How to get an import license in the USA: a comprehensive guide

Shipping goods to the USA requires a valid import license from an accredited government institution adhering to all regulations. Obtaining a permit is not just for formalities; it shows that you comply with international trade policies and national security.

The USA is a significant player in international trade, cemented by its 2021 price of import goods, which skyrocketed by $5.2 billion. To navigate the rules and regulations of importing, you must know fundamental policies, such as tariffs and border defense measures. 

Definition of import license

An import license is a permit granted by the U.S. government for those looking to ship products into the country. The government grants you an import license depending on the goods you want to sell. 

Types of import licenses

Based on product category

1. Agricultural and food licenses

The USDA issues this type of license since they oversee agricultural, plant, and animal imports. Other products under this category include meat, fruits, and vegetables to ascertain their safety.

2. Firearm and ammunition licenses

The (ATF Bureau of Alcohol, Tobacco, Firearms and Explosives) oversees imports of firearms to vet any ammunition before it finds its way into the country.

3. Wildlife products licenses

The FWS (U.S. Fish and Wildlife Service) protects rare and endangered species from further harm, especially trading animals for their fur or ivory.

4. Medical drugs license

To get a medical drug license, the FDA (Food and Drug Administration) must accredit you since it ensures the safe use and assimilation of products into the U.S. market.

Based on potential risks

1. National security and dual-use import licenses 

Issued by BIS (Bureau of Industry and Security) to manage any items that could impact the military and civilians. 

2. Environmental protection import permits

EPA (Environmental Protection Agency) issues it to control the import of products harmful to the environment.

Temporary and permanent import licenses

Temporary: with a temporary permit, you can import products for specific purposes, such as exhibitions or shows.

Permanent licenses: you may apply for a permanent license for your goods if you dislike the hustle of applying for a new permit with each shipment.

How do import licenses work?

An import license is a requirement for products arriving in the country. However, some products need permits from relevant parastatals to be allowed in the country. Licenses are issued by the following bodies:

• Bureau of industry and security
• U.S. Fish and Wildlife Service
• Food and Drug Administration
• Department of Agriculture

How to obtain an import license in the USA

The process differs according to the regulatory agencies and what you are importing. Below are some products/commodities that need a license permit.

Agricultural goods

You can import food into the U.S. only if its handlers abide by FDA regulations and notify them before shipping anything. However, not all agricultural goods need an import license, such as these below:

• Tobacco
• Cheese, dairy products, and milk
• Plants and any of its products
• Fruits, nuts, and vegetables
• Meat, egg products, and poultry
• Animals and livestock

Although these products are license-exempt, you must apply for a permit through the foreign agricultural service under dairy imports. 

Consumer products

All household and commercial products must conform to USA energy conservation and performance standards. You can only import consumer products if relevant departments agree on their credibility and safety. Additionally, after submitting your products to the Department of Energy, the records stay for later referencing.

Regulatory requirements

United States border laws apply to anyone importing products in the US, regardless of your status in the business world. Although the CBP (Customs and Border Protection) exempts certain goods from licensing, all items passing the border are cleared by customs. 

A CBP clearance shows customs has examined, classified, and liquidated your goods. The following process includes.

• Examination: a CBP officer inspects your goods to ascertain their safety in US waters
• Classification: the officer classifies your import as a consumer or agricultural
• Liquidation: the CBP officer notes down the fixed price of the value of all the goods

How to become an importer in the USA

1. Acquire an import number

You must have an import or a business tax number to ship anything into the country. Obtain the number through the Internal Revenue Service since it is a requirement for billing and clearance. 

If you are importing goods as a firm, you will need an employer identification number, but individuals need an individual taxpayer identification number.

3. Have customs broker

After acquiring your import number, you must find a customs broker, who knows all the intricacies of an import license, including billing and filing paperwork. If your shipment has issues, the first proximity that customs contact will be your customs broker. 

Although most people prefer to go through this process alone, import agencies highly recommend a customs broker because they help avoid penalties and fines caused by incorrect billing.

3. Determine the valuation and tariff of your goods

Analyzing the value and classifying your goods determines whether they are subject to duty, depending on the HTSUS (United States HTS code), which CBP uses to assign appropriate fees to goods. You must present relevant documentation if you feel that your goods need discounted duty fees, failure to which customs will issue you an invoice detailing all the bills of your shipment.

4. Draft your commercial invoice (CI)

A commercial invoice details everything you are importing. The rule of thumb is to always have one for each group of products and copies for each, which your customs broker can file. Your CI must include information on the carrier, shipper, receiver, cost, and the names of all products shipped for accuracy purposes and the value of your goods. 

Also, the government uses a CI when valuing your goods. Therefore, your CI must have the following information:

• Valuation of goods capped in U.S. dollars ($) includes packing costs, insurance, freight, and prices paid
• Quantity and weight of your products
• Address, location, and name of the carrier
• Goods origin (country)

Note: you may need to provide customs and the government complementary information on certain goods before they pass the border.

