Customs entry, also known as customs clearance or customs declaration, is the process of complying with legal requirements and submitting necessary documentation to the customs authorities of a country to enable the import or export of goods across international borders. This process involves various procedures such as providing information about the goods being imported or exported, paying applicable taxes and duties, and obtaining any required permits or licenses. Failure to properly comply with customs entry requirements can result in significant delays, fines, or even seizure of goods. Thus, understanding the customs entry process is essential for businesses engaged in international trade to avoid potential legal and financial risks.
The information that is required in the Customs entry form:
Country of origin
Description of the goods
Cost, insurance and freight (CIF) value or the goods
Customs classification number, and
Approximate amount of duties you expect to pay on the goods.
There are 2 types of Customs entry: formal Customs Entry and informal Customs Entry.
Formal Customs Entry: Goods or merchandise valued at least, total up to 2500 USD, or higher must be covered by either an entry or surety bond in order to be accepted into the country. That means they all need a formal entry. Usually, these goods are imported for commercial purposes. Importers who already have customs entry bonds on file with the Customs and Border Protection (CBP) are allowed to receive their goods before they’ve paid their taxes, fees, and duties.
Informal Customs Entry: Unlike formal customs, informal customs goods do not require an entry bond. Informal entries are typically granted to goods less than $2,500, and they are considered to be for consumption purposes. But there are some exceptions. One of the most notable exceptions is textile imports. For textiles, entries valued at $250 or over need to be declared as formal. You can confirm any exceptions with your specific port of entry.
Nestled in the clear blue waters of the Greater Antilles in the Caribbean Sea, the Dominican Republic is perhaps best known for its white sandy beaches and world-class golf courses. But here's a little-known economic fact: According to the World Bank, the Dominican Republic has actually enjoyed one of the strongest growth rates in Latin America and the Caribbean over the past 25 years.
The Dominican Republic's economy has largely rebounded from the global recession. It remains one of the fastest growing economies in the region. Its top three trading partners include the United States, China and Haiti. As a small island nation, the Dominican Republic relies far more on imports than on exports. In this article, we will take a closer look at importsfrom the Dominican Republic.
What are the main imports of the Dominican Republic?
Importing from China: What you need to know (Part 1)
The biggest challenge of importing from China
Imported from China? If you want to learn about the biggest challenges and opportunities when importing from China, you've come to the right place.
We sat down with Jorge Mora, an import expert consultant from China, the world's largest exporter, and author of the Import from China blog. In this article, he explains toTJ chinafreight what are the main challenges importers face when dealing with China, and tips on how to overcome them. We'll also provide advice, best practices, and common misconceptions to clarify your concerns about importing from China.
You have over 10 years of experience helping SMEs import products from China. When importing from China for the first time, what do you think are their main problems?
I think the main problem that all companies, big and small, face when importing from China for the first time is how overwhelmed it can become. Most of them don't know the difference between FOB and CIF Incoterms. Nor do they know the specific documents and/or licenses they need to import from China. They often encounter difficulties negotiating with Chinese suppliers and are overwhelmed with ensuring product quality. But these challenges are perfectly normal, especially when you're dealing with something so complex for the first time.
What advice do you have for SMEs to minimise risks and potential problems?
These will be basic common sense advice, such as requesting samples before placing an order. Or choose small items such as LCL from the beginning when everything is still unclear. If all goes well and you feel that you can trust your supplier, you can continue to use FCL.
Throughout the process, your interactions with Chinese suppliers should give you a clear idea of whether you are dealing with an experienced and honest supplier. Watch for the following signs:
Slow and sluggish responses to emails/phone calls
Sudden price increase after reaching a certain price
Sample shipping costs are too high
Unconventional payment methods
If you encounter any of these situations, you should pay extra attention and be extra careful to avoid surprises during the importprocess.
Is it possible to import from China without meeting the supplier and seeing the product in person? How important is this visit to the success of the import process?
Yes, of course it is possible to import from China without going to China. Many of my clients have never set foot in China. No more traveling 10,000 kilometers to meet suppliers and validate their products. There are plenty of other quality control companies out there that can do a better job than you fly to China.
That said, when you import a product that requires a lot of investment and/or has to be customized, I recommend visiting China. These include, for example, specific types of machinery or new furniture collections. This is where the physical presence of a company designer or engineer comes in handy to make sure everything goes according to plan.
