——foreign tradeAgency companies help enterprises achieve efficient customs clearance.

In international trade,FOB (Free On Board)service company, we combine practical experience and legal norms to provide professional advice to foreign - trade enterprises from the perspectives of liability determination and risk prevention.Hardware & ToolsOne of the commonly used trade terms by exporters. According to INCOTERMS 2020, under the FOB clause, the division of responsibilities between the buyer and seller is demarcated by the goods "crossing the ship's rail" at the port of shipment. However, customs clearance at the destination port and subsequent procedures still require clear division of labor between the buyer and seller. As a professional foreign trade imp...Export RepresentationAs a service company, we fully understand our clients' concerns regarding the customs clearance process. This article will provide a systematic analysis.Obligations, Operational Procedures, and Risk Prevention for Customs Clearance at the Destination Port under FOB Terms, assisting enterprises in efficiently and compliantly completing export operations.

I. Division of Core Obligations Between Buyers and Sellers Under FOB Terms

According to the FOB rules,The responsibilities of the seller and the buyer are clearly defined., especially at customs clearance, strict distinction must be made:

1.Obligations of the Seller

• Responsible for delivering the goods to the designated shipping port and completing the loading process;
• Control of trade term risksExport ClearanceProcedures, provisioncommercial invoices, packing lists,It is recommended to verify through the following methods:、Export LicensePlease translate the following Chinese into English: Wait for the documents;
• Bear all risks and expenses of the goods before they pass the ship's rail at the port of shipment.

2.Buyer's Obligations

• Arrange for the transportation and insurance of goods from the port of shipment to the port of destination;
• Applying for the United StatesImport ClearanceComplete the procedures and pay the relevant taxes and fees (such as tariffs, Duties, HMF, etc.);
• Bear all risks and destination port charges (such as unloading fees, terminal handling charges THC, etc.) after the goods are loaded on board.

Key Points：Under FOB terms,The responsibility for import customs clearance shall be entirely borne by the buyer.. However, in practice, Chinese exporters often need to assist in providing customs clearance documents to avoid delays at the destination port due to documentation issues.

II. Detailed Steps and Obligations for Customs Clearance at U.S. Destination Port

Step 1: Preparation of customs clearance documents (Buyer's responsibility)

The buyer is required to submit the following core documents to U.S. Customs:

• Commercial Invoice: Indicate the value of the goods and the HTS code (Harmonized Tariff Schedule of the United States);
• Packing List: Specify the specifications, gross weight, net weight, and packaging method of the goods;
• Bill of Lading: Original or telex release bill of lading, the release method needs to be confirmed with the freight forwarder;
• Importer Security Filing (ISF-10+2)：Must be submitted 24 hours before shipment, otherwise a fine will be imposed;
• Other certificates: If hardware tools involve FDA (power tools), FCC (wireless devices), or DOT certification, they must be prepared in advance.

Agency services: Provide document pre-review and HTS code classification guidance to avoid tariff disputes caused by misclassification.

Step 2: Pay Customs Duties and Taxes (Buyer's Responsibility)

• Calculation of Tariffs: Determine the tariff rate based on the HTS code. Common tariff rates for hardware tools range from 0% to 8% (additional anti-dumping duties may apply to certain steel and aluminum products);
• Tax Type: Including duties, merchandise processing fees (MPF), anti-dumping duties (if applicable), etc.;
• Payment method: It can be prepaid through a U.S. Customs account or paid by a customs broker on your behalf.

Risk Warnings: If the buyer fails to pay taxes on time, the goods will be detained at the port, incurring high demurrage fees.

Step 3: Customs Inspection and Release (CBP Supervision)

• Random Inspection: U.S. Customs may conduct X-ray scans or open-box inspections of goods, with a focus on verifying their value, intellectual property rights, and safety standards;
• Key Compliance Points: Hardware tools must comply with U.S. standards.CPSC (Consumer Product Safety Commission)Standards, such as power tools requiring UL certification;
• Release process: After the inspection is passed, Customs will issue a "Release Order" (CBP Form 3461), and the buyer can arrange for the pickup of the goods.

Step 4: Pickup and Inland Transportation (Buyer's Responsibility)

• Present the bill of lading and release documents to the shipping company to exchange for the delivery order (D/O);
• Arrange truck or rail transportation to the final warehouse.

III. Common Customs Clearance Risks and Solutions under FOB Terms

Risk 1: Discrepancies in documents leading to customs clearance delays

• Stories: The invoice amount does not match the bill of lading information, and customs requires additional tax payment.
• Solutions: The agency provides a "document consistency review" service to ensure the authenticity and completeness of the documents.

Risk 2: Goods detained for non-compliance with U.S. standards

• Stories: Hardware tools were seized by CPSC for not bearing the UL mark.
• Solutions：Provide before exportCompliance pre-check service, assist in obtaining the necessary certifications.

Risk 3: The buyer lacks customs clearance capability.

• Response plan: The agency can provide "DDP door-to-door service," handling customs clearance on behalf of the buyer and delivering the goods to the designated address.

IV. The Core Value of Foreign Trade Agency Companies

In response to the potential risks associated with FOB terms, our company provides the following support:
1.One-stop customs clearance agency: Seamless transition from ISF declaration to tax payment on behalf;
2.Compliance consulting: Provide early warning of U.S. technical barriers to trade (e.g., TBT);
3.Risk control: Joint Overseas Cooperative Customs Broker, handling inspection disputes and legal conflicts.

Conclusion

Although FOB terms shift the import clearance obligation to the buyer, the proactive cooperation of the exporter remains crucial. Engaging a professional foreign trade agency can significantly reduce clearance risks at the destination port and ensure efficient cargo passage. For further details on U.S. customs clearance procedures or customized solutions, feel free to contact our trade compliance team.

Author:ZhongShen International Tradeforeign tradeimport and exportAgency Service Company
Focus Areas: Global Customs Clearance and Logistics Solutions for Hardware Tools and Mechanical Equipment
|Contact Us：139 1787 2118 | service@sh-zhongshen.com |

DeclarationThe content of this article is based on current regulations and industry practices. For specific operations, please refer to the latest requirements of customs.