Guidelines for Selling to Or Showing in the Usa

GUIDELINES FOR SELLING TO OR SHOWING IN THE USA

Even those of you familiar with selling to the States, might find some of the information below useful, as experienced exporters can get caught out, and one small mistake can result in shipments being stuck at Customs. Even if you are not planning on showing in the USA, you might find some of this information helpful to prepare yourself for doing business with American buyers who may approach you at European shows.

If you are new to exporting to the USA you will need to make sure you know what duties apply to your collection so that you can work out prices accurately well before the show or before meeting potential buyers. Many smaller retailers will expect to be quoted a landed, duty paid price (LDP), and will not want to be bothered with calculating duties, clearance, insurance and freight costs.

ESTA Visa Waiver Scheme

Anyone travelling to the USA these days needs an ESTA Visa Waiver. This is completed online. Go to the official US Government site - https://esta.cbp.dhs.gov/esta - and do not use any other site. You have to pay a fee for this document, but it should be around $20 – many unofficial sites charge a lot more, and do not get the application processed any faster! You can do this any time before your journey (but don’t leave it too close to departure day!), and it lasts for two years from date of issue. You are advised to print out the form so you have a record of your ESTA number but you do not need to take a copy with you. You will still need to fill in the Customs form given to you on the plane.

If your passport has less than 6 months to run from the time that you are arriving in the States, you should get a new one before you travel. If you are not a citizen of the EU, and you have not visited the USA before, you must contact the US Immigration authorities to establish where or not you will need a Visa to enter the USA.

DUTIES/QUOTAS

US import duties will vary according to the exact nature of the article, the fibre composition, origin of raw materials, where it was made and even whether there is any ornamentation, so you will need to determine the duty for each individual item. First of all you must establish the commodity codes for each of your samples. You can find this information online at www.uktradeinfo.com

If you need further clarification you can call the HM Customs Helpline on tariff classifications: Tel: 01702 366077.

When you know the first four digits of the Commodity Code of your goods, you can go to the EU Market Access Applied Tariffs Database page on http://madb.europa.eu/mkaccdb2/indexPubli.htm for the specific duty rates and the correct USA 10 digit import code for your products. Additional information can be found on the USA Customs website at: http://www.cbp.gov

If you need more help in clarifying a code and you have been through these steps, you can talk to the US CUSTOMS Trade Enquiry Line at the American Embassy in London Tel 020 7499 9000 x 2772.

If any part of your collection is made outside the EU, it may also be subject to import quotas, so you should check this with US Customs. Don’t forget that both the EU and the USA have re-imposed quotas on certain products from China.

Companies intending to export goods of Chinese origin to the United States should be aware that the US authorities are investigating a wide range of product categories. You must check whether quotas have been imposed or re-imposed on goods in your collection, and whether a Chinese export license and US import license are necessary. Further information can be found at http://otexa.ita.doc.gov/

http://www.cbp.gov/xp/cgov/trade/trade_programs/textiles_and_quotas/quota_restrict.xml

Wherever your goods are made, it is your responsibility to determine the procedures needed for getting them into the USA, and any restrictions which might be imposed on them.

LABELLING

Documentation, Customs procedures and labelling are far more complicated than they are for the EU. Commercial invoices need to contain specific wording and information. US law requires that labels list the fibre content, country of origin, identity of manufacturer or other business responsible for marketing or handling the item. Care labelling is also necessary, and the USA does not recognize European care instruction symbols. It is vital that all this information is given in the correct format and that the labels themselves are positioned correctly. For further information on US labelling requirements for clothing and textiles see: http://www.ftc.gov/os/statutes/textile/rr-textl.shtm and

http://www.ftc.gov/bcp/edu/pubs/business/textile/bus21.shtm#place (this is more for retailers, but contains very useful examples of labels and wording for labels.

DOCUMENTATION

The requirement to show an MID (Manufacturer/Shipper Identification Code) on all invoices covering shipments to the USA was introduced in November 2005. UKFT members will already have received information from us on this.

US Customs demand that the code of the actual manufacturer or manufacturers of garments or accessories appear on every invoice, rather than that of the exporter or invoicing party. The identification code is filed on the CBP (US Customs and Border Protection) Form 7501. Information can be downloaded from: http://www.cbp.gov/xp/cgov/trade/trade_programs/entry_summary/cbp7501/7501_faq.xml Click on Forms at the bottom of the page and type in CBP 7501 and the form should come up.

It is YOUR responsibility to establish MID codes for everything that you sell to the USA. If you are using a manufacturer to make for you and the manufacturer does not have an MID code, you should construct one for that manufacturer, for use on your shipments.

