Inside World Trade

Foreign Internet Purchases Subject to Importing Rules

 

By Frances Allday

Making purchases over the internet has proven to be a convenient and for the most part safe way to shop for just about everything under the sun. Web sites like eBay offer the consumer unprecedented opportunity to buy bargains and products on the worldwide market. What some consumers might not realize is that buying a foreign item online makes them an importer of goods into the U.S., subject to the rules and regulations that govern the act of importing.

The importer is responsible for assuring that the imported products comply with both state and federal regulations, are safe and meet health code requirements. In addition the importer may be subject to the payment of duty on items purchased abroad. Cheese from Italy bought on the internet may be an easy find, but it could violate certain regulations prohibiting the importation of dairy products from particular countries without a permit. The cheese could end up being seized by U.S. Customs and Border Protection (CBP). Depending on the country of origin, textile products with quota restrictions could be held by CBP for a long time with storage expenses adding up. It does not matter if the online purchase of a foreign product was from an auction, an established business, or if it is new or used. It must still comply with importing regulations.

CBP recommends a checklist of questions to keep in mind before buying from foreign sources on the internet:

1) Can the goods be legally imported? Are there restrictions on, or special forms required, for your purchase's importation?

(2) Are you buying the item(s) for your personal use or for commercial purposes?

(3) Will you be responsible for shipping costs? If so, you should discuss with the seller how your purchase will be shipped. The choices are freight, courier service or international postal service. If you're not careful, transportation and handling costs could far outweigh the cost of the purchase. Sometimes the seemingly cheaper methods can be more expensive in the long run because they are more susceptible to theft, misdeliveries and logistical problems.

(4) You should discuss with the seller what the exact delivery arrangements will be. If the seller does not make arrangements for postal or door-to-door delivery, you will either need to hire a customs broker to clear your goods and forward them to you, or go to the port of entry and clear them yourself.

(5) Can you trust the seller to provide accurate information about the item being shipped in the Customs section of the shipping documents? Giving misleading or inaccurate information about the nature of the item and its value is illegal. And it is the importer - YOU - who could face legal action and fines for this violation!

All international packages must have a Customs declaration form attached to the outside. The seller must provide the following information on the declaration: sellers name and address; a description of the item or items in English; quantity; purchase price; weight; and country of origin. Shipments that do not have a declaration and invoice will be subject to forfeiture or return.

The importer of the goods is responsible for payment of all duty and fees owed on an importation. Usually the purchase price of the item includes shipping and handling but does not include duty or any fees for clearing it through CBP. This is because the seller cannot determine exactly what the duty will be. If the item was sent through the postal service, duty and fees are paid at the time the package is picked up by the importer at the post office. Courier services will pay for the duty on the importer's behalf and then require payment on delivery. Freight services such as air and vessel will deliver goods to a port where the importer will pay duty directly to Customs or indirectly through a Customs Broker.

To speed your internet purchase through CBP and avoid complications, know what is involved in getting your merchandise to your door. For further information visit the CBP web site at www.cbp.gov.

Frances Allday was a specialist in commercial trade with U.S. Customs and Border Protection for 25 years