——?Foreign trade?Agency companies assist enterprises in efficient customs clearance.

In international trade,FOB (Free On Board)Is.?Hardware & Tools?One of the commonly used trade terms by exporters. According to INCOTERMS 2020, under the FOB clause, the division of responsibilities between the buyer and seller is demarcated by the goods "crossing the ship's rail" at the port of shipment. However, customs clearance at the destination port and subsequent procedures still require clear division of labor between the buyer and seller. As a professional foreign trade imp...?Export Agency?As a service company, we fully understand our clients' concerns regarding the customs clearance process. This article will provide a systematic analysis.FOB terms: obligations, operational procedures, and risk prevention for customs clearance at the destination port, assisting enterprises in efficiently and compliantly completing export operations.

I. Division of Core Obligations Between Buyers and Sellers Under FOB Terms

According to the FOB rules,The responsibilities of the seller and the buyer are clearly defined., especially during customs clearance, it is crucial to strictly distinguish:

1.Seller's obligations

• Responsible for transporting the goods to the designated shipping port and completing the loading process;
• Process?Customs Declaration?Procedures, provideCommercial invoice, packing list,?Certificate of Origin?, export licenseand other documents;
• Bear all risks and expenses before the goods pass the ship's rail at the port of shipment.

2.Buyer's obligations

• Arrange for the transportation and insurance of goods from the port of shipment to the port of destination;
• Applying for the United States?Customs Clearance?Complete the procedures and pay the relevant taxes and fees (such as customs duties, Duties, HMF, etc.);
• Bear all risks after the goods are loaded on board and all destination port charges (such as unloading fees, terminal handling charges THC, etc.).

Key points: Under FOB terms,The responsibility for import customs clearance shall be entirely borne by the buyer.. However, in actual operations, Chinese exporters often need to assist in providing customs clearance documents to avoid delays at the destination port due to documentation issues.

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

Step 1: Preparation of customs clearance documents (Buyer's responsibility)

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

• Commercial Invoice: Specify the value of the goods and the HTS code (Harmonized Tariff Schedule code for U.S. Customs);
• Packing List: Specify the specifications, gross weight, net weight, and packaging method of the goods;
• Bill of Lading: Original or telex release bill of lading, the release method needs to be confirmed with the freight forwarder;
• Importer Security Filing (ISF-10+2)：Must be submitted 24 hours before shipment, otherwise a fine will be imposed;
• Other certificates: If hardware tools involve FDA (power tools), FCC (wireless devices), or DOT certification, they must be prepared in advance.

Agency services: Provide document pre-review and HTS code classification guidance to avoid tariff disputes caused by misclassification.

Step 2: Payment of Customs Duties and Taxes (Buyer's Responsibility)

• Tariff calculation: Determine the tariff rate based on the HTS code. Common tariff rates for hardware tools range from 0% to 8% (additional anti-dumping duties may apply to certain steel and aluminum products);
• Tax Type: Including duties (Duty), merchandise processing fees (MPF), anti-dumping duties (if applicable), etc.;
• Payment Method: It can be prepaid through a U.S. Customs account or paid by a customs broker on your behalf.

Risk Warning: If the buyer fails to pay the taxes on time, the goods 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 of goods, focusing on verifying the value, intellectual property, and safety standards of the items;
• Key Compliance Points: Hardware tools must comply with U.S. standards.CPSC (Consumer Product Safety Commission)Standards, such as power tools requiring UL certification;
• Release process: After the inspection is passed, the Customs will issue a "Release Notice" (CBP Form 3461), and the buyer can arrange for the pickup of the goods.

Step 4: Pickup and Inland Transportation (Buyer's Responsibility)

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

III. Common Customs Clearance Risks and Solutions under FOB Terms

Risk 1: Customs clearance delays due to document discrepancies

• We Serve: The invoice amount does not match the bill of lading information, and customs requires additional tax payment.
• Solution: The agency company provides a "document consistency review" service to ensure the authenticity and completeness of the documents.

Risk 2: Goods detained for non-compliance with U.S. standards

• We ServeHardware tools were seized by CPSC for not bearing the UL mark.
• Solution: Provide before exportCompliance Pre-Check Service, assist in obtaining necessary certifications.

Risk 3: The buyer lacks customs clearance capability.

• Solution: The agency can provide "DDP door-to-door service," handling customs clearance on behalf of the buyer and delivering the goods to the designated address.

IV. The Core Value of Foreign Trade Agency Companies

To address the potential risks associated with FOB terms, our company offers the following support:
1.One-stop customs clearance agency: Seamless transition from ISF declaration to tax payment on behalf;
2.Compliance consulting: Provide early warning of U.S. technical trade barriers (such as TBT);
3.Risk management and control: Joint overseas cooperative customs broker, handling inspection disputes and legal conflicts.

Conclusion

Although FOB terms shift the import clearance obligation to the buyer, the exporter's proactive cooperation remains crucial. Engaging a professional foreign trade agency can significantly reduce customs clearance risks at the destination port and ensure efficient cargo passage. For further details on U.S. customs clearance procedures or customized solutions, feel free to contact our trade compliance team.

Author:?Zhong Shen??Foreign trade??Import/export?Agency service company
Focus Areas: Global Customs Clearance and Logistics Solutions for Hardware Tools and Mechanical Equipment
|Contact Us：139 1787 2118 | service@sh-zhongshen.com |

Statement: The content of this article is based on current regulations and industry practices. For specific operations, please refer to the latest requirements of customs.