Question 1

What are customs duties?

Accepted Answer

Fundamentally, duties are a tax levied by Customs & Border Protection (CBP) that is charged to importers. Duties are only charged on imports into the U.S. - not U.S. exports. There are three basic categories: Duties (including basic and extraordinary duties), Excise/Other Taxes (on luxury goods), and Customs fees (administrative fees like Harbor Maintenance Fee).

Question 2

What is duty drawback?

Accepted Answer

Duty drawback is a duty refund program administered by CBP that allows certain importers to obtain refunds on most of the duties and fees they paid on importations, particularly if the importers are also involved in export activities. The program is designed to encourage U.S. exports and can recover up to 99% of duties paid.

Question 3

What do I need to start importing to the U.S.?

Accepted Answer

To become a U.S. importer, you need to: 1) Register and obtain your Importer of Record (IoR) number by submitting CBP form 5106, 2) Obtain a Customs Bond from a CBP-approved surety company, 3) Get any special licenses or permits for your industry, and 4) Implement trade compliance controls and procedures.

Question 4

What is an Importer of Record number?

Accepted Answer

An Importer of Record (IoR or IR) number is a unique identifier assigned by CBP. The most common method is using your company's tax ID number (EIN) and adding two zeroes to the end. You can find it on customs entry summaries, W2 forms, or your ACE Portal account.

Question 5

What is a customs bond?

Accepted Answer

A customs bond is a legal contract that guarantees payment of duties, taxes, and fees to CBP for imported goods. There are two types: Single-transaction bonds (for one shipment) and continuous bonds (covering all imports annually, minimum $50K).

Question 6

What is a customs broker?

Accepted Answer

A customs broker is an individual or company licensed by CBP to conduct customs business on behalf of another party, including filing drawback claims. They act as intermediaries between importers and CBP to facilitate compliant cross-border trade.

FAQ

Section 1: What are customs duties and what is duty drawback?

Section 2: The basics of customs

Section 3: ACE Portal

FAQ

Section 1: What are customs duties and what is duty drawback?

Q1. What are customs duties?

Q2. What is duty drawback?

Section 2: The basics of customs

Q1. I'm a new U.S. importer. What do I need to do to start importing?

Q2. What is an "Importer of Record" number?

Q3. What is a customs bond?

Q4. What is a drawback bond?

Q5. What is a customs broker?

Q6. What are CBP Centers of Excellence ("CEE") and how do I contact them?

Section 3: ACE Portal

Q1. How do I view my own import and export data?

Q2. I don't have an ACE Portal account. How do I get access?