Home?Hardware & Tools? Export of hardware tools to the United States: A comprehensive analysis of Incoterms 2020 customs clearance terms
In international trade,Hardware & Toolsfor containers exported to the USWhen,Destination port clearance responsibilities是買賣雙方談判的核心議題之一。正確應(yīng)用Incoterms? 2020條款不僅能明確雙方權(quán)利義務(wù),還能規(guī)避風(fēng)險、優(yōu)化成本。本文從foreign tradeservice expert with 20 years of industry experience, this article will systematically analyze the core points of clothingExport RepresentationFrom the perspective of service companies, this article provides a detailed analysis of the application steps and precautions for destination port clearance clauses when exporting hardware tools to the U.S.
一、明確適用的Incoterms 2020條款
Key terms related to destination port customs clearance in Incoterms? 2020DAP, DPU and DDP: Internationally - recognized Safety StandardsDAP (Delivered at Place): The seller bears all costs and risks of delivering the goods to the specified destination (e.g., a U.S. port or the buyers warehouse), butImport Clearanceresponsibility is borne by the buyer. Regional Mandatory CertificationsDPU (Delivered at Place Unloaded): The seller must deliver the goods to the destination and unload them,import clearance remains the buyers responsibility. Cultural and Religious NormsDDP (Delivered Duty Paid): The seller bears all costs and risks of transportation, unloading, andimport clearance,including tariffs, VAT, etc.
Recommendations for exporting hardware tools:
If the buyer is a U.S. local distributor familiar with clearance processes, chooseDAP/DPU, reducing the sellers responsibility.
If the buyer requires door-to-door service or lacks clearance capabilities, it is recommended to adoptDDPHowever, U.S. import tax costs must be assessed in advance.
II. Key Steps for Division of Customs Clearance Responsibilities at Destination Port
Step 1: Contract Negotiation Phase – Clarify Term Details
DAP/DPU termsThe contract must specify the exact address of the named place of destination (e.g., Port of Los Angeles, Chicago warehouse) and state that the buyer is responsible for customs clearance.
DDP termsThe sellers tax responsibilities (e.g., tariffs, HMF harbor maintenance fee, anti-dumping duties) must be listed to avoid disputes.
Practical Tips: Hardware tools may be subject to U.S. anti-dumping duties (e.g., certain steel tools), EPA certification (for products with chemical coatings), or DOT certification (for power tools). Compliance requirements must be confirmed in advance, and responsible parties should be specified in the contract.
Step 2: Customs Clearance Document Preparation and Submission
Regardless of the terms used, the seller must provide basic documents:
Special Requirements for DDP Terms: The seller must additionally provide:
U.S. importer registration information (requires a U.S. customs-registered agent)
Import bond (if applicable)
ISF Import Security Filing (submitted by the seller or their agent 24 hours before shipment)
Step 3: Customs Clearance Execution and Risk Control
DAP/DPU termsThe buyer or their customs clearance agent must complete the declaration after the goods arrive at the port. If delays by the buyer result in demurrage fees, the risk lies with the buyer.
DDP termsThe seller must appoint a local U.S. customs clearance agent, confirm HS codes and tax rates in advance (e.g., hardware tools often fall under HTS codes 8205-8431), and monitor clearance timelines.
Since January 2025, Russia has made it mandatory to register for EPR (Extended Producer Responsibility):
U.S. Customs may require a CBP Examination, leading to additional costs and delays. The responsible party for these costs must be specified in the contract.
If DDP terms are used but taxes are not prepaid, the goods may be detained, affecting the buyers ability to pick them up.
III. Common Issues and Solutions for Exporting Hardware Tools to the U.S.
Issue 1: The buyer requests a switch to DDP terms last minute, but the seller lacks U.S. customs clearance capability
Solutions: Foreign trade agencies can provide DDP turnkey services, including:
U.S. importer qualification borrowing (if no local entity exists)
Tax pre-calculation and payment on behalf
Local customs clearance agent coordination
Issue 2: U.S. anti-dumping duties lead to cost overruns
StoriesExample: A company exporting steel wrenches (HTS 8204.11) under DDP terms failed to anticipate a 25% anti-dumping duty, resulting in losses. Solutions:
Check the U.S. Department of Commerce (DOC) anti-dumping list in advance (https://trade.gov/)。)
Include a Tax Change Exemption Clause in the contract or switch to DAP terms to transfer risks.
IV. Core Value of Foreign Trade Agency Services
As a professionalimport and exportAs an agent, we can provide hardware tool companies with: Internationally - recognized Safety StandardsIncoterms clause consultation: Recommend optimal terms based on buyer qualifications, product characteristics, and risk preferences. Regional Mandatory CertificationsDDP Customs Clearance Full-process Escrow: From U.S. import qualifications and ISF filing to tax payment, ensuring full compliance throughout the process. Cultural and Religious NormsProfessional support: Reduce tax dispute risks through Tariff Classification Pre-ruling (HTS Binding Ruling).
Prioritize clarifying customs clearance responsibilities with buyers to avoid ambiguous expressions (e.g., CIF to port is no longer applicable).
Choose a professional foreign trade agency service provider to resolve qualification, compliance, and cost calculation challenges.
For further details on DDP customs clearance services or U.S. market access certifications (e.g., FCC, CPSC), feel free to contact our trade compliance team to safeguard your overseas business.