This is a guest post by Alex Aponte, Director of Customs at Importal.
The process of importing goods into the United States can seem straightforward with the variety of services and marketplaces available. However, there are inherent risks if you aren’t familiar with the complex regulations. One of the most crucial steps in the import process is assessing the compliance of the manufacturer or supplier you contract to produce your goods.
This blog will guide you through the key areas to examine when selecting a compliant manufacturer or supplier and how to ensure a smooth import process.
Why Compliance Matters in Importing Goods
The importation of goods begins with their production, making it vital to ensure that the manufacturer or supplier is transparent, communicative, and well-versed in the regulations they must adhere to. Compliance issues can lead to delays, fines, or even the inability to clear goods through customs.
Key compliance areas to consider include:
- Commercial Invoice Requirements
- Partner Government Agency (PGA) Certifications
- Supplier Documentation and Transparency
1. Commercial Invoice: The Foundation of Import Compliance
A Commercial Invoice is the basis for filing a customs entry. It must contain all necessary information, including:
- Country of Origin
- Total Value
- Currency
- Buying and Selling Parties
Unfortunately, many manufacturers or suppliers issue invoices missing crucial data elements. Missing or incorrect information can delay the import process and lead to fines.
2. Additional Certifications: Understanding Partner Government Agency (PGA) Regulations
Certain commodities are subject to additional regulations from Partner Government Agencies (PGAs). These regulations require specific certifications or documentation, such as:
- TSCA Title VI (for composite wood products, including plywood, MDF, and particleboard): This requires certification that products meet formaldehyde emission standards.
- FDA: Products such as food and drugs require FDA certifications.
- USDA: Some agricultural goods require USDA certifications.
Always confirm that your manufacturer or supplier can provide the necessary documentation for these certifications.
3. Missing Data and Its Consequences
When reviewing the documents needed to prepare a customs entry, Customs Brokers must validate data against CBP Regulations. Common issues include missing:
- Commercial Invoice information
- PGA Certifications
- Other necessary documents
Failure to provide complete and accurate data can result in:
- Delays in customs entry filing
- Storage charges and late delivery
- Potential fines or penalties
4. Best Practices for Ensuring Supplier Compliance
Here are steps to ensure that your manufacturer or supplier complies with all necessary regulations:
- Research the Compliance Requirements for Your Commodity: Understand the specific regulations for the products you’re importing, including the necessary certifications and documentation.
- Verify Classification and PGA Flags: Ensure that your goods are classified correctly and understand any associated PGA flags that may apply to your product.
- Use Trusted Resources: Visit the CBP website and agency websites to familiarize yourself with their requirements and programs.
- Work with a Qualified Customs Broker: A trusted customs broker can help navigate the complexities of compliance and ensure that all regulations are met. They will empower you with the knowledge to make informed decisions about your business and imports.
Conclusion: Protect Your Business by Assessing Compliance Early
Assessing manufacturer and supplier compliance is an essential step to ensure a smooth and cost-effective import process. By understanding the regulations, verifying documentation, and working with trusted experts, you can avoid delays, storage fees, and potential fines.
Remember, thorough due diligence upfront can save you time, money, and unnecessary headaches down the road. Always prioritize compliance to protect your business and ensure seamless imports.