5. Complete importer security filing documentation (ISF)

ISF filing paperwork is essential for anyone importing goods via sea since it notifies customs borders and presents necessary information about your shipment. As an importer, you must tender 10 data statements one day before loading your goods onto the ship and two more before the ship disembarks. 

Note that these statements are required for sea or land shipments. Failure to provide this crucial information may lead to cargo delays, fines, or penalties. 

6. Resolve if you need a customs bond

You must acquire a customs bond from an accredited institution if your commercial goods are valued at over USD 2500 to ensure that your goods duties are paid. There are two categories of custom bonds as mentioned below:

• Continuous bonds: cover different entry points across the United States and must be renewed annually
• Single-entry bonds: cover shipments below $50,000 and are used once

7. File your documentation and pay all required taxes

Now that you have all the documents, ensure that you file them to finalize the process. Customs border will require you to file import documents for the following reasons:

• To assess whether your goods are subject to duty
• To release your goods from the port

Once your shipment arrives, you must provide all the necessary documents, pay taxes and duties as required, and fill in any necessary paperwork. Taxes are paid according to:

• Value of products, shipping costs not included
• Value of each good
• Duty-free exemptions

How much does an import license cost in the USA? 

General cost overview

The United States does not charge to obtain an import permit. The entire process and any associated fees depend on the type of agency. However, you will be charged for renewing licenses and permit modifications. 

Custom bonds and related costs

A customs bond is a legal document that binds an importer with the CBP to ensure they pay all the fees for goods capped at over $2500. Other terminologies for custom bonds include:

• Activity code 1 bonds
• Import bonds
• Customs entry bond
• Customs surety bonds

Your bond should be equal to the fees of your imported goods, which should be a quarter of the total price of your goods. If you are unsure of custom bonds, refer to the official CBP website.

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Do I need a license to import to the USA? 

Below are reasons why you must have an import license:

• It prevents the entry of illegal goods into the country
• It restricts currency overflow into the U.S market
• It shields domestic business owners from unfair competition
• It ensures proper handling of dangerous substances

What do I need to import goods to the U.S? (Requirements)

• A packing list
• Invoice (unless the goods are below $25)
• Transport invoice
• Port shipment prices
• Proof of insurance
• Ocean, land, or air bill of landing 

What is illegal to import into the US?

Illegal or restricted items are goods that need special import licenses before they get into the country. Below is a list of prohibited goods that you cannot import into the U.S.:

• Alcohol
• Alcoholic beverages
• Automobiles
• Biological materials
• Ceramic tableware
• Cultural artifacts and cultural property
• Defense articles or military items
• Dog and cat fur
• Drug paraphernalia
• Fish and wildlife
• Food products
• Fruits and vegetables
• Game and hunting items
• Gold
• Haitian animal hide drums
• Medicine
• Products from embargoed states
• Pets
• Soil
• Textiles and clothing
• Seeds and plants
• Copyrighted material

Challenges and common issues of importing goods into the U.S.: navigating the maze

Applying for an import is multifaceted, especially if you don’t know the regulations that bind the import business in the United States. Here are a few challenges and common issues mentioned below:

1. Customs clearance issues

The United States has set strict regulations that oversee import licensing on admissibility, import duties, and tariffs. Most people don’t know how to bypass these regulations, thus causing late shipping and additional costs. 

Additionally, inaccurate documentation may cause clearance delays. Important documentation includes paperwork from the country of origin, invoices, and commercial packing lists.

Note that you must indicate whether your goods are part of a harmonized tariff schedule (HTS), which customs use to determine the duty rate. In case of any misclassification of goods, customs will charge you additional penalties or subsequent delays.

2. Logistics and shipping hurdles

Global events like political instability and pandemics can cause product shortages, product delays, and supply chain issues. Moreover, instability also inflated freight and other forms of transport, which will affect those importing.

3. Sourcing goods

Finding quality products from authentic providers can be a hurdle, especially when looking for new business opportunities. You must build a relationship with your retailer or distributor to solidify your import business.

How to overcome these challenges

1. Find the right licensing agency

Dozens of agencies handle complex imports; find the right one to prevent delays and additional shipment costs.

2. Locate a customs broker

A customs broker will help you navigate the complexities of obtaining an import license, shipping products, filing paperwork, and submitting the necessary documentation. Further, this will ensure you don’t encounter any delays when shipping your products.

3. Improve your supply chain

It is inadvisable to rely on one supplier because they might disrupt your business if they go out of stock. Expanding your supply chain ensures you never run out of goods.

Importing products to the U.S. is a profitable business only if you uphold pertinent rules and regulations. As an importer, the rule of thumb is to acquire an import license to show you know the ordinances that bind you and the government. 

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