Frequently Asked Questions

1. What is a Customs Broker?
Customs brokers are the only persons who are authorized by the Customs regulations to act as agents for the importers for the transaction of their Customs business. Customs brokers are private individuals or firms licensed by the Treasury Department to prepare and file the necessary Customs entries for importers, including arranging for the payment of duties found due, effecting release of goods in Customs custody and otherwise representing principals in Customs matters. As a corollary to this work, customs brokers also frequently arrange for air or ocean transportation, cargo insurance, local delivery and other requirements requisite to international commerce.

2. Why do I need to sign a Power of Attorney?
When a customs broker signs any entry or affidavit for an importer, that signature has as much legal effect as if the importer himself had signed the document. An importer authorizes the customs broker to sign and file these documents by means of a Customs power of attorney. This power of attorney is limited to Customs and related business. Because this power of attorney has so much significance, it is encumbent upon the importer to be aware of the work being performed on his behalf to ensure that all entries and declarations are accurate and correct.

3. Why can't I clear my own commodities through U.S. Customs?

A. The U.S. Customs Service does not require an importer to have a license or permit. Other agencies may require a permit, license, or other certification, depending on the on the commodity.

B. An individual is legally entitled to make his own customs clearance of goods imported for personal use or business. You may always choose to engage the services of a licensed customs broker if that is more convenient for you.

C. Customs employees are prohibited by law from performing these tasks for the importing public. They will advise and give information to importers about Customs requirements, however.

D. Because of the technical nature of customs entries, most importers of commercial shipments utilize licensed customs brokers to file their entries and clear their goods through U.S. Customs.

4. Why does U.S. Customs impose duty fees?
Duty is a form of tax on imports. The purpose of duty is to generate revenue for the United States and in some cases to protect domestic industries within the United States. Duty rates are determined by Congress and/or treaties between the United States and other nations. U.S. Customs does not set duty rates or import regulations. Their responsibility is to oversee and enforce the laws that exist.

5. Do I still need to clear U.S. Customs if all I have are personal goods?
All merchandise coming into the United States must clear U.S. Customs and is subject to a Customs duty fee unless specifically exempted from duty by law. In the case of a single non-commercial shipment, you may appoint a relative or other individual to act as your agent for Customs purposes. This person must have knowledge of the facts pertaining to your shipment and must be authorized in writing to act for you. Or you may choose to utilize the services of a licensed customs broker.

6. Why are duty rates, in some cases, higher in percentage?
The reasoning behind duty rates is a political and historical matter and is determined by Congress and the executive branch of the U.S. Government. In some cases the motivation is to protect certain vital domestic industries in the United States. In other cases our country strives to aid developing nations strengthen their economy. In general, duty rates have dropped dramatically over the last 4 decades as our political processes have followed a "free market" philosophy.

7. Can I bring back souvenirs from my trip without having to clear U.S. Customs?
Technically, every time you return from traveling abroad you clear Customs. In most cases, your declaration which you complete on the plane prior to your arrival in the U.S. constitutes your entry. The inspector you speak with as you go through Customs at the arriving airport clears your goods, including any purchases you made while outside the U.S. In some cases a formal entry will be required and Customs will hold the cargo (or have the carrier hold it) pending completion of a formal entry.

An excellent free booklet which will provide information for the traveler is "Know before you go," Customs publication #512. This is available at goverment bookstores and Customs offices. It also should be available at the Customs offices at your international airport. This booklet is filled with excellent information for travelers, including your allowable exemptions and common pitfalls to avoid.

8. Why can't I get my goods then clear U.S. Customs at a later time?
U.S. Customs regulations require all importing carriers and cargo locations to hold merchandise until they are presented with a release issued by Customs. Any carrier or terminal that allows the importer to receive his goods without a proper Customs release is subject to penalty.

9. Why am I being told to file a Prior Notice with the FDA?
FDA has updated their handling of all imports shipments. Before now, all importers had to do was inform and clear FDA when they brought in various products that required FDA clearance. Due to the tragic events of 9/ 11, FDA, along with everyone else, are now tightening our border security for the safety of the national public. This new system does require, what they call "PRIOR NOTICE" to be submitted before the shipment arrives into the United States.

Submitting a Prior Notice form will inform FDA of complete information about the goods being imported the importer, manufacturer, and shipper information. This form is a requirement and shipments that do not have this form submitted before actual import may be subject to monetary penalties. Please click here to get the latest news regarding FDA's new regulations.

If you have any questions, please feel free to contact us and we will respond in a timely manner with our answer or advise.