When a foreign customer sends servers to another country for hosting, it's crucial to handle customs documentation properly to avoid delays, additional costs, or misunderstandings. Follow these steps to ensure a smooth customs clearance process:
1. Commercial Invoice
The commercial invoice should include detailed information about the servers:
- Description: Clearly describe the servers, including model numbers, serial numbers, and any other identifying information.
- Value: Include the fair market value of the servers. This is necessary even if the servers are not being sold. Mark the value appropriately to reflect that it's for "Temporary Import for Hosting" or "Non-sale Shipment."
- Reason for Export: Clearly state the purpose, such as "For Data Hosting Services" or "Temporary Import for Hosting."
2. Customs Declaration
- HS Code: Use the appropriate Harmonized System (HS) code for servers and data processing equipment.
8471.41: This code is used for "Digital automatic data-processing machines: Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined." Servers typically fall into this category.
- Country of Origin: List the country where the servers were manufactured.
- Purpose of Shipment: Mark the shipment as "Temporary Import" if the servers will be returned to the customer after a certain period. Otherwise, note the purpose as hosting services.
3. Temporary Import Bond (TIB) (if applicable)
If the servers are expected to return to the country of origin after a certain period, the customer may need to arrange for a Temporary Import Bond. This allows goods to enter a country temporarily without paying duties, provided they will be re-exported.
4. Documentation for Temporary Import
If the servers are being imported temporarily, include documentation stating that they will be re-exported after the hosting period. This helps customs understand that the goods are not a permanent import and may be eligible for duty relief.
5. Shipping Label
Include detailed shipping information, including the destination address (your hosting facility), contact person, and phone number. Ensure that the label indicates the shipment is for "Hosting Purposes."
6. Insurance
The customer should insure the shipment for the value of the servers to protect against loss or damage during transit.
7. Work with a Customs Broker
Depending on the complexity of the shipment and the customs regulations of the receiving country, it may be wise to work with a customs broker. They can ensure that all paperwork is correctly filed and that the shipment complies with local regulations.
8. Communication with Hosting Provider
Ensure that the hosting provider Stellar Forge Mining is aware of the shipment and can assist with any customs questions or issues upon arrival.
** NOTE THAT THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND TO HELP GUIDE YOU IN THE RIGHT DIRECTION. YOU WILL NEED TO WORK SPECIFICALLY WITH YOUR SHIPPING COMPANY AND CUSTOMS BROKER (SOMETIMES THE SAME ENTITY) TO ENSURE YOU'RE ABIDING BY THE GUIDELINES **
If a foreign customer does not have an Employer Identification Number (EIN) or Social Security Number (SSN) when importing goods into the United States, they can still proceed with the importation process by following these steps:
1. Use a Customs Broker
- Hire a Customs Broker: A licensed customs broker can facilitate the import process on behalf of the foreign customer. They have the necessary expertise to handle documentation and navigate U.S. Customs and Border Protection (CBP) requirements.
- Customs Broker’s EIN: The customs broker can use their own EIN to file the necessary paperwork for customs clearance.
2. Obtain a Customs Assigned Number
- Customs Assigned Number (Importer Number): If the foreign customer does not have an EIN or SSN, they can request a Customs Assigned Number. This is a unique identification number used solely for importing goods into the U.S.
- How to Obtain:
- Fill out CBP Form 5106 (Importer Identity Form). This form is used to register the foreign customer with U.S. Customs.
- The form requires basic information such as the company name, address, and contact details.
- Submit the form to the CBP, usually through the assistance of a customs broker.
3. Use a Third-Party Importer of Record (IOR)
- Importer of Record (IOR): A third-party company can act as the Importer of Record on behalf of the foreign customer. The IOR is responsible for ensuring the imported goods comply with U.S. laws and regulations.
- Third-Party IOR Services: Many logistics and shipping companies offer IOR services, which include handling customs clearance and ensuring compliance with U.S. import regulations.
4. Temporary Import for Hosting Services
- If the servers are being sent for temporary purposes (such as hosting), make sure to:
- Indicate the shipment as a Temporary Import on the customs declaration.
- Apply for a Temporary Import Bond (TIB) if the servers are intended to be returned to the country of origin after the hosting period.
5. Avoid Using Personal Identification Numbers
- Do Not Use Personal IDs: Foreign customers should not use personal identification numbers, such as a foreign national ID or passport number, as these are not valid for U.S. customs purposes.
Summary
- Customs Broker: Utilize a customs broker to navigate the process.
- Customs Assigned Number: Apply for a Customs Assigned Number using CBP Form 5106 if needed.
- Importer of Record: Consider using a third-party Importer of Record if direct importing is complex.
--------- COMPANIES THAT PROVIDE IOR SERVICES ---------
Several shipping and logistics companies provide Importer of Record (IOR) services to facilitate the importation process for businesses, especially foreign entities that may not have a U.S. presence. Here are some well-known companies that offer IOR services:
FedEx Trade Networks
- Services: FedEx Trade Networks provides a comprehensive range of services, including customs brokerage, IOR services, and global trade consulting.
- Highlights: They can handle the entire import process, including documentation, compliance, and customs clearance.
DHL Global Forwarding
- Services: DHL offers IOR services as part of its global forwarding and customs services. They manage the importation process and ensure compliance with U.S. regulations.
- Highlights: They have a global network and extensive experience in managing complex logistics and customs requirements.
UPS Supply Chain Solutions
- Services: UPS Supply Chain Solutions provides IOR services, including customs brokerage and compliance management. They help ensure that goods are imported efficiently and in compliance with all regulations.
- Highlights: UPS has a robust global logistics network, making them a reliable choice for international shipping and importing.
Shipwire (A Flex Company)
- Services: Shipwire offers IOR services along with order fulfillment and logistics solutions. They handle customs clearance and ensure that imports comply with local regulations.
- Highlights: They focus on e-commerce businesses and provide a range of services tailored to the needs of international sellers.
Import Customs Broker (ICB)
- Services: ICB specializes in providing customs brokerage services, including IOR services. They assist with all aspects of customs clearance, documentation, and compliance.
- Highlights: They work with companies of all sizes to streamline the import process and ensure regulatory compliance.
Pacific Customs Brokers
- Services: This company offers a range of customs brokerage services, including IOR services. They provide expertise in navigating U.S. import regulations and handling the necessary paperwork.
- Highlights: They have a team of experts who can guide businesses through the complex customs process, especially for temporary imports and hosting-related shipments.
Clearit USA
- Services: Clearit USA provides customs brokerage and IOR services, specializing in helping foreign businesses import goods into the U.S. efficiently.
- Highlights: They offer an easy-to-use online platform for managing the import process and ensuring compliance.
GEODIS
- Services: GEODIS provides a variety of logistics solutions, including IOR services. They handle customs clearance, compliance, and logistics for imports.
- Highlights: They have a global network and expertise in managing complex supply chains.
Considerations When Choosing an IOR Service Provider
- Experience: Choose a provider with experience in your specific industry and the type of goods you are importing.
- Global Reach: If you are importing from multiple countries, consider a provider with a global network.
- Compliance: Ensure the provider has a strong understanding of U.S. customs regulations and can ensure compliance.
- Cost: Compare costs and services offered to find the best fit for your needs.
By selecting a reputable shipping company that provides IOR services, foreign customers can ensure a smooth and compliant importation process into the United States.
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