What is the difference between self-tax customs clearance and tax-inclusive customs clearance? The "Bond" required for US import customs clearance
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Time of issue：
2023-07-14 11:22
Many cross-border e-commerce companies always hesitate when facing self-tax clearance and tax package clearance. There are also many friends who do the U.S. line that often hear that American importers want to buy Bond. What exactly does this Bond mean, what is its purpose, and how to buy it?
So today, Meli will briefly talk about the difference between self-tax customs clearance and tax-included customs clearance on Amazon Europe. Then I will explain to you some of the "Bond" needed for US import customs clearance.
The difference between self-tax customs clearance and tax-included customs clearance
Customs clearance
Undoubtedly, "self-tax" means that merchants on Amazon platform or other e-commerce platforms use their own tax number (VAT+EORI) applied for in Europe to provide it to freight forwarders for customs clearance; tax after customs clearance (tariff and Value-added tax), reimbursed and sold to customers. Of course, a certain tax prepayment fee (paid in advance by the freight forwarder) will be charged, which is generally 1%-3% of the tax amount.
Tax package clearance
Some freight forwarders register a tax number (VAT+EORI) in Europe to provide customers with customs clearance. The freight forwarders will bear the taxes and not charge customers. Or some freight forwarders' overseas customs clearance agents (or brothers, sisters, friends, etc.) provide the freight forwarder with a tax number, and the freight forwarder will bear the tax after it is generated, and the customer will not be charged the cost of tax. The freight forwarder will add the freight and freight surcharges.
European customs clearance, under certain conditions, can operate the mode of deferred customs clearance, that is, imported VAT (value added tax) can be deferred (not mean non-payment). To
In the case of deferred compliance, VAT will pay sales VAT (ranging from 19%-25%, depending on each European country) to the local tax bureau after the final sale.
In the case of no deferred customs clearance, VAT will be paid after the final sale, and then every month or quarter of the merchant’s tax representative, when processing the VAT declaration, the imported VAT will be automatically returned to the seller.
Regardless of whether it is deferred customs clearance or non-deferred customs clearance, after the final product is sold on the platform, the sales VAT must be paid to the local tax bureau, which in the end is equivalent to only one payment to the local tax bureau.
Freight forwarding companies generally choose Belgium, the Netherlands and other ports (sea + air), Hungary and the Czech Republic and other Eastern European countries (rail + Qatar), for deferred customs clearance, they do not pay import VAT, but only pay import duties (Duty).
trend
As an e-commerce merchant, don't think about saving costs, and choose a tax-included channel to avoid the subsequent e-commerce platform or tax bureau and customs to trace the merchant's import records (tax-included, no customer records) or sales records.
Stable logistics services are an important part of sales operations. Because the European Amazon platform and customs duties have begun to pay attention to the behavior of certain e-commerce merchants, they will more strictly control the customs clearance and the sales link after customs clearance. Compliance operation in the European market (product compliance + tax compliance), although the cost is relatively high, but the professional market will give merchants a certain professional market share.
What is Bond?
Then I will talk to you in detail about the "Bond" required for U.S. import customs clearance. Bond is indispensable for U.S. import customs clearance. Failure to purchase Bond is equivalent to not filing with the U.S. Customs. Even if ISF is sent, it cannot be in the U.S. Import customs clearance, and even face fines. So before shipping, ask the US "CNEE consignee" who cooperated for the first time if you have purchased BOND. this is very important.
"Bond" is promoted by the FMC (Federal Maritime Council), and is actually a kind of bond purchased by American importers from the U.S. Customs.
When US importers are fined for some reason, US Customs can deduct money from Bond.
When the U.S. importer does not pick up the goods for some reason and does not pay any fees to abandon the goods, the U.S. Customs can claim compensation from the insurance company to pay for the goods in the United States (storage storage fees, duties, Taxes, etc.).
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Use of Bond
According to US Customs regulations, Bond is imported to ensure the fulfillment of obligations stipulated by laws and regulations. The main purpose is to ensure the payment of import duties and taxes, and to ensure compliance with the customs clearance management laws and regulations of all imported goods in the United States. If you don’t buy BOND, you have not filed with the U.S. Customs. Even if the ten items of the ISF are correct, they will not be accepted by the customs. They will not be cleared at that time, and you will also face fines.
Bond users need to agree to the following terms:
1. Agree to pay duties, taxes and related fees in a timely manner.
2. Agree to provide documents and certificates.
3. Agree to re-transport the goods.
4. Agree to correct any non-compliance with the customs clearance provisions.
5. Agree to inspect the product.
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Bond application
1. Documents to apply for "Bond":
(1) CBP Form 301 (first page), CBP Form 301 (second page).
(2) bond application (BOND application form).
(3) CBP Form 5106 (if applicable).
(4) any other documents (such as POA/Power Of Attorney declaration letter, partnership papers, etc.).
At present, please only submit a scanned copy of the first page of the CBP Form 301. Other documents are not required for the time being. The taxation department expects to request all explanatory documents in the future.
2. How to submit:
All documents are scanned into TIF format with a resolution not higher than 300, and all documents are merged into one email attachment and sent to cbp.bondquestions@cbp.dhs.gov.
For general questions such as handling procedures or special applications, please directly consult (317) 614-4880 or send an email to cbp.bondquestions@dhs.gov.
If the Bond application is rejected, you can dial the voice mailbox of the Reject Team at (317) 614-4881, and the fax to receive the correction application documents is (317) 298-1042.
Bond's customs clearance method
Goods exported to the United States can be cleared in the name of the American consignee (Consignee) or in the name of the shipper (Shipper).
Customs clearance in the name of the consignee (Consignee):
In this way of customs clearance, the US consignee (Consignee) provides POA (ie Power of Attorney) to the US agent of the freight forwarder. At the same time, the US consignee (Consignee) Bond is required.
Customs clearance in the name of the shipper (Shipper):
In this way of customs clearance, the shipper (Shipper) provides the POA to the freight forwarder, and the freight forwarder transfers it to the US agent. The US agent helps the shipper to apply for the Importer Record of no. in the United States. At the same time The shipper (Shipper) is required to purchase Bond.
No matter which customs clearance method is used, the American consignee (Consignee) must provide Tax ID (also known as IRS NO.) in order to clear customs.
Finally, it is recommended that friends choose the type of Bond according to the actual situation and purchase it in advance, or confirm with the consignee whether the other party’s importer has already purchased it, or entrust the forwarder to purchase.
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