
    This term refers to the performance of the seller's obligation to deliver the goods prepared by it to the buyer at the wharf at the named port of destination, and the seller must bear all risks and costs, including customs, taxes and other costs incurred in delivery. In view of the fact that when countries around the world use the term DEQ, the practice of who is responsible for the import formalities is not completely uniform. Therefore, when using the term DEQ, attention must be paid. This term applies to sea or inland waterway transport.
     
    12、Delivered Duty Unpaid(DDU)
    It means that the seller will deliver the prepared goods at the place designated by the importing country, and must bear all the costs and risks of transporting the goods to the designated place (excluding customs duties, taxes and other official fees payable at the time of import), and must also bear Costs and risks of customs formalities. The buyer shall bear the additional costs and risks arising from the failure to handle the import customs clearance of the goods in time. It is generally recommended that when conducting transactions with countries where it is difficult and time-consuming to handle import customs clearance, in order to avoid the impact of the transaction due to the buyer's failure to handle import customs clearance in time, it is better for the seller not to use DDU. This term applies to all modes of transport.