Since a complex web of laws and regulations covers international shipping, customs forms can seem overwhelming. Customs regulations use a lot of highly specific and technical jargon that is sometimes confusing for first-time international shippers.
Some special rules apply to shipments to certain countries. However, most countries have coordinated their rules through the Universal Postal Union (UPU), an agency established by the United Nations to streamline international shipping. This means most international shipments leaving the U.S. use the same forms, reducing hassle and duplication of efforts.
It’s essential to fill these forms out correctly and completely and make sure you include any special forms applicable to your situation. Here’s how to fill out a customs form for international shipping of consumer goods and more.
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Which Forms Do I Need?
To ship from the U.S. to another country or a U.S. military installation overseas, you need at least a commercial invoice and any basic shipping labels required by your carrier. However, high-value, hazardous or restricted items require additional forms, possibly including:
- Electronic Export Information
- U.S. Certificate of Origin
- Hazardous Materials declaration forms
Even if you are sending personal items or a gift, you need to fill out the same basic forms as commercial packages. Some countries levy taxes on gifts or personal items over a specific value or quantity, so you must include this information. However, customs forms allow you to indicate the item is a gift.
When importing into the U.S., the sender needs to complete Customs and Border Protection Form 7501 unless told otherwise by their carrier. You do not need to complete this form when sending packages out of the U.S., however.
The USPS no longer accepts handwritten customs declaration forms like in the past. You need to complete and print the required documents in advance. Many other carriers prefer or require electronically completed forms as well.
Basic Information
All customs forms and commercial invoices require the same basic information, which includes:
- Shipper and buyer name, address and phone number
- Complete description of items inside
- Quantity of items included
- Country of origin
- Weight of package
- Value of shipment (both including and excluding shipping costs)
- Shipping costs
- Reason for export (commercial goods, gift, etc.)
- Conditions of sale (Incoterms)
- Number of packages in the shipment
The description of the items should include the type of item and the materials used in it. For example, instead of just “cider,” include additional descriptors like “apple” or “non-alcoholic” to avoid confusion and possible misclassification of shipments. Although you do not have to list standard packing materials for shipping on the customs form, it is wise to do so if the materials are unusual or theoretically have commercial value.
List both individual items’ weight and the weight of the collective shipment. You do not need to list the dimensions of the item for the commercial invoice, even if the shipment is smaller than standard shipping container dimensions.
If you know the tariff code of your goods, you should include that as well. Commercial shipments must include the tariff code to avoid delays. Your carrier may be able to advise you, but you will likely need to look up the correct tariff code yourself.
You may also need to enclose instructions for how to handle undeliverable packages. Your carrier may already have their own procedures for handling them, depending on postage class. If not, they may ask you to include those instructions. Keep in mind, asking for a shipment to be returned to you could take weeks and may cost more than the package is worth.
In most cases, you can download a basic template for commercial invoices and customize it with your business logo and other information. However, your carrier may have a preferred invoice form that has all the required fields and instructions on how to complete them correctly.
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Deciding the Declared Value
One area that frequently confuses sellers is the difference between the value fields on the commercial invoice and other forms. Most fields on the invoice require the actual sale price of the goods.
The declared value, however, is the value for which the shipment is insured. Carriers typically charge higher insurance fees for shipments with a higher declared value. However, the declared value cannot be higher than the amount charged to the customer on the invoice.
If, for example, you’re shipping a package for which the customer paid $300, you might choose to declare the value at only the amount the goods originally cost you. This means if the package is lost or damaged, then your compensation is only equal to the declared value.
USPS includes coverage of up to $50 for most service levels, and you can buy optional additional insurance for up to $50,000 for Registered Mail and up to $5,000 for other service levels. UPS and FedEx both include $100 in insurance coverage, and you can buy insurance for up to $50,000 for all services except FedEx Same Day, which has a maximum amount of $2,000.
Conditions of Sale
Small online retailers often use Delivered At Place (DAP) Incoterms, which requires the recipient to pay for any duties or taxes that come up at customs. While this reduces the seller’s bureaucratic burden, it can result in delays and confusion for the recipient.
If you’re a wholesale exporter, Delivered Duty Paid (DDP) is a standard Incoterm that reduces delays. Since this requires the sender to cover the cost of taxes and duties, it doesn’t make sense for smaller shipments.
Either way, you must make the sale conditions clear to your buyer, and then record it accurately on the commercial invoice. Any misrepresentation of the terms of sale could result in delays at customs when officials need to contact someone about the payment of duties.
The USPS and some other carriers cannot collect duties owed to another country’s customs agency. Any international shipping costs or insurance for which you pay does not include duties. If shipping via USPS, you need to indicate DAP Incoterms on your commercial invoice clearly.
