Overview of General Cargo Imports When discussing the logistics channels from China to the United States, general cargo imports occupy an important position. These goods are mainly transported by air, sea or intermodal modes (non-mail, non-express channels). For general shipments with a value of more than $2,500, U.S. Customs requires a formal import process, regardless of whether the tariff is 0 or not. The Importance of IOR and Bond The two indispensable elements in the formal import process are IOR (Importer of Record) and Bond (Guarantee). The IOR is the legal owner of the goods and is responsible for customs clearance at U.S. Customs. Bond, on the other hand, is a guarantee that the IOR will meet all of its legal obligations during the U.S. import process. There are two types of bonds: one-time bonds and annual bonds. One-time Bond is suitable for importers who only officially import less than twice a year; Bond, on the other hand, is more suitable for importers who import more frequently. Without Bond, IOR will not be able to complete customs clearance. The cost of the bond is determined according to the value of the imported goods and the amount of customs duties, and the annual bond fee for general goods is generally between $400 and $800. Types and Selection of IOR IOR can be divided into two types: one is a U.S. entity, that is, the importer has actual operations in the United States; The other is that Chinese shipping companies buy Bond, that is, shipper buys Bond. Both scenarios are possible. For Chinese exporters or sellers who have been trading with the U.S. for a long time but do not have a physical presence or an accredited partner in the U.S., it is best to act as an IOR for U.S. imports in the form of a domestic shipper and purchase a Bond. However, it is important to note that a U.S. company is still required to act as a consignee and provide its tax identification number. This receiving company can be a logistics company or another type of company. Requirements for Buying a Bond Buying a Bond requires you to provide some necessary documents and information. For U.S. entities, the relevant documents from the IRS (Internal Revenue Service) and the ID of the company owner are required. For overseas companies (i.e., the shipper who purchases the bond), it is necessary to provide the overseas business license, corporate passport or ID card. Customs Clearance Process & CBP7501 Forms U.S. import customs clearance needs to be carried out by a customs broker. If it is the first time to import, you need to provide the customs broker with POA (Power of Attorney), BOND information, packing list of goods, commercial invoice, logistics waybill (airway bill or bill of landing) and other documents. For air freight, the customs broker can start the declaration after the aircraft takes off, and the customs clearance is often completed before the aircraft lands. The customs system will give instructions to the customs broker, such as release, inspection, etc. If it is released, you can go to the airport to pick up the goods. The customs broker will give the importer a form called a CBP7501, which is proof of U.S. importation and is issued by U.S. Customs. The table contains details such as customs duties, MPF (Merchandise Processing Fee), HS code of the goods, value, consignee, etc. CBP7501 form is very important, it is a key document to prove the legality of the payment of customs duties and the importation of goods. Tariff Payment and Transparency Generally, small and medium-sized customers will pay customs duties to the customs broker, who will then pay them to customs. U.S. Customs duties are transparent, and the customs broker will not overcharge the duty (but will charge a duty advance processing fee). If the amount of customs duties is large, you can go to the U.S. Customs and open an account and keep money in it as payment for customs duties. If you think that the customs has overcharged customs duties, you can communicate with CBP7501 or other documents, or even go to court to settle the matter. TIPS: Protection of cargo rights and responsibilities are clear When choosing a logistics company, be sure to ask who is the IOR. Because the IOR is the owner of the goods, customs and customs brokers only have a relationship with the IOR. So, it's best to make sure that the shipper buys the Bond so that the ownership of the goods is still in their own hands. At the same time, whoever is the IOR will have to bear all the responsibilities for U.S. imports, including tariffs, FDA (Food and Drug Administration) requirements, inspection and storage fees, and U.S. port logistics costs. Therefore, when signing the agreement, it is necessary to clarify the attribution of responsibility to prevent the transfer of goods rights.