Understanding Customs, Duties, and Import Regulations for Amazon Exporters

Amazon exporters must understand customs, duties, and import regulations to successfully ship products to Amazon fulfillment centers (FBA) in the US. Key points include:

• Importer of Record (IOR): The IOR is the party responsible for customs clearance, paying duties, taxes, and complying with import regulations. Amazon does not act as the IOR for sellers. Sellers or their logistics partners must provide IOR information on customs documents to avoid shipment rejection.

• Customs Duties and Taxes: Import duties and taxes depend on the product value and classification. For shipments valued at $800 or less, Section 321 allows duty- and tax-free entry into the US if the shipment is imported by one person on one day and the owner/seller identity is provided to Customs and Border Protection (CBP).

• Customs Bonds: Importers must secure customs bonds—either Single Entry or Continuous Customs Bonds—to cover customs duties and ensure compliance. Continuous bonds are more cost-effective for frequent importers.

• Labeling and Compliance: Shipments must meet Amazon’s labeling requirements and comply with US customs and Amazon policies. Incorrect labeling or non-compliance can lead to shipment rejection or delays.

• Incoterms: Understanding Incoterms® is important to clarify responsibilities for shipping costs, insurance, customs clearance, and delivery between seller and buyer.

• Customs Clearance Process: The IOR or their customs broker handles filing necessary documents such as the Importer Security Filing (ISF) and CBP Form 7501. Failure to comply can result in shipment holds or penalties.

• Amazon Global Logistics: This service can assist with customs clearance and compliance but still requires the seller or their agent to act as IOR and provide customs bonds.

In summary, Amazon exporters must arrange for an IOR, ensure proper customs documentation, pay applicable duties and taxes, comply with labeling and Amazon’s policies, and understand relevant import regulations to avoid shipment delays or rejection at US customs and Amazon fulfillment centers.