Special note – if you manufacture in your own factory or unit, and you are generating your own MID using this system, it is recommended that you use the ISO Code “GB” for the United Kingdom, rather than “UK” - which (in the USA) can be confused with Ukraine.

The US authorities see this as “a matter of Homeland Security”. Others view the situation rather differently and regard it as a “Technical Barrier to Trade”; the issue has been taken up by the British Embassy in Washington and by Euratex (The European Federation of Apparel and Textile Associations) at the European Commission. We will let you know when we have any further information. In the meantime, if you are experiencing any difficulties or have any information to pass on, please let us know.

GETTING YOUR SAMPLES TO THE EXHIBITION

The only safe way to do it is to use an ATA Carnet (effectively an international “passport for goods”), whether you are carrying them with you, or using a freight forwarder or courier service (unless you are using a shipper who specialises in shipping to trade shows in the US and has their own continuing bond with US Customs). Some companies have been told by couriers that a Carnet was unnecessary, only to arrive at the show to find their goods stuck in Customs for days or weeks.

Yes it costs money, yes it’s a real bore to complete and takes time, and yes it does mean that you have to bring back everything that you take out, but it can mean the difference between having your samples at the show, and not having them at all.

Every season we come across UK companies exhibiting at US trade shows who decide to carry their samples themselves, and save themselves the cost and hassle of a Carnet, only to find their samples stuck at US Customs and not released until after the show. Other companies have tried to smuggle their collections in as personal luggage. Do not do this; US Customs are very vigilant and if you are caught, you will be required to pay, in cash, the full amount of the maximum duty payable; even when you have paid the duty it is likely that your samples will be mutilated (torn, or otherwise defaced) to ensure that they are not in a saleable condition – and you would not want to show those on an exhibition stand!

Clear information on how to purchase and administer an ATA Carnet is available on the London Chamber of Commerce website: http://www.londonchamber.co.uk/lcc_public/article.asp?aid=442. The London Chamber of Commerce offers the fastest and most simple service (other Chambers in the UK may charge you more and take longer) – they also offer a Carnet Indemnity Scheme (which saves a lot of time and hassle with a bank). There is a charge for the ATA Carnet, a deposit is required, and you have to pay for the processing service. Do not leave this until the last minute – it will take time to organise and to complete all the forms. You MUST also allow extra time at the airports at either both ends of your journey to get your Carnet stamped by Customs.

VERY IMPORTANT NOTE FOR WHEN COMPLETING YOUR CARNET - the USA will only accept on a Carnet goods classified as “Commercial Samples” http://www.londonchamber.co.uk/lcc_public/article.asp?aid=442 – so please tick the appropriate box!!

Thinking of using a courier service? You can ask your show Organisers if they offer any service for receiving foreign sample collections on a Carnet, sent by courier – but even if they do, this procedure is not at all simple. In our experience – the delivery bit might work, but sending the collection back is a nightmare as you will have to wait for the Courier’s representative to collect them from you at the end of the show – with the traffic outside at this time when the show breaks down it could take many, many hours for them to reach you!!! If you choose this method, remember that you will have to be there on setup day (probably all day!) to sign for the delivery of your consignment, and on the last day you need to be there for as long as it takes to hand the collection back to the courier. Show organisers will not sign for a delivery or a pick-up on your behalf.

Some of the larger shows in Las Vegas, have appointed shipping companies to send samples in advance to their shows (see their exhibitor guidelines for further information). This can be quite complicated and expensive, and you must allow plenty of time in advance of the exhibition. You could use your own freight forwarding company, but be sure that they have experience of shipping samples to exhibitions in the US, and have their own local office or agent. . VERY IMPORTANT - whoever you use, you will need to give them “Power of Attorney” to deal with your shipment. This is not as ominous as it sounds, it is really what we would call a “Letter of Authority” – so that the shippers have the authority to clear the goods through Customs as they are on the spot and you are not.

So please, whatever you decide to do, take care to ensure that all your documentation is correct and don’t leave everything until the last minute. It really is worth taking the time to get it right in the first place and you can save yourself a lot of trouble and expense. If you need any further information on any of this, please call UKFT.

Members can log into our website www.ukft.org for a detailed market report on selling fashion to the USA (s few years old but still relevant and practical and informative) and more specific, technical details, including information on labeling and MID codes.

These guidelines should point you in the right direction. Members can contact UKFT for further advice if required.

FURTHER INFORMATION:

UK Trade & Investment

They offer a wide range of services for exporters. For further information visit their website:

www.ukti.gov.uk To find your local office http://uktilocaloffice.thedriveris.com/

BRITISH CONSULATE-GENERAL IN NEW YORK

845 Third Avenue, New York NY 10022. Contact: Danielle Holden (Fashion & Beauty) Tel 001 212 745 0419