Be Importer, UPS and Amazon FBA

[Nrr]

Hi Guys
I have a little problem and want know if someone can give me advice....

In this moment I m out of stock in Amazon FBA after sold my 500 units in 48h, I do this first shipment under my personal name for not having the company ready.... I signed some documents and bonds after open a UPS account to be the importer of merchandise (because amazon not accept this)

After all this... UPS Spain Call me to make me some questions .... How many shipments of goods will make per month and others questions... but I dont know this and my supplier is who send all the shippment to amazon warehouse....


Now I'm repeating the steps with my company hong kong.... and ask me others thing like have a physical office ( I have a virtual office ) and a phone in HK of my company ( When I don't need this for my business)

My interest with UPS is only be the importer to Amazon and nothing more.... Exist other way of be importer ?

 

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[Walter Hay]

Hi Guys
I have a little problem and want know if someone can give me advice....

In this moment I m out of stock in Amazon FBA after sold my 500 units in 48h, I do this first shipment under my personal name for not having the company ready.... I signed some documents and bonds after open a UPS account to be the importer of merchandise (because amazon not accept this)

After all this... UPS Spain Call me to make me some questions .... How many shipments of goods will make per month and others questions... but I dont know this and my supplier is who send all the shippment to amazon warehouse....


Now I'm repeating the steps with my company hong kong.... and ask me others thing like have a physical office ( I have a virtual office ) and a phone in HK of my company ( When I don't need this for my business)

My interest with UPS is only be the importer to Amazon and nothing more.... Exist other way of be importer ?

UPS are currently acting as your Importer Of Record (IOR). Generally other couriers will do the same for you if you ask. Many freight forwarders will do it also. In some cases prepping services will do it for you.

As an alternative, you can use a Customs Broker located in the same state as the port of entry. Provided they have your Power of Attorney to act on your behalf they can also act as your IOR. NOTE: Most freight forwarders employ customs brokers. The arrangement you have with UPS comes within the scope of this procedure.

Using a prepping service gives you the advantage of avoiding having your supplier learn how you are selling, as well as avoiding Amazon learning where you are buying your product. Both of them could decide to bypass you.

Walter

 

[Nrr]

UPS are currently acting as your Importer Of Record (IOR). Generally other couriers will do the same for you if you ask. Many freight forwarders will do it also. In some cases prepping services will do it for you.

As an alternative, you can use a Customs Broker located in the same state as the port of entry. Provided they have your Power of Attorney to act on your behalf they can also act as your IOR. NOTE: Most freight forwarders employ customs brokers. The arrangement you have with UPS comes within the scope of this procedure.

Using a prepping service gives you the advantage of avoiding having your supplier learn how you are selling, as well as avoiding Amazon learning where you are buying your product. Both of them could decide to bypass you.

Walter

I have a legal agreement with my supplier during 5 years so I dont have problem about that...


My problem is that I have a bond with UPS .... now they need that I have a UPS account active with them (Look like that my bond is active with Ups and I will get the charger of 500 USD "that is the price of bond for a year" in the UPS account that I given to them) ... but I dont want have this UPS account active because I dont send the merchandise to amazon warehouse.... What happend if I dont have a active account ? They can charge me the price of bond ? OR I must obligatory activate my UPS account

 

[Walter Hay]

I have a legal agreement with my supplier during 5 years so I dont have problem about that...
My problem is that I have a bond with UPS .... now they need that I have a UPS account active with them (Look like that my bond is active with Ups and I will get the charger of 500 USD "that is the price of bond for a year" in the UPS account that I given to them) ... but I dont want have this UPS account active because I dont send the merchandise to amazon warehouse.... What happend if I dont have a active account ? They can charge me the price of bond ? OR I must obligatory activate my UPS account

It seems that UPS might have misunderstood your requirements. It appears that they might have obtained for you, or more likely have sold you, a Continuous Transaction Bond (CTB).

A bond must be of sufficient value to cover any possible duty or tax payable on the goods you import. A CTB is normally only required for importers who will be making a large number of entries and/or imports through several ports of entry during a given year. If this is your first shipment and you have not told them that you will be making a large number of entries and/or imports, they should have only provided a Single Entry Bond (SEB).

An importer is entitled to cancel a bond at any time, so if you can find another person/business to act as IOR it might be best to cancel your bond issued by or through UPS. If they have charged a fee of $500 to obtain the bond for you, that is basically an insurance premium paid to an authorized surety provider (often an insurance company) who takes the risk to guarantee that you will pay whatever duty and tax is due. Any unused part for that fee (or premium) should be refundable on a pro rata basis.

