Understanding the Basic of Importing

Importing goods and services is a unique way to fulfill recognized needs in the U.S. and can help you open new doors for your business. However, there are stringent rules and regulations governing importing, and doing so without proper research can be costly. There are assistance programs and online data to help you have an informed and smooth importing process. The SBA has compiled a few great helpful basics:

The following resources are starting points for learning how to import products and services.

• Customs and Border Protection’s Importing Basic Info
  Basic importing information page, including tips and requirements. Also provides information about importing motor vehicles, medications/drugs, and internet purchases.
  
• Importing Specific Products
  A resource guide for importing agricultural products, automobiles, chemicals, defense products, food/beverage products, industrial goods, or pharmaceutical goods.
  
• International Trade Commission Tariff Data
  Searchable database on the most current tariff and trade data for specific products.
  
• US Census Bureau Import Statistics
  Detailed statistics on goods and estimates of services entering the US from foreign countries.
  
• Selling Imported Goods within the U.S.
  Checklist that a small business owner should review when thinking about selling imported goods.
  
• Starting a Business in the U.S. as a Foreign National
  Online resources and tax information for those without U.S. citizenship or residency looking to start a business in the U.S.
  
• Department of Agriculture Import Regulations and Policies
  Policies and regulations that ensure that imported meat, poultry and egg products imported into the U.S. are safe, properly labeled, and properly packaged.
  

Customs Brokers

Working with a licensed customs broker could be a valuable asset to your import plan. Customs brokers are private individuals, partnerships, associations or corporations licensed, regulated and empowered by U.S. Customs and Border Protection (CBP) to assist importers and exporters in meeting Federal imports requirements.
A customs broker works with importers similar to a freight forwarder who works with exporters. On behalf of their client, customs brokers are involved in the preparation of documents and electronic submissions, as well as the calculation and payment of taxes, duties and excises. The customs broker also facilitates communication between the importer and the government. Licensed brokers must have expertise in the entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise. For this advice and involvement, the customs broker charges the importer a fee.

• Transportation and Logistics Guide: Customs Brokers
  The ‘Customs Brokers’ section of this guide includes licensing requirements and importing procedures that apply to custom brokers.
  
• National Customs Brokers and Forwarders Association of America
  Search NCBFAA’s membership directory of customs brokers by city, state, member name, or specific industry.
  
• International Federation of Customs Brokers Associations.
  Search IFCBA’s directory of customs brokers from around the world, by map or alphabetical listing.
  

Assistance and Training

The federal government provides advice and seminars to small businesses interested in importing.

• Small Business Development Center (SBDC)
  Provides assistance for import businesses and fee-based seminars. Use the map to find a branch near you.
  
• SCORE
  Provides online workshops and in-person advice from over 12,400 volunteer counselors across the nation. Use the search tool to find help near you.
  
• U.S. Customs and Border Protection (CBP) Contacts
  Contact information to find assistance from any of CBP's offices in international trade, trade relations, and brokers.
  
• International Trade Administration (ITA) Services
  ITA's import services including counseling and a program/partner search.
  
  ...just keeping you in the loop! For more details on government relations for Importing visit www.SBA.gov
  

Tax Tip of the Day: Sale of Bakery Products In Florida

To provide clarification of tax concerns for bakery products sold by bakeries, pastry shops, and other like establishments, the State of Florida states that Bakery products are taxable when:

• Sold for intended consumption on the premises.
  • Bakery products sold in quantities of five (5) or less are assumed to be sold for consumption on the premises.
• Packaged in a manner consistent with consumption on the premises.
• Sold as hot prepared food products regardless of where or how they are sold.
  • Bakery products sold while still warm from the initial baking are not hot prepared food products.
  • Bakery products that are kept warm by a heat source used to maintain them in a heated state, or to reheat them, are hot prepared food products.

Bakery products are exempt when:

• Sold for intended consumption off the premises and
• Packaged in a manner consistent with consumption off the premises (examples include packaging that is glued, stapled, wrapped, or sealed).
• Sold by bakeries, pastry shops, and other like establishments that do not have eating facilities.

Example: A bagel shop operates an establishment with eating facilities and makes a single sale of three bagels. The bagels are taxable unless the seller can establish that they were packaged in a manner consistent with an intent by the customer to consume the products off the seller's premises.
Exempt sales of bakery products for consumption off of the premises are required to be separately accounted from taxable sales. Examples include:

• Using sales invoices which contain documentation that the sale of the bakery product is for consumption off of the premises.
• Using a separate key on a cash register to record tax-exempt sales of bakery products.
• Using a separate cash register to record tax-exempt sales of bakery products.

Example: A bakery operates an establishment with eating facilities. The bakery sells donuts, toasted bagels, and other pastries, as well as coffee and other drinks. The bakery sells bakery products to patrons who take the products in sealed containers for consumption off of the premises. Products sold for consumption on the premises are served to the customers on trays. The bakery uses separate keys on its cash registers to account for the sales of tax-exempt bakery products for consumption off of the premises in sealed containers separately from the accounting for taxable sales of toasted bagels, coffee, other drinks, and bakery products for consumption on the premises. The bakery products sold for consumption off the premises are exempt, because the bakery's packaging and accounting methods are consistent with a manner of consumption off of the premises.

For the complete text of the law reference  Section 212.08(1), Florida Statutes and Rule 12A-1.011(3), Florida Administrative Code or visit the State of Florida's Tax Payer Services at www.myflorida.com/dor or call 800-352-3671.

Just keeping you in the loop~ Envision Tax & Accounting Services of Florida (407) 951-1492