Would you say that there are a large number of importers who have been defrauded of importing from China?
No, I think scams are rare. There are many rumors about Chinese imports. These include containers that ship with empty boxes, footwear suppliers who send only one side of the shoe to force you to pay for the other side. But that's just hearsay. If you think about it, it doesn't make sense to change the line to make only one side of the shoe.
There have been cases where importers received merchandise that did not meet their expectations. But this is more the result of miscommunication between the supplier and buyer than an attempt to defraud.
Dominican exports to North America are dominated by the United States and Canada
The United States remains the main importer of Dominican Republic exports, and if positive growth expectations are realized, economic growth in the United States as the Dominican Republic's main trading partner will drive the Dominican Republic's own growth.
Exports from the Dominican Republic to Europe
Switzerland, the Netherlands, the UK, Germany and Spain are the top five European business partners for the Dominican Republic. Overall, it is the Dominican Republic's second-largest export market after North America.
Traditional products such as cigars, cocoa beans, bananas and liqueurs make up the bulk of the Dominican Republic's exports to European countries. However, the variety of products exported to Europe has increased in recent years, from a concentrated model where five main products account for 80% of total exports to a diversified model with less reliance on a few products.
Medical devices, ferroalloys, footwear or plastics are some of the products that have begun to gain traction in Dominican exports to Europe in recent years. The Netherlands is the second largest customer of the footwear industry in the Dominican Republic and the third largest customer of plastic products.
Germany, Belgium and the Netherlands are the second, third and fourth largest importers of medical devices to the Dominican Republic, respectively. Needless to say, the heatmap of Dominican exports to Europe is changing.
Dominican Republic exports to Asia: India and China
Exports to India: a highly concentrated market
India is the fifth largest importer of goods from the Dominican Republic. Dominican exports to India were valued at $592 million in 2016, almost all of which came from three products: 90 percent from gold exports, 5.9 percent from ferroalloys and 1.8 percent from cocoa beans.
Exports to China: Raw Materials Continue to Dominate, Diversification Trend Begins
The trade balance between the Dominican Republic and China clearly favors the Asian powerhouse, with imports from the Dominican Republic accounting for 14% of the Dominican Republic's importsin 2016. On the other hand, Dominican exports to China accounted for only 1.4%. all.
However, despite the modest numbers in the context of mutual willingness and cooperation, exports to China continued to experience the greatest growth in Latin America and the Caribbean.
Exports of raw materials to China account for more than half of the export value. Exports of medical devices also played an important role, accounting for 10% of total exports, and China was the fourth largest importer of the industry.
1. Prepare the goods in time and receive the goods on the pre-agreed date
Unfortunately, it is very common for suppliers not to have their goods ready on the day of pickup. This snowballed and prevented loading onto the ship on the expected date. Here, the freight forwarder can notify and remind you of the upcoming pickup date. However, it is the exporter's responsibility to have the goods properly packaged and ready for pickup. If the exporter fails to comply with the pick-up date, he may have to wait two weeks until the next ship leaves. During those two weeks, a lot can happen, including supply chain disruptions and breaches of contracts with third parties.
In this case, freight forwarderscan help find alternatives, such as loading the cargo on another vessel with a shorter transit time. But there may not always be a viable option for this situation. It is the supplier's responsibility to ensure that production is completed on time so that pick-up and loading dates can be determined.
2. Prepare and provide all necessary documents, especially if the goods require special permission to be transported
As an importer, you must always be aware of all necessary permits required for your goods. But the responsibility for providing these documents rests with the provider. If your provider is not responsible for this, you should consider switching providers. If you cannot rely on your provider to prepare these documents, it may be a sign that you cannot trust him.
Freight Forwarder Responsibilities
1. Pressure the shipping company to give you the space they need on board
With ships fully loaded, carriers end up having to prioritize certain cargoes. This caused some non-essential clients with whom they have no personal relationship to fail to load. The freight forwarder'srole here is to negotiate with the liner to secure the space the importer needs. Note, however, that the freight forwarder's influence here is limited as the shipping company always has the final say.
2. Understand the importer's needs and advise him on the best shipping options
It is the freight forwarder's responsibility to know if a vessel will be transshipping on its route and to forward this information to its customers. This may seem like a small detail, but it makes a big logistical difference. Transshipment means that commodities are unloaded from one vessel and loaded onto another. This greatly increases the chance of unforeseen events and delays and the associated costs. Your freight forwarder should inform you of these details so that you can make an informed decision about your shipment.