If you do enter into an agreement with someone else to act as your IOR, you will still have to give them a Power of Attorney to act on your behalf for customs purposes and you will still have to lodge a bond. For the first few shipments it is probably best for you to only use SEBs.

I strongly recommend that you find a freight forwarder to handle all your shipments for you, including customs clearance and acting as IOR. If you have someone else available to act for you, you could then cancel your UPS account.

Please note: I am not offering legal advice.

Walter

 

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[Nrr]

It seems that UPS might have misunderstood your requirements. It appears that they might have obtained for you, or more likely have sold you, a Continuous Transaction Bond (CTB).

A bond must be of sufficient value to cover any possible duty or tax payable on the goods you import. A CTB is normally only required for importers who will be making a large number of entries and/or imports through several ports of entry during a given year. If this is your first shipment and you have not told them that you will be making a large number of entries and/or imports, they should have only provided a Single Entry Bond (SEB).

An importer is entitled to cancel a bond at any time, so if you can find another person/business to act as IOR it might be best to cancel your bond issued by or through UPS. If they have charged a fee of $500 to obtain the bond for you, that is basically an insurance premium paid to an authorized surety provider (often an insurance company) who takes the risk to guarantee that you will pay whatever duty and tax is due. Any unused part for that fee (or premium) should be refundable on a pro rata basis.

If you do enter into an agreement with someone else to act as your IOR, you will still have to give them a Power of Attorney to act on your behalf for customs purposes and you will still have to lodge a bond. For the first few shipments it is probably best for you to only use SEBs.

I strongly recommend that you find a freight forwarder to handle all your shipments for you, including customs clearance and acting as IOR. If you have someone else available to act for you, you could then cancel your UPS account.

Please note: I am not offering legal advice.

Walter

Hi Walter

Thanks you first for you time, is my first time working with customs so I m a little confusing

I will write a little about my history, in november of 2015 my supplier made a first shipment to amazon warehouse when the merchandise arrive to USA

I received an email from UPS equipment, telling me I needed a "bond" If I want release my merchandise of customs
I said ok and complete all the documents included "power attorney" the first problem was that I didn't have my company ready so sign the documents like individual
The person responsible for contacting me, I said no problem in transferring my bond when society was open.... The reality now is that for my second shipment .... I must repeat all the steps and is not possible transfer my first bond ( so... that is pay again ) ... Not sure if I can get the money of my first bond ( What do you think ? ) maybe my lawyer must contact with them....

I have pay 500 usd for a bond that cover around 50.000 in value of merchandise and is continuous
(I think that the company of insurance is Avalon Risk ).

The problem is that UPS After complete the documents (bonds and Power of Attorney) the support of UPS told me that I must have a UPS account in her website, After open the account , a staff of UPS call me and start to make me questions about what type of merchandise I will send, and what will be frequency of shipments


Can you recomend me a freight forwarder ? SHAPIRO is a good option?
How can revoke the power attorney with ups ?


Thanks you so much Walter, for your help

 

[BlakeIC]

Congratulations on doing 500 units in 48 hours!

 

[prof]

I will write a little about my history, in november of 2015 my supplier made a first shipment to amazon warehouse when the merchandise arrive to USA

I received an email from UPS equipment, telling me I needed a "bond" If I want release my merchandise of customs
I said ok and complete all the documents included "power attorney" the first problem was that I didn't have my company ready so sign the documents like individual

It seems like you're going through a process which I am also confused of myself right now.

What was the actual value of your goods that UPS told you they needed a bond?

Were you given documents for the bond? I thought the idea of a bond was it was attached to your company and not the carrier. I also thought power of attorney was related to specific shipment.

But I could be very wrong. So I'm also keen to see what others have to say.

 

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[Walter Hay]

Hi Walter

Thanks you first for you time, is my first time working with customs so I m a little confusing

I will write a little about my history, in november of 2015 my supplier made a first shipment to amazon warehouse when the merchandise arrive to USA

I received an email from UPS equipment, telling me I needed a "bond" If I want release my merchandise of customs
I said ok and complete all the documents included "power attorney" the first problem was that I didn't have my company ready so sign the documents like individual
The person responsible for contacting me, I said no problem in transferring my bond when society was open.... The reality now is that for my second shipment .... I must repeat all the steps and is not possible transfer my first bond ( so... that is pay again ) ... Not sure if I can get the money of my first bond ( What do you think ? ) maybe my lawyer must contact with them....

