Documentation and Bond Requirements for International Trade

Proper documentation of goods is key to successful and efficient international commerce. Basically, there are four groups of paperwork that must accompany international shipments:

1. Commercial documents such as invoices
2. Banking documents
3. Transportation and insurance documents
4. Government documents

Not every kind of document is needed in every transaction, and there can be several different types of each kind of document. Every country imposes its own specific requirements, but for your goods to enter the United States, the following four pieces of paperwork are generally required:

1. A bill of lading, airway bill or carrier's certificate naming the consignee, as evidence of the consignee's right to make entry.
2. A commercial invoice obtained from the exporter, showing the value of and describing the merchandise.
3. Packing lists and other documents necessary to determine if the merchandise is admissible. These may include FDA approval or UL certification.
4. An entry manifest Customs Form 7533, or Entry/Immediate Delivery (Customs Form 3461).

U.S. Customs laws require importers to keep these documents on hand for five years after the goods clear customs. The U.S. Customs Department has extensive powers to audit your company to ensure compliance. If customs requests your records, you must be able to produce them within a reasonable time. You must also have accurate and dependable record-keeping policies and systems. There are severe civil and criminal penalties for breaking record-keeping rules and regulations.

Importers are also required to post either a surety bond or its cash equivalent with the U.S. Customs Service. Bonds are issued by specialized insurance brokers to represent the value of your imported merchandise. This ensures that you can cover any necessary financial and regulatory obligations.

Personal sureties can be used in place of a Customs bond if you can come up with at least two persons who would become legally liable for the debt. You can also pledge cash or other U.S. government obligations, such as treasury bills or notes.