3. Any additional paperwork required to check certain products with customs authorities
If you don't know if your item requires additional documentation to ship, you can provide the HS code of the product to your freight forwarder so that he can check with the relevant customsauthorities.
The importance of small details
Make sure the Incoterms you have with your suppliers are properly reflected in your contracts and that providing accurate and accurate information may seem like trivial details. However, taking the time to do these things can help prevent unnecessary delays and complications. Small details are often the factor in whether you will incur additional charges or if your shipment is facing delays.
That said, keep in mind that you can take all precautions, but at the end of the day, your shipments are still subject to factors beyond your control. We recommend that you always purchase cargo insurance for extra protection, but be aware that this will only limit the blow. Knowing the responsibilities of the other parties involved will help you better communicate with them so they can stick with the deal until the end of the deal.
International shippingis a complex process and there is no magic formula that can be used to avoid complications. You can only do what you can control, which is to learn as much as possible, get along with trusted suppliers and freight forwarders, and avoid troublemakers. Most importantly, perform your duties.
International shipping involves multiple parties, so when something goes wrong, it can be difficult to identify the party responsible for every part of the process. As a participant in this intricate relationship, you need to understand not only your own responsibilities, but the responsibilities of other parties involved. Not knowing the responsibilities of your suppliers or freight forwarders is a huge risk for importers. In an industry as complex as ocean shipping, there is only a very fine line between risk and logisticaldisaster.
Importer's responsibility
1. Submit the necessary shipping data to the agent so that he can coordinate the shipment with the supplier
Such data includes the contact's email, name, phone number, and the name of his company. This information is key to streamlining the process. This is especially true when you are pressed for time. Given the time difference, it is best to provide this data as early and as accurately as possible. It can take up to two days to start processing your import from the moment you provide your supplier's contact information to the freight forwarder.
Advice: Once you confirm your purchase and know your item is in production, you should start managing your bookings with your forwarder to speed things up, rather than waiting days or even weeks for production to complete. The origin agent can update the freight forwarder at any time during the production process so that you can amend your booking if needed.
2. Know the working conditions of the Incoterm you choose for international sales, such as the back of the hand
It is not uncommon for suppliers to want to modify previously agreed terms. They may want to convert from FOB to CIF, which can be risky, or to EXW, where the importer takes care of most of the process.
What is the role of the freight forwarder if the Incoterm has not been agreed at the last hour?
At this point, there is nothing the freight forwarder can do except get a reply from both parties. Ultimately it is up to the importer to ensure that the supplier follows the agreement and most importantly, that the terms and conditions are properly reflected in the contract.
3. Liaise with your supplier to decide who will provide the specific documentation your item may need at origin and destination
Depending on the nature of your product, you may need to submit additional specific documents.
For example, a test report is one of the most common certificates of origin when importing into the EU. It certifies that the shipped goods meet the minimum quality conditions (strength, durability of materials, etc.) required by the European Economic Community.
In addition to different certificates of origin and destination, you may sometimes need to present other specific documents for import. In the case of importing honey into the EU, a certificate of origin is always required. And because it is an animal product, both importers and exporters must be registered in TRACES (Trade Control and Expert System).
The consequences of not preparing these specific files for your imports are dire. If your shipment has reached its destination and the deadline for you to present these supporting documents has passed, customs will ask for one of two solutions: re-export the shipment to the country of origin or destroy it. The important thing to note here is that any additional costs incurred as a result will be fully borne by the importer.
As the EU's largest economy, Germany accounts for about one-fifth of the EU's overall GDP. It has been enjoying economic growth for nearly a decade. But it seems the tide may be turning.
The world's largest car exporter
As the world's fourth largest economy, Germany also has a pivotal economic presence on the world stage.
This is especially true for the auto industry, where five of the ten most valuable car brands have Germany as their home. That said, it's no surprise that Germany is the world's largest auto exporter.
In fact, around 21 percent, or one in five cars shipped around the world, is exported from Germany, according to the Economic Comprehensive Observatory. The second-largest car exporter is Japan, which accounts for around 14 percent of Germany's exports.
