FREE ADVISE

Importing is no longer a secret Science

By: Margarita Libby
Published in CRECEX Magazine, Year 2, Nº 4, Business Opportunities, CRECEX, Page 18-21  

More and more frequently I hear students, friends, or i have overheard conversations about what they have bought through the Internet and are receiving directly in their houses, or that they have had to sign some papers in order to have them released at customs and, in most  cases, they have not taken care of the process themselves. 

The places where those products are bought are usually the same: the US or Spain (from the latter it is usually books).

This increasing personal contact with international commerce suddenly places us in a front-line position in which the citizen interacts with international sellers, customs authorities and sometimes authorities of the Departments of Health, Government, Departments of Agriculture, etc.

Also, the small and medium enterprises have the possibility of analyzing this process that can normally increase their operative costs in terms of deliveries, customs agents, fiscal storehouses etc.

The following are some concepts and tips for people and SMEs who want to import:

1.         Consolidator

A consolidador is a transportation service provider who does not have his-her  own equipment to carry your cargo but has entered into contracts with shipping or air companies from whom they lease space or a container. It is very useful when you do not have sufficient cargo to fill a container or a plane and you only need a small space

In this case he/she will ask the seller to deliver it, for example, at an address inside the United States to the Consolidator’s storehouses and this one will send it to Costa Rica (this may need a customs process in USA and CR).  

Some of them have their own offices in Miami, for example and  have agents in Costa Rica. The issue here is to know if this Consolidator has its own storehouses, if it delivers from MIAMI as frequently as it says it does, and what its   minimum charges are per shipment.  

Ask:

a)    If it they can give you previous notice whenever something came over there; this may allow you to have a larger volume to send and to obtain more benefits. 

b)    If they have their own Freight Forward permit and what the cost is per shipment.

 
2.         Weight or Weight-Volume – Minimum charge – Concepts on Shipping Charges

This is applied to the Consolidated Marine or Air transportation. The difference is that if the weigh value of a given good is higher than the value of the volume it occupies in a physical space, the price per pound multiplies.

For example: Take 3 books that weigh 5 kilos, and compare it to a plastic snow/cone machine that weighs 2 kilos. Its volume calculated by the so-called weight - volume equivalent results in a total of 7 kilos of weight. Then: the shipment of the books is charged by the 10 pounds but the shipment of the machine is charged by the 14 pounds.  

Now, companies have a minimum charge. If the minimum used in the previous case were 10 kilos, that means that if you should bring 5 kilos of weight or 7 volume kilos, you would be paying the same as if you were bringing 10 kilos. As advice, asks what the minimums charge is, and try to have them send you an amount   the weight of which coincides with that minimum, so that you will not be paying excessively; or else, remember that the more quantity you bring, the lower the cost per kilo shipped in relation to the price of what you bought.

3.         Freight Forward  

It is a company or individual who has a license used make  exports. It is normally used in the United States. The advice is that if you hire a Consolidator or, if you don-t need one, you hire a  carrier, or, if your seller tells you that they will take care of everything, make sure that this cost is already included in the price they give you for the product or for the shipment. Remember the Consolidator. Ask if they have a Freigth Forward license also, this is an important advantage.

4.         Postal Addresses or Boxes in Miami.  

Some companies offer the service of P.O. boxes in Miami. These companies also act as consolidators but the minimum charges may change. Ask if they can give you a previous notice, that is to say, let you know when cargo arrives that belongs to you. That way, you will probably have a larger volume to send and to obtain a better benefit.    

Normally, when you buy, you will find the option of requesting a shipment to an internal location, for example in the United States, and it is possible for you to request that final destination. From there, you assume the expenses. Some companies do not charge you for shipping inside the United States> Take advantage of that. Besides, with P.O. boxes, you have a fixed monthly fee, variable according to the weight shipped. Ask! There are always many options. 

5.         What will I import?  How much will it cost?  What documents do I need?  

One mistake frequently made is to bring articles that need some process of authorization before removal from storehouses, such as food, vegetable or animal products, chemicals, cosmetic products, drugs, radio transmitters, etc.

Always remember to ask an expert, the Department of Health or the Customs Offices BEFORE you buy. You may need to meet some requirement of the counrty of origin or, because of the amount you are bringing, you need to register the product and to register yourself as an importer before the pertinent state entity.

Remember that the limit of the cost of the product for you to be able to import it without paying taxes is $500.00. This includes the price of the product plus the shipment, so you need to calculate very carefully before making the purchase. The benefit of tax exemption applies every 6 months and will not have balances in favor, that is to say, if you use the option for a package with a value of $150.00 (including the shipment) then you lost the possibility of using the benefit for the following 6 months.  

Always print proof of the transaction in case you don-t get an invoice. The invoice is not necessary, but if there is a doubt the Customs Official (Technical) will request proof that this was the total you paid. Then, anticipate this situation. You can do this transaction personally or else the carrier can do it, if it is a P.O. Box or a Courier. They can help you, but it has a cost. If your product has a value (remember that it is the value plus the price of the shipment) of more than $1000.00, you will need the intervention of a Customs Agent.  

Basic Steps for the Import of Packages 
(If you are going to take care of the transactions yourself, arrive very early in the morning, preferably from Tuesday to Thursday, which are the least busy days.)

1.    Make sure that the value of your goods (including delivery) is less than $500.00)

2.    If it, is and you have not been exempted from the payment of taxes in the last six months, notify to the transportation company that you want to want to take care of it yourself or that you want them to do it applying the benefit.

If you are going to take care of the process

· Request the guía aérea or the transportation document, print your invoice or voucher with the value of the product. Do not forget your i.d.  (Bring photocopies of everything in case they become necessary).

· Go to the place where the carrier told you your cargo is and look for the Customs Operations Technician (known as the Appraiser, Customs Official, etc.) and tell her & him that you want to apply the benefit of official nationalization applying the benefit of “small non-commercial shipment”.

· The "appraiser" will ask you to request the package in the place where you are, so that she & he can verify it and tell you the procedures to follow.

· The process, up to getting the package released and have it in your hands, may take 3 - 4 hours. 

If you ask the carrier to take care of the process

·     The carrier will ask you to sign some documents in order to authorize him to act on your behalf and take care of the process.

·     In the same act, give him your invoice or the document you printed and a copy of your i.d. They have the Air Waybill or transportation document.  

·     The carrier will take care of it through your Customs Agent or Processor, who you appointed for this purpose in the document you signed.

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