——foreign tradeAgency companies help enterprises achieve efficient customs clearance

In international trade,FOB (Free On Board)service company, we combine practical experience and legal norms to provide professional advice to foreign - trade enterprises from the perspectives of liability determination and risk prevention.Hardware & ToolsOne of the commonly used trade terms by exporters. According to INCOTERMS 2020, under FOB terms, the division of responsibilities between buyers and sellers is demarcated by the goods crossing the ships rail at the port of shipment, but customs clearance at the destination port and subsequent processes still require clear division of labor between both parties. As professional foreign tradeExport Representationservice companies, we fully understand clients concerns about customs clearance procedures. This article will systematically analyzethe obligations, operational procedures, and risk prevention measures for customs clearance at the destination port under FOB terms, helping enterprises complete export transactions compliantly and efficiently.

I. Core division of obligations between buyers and sellers under FOB terms

According to FOB rules,the responsibilities of sellers and buyers are clearly defined, especially requiring strict distinction in customs clearance procedures:

1.Sellers obligations

• Responsible for delivering goods to the designated port of shipment and completing loading;
• Control of trade term risksExport Clearanceprocedures, providingcommercial invoices, packing lists,It is recommended to verify through the following methods:, export licensesand other documents;
• Bearing all risks and costs before the goods cross the ships rail at the port of shipment.

2.Buyers obligations

• Arranging transportation and insurance from the port of shipment to the destination port;
• Handling U.S.Import Clearanceprocedures and paying relevant taxes and fees (such as tariffs, Duties, HMF, etc.);
• Bearing all risks after loading and destination port costs (such as unloading fees, terminal handling charges THC, etc.).

Key Points: Under FOB terms,The responsibility for import customs clearance lies entirely with the buyer.However, in practice, Chinese exporters often need to assist in providing customs clearance documents to avoid port delays at the destination due to documentation issues.

II. Detailed Procedures and Obligations for U.S. Destination Port Customs Clearance

Step 1: Preparation of Customs Clearance Documents (Buyers Responsibility)

The buyer must submit the following core documents to U.S. Customs:

• Commercial Invoice: indicating the cargo value and HTS code (U.S. Harmonized Tariff Schedule number);
• Packing List: specifying cargo specifications, gross weight, net weight, and packaging methods;
• Bill of Lading: original or telex release bill of lading, requiring confirmation of release method with the freight forwarder;
• Importer Security Filing (ISF-10+2): must be submitted 24 hours before loading, otherwise facing penalties;
• Other certificates: such as FDA (for power tools), FCC (for wireless devices), or DOT certification for hardware tools, which need to be prepared in advance.

Agent services: providing document pre-review and HTS code classification guidance to avoid tariff disputes caused by classification errors.

Step 2: Payment of Duties and Taxes (Buyers Responsibility)

• Calculation of Tariffs: determining the tariff rate based on HTS code, with common rates for hardware tools being 0%-8% (additional anti-dumping duties may apply to certain steel and aluminum products);
• Types of fees: including Duty, Merchandise Processing Fee (MPF), anti-dumping duties (if applicable), etc.;
• Payment method: can be prepaid through a U.S. Customs account or paid by a customs broker.

Risk Warnings: if the buyer fails to pay taxes promptly, the cargo will be detained at the port, incurring high demurrage fees.

Step 3: Customs Inspection and Release (CBP Supervision)

• Random Inspection: U.S. Customs may conduct X-ray scans or open-box inspections, focusing on verifying cargo value, intellectual property rights, and safety standards;
• Compliance points: hardware tools must comply with U.S.CPSC (Consumer Product Safety Commission)standards, such as UL certification for power tools;
• Release process: after passing inspection, Customs issues a Release Notice (CBP Form 3461), allowing the buyer to arrange for cargo pickup.

Step 4: Cargo Pickup and Inland Transportation (Buyers Responsibility)

• Present the bill of lading and release documents to the shipping company to obtain the delivery order (D/O);
• Arrange truck or rail transportation to the final warehouse.

III. Common Customs Clearance Risks and Solutions under FOB Terms

Risk 1: Customs clearance delays caused by document discrepancies

• Stories: Invoice amount inconsistent with bill of lading information, customs requiring additional tax payment.
• Solutions: Agency company provides Document Consistency Review service to ensure authenticity and completeness of documents.

Risk 2: Goods detained for non-compliance with US standards

• Stories: Hardware tools without UL mark seized by CPSC.
• Solutions: ProvidePre-shipment Compliance Inspection Serviceto assist in obtaining necessary certifications.

Risk 3: Buyer lacks customs clearance capability

• Response plan: Agency company can provide DDP Door-to-Door Service, completing customs clearance on behalf of buyer and delivering to specified address.

IV. Core Value of Foreign Trade Agency Companies

For potential risks under FOB terms, our company provides the following support:
1.One-stop Customs Clearance Agency: Seamless process from ISF filing to tax payment;
2.Compliance consulting: Early warning of US technical trade barriers (e.g. TBT);
3.Risk control: Collaborate with overseas partner customs brokers to handle inspection disputes and legal issues.

Conclusion

Although FOB terms transfer import customs clearance obligations to buyers, exporters proactive cooperation remains crucial. Choosing professional foreign trade agency companies can significantly reduce destination port clearance risks and ensure efficient cargo passage. For further understanding of US customs clearance details or customized solutions, please contact our trade compliance team.

Author:ZhongShen International Tradeforeign tradeimport and exportAgency Service Company
Specialization: Global customs clearance and logistics solutions for hardware tools and mechanical equipment
|Contact Us：139 1787 2118 | service@sh-zhongshen.com |

Declaration: This content is based on current regulations and industry practices, specific operations should comply with the latest customs requirements.