Of Germany's car exports, 58% are exported to other European countries. Asia and North America received 21% and 16%, respectively.
With the U.S. now threatening to impose tariffs of up to 25 percent on cars and auto parts importedfrom the European Union, the German auto industry has reason to worry. Outside of the European Union, the United States is the largest importer of German cars.
Germany's largest trading partner
German exports totaled $1.33 trillion in 2017, up from $1.25 trillion in 2016. Two-thirds of them are European countries.
By country, Germany's largest export destinations are the United States, France, China, the United Kingdom and the Netherlands. Collectively, these five countries receive more than one-third of Germany's exports.
China Golden Week: How logistics came to a standstill
What is China Golden Week?
As one of the largest and most important markets in the world, China's logisticsinfrastructure is under enormous pressure to maintain a certain level of productivity and efficiency to keep global supply chains functioning and stable.
From factories and warehouses to ports, docks and more, Chinese workers in all logisticsindustries work long hours throughout the year to ensure the maintenance of global supply networks.
But twice a year, the world's largest exporter allows itself a break.
Known in China as Golden Week, the country has two such week-long respites - once every six months.
The first, known as the Lunar New Year Golden Week, is in January/February at the beginning of the year, giving people time to celebrate the Lunar New Year.
The second, National Day Golden Week, is part of the country’s National Day celebrations and takes place in October – right in the middle of the peak shippingseason.
Given China's impact on global markets and world trade, the week-long - albeit expected - lull threatens to disrupt global supply chain operations, ripple effects and logistical delays.
In this article, we will focus on the National Day Golden Week in October. But to understand how China's National Day Golden Week affects logistics, we must first dive into some basic facts about the holiday.
When is China's National Golden Week?
China's National Golden Week is held every year in the first week of October to celebrate the founding of the People's Republic of China.
Golden Week 2022 will run from October 1st to October 7th.
Demand for Chinese exports soared in the weeks leading up to China's Golden Week as companies tried to get their exports out before operations in the country shut down completely.
In response to the lack of activity, shipping lines often announce service cuts.
At the time of writing, two major shipping alliances have announced cuts to 15 weekly sailings from Asia to North America:
Nine o'clock to the west coast
Four to the east coast
Two go to the gulf coast
Even after Golden Week, capacity and personnel tend to remain limited, and production may slowly pick up. Carriers may also continue to cancel sailings in the coming weeks.
That said, failing to get your goods in and out of China ahead of the festivities can have dire consequences, as Golden Week delays can sometimes stretch for months.
For businesses, this can translate into potential contract breaches, accumulated delay charges, low sales figures, and more.
High demand and low availability
Demand for Chinese exports surged in the weeks leading up to the start of Golden Week.
That's in anticipation of the shutdown, as businesses importing from China try to get a spot on outgoing ships to ensure their goods leave the world's largest exporter before production halts.
In response to this growing demand, shipping lines have increased spot rates. Spot freightrates from China to the North American West Coast were at their highest level in two months as of early September.
Amid this boom, the industry is also facing shortages of containers, slots, truckers and everything in between. Shippers should be prepared to go the extra mile to ensure not only a slot on a container ship, but also cover for the equipment they need for transportation.
In addition to the standard General Rate Increase (GRI), there are other surcharges to consider.
Given the higher demand for Chinese exports compared to Chinese imports, there is often an urgent need to return containers to terminals to manage demand in Chinese ports.
At this point, carriers began implementing surcharges such as equipment imbalance surcharge (EIS) to compensate for the cost of returning empty containers to Chinese ports to meet export demand.
A country's exports are better understood when you can see the overall economy's exports. In this article, we will examine the top five export products from India and the current market conditions for each export category.
As a member of the Brazil, Russia, India and China (BRIC) economies, India is emerging as a significant player in the global and national markets. It is currently the 17th largest exporting economy in the world. This status gives India the foothold it needs to remain competitive in international trade.
India's exports have seen impressive growth over the past five years - an annual rate of 1.2% - which created a negative trade balance of $125B in 2017. According to the OEC, India's Gross Domestic Product (GDP) is $2,6T while GDP per capita in 2017 was $7,06K.
What does India export?
