Important Regulatory Changes Affecting Shipments to the USA
If you're shipping to the USA, a significant regulatory change is coming that could soon impact your business, and we're here to help you prepare.
From August 29, the United States will abolish the duty-free de minimis exemption for all imported products, regardless of their origin. This means that every shipment with a value of $800 USD or less will now be subject to applicable customs duties and fees. This change could also affect your customs clearance process.
To help ensure your shipments move smoothly and prevent delays, it's crucial that the following information is included on your air waybill or commercial invoice:
Clear and Detailed Product Descriptions
Your description must be in English and accurately explain what you are sending, what it is made of, and its purpose, if any. A single description like "gift" or "sample" is not sufficient. You need to include the individual and total weights and values of each item. It's vital to accurately describe your products and remember that everything – even a sample, gift, or return shipment – has a value.
Here are three important questions to ask yourself when describing your products:
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What are the products?
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What are they made from?
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What are they used for?
It's important to be precise when answering these questions.
Example: "Shirt" is not enough; it should be "10 men's shirts, size XL, 100% cotton." For branded products, include the brand name and model number.
Identification of Applicable Incoterms®
Incoterms®, or "International Commercial Terms," consist of a predefined set of commercial terms published by the International Chamber of Commerce (ICC) in relation to international trade law. In short, they are a set of rules used to determine who bears the risk in a shipment. By risk, we mean liability for loss or damage, or whose insurance might potentially be used to make a claim. Some Incoterms® apply to all modes of transport; others apply only to sea or inland waterway transport. Typical examples of Incoterms® rules for any mode of transport include Delivered at Terminal (DAT), Delivered Duty Paid (DDP), and Ex Works (EXW).
Manufacturer Identification Code (MID)
To create a Manufacturer ID (MID code), ensure you provide the full business names and postal addresses of the manufacturer supplier.
Once you have all the information, you should assemble the MID code in the following order:
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Find the two-letter ISO code for your supplier's country (e.g., GB for United Kingdom, NL for Netherlands, and DE for Germany).
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Take the first three letters of the manufacturer's first and second name (if available).
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Take the largest numbers (up to four) from the address field.
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Take the first three letters of the manufacturer's city name.
Example: Ozrock 92, Alice Springs Road Melbourne, Victoria, Australia 3001
Would result in: AUOZR92MEL
Need Additional Support?
Providing complete and accurate information is the best way to prevent customs delays and ensure a smooth supply chain. And we are here to help you every step of the way.
Sincerely, Your esalesBox Team
Source: https://www.fedex.com/
