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What is the meaning of BOND, POA, ISF, AMS of US customs clearance procedures, and the process of customs clearance from China to the US respectively.

What is the meaning of BOND, POA, ISF, AMS of US customs clearance procedures, and the process of customs clearance from China to the US respectively.

When exporting goods to the U.S., you must send ISF/AMS declarations, purchase Bond, and apply for POA in advance in order to complete customs clearance. So, what do they mean respectively? The following explains the process of exporting goods for foreign trade and international logistics to the United States, and the procedures for customs clearance in the United States.

  1. what is BOND?

BOND is a tariff insurance policy for imported goods into the U.S. The beneficiary of this insurance is the U.S. government and the responsible party is the importer.

 

If for some reason the imported goods incur a penalty, the importer is unable to pay the duties and fees, or the importer abandons the goods resulting in storage fees, the U.S. Customs can seek reimbursement from a third-party insurance company to deduct these fees from Bond to ensure that the U.S. government receives the revenue.

 

Later, the insurance company will claim back the deducted fees from the importer. So, in short, the Bond is a bond between the importer and U.S. Customs.

Bond is divided into the following categories

 

(1) ANNUAL BOND which can be purchased only once a year and is suitable for importers who import goods frequently within a year.

 

(2) Single Transaction Bond (STB), which is suitable for importers who do not import goods frequently. If some goods may have anti-dumping risk, the U.S. Customs will require the purchase of STB accordingly to avoid losses.

 

In addition, the U.S. Customs now offers a new guarantee business, namely the Intellectual Property Rights Sample Bonds (IPR Sample Bonds) applicable to intellectual property rights holders, and the IPR Sample Bonds are a continuous guarantee. Therefore, when doing business with a U.S. person, please remember to check with the U.S. consignee to see if they have a BOND and if you can use their BOND for customs clearance.

 

In addition to the above guarantees that apply only to customs matters, sellers can also use Consolidated Bonds. This guarantee not only ensures customs compliance and customs duties and fees, but also ensures that the guaranteed person complies with other import and export laws and regulations.

 

For ANNUAL BOND, no additional ISF BOND is required, for SINGLE BOND, additional ISF BOND is required.

 

If the U.S. consignee does not have a Bond or does not want to use their Bond, then Shipper has to buy it in the U.S. first, but the TAX ID must be the U.S. consignee’s tax ID, not related to SHIPPER.

 

If the consignee does not buy BOND, it is equivalent to not filing in the U.S. Customs, even if the ISF content is complete and correct, the U.S. Customs will not accept it, and will face a fine.

 

How is the guarantee amount calculated for both types of Bond?

 

The minimum amount of coverage for both types of Bond is 100USD. The minimum amount of coverage for a continuous bond is calculated based on 10% of the total amount of duties, taxes and fees paid by the bonded person within the last 12 months, for example, for customs services bonded by the importer or customs broker.

 

In addition, some items such as the amount of unpaid duties and fees are added. The continuous guarantee is valid for one year or until the letter of guarantee is cancelled by the importer or guarantor. U.S. Customs periodically reviews whether the continuous guarantee is sufficient to ensure the surety’s compliance and duty liability. In addition, the amount of the guarantee is not a premium; the premium is paid to the guarantor.

 

 

  1. What is POA?

 

POA is the power of attorney. When exporting goods from other countries to the U.S., the consignor of the order is required to bear part of the customs clearance fees.

 

The POA is normally provided by the U.S. consignee to the customs clearance company for shipments we arrange.

 

In the case of DDP terms, there are two scenarios:

 

The first is to use the U.S. consignee’s Bond and provide POA to our forwarder’s agent in the U.S., and then clear the goods.

 

The second is that the consignee does not have anything, then all to the forwarder’s agent in the United States, this piece of blogger professional, spend a little money on the line.

 

  1. What is AMS and ISF

 

AMS (Automated Manifest System, American Manifest System, Advanced Manifest System) is called American Manifest Entry System, also known as 24-hour Manifest Forecast or U.S. Customs Anti-Terrorism Manifest,

 

Originated from the “9/11” terrorist attacks in 2002, the United States for the need to establish a system of anti-terrorism. According to the U.S. Customs regulations, all exports to the United States or transit through the United States to third countries must be declared to U.S. Customs twenty-four hours before loading. The NVOCC closest to the direct exporter is required to send AMS information.

 

The AMS information is sent directly to the U.S. Customs database by using the system designated by U.S. Customs, and the U.S. Customs system will automatically check and reply to the information. Wait for the U.S. approval before the ship, such as is out of the single, both copies should be sent, otherwise the goods will not be on board.

 

Send AMS freight forwarder, first of all, need to obtain NVOCC qualification in the U.S. FMC, at the same time need to apply for the exclusive SCAC (Standard Carrier Alpha Code) from the U.S. NMFTA (National Motor Freight Traffic Association) agency, before sending to the U.S. Customs The data is sent to U.S. Customs. In the process of sending, NVOCC must have a complete and clear understanding of the relevant U.S. Customs regulations and follow them strictly, otherwise it may lead to delays in customs clearance or even fines from the U.S. Customs.

 

The full name of the ISF is Importer Security Filing, also known as the 10+2 declaration. That is, the import security filing and shipper additional requirements, requiring U.S. importers (10 declarations) and shipping companies (2 declarations), must be twenty-four hours before the shipment of goods, through the AMS or ABI system will be sent to the U.S. Customs electronic declaration data. In the ISF filing operation, importers can entrust their trusted overseas agents to file on their behalf.

 

ISF 10+2 include

2 parts about shipping line

  1. Vessel stow plan
  2. Container status message

 

10 Information as follows

  1. Manufacturer name and address
  2. Seller name and address
  3. Buyer name and address
  4. Ship to name and address
  5. Importer of record number
  6. Consignee number
  7. Country of origin of the goods
  8. Harmonized tariff schedule no.6 digit
  9. Container stuffing location
  10. Consolidator name and address

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