One of my favorite stores is Costco because they have an incredibly great free Return policy. No, ask, no BS, just take the product and return the payment within the allowed period. I guess that easy and free return policy encourages me to spend more money on Costco than any other supermarket. However, talking about doing importation business with U.S Custom Board of Protection, return that Made In US goods to the motherland for free of charge does not seem so easy because, our U.S Custom really wants to make sure you as importer, is doing the right thing. It is not very complicated but you will need to do some legwork
Here is a scenario: A Canadian company bought goods from U.S company several months ago. They received their shipment and the goods were refused by the buyer because they did not meet their product specifications. All the packages and products remain the same. The goods can be returned to the U.S manufacture. Is this duty-free U.S Goods return? The answer is yes.
Per 19 CFR 10.1, the HTSUS code 9801.00.10 is a special classification used for the duty-free importation of “Products of the United States when returned [to the USA] after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad.” The last two digits of 9801.00.10 classification vary. They are based on the length of exportation or importation of the article or on the original HTSUS classification of the article
So, in the scenario above, if we say, the product sold to Candian company has been reprocessed and remanufactured into a more advanced product. Then it will not be qualified for the U.S goods return.
CBP Form 311
When clearing returning U.S. goods through Customs and Border Protection (CBP), the importer should file the CBP form 311- declaration of Free Entry of American Goods Returned and handed back to your broker. Please make sure that your manufacture has never applied the manufacture drawback on the item. The official form can be found here
For formal entries valued more than 2500 USD, manufacture's affidavit is also needed to further proved the ownership of the goods. U.S. Customs requires the affidavit to be on the U.S. manufacturer's letterhead and it must be signed by a C-Level corporate officer from the U.S. manufacturers facility. A properly worded manufacture's affidavit that is complained of 19 CFR 10.1 can be requested from me.
Foreign shipper's declaration of US Goods return
This is completed by foreign shipper who ships the goods to the United States. CBP requires a declaration by the foreign shipper indicating that the products were not advanced in value or condition while outside the U.S. The form also needs to be signed by a C-level corporate officer from the foreign shipper company.
Proof of U.S Export
Another document will be deemed sufficient proof of export from the U.S. for U.S.-manufactured goods or foreign-origin goods provided that the information contained therein proves an export: a copy of the entry into the foreign country, U.S. export invoice or bill of lading/airway bill, or Electronic Export Information or Automated Export System filing the exemption
If you are ready to ship a U. S goods return product, I would highly suggest starting to prepare the needed docs before you ship out. It takes some time to get the corporate officers signature. And you certainly do not want your shipment is delayed of custom clearance because you are waiting for that signature back.
Have some thoughts? You may leave comments below :)