This video is intended to be a primer on shipping international to Columbia. It outlines the holidays to avoid, commodity restrictions, basic documents and provides important Columbian international shipping resource links.
Products on the “free” list automatically approved upon presentation of the import application or the “Registro de Importacion”.
Import licenses come in two varieties:
prior licenses (non-automatic licenses within the context of the WTO)
import registrations (automatic licenses within the context of the WTO)
Non-automatic prior licenses apply to products associated with the production of illegal drugs, national defense, health, the environment and used goods.
Import Duties
Import duties are assessed on the CIF (cost + insurance + freight) value of goods.
Customs valuation is based on the real transaction value (commercial invoice).
All importers of goods with a value of US $5,000 dollars and above must present an additional form, known as the “value declaration”, in which the importer must state the real value of the merchandise. This document supports the import declaration and import registration document.
Taxes and Fees
There is 16 percent value added tax applied on CIF + duty
A Customs Fee of 1.2 percent applied on CIF
Excise taxes ranging 20 – 40 percent on alcoholic beverages, spirits, cigarettes, etc. applied on CIF + duty
This video outlines the holidays to avoid, commodity restrictions, basic documents and provides important Costa Rican international shipping resource links.
Non-document shipments to Costa Rica must include 1 original and 2 copies of a commercial invoice in spanish.
The consignee’s telephone number, if available, must be on the invoice. Original invoices are required by law and prevent Customs delays. Invoices on company letterhead are preferred. All other types of invoices could cause shipments to be delayed in customs.
Imports must be covered by a customs value declaration if the value of the goods exceeds 1,000 Central American pesos (US$1,000), with some exceptions.
The declaration of value must contain:
information regarding all agents invloved (i.e. importer, transporter, supplier, intermediary)
information regarding the goods (origin, description)
the tariff classification
the exchange rate
the commercial invoice
the customs value
the place and country of shipment
the number and date of the bill of lading
the customs regime or procedure requested
Most products are subject to a 14 percent sales tax applied on CIF + duty.
This video is intended to be a primer on shipping international to China. It outlines the holidays to avoid, commodity restrictions, basic documents and provides important Chinese international shipping resource links.
Cargo Shipments are further subdivided into three categories:
1. Non dutiable samples and or advertising materials
2. Dutiable samples and or advertising materials
3. Formal Entry Shipments
Basic Documents for Import Into China
1. Commercial Invoice or Pro Forma Invoice
2. Waybill (provided by the carrier)
3. Packing List
4. Certificate of Origin
5. Shipper’s Export Declaration
The dutiable value of an imported good is known as its CIF value.
CIF Value=(Normal transaction price of the good) + (packing, shipping, and insurance costs) + (Any commissions).
Import Duties consists of Import Customs Duty (IAD), Value added Tax (VAT) and any Excise or tax (CT)
Import duty rates are divided into three classifications:
1. Most Favored Nation (M.F.N.) or Normal Trade Relations
2. Asia-Pacific Trade Treaty rates (Former Bangkok Agreement (BA) Rates)
3. General (Gen) Rates.
A word about Most Favored Nation Status
The moniker Most Favored Nation is really a misnomer and poorly understood by the general population. Most Favored nation status just means that China is part of the World Trade Organization and enjoys normal trading relations with the United States which includes reciprocal tariff preferential agreements. The Unites States is trying to phase out the term however other countries still use it.
Import Tax or Value added Tax
Value added Tax currently 17% on the CIF value for most items.
This video is intended to be a primer on shipping international to Chile. It outlines the holidays to avoid, commodity restrictions,basic documents and provides important Chilean international shipping resource links.
Important Points on Importing into Chile from USA
Chile is a member of APEC and a Member of the World Trade Organization. It enjoys U.S.-Chile Free Trade Agreement similar to NAFTA and uses the Harmonized Tariff Code to determine value of import goods.
When importing goods a Customs Broker is needed for shipments valued greater than $500.00
The basic document required for shipping include (links below):
commercial invoice
certificate of origin
bill of lading
packing list
Consignees Tax ID identification number (RUT) and Company Formal Name (Razon Social) must be on Airway bill or Bill of Lading and Commercial Invoice.
Duties and Taxes
CIF is defined as Harmonized Tariff value + shipping costs +insurance
Import duties range between 0 and 6 percent applied on CIF for items qualifying as U.S. origin or 6% of CIF for almost all non-qualifying products.
Excise tax on alcohol and tobacco products do apply.
Luxury goods are subject to domestic excise taxes ranging from 30 to 70%.
Import Tax 19% of (CIF +Import Duty)
No Custom Fees
Samples are exempt from Duties
Gift will be assessed Duties and Taxes
Weight and size restrictions:
Maximum weight: 70.0 kg (150.0 lbs.) per package
Maximum length: 270.0 cm (108.0 in.) per package
Maximum dimensions: 419.0 cm (165.0 in.) per package, length and girth combined
The Shipper’s Export Declaration (SED) is a commerce department form (Form 7525-V) that is required by law to enable the Census Bureau to compile official U.S. export statistics. This form is required for materials originating in the United States or Puerto Rico only.
The conditions under which an SED must be filed are as follows:
• The value of a single Schedule B commodity exceeds $2,500.00
• The shipment is traveling under an export license
• The destination includes territories that are currently experiencing strained relations with the United States such as Cuba
Shipments from the U.S. to Canada do not have to be reported in an SED except those requiring an export license.
How Do I fill out the form?
