The first questions that comes to our mind is why is it so important? What difference will it make? Why change? This is the way I have always done it before.
In my opinion as a custom broker the invoice is probably the most important document to import merchandise into any country. Out of this document Customs officials must determine proper classification of the merchandise, what the value is, perform revenue collection through duties, fulfillment of required information by collecting trade information for statistics purposes (balance of trade), make a risk assessment for security purposes, determination of further inspections and enforcement of regulations from other agencies.
Also your custom broker/agent must classify, valuate, pay duties and transmit information to customs based upon this document. Additionally, the importer must comply with security programs in place by transmitting information prior to loading or stuffing container.
In describing the merchandise, the most relevant information pertaining to the article is much better than a generic description. This will greatly assist customs officers and customs brokers to correctly determine classification and additional requirements if applicable.
Most countries have adopted the Harmonized Tariff Schedule under the umbrella of the World Customs Organization, such publication has description for all imaginable products. My suggestion as custom broker expert is that if customs is relying on this system, it will facilitate the interpretation of the description by utilizing the same language. Another suggestion based in my experience as customs broker is the utilization of incoterms, this will assist customs and your custom broker in correctly determining value of products by adding or deducting charges. If any other considerations such as discounts, warranties, packing, packaging, royalties or licensing must be also included.
Under 19 Code of Federal Regulations provides customs brokers and importer with the guideline requirement of an invoice. This title also governs Customs duties and does include customs brokers’ activities;
141.86 describes contents of invoices and general requirements
(1) The port of entry to which the merchandise is destined;
(2) The time when, the place where, and the person by whom and the person
to whom the merchandise is sold or agreed to be sold, or if to be imported
otherwise than in pursuance of a purchase, the place from which shipped,
the time when and the person to whom and the person by whom it is shipped;
(3) A detailed description of the merchandise, including the name by which
each item is known, the grade or quality, and the marks, numbers, and symbols
under which sold by the seller or manufacturer to the trade in the country
of exportation, together with the marks and numbers of the packages in
which the merchandise is packed;
(4) The quantities in the weights and measures of the country or place from
which the merchandise is shipped, or in the weights and measures of the United
States;
(5) The purchase price of each item in the currency of the purchase, if the
merchandise is shipped in pursuance of a purchase or an agreement to purchase;
(6) If the merchandise is shipped otherwise than in pursuance of a purchase
or an agreement to purchase, the value for each item, in the currency in which
the transactions are usually made, or, in the absence of such value, the price
in such currency that the manufacturer, seller, shipper, or owner would
have received, or was willing to receive, for such merchandise if sold in
the ordinary course of trade and in the usual wholesale quantities in the country
of exportation;
(7) The kind of currency, whether gold, silver, or paper;
(8) All charges upon the merchandise itemized by name and amount, including
freight, insurance, commission, cases, containers, coverings, and cost
of packing; and if not included above, all charges, costs, and expenses incurred
in bringing the merchandise from alongside the carrier at the port of exportation in the country of exportation and placing it alongside the carrier at the first United States port of entry. The cost of packing, cases, containers, and inland freight to the port of exportation need not be itemized by amount if included in the invoice price, and so identified. Where the required information does not appear on the invoice as originally prepared, it shall be shown on an attachment to the invoice;
(9) All rebates, drawbacks, and bounties, separately itemized, allowed upon
the exportation of the merchandise;
(10) The country of origin of the merchandise; and,
(11) All goods or services furnished for the production of the merchandise
(e.g., assists such as dies, molds, tools, engineering work) not included in the
invoice price. However, goods or services furnished in the United States are
excluded. Annual reports for goods and services, when approved by the port director,
will be accepted as proof that the goods or services were provided.
In some countries customs will not release any shipment when a generic description is utilized. It will only be release until a better description is provided. This is really important as lean inventory methods are becoming more commonly use and companies does not want to have resources tied in inventories.
In my experience as a customs broker, I am not trying to imply in any way, shape or form that if you follow these guidelines, it will guarantee an immediate release but it will avoid unnecessary delays or additional request for information by customs officials.
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