AIA Importer's Toolbox Listed below are resources for importers. Links include industry support services organizations such as shipping, insurance, and international finance services, as well as information sources for items such as tariffs, duties, country-specific trade regulations.
Harmonized Tariff Schedule (HTS)
A hierarchical structure used for describing all goods in trade for duty, quota, and statistical purposes.
http://www.usitc.gov/tata/index.htmIncoterms (International Commerce Terms)A set of uniform rules designed for the interpretation of international commercial terms that define the costs, risks, and obligations of buyers and sellers in international transactions.
http://www.export911.com/e911/export/comTerm.htmCBM (cubic meter)A unit of volume used in calculating the measure of freight goods by which transportation costs are determined.
http://www.export911.comUS Customs and Border Protection (CBP)A bureau of the US Department of Homeland Security that is charged with regulating and facilitating international trade, collecting import duties, and enforcing US trade laws.
http://www.cbp.govInternational Trade Administration (ITA)
An agency in the US Department of Commerce that promotes and helps facilitate the export of manufactured goods, services, and nonagricultural commodities from the United States on behalf of American industry.
http://trade.govInternational Chamber of Commerce (ICC)
An international organization that promotes and supports global trade by promoting trade and investment, open markets for goods and services, and the free flow of capital within member states.
http://www.iccwbo.org/policy/customsInformation on International Transportation The following information and the
Rate Request Form are intended to help you get started with shipping and receiving, into or out of the USA. If you require additional assistance or more detailed information, please contact Siriani and Associates, administrators of the AAIA Freight Savings Plan, at 800-554-0005.
WHAT INFORMATION DO I NEED TO ORGANIZE AN INTERNATIONAL SHIPMENT?
1. Is it an import or an export shipment?
If you are located in the USA (including Guam, Puerto Rico and Hawaii), an import shipment will have a destination address within the USA and an export shipment will have an origin address within the USA.
2. How do I decide between an air shipment and an ocean shipment? It is a question on timing. Air shipments are faster than ocean but it is usually more expensive. For small shipments (less than 500 Kg or 3 CBM) it may be cost-effective to ship by air as ocean shipments can have higher minimum charges. Some commodities may be prohibited from air shipments.
3. What are the INCO TERMS? (INternational COmmercial TERMS) Incoterms are a defined set of trade terms that describe the rights and liabilities with regard to the sale and transport of goods. Incoterms are incorporated into the contract between buyer and seller. With regard to transportation, the incoterm will describe which party is responsible for cost and liability. As example, under the term “EX-WORKS” the seller makes the goods available at his named place of business and the buyer is responsible for all costs and liability once the goods cross the sellers dock.
For further definition visit
http://en.wikipedia.org/wiki/Incoterm.
4. How do I define the origin and the destination?
It is important to know the exact origin and destination address in order to get an accurate rate quote. The incoterm will define where your cost starts and stops. For the USA, define the named “port” or for a “door move” define the city, state and zip code. For the foreign location, define the “port” or for a door move, the city and country (sometimes a postal code is also required). As an example, you have an ocean import shipment with terms FOB-Shanghai and you require a rate quote to your warehouse in Costa Mesa, CA 92626. The origin would be “Shanghai-Port” and the destination would be “Warehouse – Costa Mesa, CA 92626”.
5. What is the commodity? Defining the commodity is important for several reasons. For transportation the commodity can be contingent upon the cost – certain commodities cost more to ship. Certain “Hazardous Materials” (Haz-Mat) or “Dangerous Goods” (DG) require specialized handling and documentation and may be prohibited by air. For taxes and duty each commodity has a specific “Harmonized Tariff Schedule” (HTS) number and associated duty rate. If you know the HTS number, advise it. If you do not know the HTS number check with your Customs House Broker (CHB). More information on the Harmonized Tariff Schedule can be found at www.usitc.gov/tata/index.htm .
6. What is the size of the shipment? For ocean LCL (Less-than-Container Load) and air shipments provide the exact weight and measurement of the entire shipment including packaging and pallet. For irregular shipments measure the outside dimensions: Length x Width x Height and define the units of measure (imperial or metric). For full ocean container, define the container size, e.g., 40-foot standard, 40-foot high cube, open top, etc. Accurate weight and measure are critical to provide an accurate rate quote.
For more information on weight and measurements visit
http://www.export911.com/e911/ship/w_or_m.htm.
7. Am I required to take insurance coverage?
Airlines, truckers or shipping lines have some minimum liabilities. It is strongly recommended you purchase the additional insurance with your freight forwarder to be fully covered against loss or damage in-transit. Insurance rates are generally quoted based on the value of the shipment, origin/destination, and commodity.
8. Which documents are needed to transport merchandise to/from overseas?
Basic documentation includes the Shipper Letter of Instruction (SLI), Commercial Invoice (CI) and Packing List (PL). The supplier or shipper produces an SLI with basic shipment information such as shipper name and address, consignee name and address, INCO term, commodity, weight, measure, mode, etc. The IFF or carrier uses the SLI to create the air-bill or ocean B/L. The shipper also produces the CI and PL on the supplier letterhead describing the contents and value of the shipment. The importer (or their CHB) utilizes these documents for local customs formalities. Additional documentation may be required depending upon commodity and origin/destination.
9. What is the difference between a dedicated International Freight Forwarder (IFF) or Customs House Broker (CHB)?
An IFF is generally associated with export shipments and arranges transportation and documentation for their clients. A CHB is generally associated with importing, is licensed within the country of importation and acts on behalf of importers to arrange the sequence of customs formalities.
10. What is required for my company to ship trade show exhibit material to international trade shows?
For companies that exhibit their products at international trade shows or exhibitions, it is important that you know about and understand the shipping procedures known as “ATA Carnets”. Carnets are like “Merchandise Passports” – international customs documents that simplify customs procedures for the temporary importation of various types of goods. Exhibit material can be shipped to foreign trade shows without having to pay duties and taxes when shipped under Carnet. Severe penalties and taxes can be assessed if the documents are not in order or if all the declared goods brought in, do not leave the foreign country within a specified time frame. You can learn more about ATA Carnets by contacting the United States Council for International Business at 866-786-5625 or
http://www.uscib.org/index.asp?documentID=1843.
International shipping can be simple or complex. If you need assistance with any aspect of importing and exporting your goods, Siriani and Associates is willing and able to assist you. Our services and consultation is free. Just remember, it is important to have clear terms and understanding between the buyer and seller and between the importer/exporter and their associated IFF/CHB.
To obtain a free international rate quote, please
click here to download the Rate Quote Form. Complete the form using the drop-down boxes and submit the completed form to Siriani and Associates, fax #800-554-5049. If you have any questions, please contact Siriani and Associates at 800-554-0005 or
info@siriani.com.