Navigating USA import costs when purchasing a Borg & Overström product
In today’s interconnected world, the ease of international trade has opened up opportunities for consumers to access products from around the globe, and with global success comes global trade.
Here at Borg & Overström, we have embraced this global landscape by actively participating in international trade, enabling us to reach customers worldwide.
While the transaction itself is straightforward, we believe that it is crucial for you to know exactly how the various freight and importing costs are allocated when importing goods into the US.
In this short article, we explore the key factors you need to know when understanding the costs of importing from the US.
Before we jump into the fundamentals, we have provided this glossary of important terms and their definitions to simplify complex concepts and remove any confusion caused by their complexity.
Customs Clearance Agency: A customs clearing agent, sometimes called an import broker, has the role of making the import and export of goods run as smoothly as possible, facilitating the clearance of goods through customs processes correctly and in a timely manner.
Power of Attorney: A power of attorney (POA) refers to the authorisation required to be given to the customs broker on behalf of the importer or exporter. In logistics, the POA is most commonly used when one of the trading parties appoints a specific agent (or other entity) to handle the shipment on their behalf.
Importer of Record: The importer of record is the purchaser of the products being imported into the US, and is responsible for ensuring all the legal requirements are met before goods can be cleared through customs.
Freight Forwarders: Freight forwarders act as an intermediary between the company who makes the shipment and the final destination for the goods. Although they do not carry out the shipments themselves, they offer different transport modes such as sea/ocean freight, rail freight, road transport and air freight shipment.
The fundamentals of importing
Now to the fundamentals.
Following your purchase of a Borg & Overström water dispenser or tap system, there is a 3-step process that you need to know:
- Step 1: Borg & Overström will request door-to-door freight. Freight costs (excluding local tax and duties) will be shown on the sales order.
After your purchase, Borg & Overström will request door-to-door freight services to ensure a smooth transportation process from the supplier to the final destination. This request is included and covered on the sales order, specifying the preferred shipping method and any additional requirements.
- Step 2: You, as the US customer, will have to appoint a customs clearance agent and provide them with POA (Power of Attorney) to clear the goods into the USA.
When importing into the US, you will be required to appoint a customs clearance agent who acts as a representative and handles the necessary procedures for clearing the goods through customs. As part of this process, you will need to provide the customs clearance agent with a Power of Attorney (POA) document, granting them the authority to act on your behalf and handle all the customs-related matters.
- Step 3: The Import fees are then subsequently paid by you, the importer of record.
Once your goods arrive at the port of entry in the US, the customs clearance agent will complete the necessary paperwork, such as filing the customs declaration and paying any applicable duties and taxes on behalf of the importer. These import fees, including customs duties, taxes, and other charges, are then subsequently paid by the importer of record, who is the legal entity or individual responsible for the imported goods.
Following this 3-step process, your Borg & Overström product will be delivered to you at your requested address.
Please note: freight costs and import expenses can fluctuate due to factors such as fuel prices, exchange rates, trade regulations, and geopolitical events.
Working with a reliable freight forwarder or logistics provider can help navigate these complexities and provide more accurate cost estimates based on your specific requirements.
To help with this, Borg & Overström can recommend our own preferred freight forwarders for all customs clearances into the USA.
For more information on Freight forwarders or – contact us – our expert staff are ready and waiting to help you.