Electronic Export Information
If your shipment value is over $2,500 or contains goods that require an export license to send, you need to submit a form for CBP’s Electronic Export Information (EEI) system. You also need to submit the form to your carrier, which then forwards it to CBP.
EEI information is mostly the same as the commercial invoice and other forms’ information. However, it may need to be submitted in a specific format using the carrier’s specialized online system, instead of simply being attached as a hard copy with the package.
U.S. Certificate of Origin
Even if you indicate the country of origin on your commercial invoice, you may need an additional Certificate of Origin. This can affect tariff and duty rates in certain countries and is even required in some cases for personal effects.
To obtain a U.S. Certificate of Origin, you need to send the Certificate of Origin to your local Chamber of Commerce for its signature. This process can take several days, and the Chamber of Commerce may charge a fee for its services. You can hold onto a copy of the Certificate and include it with the same product’s future shipments without incurring additional fees.
When shipping to Canada or Mexico, you can attach a United States-Mexico-Canada Agreement (USMCA) Certificate of Origin instead. Unlike the North American Free Trade Agreement (NAFTA), you can now complete your own USMCA form with all the required information, instead of CBP Form 434. The information you must include is:
- The period the certificate is good for (up to 12 months)
- The certifier, exporter and producer
- The importer
- Description of goods and tariff code
- Origin criterion
The country of origin is the country where the goods were produced. This is not always the same country from which they are shipped. If there are multiple countries of origin in a shipment, include detailed information about which items are from which countries. When shipping a product made in the U.S. with components from other countries, you can still use a U.S. Certificate of Origin.
Hazardous Materials Forms
In addition to standard customs forms, any hazardous or flammable materials must be clearly documented and labeled with color-coded forms. Air shipments require red-striped forms, and ocean freight requires blue-striped forms. These forms require even less information than most customs forms and are mainly there to ensure safe handling.
Even if your paperwork is in order, customs officials may check to make sure nothing has leaked. Use standard eco-friendly packing materials to avoid any problems.
Make sure the country you are shipping to accepts the type of hazardous material being sent. Your carrier cannot be held liable for any goods rejected by customs officials, and may not be aware of very recent changes in shipping regulations for a specific country.
Goods that Require Advance Notice
Importing certain goods to other countries may require advance notice to that country’s consulate or customs agency. Although this list of goods can vary widely depending on the country, it most commonly includes certain foods and other perishable goods more likely to require strict inspection to ensure customer safety.
If you are shipping a product to a country you haven’t shipped to before, double-check its trade or import agency’s website to verify an advance notice is not required. They may need an additional customs form indicating the goods have been authorized in advance. However, this is not common for small shipments of regular consumer goods.
Attaching the Customs Form
Once you’ve correctly completed all forms, it’s important to attach them correctly and in the right place. Most carriers require two copies of each document and label: One on the top or side of the box, and one inside the box. However, some may need two copies on the outside so they can keep one for their records.
Use clear tape or a small clear envelope to attach the commercial invoice, shipping label and other required paperwork. Make sure the barcode and all additional information are clearly visible.
Sending Large Quantities
Most carriers have systems that allow you to fill out just one customs form or commercial invoice for a shipment of multiple packages to the same recipient. For example, UPS requires numerous copies of the commercial invoice to be attached to the first package, and then only one copy on each additional box. However, make sure to ship all the packages simultaneously and under the same order through the carrier.
When shipping barrels for sale with either liquids or solids, place a copy of the form near the barrel’s top. If the barrel is palletized, each barrel must be labeled with a copy of the customs document.
Ensuring Accuracy
Filling out each form completely and accurately is essential to getting your shipment delivered on time. Customs officials are obligated to protect their country economically and physically. Due to new security measures for international shipping, they won’t hesitate to hold back or even return a package that doesn’t meet their criteria.
Now that many countries use computerized import forms, it’s easier than ever for customs officials to notice paperwork irregularities. Some minor mistakes can be cleared up with a few phone calls, but most can result in significant delays. Customs officials may also levy fines, even if the error was accidental.
Label the package with the appropriate category, even if it means paying more in duties. Although some customers may encourage you to mark the item as a “gift” to avoid duties, this may backfire and result in a considerable fine.
Since English is recognized as the standard for international shipping, senders don’t usually have to complete forms in other languages. However, double-check and make sure all street names and recipient names are spelled correctly and consistently.
Safe and Successful Shipping
International shipping is no longer as difficult as it used to be, thanks to online forms and printable labels. Gifts, personal effects and commercial goods can reach any corner of the globe as long as sellers attach the right postage and follow all rules and regulations.
Commercial invoices, Certificates of Origin and other essential documents require some set-up time. However, carriers have made it easier than ever to determine the right information to include. With a little attention to detail, you can make your eCommerce business or other international shipping endeavors a success.
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