Most shippers will fill out the form on AESDirect.gov. The unfortunate thing is that when you register you need to take a tutorial and pass a certification exam to show that you know how to use the site before you can actually use the site. This can be frustrating especially if you are under a time constraint. In addition the tutorial which must be downloaded is a little confusing at first. It is ironic that the tagline for AESDirect is “Reducing Export Stress With AES” as my stress level increased dramatically when I found out that I had to sign up, take tutorial and certification exam before I could use their system.
The certification exam is made up of 30 questions and you must score 90% to pass the exam. In order to facilitate your tutorial process we have outlined the information that is important to AESDirect. This outline along with the tutorial should help you pass the certification exam on the first go around.
How do I pass the Automated Export System (AES) tutorial.
The tutorial is broken down into 5 segments:
• Introduction to AES
• USPPI Profile Maintenance
• Consignee Profile Maintenance
• Freight Forwarder Profile Maintenance
• Creating a Shipment
Important Lessons from the tutorial
Here are some points that were emphasized in the AES tutorial that you may miss taking the exma the first time around.
1. Do not use “&” when filling out form.
2. Do not use “-” when filling out form.
3. After entering information hit Tab and/or enter to proceed.
4. To retrieve a shipment you need a shipment number.
5. When the shipment is retrieved you get access to the USPPI, ITN and XTN
6. To check the status of a shipment you go to the shipment report center and you get an email message.
7. AES assigns the ITN number.
8. To delete a shipment you need the USPPI and the shipment number.
9. Consignee profiles are linked to USPPI
10. Freight Forwarder profiles are linked to USPPI and must be created by the USPPI
11. All profiles can be searched by name.
12. Each USPPI profile contains company information and cargo origin information.
13. You need a cargo origin information for all shipment locations.
14. One profile can have many cargo origin locations.
15. To fill out a USPPI profile you need a company name, EIN, contact name and number.
16. When looking for a USPPI you can enter part of name and look up corresponding USPPI for a match.
17. When you select the USPPI the EIN get populated in the shipment declaration being prepared.
18. The USPPI need to fill out the profile for the freight forwarder.
19. The consignee profile gets attached to a USPPI.
20. The freight forwarder or the USPPI fills out the consignee information.
21. When creating a shipment you can add more that one email for responses by separating them by commas.
22. The shipment number is always created by the shipper up to 17 characters and must be unique.
23. Transport reference is mandatory for vessel shipment.
24. There is a lookup table for port of exports codes. Input a “?” to get to table.
25. There is a lookup table for port of unlading codes. Input a “?” to get to table.
26. Input departure date using the following format mm/dd/yy.
27. Fill in the best estimate for the date of departure if you do not know it for sure.
28. Mode of transport has to be filed in.
29. When there are various segments involved in the shipping of an international item such as manufacture, shipment, usage etc., the USPPI is always the entity in the US that benefits monetarily from the shipment.
30. Each SED created has to be connected to a USPPI.
31. To input the Schedule B or Harmonized Tariff Code use the line item option.
32. There is a lookup feature for Schedule B or Harmonized Tariff Code.
33. Schedule B or Harmonized Tariff Code is a 10 digit number.
34. Do not use any “.” in the number.
35. The quantity of the commodity is always in units designated in the Schedule B or Harmonized Tariff Code rounded up to the next whole number.
36. Commodity value is always in dollars.
37. Commodity gross weight must be in kilograms.
38. Although a commodity does not require an export license it still may require and SED.
39. Clear section will clear everything from a particular section.
40. The number of profiles templates that can be created is neither 1000 nor 50.
The following two sources provide more detailed information about Automated Export System (AES):
Electronically Submitting Your Shipper’s Export Declaration - The Automated Export System (AES) was implemented to provide an alternative method for exporters to submit their Shipper’s Export Declarations (SEDs) as well as ensure compliance with the applicable laws governing the exportation of …
HR 5828 Would Significantly Change the Current AES Environment - See “Foreign Trade Regulations: Mandatory Automated Export System Filing for All Shipments Requiring Shipper’s Export Declaration Information,” 70 Federal Register 2005 (February 17, 2005). As the Federal Register notice’s title …
This video is intended to be a primer on shipping international to Canada. It outlines the holidays to avoid, commodity restrictions, basic documents and provides important Canadian international shipping resource links.
Important Points on Importing into Canada from USA
Canada and the Unites States function under the North America Free Trade Agreement (NAFTA). The North America Free Trade Agreement (NAFTA) provides for the elimination or progressive reduction of tariffs between Canada, U.S. and Mexico. The exemption or reduced tariff is applicable only to goods qualified under the agreement as originating goods.
To find out how NAFTA impacts the tariffs you paid for goods going from US to Canada
Canada Revenue for Tariffs under NAFTA go to Canada Revenue Agency.
In General, in order to import into Canada from the US you need:
1. You must register your business with the Canadian Government.
2. Two copies of the Cargo Control Document.
3. Two copies of the Canada Commercial invoice.
4. Two copies of a completed Form B3, Canada Customs Coding Form.
5. Any import permits, health certificates, or forms that other Canadian federal government departments require.
6. A Form A, NAFTA Certificate of Origin. This form is necessary because of the reduced tariffs enjoyed between Canada and the US. Canadian customs must be sure that the commodity originated from the United States.
7. Shipper’s Export Declarationonly when the commodity requires an export license.
How Do I know if I have to pay taxes?
It should be known that all merchandise coming into Canada must clear Customs and are subject to customs duty assessment unless the goods are duty or tax exempt by law.
What kind of Taxes Will I pay on Goods?
There are excise duties (or taxes) for beer, wines and tobacco entering Canada.
Both the Goods and Services tax (GST) and the Customs Duty need to be paid for goods entering Canada.
The Goods and Services tax is 5% on all imports with and additional provincial tax that varies.
