At Fictiv, we’re proud to offer customers access to economical, highly vetted manufacturers overseas. When you place an order using Fictiv overseas manufacturing, it’s important to understand the additional requirements involved to import goods into the United States. This article will guide you through each of these requirements to ensure you’re prepared for your shipment.
Overview: Required Information for International Shipping
Before you can import goods from overseas, you need to prepare five pieces of information:
- Complete CBP Form 5106 and email it to email@example.com. (Required for new importers only)
- Obtain HTS classification for each of the articles in your order.
- Assign accurate names to each of the items in your order
- Prepare a detailed description of the “end use” for each of the parts in your order
- Provide the overall end use of your final product
To provide information points 2-5, you can use this free template.
When and How to Provide International Shipping Information with Fictiv
Depending on your team’s experience and infrastructure, it may take some time to organize the required information for international shipping. We recommend you prepare the five points of information listed above prior to placing your order with Fictiv.
After you place your overseas order with Fictiv, a customer experience representative will reach out via email requesting this information. You can respond with a link to the template we provided.
Please note that failure to provide the information at a minimum of two days prior to the scheduled shipment date may result in shipment delays.
What is a 5106 Form and When Do I Need to Fill One Out?
Fictiv uses FedEx to ship orders from overseas. The 5106 form is used by FedEx to create or update an importer's unique identification information within CBP’s internal system. Essentially, the 5106 establishes the submitter as an official importer of record (IOR) in the United States. If you or your company has never imported goods into the U.S. from overseas, you’ll need to fill out a 5106 form with information matching the information on the ship-to address on your order.
You need to submit this form via email to firstname.lastname@example.org at least two days prior to your order shipment date, or else risk shipment delays and/or fines. This is not a recurring process--once you’ve submitted a 5106 form, you will not need to do so again unless your IOR identification information changes.
How to Collect HTS Classification Codes
Here’s an example of some of the most common HTS codes used in orders placed through our platform:
If you do not know your HTS codes, we encourage you to work with a customs broker or trade professional. If you do not have a preferred customs broker yet, you can partner with one of our preferred brokers to obtain the information. If you would like Fictiv to obtain HTS classification information for your company, please reach out to a Fictiv customer experience representative at email@example.com for more information.
Am I Responsible for Import Duties?
The duty, or tax rate, associated with a given shipment is dictated by the value of the shipped goods and the associated HTS code(s). Duties are paid to Customs and Border Protection (CBP) upon the importation of goods from foreign countries.
If the HTS code lookup yields a percentage duty for one or more of your parts, that means you are responsible for paying that percentage of the overall value of your parts so that you can receive clearance for your shipment. If you don’t see the duties when you look up your HTS codes, you can double check the latest duties for each product category on the USITC website by entering your HTS code.
The carriers Fictiv uses (FedEx) are the entities which collect the duties. You will receive an invoice from FedEx for any applicable duties.
How to Declare Prototype Parts Through Customs (and Avoid Duties)
The US government understands that building prototype parts overseas could be the first step in generating a great business opportunity in the US. For this reason, CBP makes it easier for companies to create and share prototypes parts among subsidiaries outside of the country by making this category of products duty free.
There are some things you should know before you can take advantage of the duty free opportunity offered.
Parts can be imported as “Prototypes” using HTS 9817.85.01, which has a current duty rate of 0%, if they meet each of the following criteria:
- Your parts are in pre-production, production, or post-production
- Your parts are to be used exclusively for development, testing, product evaluation, or quality control purposes
- Your order is limited to noncommercial quantities in accordance with industry practice
It’s important to note that when you use the HTS classification code for prototypes (HTS 9817.85.01) you also must present the HTS classification code that represents the unique description of your goods as appearing in chapters 1-97 of the United States Tariffs Code. If you need additional assistance on how to collect these codes, please work with a customs broker or trade professional of your choice or from our preferred network.
You may also be requested at the time of entry or at a later date (no later than 3 years from the time of importation of goods) to submit a written statement declaring the actual use of your parts.
We’re Here to Help
Have additional questions on how to import goods into the United States using Fictiv overseas manufacturing? Please don’t hesitate to reach out to our team of experts anytime at firstname.lastname@example.org.