India's main exports (currency shown in US dollars) include:
Refined Petroleum ($30.2B)
Diamond ($26.5B)
Packaged Drugs ($13.2B)
Jewelry {$8.66B)
Rice ($7.05B)
As you can see, refined oil accounts for a large portion of India's main exports. In fact, it accounted for 10.3% of the country's total exports, closely followed by diamonds at 9.1%.
Some thoughts and reflections on India's main exports
Many initiatives are aimed at increasing India's major exports and major imports. Government efforts, planning and strategies have largely contributed directly to overall growth, and the world has taken note of India as a true economic powerhouse.
Government benefits include export programs, financial assistance and other state-mandated benefits provided by the Indian government to its economy. So far, everything is heading in the right direction, including increasing exports for the foreseeable future.
Although India is one of the largest economies in the world, it is interesting that the government has created an economic platform that encourages progress in India. Away from the country's developing external environment, India is using its unique market position to compete in a rapidly globalized network of global exporters.
All in all, India also has a robust economic approach to responding to unexpected external forces. Its main exports are viable, limited natural resources, or they align with current demand for retail products around the world. In short, India's efforts to actively manage its imports and exports are paying off, making it a smart choice for international business.
Despite the current uncertainty surrounding the trade relationship between the U.S. and China, the Asian giant remains the largest importer of U.S. goods on the other side of the Pacific.
China accounts for 11% of total U.S. exports.
That may not seem like much, but it's certainly impressive considering its neighbors Japan and South Korea account for only 5.3% and 3.9% of U.S. exports, respectively - their combined share is still lower than China's share.
The product categories that the U.S. exports the most to China include transportation (21 percent), machinery (19 percent), and vegetable products (11 percent). Here's a breakdown of each category.
Tips for Shipping to China
As a booming economy, China certainly has many business opportunities. However, there are certain aspects of shippingto China that you should keep in mind to ensure a seamless shipping process.
1. Keep abreast of trade war developments
As the U.S.-China trade war continues and signs of volatility in its outcome, it's important to keep an eye on the news. This will allow you to anticipate any increases in responsibilities and better prepare you for them.
The tit-for-tat tariff increase is a problem for shippers on both sides. Even though the tariff hike may not target the products you're shippingto China, and it won't directly affect you, it may affect shipping capacity and rates, which can directly affect your supply chain.
2. Check your calendar
If you are an inexperienced shipper, it may interest you that for two full weeks throughout the calendar year, port and logistics activity in China is almost completely stopped.
These are called Golden Weeks. The first occurs at the beginning of the year, usually in January or February, to celebrate the Lunar New Year. The second Golden Week commemorates China's National Day and takes place in the first week of October.
During this period, it is not possible to transport goods into or out of the country. Note that the weeks around Golden Week could also be problematic due to the import and export boom before the country shut down, and the time it would take to recover once operations resume.
3. Familiar with special economic zones
China currently has 12 Special Economic Zones (SEZs) that U.S. exporters should take advantage of if they are not already doing so, as doing business in China can be particularly complex.
These special zones allow goods to be processed (stored, manufactured, re-exported) without paying import duties and taxes and are part of the reforms set up by the Chinese government to open up the Chinese economy. It also speeds up the customs clearance process, adding more flexibility to your supply chain.
In addition, these SEZs are mostly located along the coast to facilitate the movement of goods in and out of China's many shippingports.
Trying to navigate China's importregulations can be very frustrating, especially if you're not familiar with the language. It also doesn't help that the information can be very contradictory depending on where you get it from.
To avoid complications, we recommend that you always book your ocean freight servicesto China with a reputable forwarderwho has extensive experience and a proven track record on the specific route you are interested in.
Not only will they be able to properly guide you through China-specific importregulations, but they can also advise you on prohibited items and help you with the paperwork you need to avoid customs issues.
5. Check if your shipment needs CCC
The China Compulsory Certification (CCC) mark, as the name suggests, is a compulsory certification for more than 132 products (including auto parts, medical equipment, electrical equipment, etc.) imported into China.
The CCC mark is China's quality control method, and it is estimated that one-fifth of US exports to China require the CCC mark. Any lack of the CCC mark may result in the goods being held by customs or returned to the shipper at origin and subject to heavy fines.
Before exporting, please make an effort to check whether your goods require CCC. Please note that applications for the CCC mark may take up to 90 days or more to process.
Also, always keep in mind that no matter where you're shippingto, there are certain steps you absolutely must take if you're dealing with hazardous materials.
