U.S. Made Goods Returned Are Not Always Duty Free
Goods manufactured in the U.S. that have been previously exported and are now returning require a formal declaration called American Goods Returned (AGR) also referred to as U.S. Made Goods Returned (USGR).
Common Mistake Made By Importers With U.S. Goods Returned
Do not assume that the return of goods to the United States will be without some difficulty. A common mistake that importers make when declaring U.S. goods is that they do not know where the products were manufactured. Just because the product was purchased in the United States it doesn't necessarily mean it was manufactured in the United States.
U.S. Goods Returning Are Usually Eligible For Duty-Free Status
All goods are subject to duty every time they enter the U.S. unless they are specifically identified as duty exempt. Did you know U.S. goods returning to the United States are usually eligible for duty-free treatment? The provision 9801.00.10 in the Harmonized Tariff Schedule allows U.S. made products to return to the U.S. without being subject to duty and the Merchandise Processing Fee. However, the provision stipulates the goods cannot be advanced in value or the condition of the goods improved while abroad.
Example 1: U.S. Manufactured Helicopter Sent To Canada For Repairs
For example, say you are the owner of a helicopter manufactured in the USA. The helicopter has electrical problems and you send it to a repair shop in Canada. When the helicopter returns the value of the repairs may be subject to duty.
Example 2: Canadian Company Purchases Goods From The U.S.
Another example would be goods purchased from the U.S. by a Canadian company. They received their shipment and the goods were refused by the buyer because they did not meet their product specifications. The goods can be returned to the U.S. duty free if the proper documentation can be supplied to U.S. customs.
Documentation Required For U.S. Goods Returning Duty Free
The most common proof is a Manufacturer's Affidavit. Like the name implies, this form is completed by the actual manufacturer of the goods. U.S. customs requires this for any shipments that are valued over $2500 and if the articles are not clearly marked with the name and address of the manufacturer.
The affidavit must:
- State that the goods are a product of the USA
- Be on the U.S. manufacturer's letterhead and
- Signed by an employee from the U.S. manufacturers facility that has the authority to sign on behalf of the company.
As supporting proof of U.S. Goods returning, U.S. Customs also requires:
- Foreign Shipper's Declaration and
- Declaration by Owner, Consignee or Agent
At some U.S. ports of entry, Customs will accept a NAFTA Certificate that is completed by the manufacturer.
Next time you get ready to ship U.S. goods remember it is not always as easy as it seems. Be sure to supply the proper paperwork to support your duty free return!
CBP Form 3311 Declaration For Free Entry Of Returned American Products