PackMojo

Customs Clearance Process

Customs Clearance Process for Importing Packaging

If you choose to ship through one of our tax and duties inclusive shipping options, we'll take care of everything on the shipping side. However, if you're working with your own customs broker or would prefer to use a non tax and duties inclusive shipping option, here's what you need to know.

Before shipping

What we need from you

To facilitate the shipping process and minimize any potential delays, please provide us with the following information:

  1. Primary point of contact - the customs broker will reach out to this person to settle payment on any taxes and duties. We will need the first name, last name, phone number, and email of the primary point of contact.
  2. Employee Identification Number (EIN number) - this is a 9-digit number assigned to a business by the IRS. In this case, it's required in order to facilitate the customs clearance process for settling any taxes and duties. The EIN number provided can be a business EIN or a personal EIN number.

What PackMojo will provide

For every shipment, we will provide the following documents to you:

  1. Packing List - list of product details, dimensions and weight of each shipping carton. Provides the exporter, customs, and the consignee details about the shipment and how items have been packed.
  2. Commercial Invoice - list of products, price(s), value, and quantity of the goods being sold. This breakdown in price is used by customs to calculate the taxes and duties for the shipment.

Shipment Arrival

Once your shipment has arrived and has been unloaded from the plane or boat, it's then delivered to a Bonded Warehouse, which is a warehouse used to store imported goods upon entry. Once these goods have been formally cleared by customs and the relevant taxes and duties have been paid, the goods are then released and transferred to a local courier (e.g. FedEx, DHL) for last-mile delivery (i.e. delivery to your specified address).

Customs Clearance Process (USA)

For non tax and duties inclusive shipping channels, PackMojo will typically ship with either FedEx or DHL, who provide broker-inclusive services to manage the customs clearance process on your behalf. These couriers also serve as the Importer of Record (IOR) and will help with everything related to the process of importing your goods - documentation, legal matters, and payment of taxes and duties.

What's required from you

FedEx or DHL will reach out to the primary contact to settle any taxes and duties, which may also require you to submit the following forms:

  • Customs Bond
  • Power of Attorney
  • Form 1506

Customs Bond & Power of Attorney (POA)

A Customs Bond is a legal contract between the importer, customs, and a surety company to ensure all taxes and duties will be paid to customs. The Power of Attorney is a form that allows FedEx or DHL to act as your customs broker.

  1. Get a bond application & POA form from FedEx or DHL (they will contact you).
    2. Submit the bond application & POA form to the Bond Department at FedEx or DHL for processing. Purchase either a Single Transaction Bond or a Continuous Bond (which can be used for multiple imported shipments). Receive the approved bond.

Form 5106

Form 5106 is issued by the U.S. Customs and Border Protection (CBP) and is used to create or update importers' unique ID in their system.

Important points to note

  • While these forms above are typically required if the value of the goods exceed USD 2500, you may still be requested to fill these out by the CBP. Rest assured, FedEx or DHL will reach out to you directly and clearly communicate clearly what they need from you!
  • You must submit all forms and within 5 days from the date FedEx reaches out to you, or your shipment will be returned to the sender.