Amazon will not serve as the ultimate consignee on an overseas shipment, which can raise some problems for overseas companies.
In order to pay the required customs and duties when your goods arrive from overseas, you need to provide two contacts based in the country you’re shipping to:
1. Importer of Record – responsible for paying customs and duties, plus any liabilities related to the customs.
2. Ultimate Consignee – the official contact for the customs authority if there’s any problem.
Most US imports are done by US companies. It’s simply the most straightforward way of importing goods because the Customs Border and Protection Agency (CBPA) will only approve shipments for companies that have an American Tax ID/EIN.
Many companies get concerned that they won’t be able to import into the US if their business is not based in the US and don’t have an ID/EIN. But have no fear! You can import into the US as long as you establish your company as a Foreign Importer of Record.
Note: Setting your company up as a Foreign Importer will link it with the United States IRS, which can have other impacts on your company. Please check with your local accountant/lawyer.
To do this, you’ll need a US address, a US tax ID number, and a Customs Assigned Importer Number (CAIN). Your customs broker can help you get the CAIN once you provide the following:
* Customs Power of Attorney (POA) This will be provided by your forwarder.
* Picture ID
* Your New ID/EIN
* IRS Letter Some customs brokers will need a copy of the letter that the IRS mails to your US address after they’ve assigned you an EIN. This can take 3-4 weeks to arrive, so do this in advance.
There are two way to get a US address and tax ID number:
1. Register as a foreign importer of record through the IRS. You can list yourself as the consignee on the shipment, but you’ll then have to give the freight forwarder an Employer Identification Number (EIN). This can be obtained by calling the IRS at 267-941-1099 (from 6AM – 11PM EST, M-F) to request a tax ID number. The call lasts around 20 minutes, so keep in mind that this is not a toll-free number. During your call, you will have to provide answers to around eight questions. At the end of the conversation, you’ll receive your free EIN number! You can learn more on the IRS website.
2. Use third party providers to help obtain the necessary credentials. Some forwarders will be able to register your company as a foreign importer for you to be able to pay taxes. You can select this services on the Additional Services section of the Freightos search page.