U.S. Goods Return

One of my favorite stores is Costco because they have an incredibly great and free return policy. No questions asked, no BS, just take the product back for a refund within the allowed period. That easy and free return policy encourages me to spend more money with Costco than any other supermarket. Returning goods is mostly hassle free when it's being done through your local grocery store or shopping mall. Now let us talk how returning goods work when doing importation business with U.S. Customs Board of Protection. Returning goods back to the origin country where they are made after importing into the US is not so easy once they have been cleared to enter the Country. As an importer, it is important that all steps are followed and you do your homework to be sure all goes smooth and that the compliance guidelines are followed.

Here is a scenario: A Canadian company bought goods from a U.S. company several months ago. They received their shipment and the goods were refused by the buyer because they did not meet their product specifications. All the packages and products remain the same. The goods can be returned to the U.S manufacture. Is this duty-free U.S. Goods return? The answer is yes.

Per 19 CFR 10.1, the HTSUS code 9801.00.10 is a special classification used for the duty-free importation of “Products of the United States when returned [to the USA] after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad.” The last two digits of 9801.00.10 classification vary.  They are based on the length of exportation or importation of the article or on the original HTSUS classification of the article

So, based on the scenario above, what if they Canadian company accepted the goods and a few months later they wanted to return them back to the US? They re-processed the goods and re-manufactured them into a more advanced product since they've had them. Would these same goods qualify as a US goods return? The answer is no.

CBP Form 311

When clearing returning U.S. goods through Customs and Border Protection (CBP), the importer should file the CBP form 311- declaration of Free Entry of American Goods Returned and hand back to your customs broker. Please make sure that your manufacture has never applied the manufacture drawback on the item. The official form can be found here

Manufacture's Affidavit

For formal entries valued more than 2500 USD, manufacture's affidavit is also needed to further prove the ownership of the goods. U.S. Customs requires the affidavit to be on the U.S. manufacturer's letterhead and it must be signed by a C-Level corporate officer from the U.S. manufacturers facility. A properly worded manufacture's affidavit that is complained of 19 CFR 10.1 can be requested from your local customs broker.

Foreign shipper's declaration of US Goods return

This is completed by foreign shipper who ships the goods to the United States. CBP requires a declaration by the foreign shipper indicating that the products were not advanced in value or condition while outside the U.S. The form also needs to be signed by a C-level corporate officer from the foreign shipper company.

Proof of U.S Export

Another document will be deemed sufficient proof of export from the U.S. for U.S.-manufactured goods or foreign-origin goods provided that the information contained therein proves an export: a copy of the entry into the foreign country, U.S. export invoice or bill of lading/airway bill, or Electronic Export Information or Automated Export System filing the exemption.

If you are ready to ship a U.S goods return product, we would highly suggest starting to prepare the needed docs before you ship out. It takes some time to get the corporate officers signature. And you certainly do not want your shipment to experience delays.