It's my first time sending product to the USA and I'm a little bit confused regarding formal vs. informal entry.
From what I understand, a total goods value of $2500 is the marker by which your customs entry moves from informal to formal so there's a lot of advice out there saying for quicker processing and fewer fees keep your shipment value under this threshold.
That's all well and good but obviously there comes a time when your good value will exceed $2500 and it can't be helped and I haven't found a great deal of advise out there about that.
For me I have a rather awkward incoming goods value of $2800 which I guess means I'm going to need a formal entry.
My understanding is that for goods requiring a formal entry you can expect the following bolt on fees:
- Customs Entry Fee ($150)
- Messenger Fee ($15)
- Single Entry Bond Fee (Minimum is $65 but depends on product value)
- Bond Processing Fee ($15)
Alternatively if you purchase an annual bond for $500 you can save on the messenger fee, single entry bond and bond processing fee on each import for its duration of validity which is probably a good idea if you plan on importing 4/5 times a year minimum.
Now on top of these fees I can expect a duty charge at (Duty Rate Classification (%) * Product Value) and this is regardless of whether the entry is formal or informal.
So whilst I thought I had this all down, after quotes from freight forwarders who importing friends had recommended me to towards I'm left a little confused again.
Whilst one forwarder has included estimations as per above on all fees...
The other has given me a rather competitive price whilst claiming they will send via UPS Express and the only fees applied are a $90 landing fee.
I enquired about why there is no mention of a customs bond being required given my goods value is $2800.
They have told me that that is only required for "general" air freight shipments and not for "courier (express)" air freight shipments.
I'm not so sure about that?
Now I'm familiar that companies like UPS have agreements in place with customs allowing them to bulk clear shipments themselves.
But my understanding was they too have this Informal / Formal limit.
So I guess my question is - if you import via an express carrier like UPS with goods at value over $2500, do you still need a customs bond?
Can anyone advise of their own experiences?
From what I understand, a total goods value of $2500 is the marker by which your customs entry moves from informal to formal so there's a lot of advice out there saying for quicker processing and fewer fees keep your shipment value under this threshold.
That's all well and good but obviously there comes a time when your good value will exceed $2500 and it can't be helped and I haven't found a great deal of advise out there about that.
For me I have a rather awkward incoming goods value of $2800 which I guess means I'm going to need a formal entry.
My understanding is that for goods requiring a formal entry you can expect the following bolt on fees:
- Customs Entry Fee ($150)
- Messenger Fee ($15)
- Single Entry Bond Fee (Minimum is $65 but depends on product value)
- Bond Processing Fee ($15)
Alternatively if you purchase an annual bond for $500 you can save on the messenger fee, single entry bond and bond processing fee on each import for its duration of validity which is probably a good idea if you plan on importing 4/5 times a year minimum.
Now on top of these fees I can expect a duty charge at (Duty Rate Classification (%) * Product Value) and this is regardless of whether the entry is formal or informal.
So whilst I thought I had this all down, after quotes from freight forwarders who importing friends had recommended me to towards I'm left a little confused again.
Whilst one forwarder has included estimations as per above on all fees...
The other has given me a rather competitive price whilst claiming they will send via UPS Express and the only fees applied are a $90 landing fee.
I enquired about why there is no mention of a customs bond being required given my goods value is $2800.
They have told me that that is only required for "general" air freight shipments and not for "courier (express)" air freight shipments.
I'm not so sure about that?
Now I'm familiar that companies like UPS have agreements in place with customs allowing them to bulk clear shipments themselves.
But my understanding was they too have this Informal / Formal limit.
So I guess my question is - if you import via an express carrier like UPS with goods at value over $2500, do you still need a customs bond?
Can anyone advise of their own experiences?
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