I have pay 500 usd for a bond that cover around 50.000 in value of merchandise and is continuous
(I think that the company of insurance is Avalon Risk ).

The problem is that UPS After complete the documents (bonds and Power of Attorney) the support of UPS told me that I must have a UPS account in her website, After open the account , a staff of UPS call me and start to make me questions about what type of merchandise I will send, and what will be frequency of shipments

Can you recomend me a freight forwarder ? SHAPIRO is a good option?
How can revoke the power attorney with ups ?

Thanks you so much Walter, for your help

I think you have now reached the stage where you have to decide which of these options to apply:

• Ask UPS to cancel your Power of Attorney, and cease to act as your IOR. If that does not work, you could do either of the following:
  
• Contact your lawyer and ask him/her to tell UPS that they must cancel your Power of Attorney, and cease to act as your IOR.
• Take the easy and possibly least costly way out and just forget about UPS, letting them enjoy their $500 for doing almost nothing.

Shapiro is Amazon's preferred freight forwarder, and they certainly know the ropes when dealing with shipments direct to FBA. The latest information I have is that they will not act as IOR, but it could be worth asking. If they won't, you will need to find an IOR elsewhere.

If you can't find a customs broker willing to act as IOR for you, try www.http://tecex.com They operate internationally, so readers in all countries might like to consider them. For example if you are outside the EU and want to ship to Amazon FBA in the EU, Tecex can handle it for you including the sometimes complex VAT issues.

If in your position, I would want a total solution, and that would be best provided by using the services of a US freight forwarder that employs licensed customs brokers and is willing to act as IOR.

Walter

 

[Nrr]

I think you have now reached the stage where you have to decide which of these options to apply:

• Ask UPS to cancel your Power of Attorney, and cease to act as your IOR. If that does not work, you could do either of the following:
  
• Contact your lawyer and ask him/her to tell UPS that they must cancel your Power of Attorney, and cease to act as your IOR.
• Take the easy and possibly least costly way out and just forget about UPS, letting them enjoy their $500 for doing almost nothing.

Shapiro is Amazon's preferred freight forwarder, and they certainly know the ropes when dealing with shipments direct to FBA. The latest information I have is that they will not act as IOR, but it could be worth asking. If they won't, you will need to find an IOR elsewhere.

If you can't find a customs broker willing to act as IOR for you, try www.http://tecex.com They operate internationally, so readers in all countries might like to consider them. For example if you are outside the EU and want to ship to Amazon FBA in the EU, Tecex can handle it for you including the sometimes complex VAT issues.

If in your position, I would want a total solution, and that would be best provided by using the services of a US freight forwarder that employs licensed customs brokers and is willing to act as IOR.

Walter

I will try ask the $500 but sure will be difficult and cancel the Power of Attorney .... They will send me something like proof of cancelation ?

I have contacted with tecex.com and I will hope to listen her answer to my email


Thanks you, for this valuable information , you save me some headaches

 

[Clearit]

UPS are currently acting as your Importer Of Record (IOR). Generally other couriers will do the same for you if you ask. Many freight forwarders will do it also. In some cases prepping services will do it for you.

As an alternative, you can use a Customs Broker located in the same state as the port of entry. Provided they have your Power of Attorney to act on your behalf they can also act as your IOR. NOTE: Most freight forwarders employ customs brokers. The arrangement you have with UPS comes within the scope of this procedure.

Using a prepping service gives you the advantage of avoiding having your supplier learn how you are selling, as well as avoiding Amazon learning where you are buying your product. Both of them could decide to bypass you.

Walter

It is illegal for a logistics company (3rd party or not) to act as the importer of record. If you signed for a bond, YOU are acting as the importer of record. Amazon FBA will not act as the importer as they do not want the headache of dealing with customs. UPS has set you up as what is called a "non-resident importer"

[link removed my moderator]

 

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[Walter Hay]

It is illegal for a logistics company (3rd party or not) to act as the importer of record. If you signed for a bond, YOU are acting as the importer of record. Amazon FBA will not act as the importer as they do not want the headache of dealing with customs. UPS has set you up as what is called a "non-resident importer".

I have been referring to the special arrangement that allows UPS and other Air Couriers to effectively act as IOR for shipments up to $2,500 under special regulations. Those regulations permit air express couriers to clear shipments under their name and customs bond without a Power of Attorney from the importer, up to their own discretionary value, and that value can exceed $2,500 if the courier chooses to handle it in that manner.

The couriers are able to expedite clearances under a batch clearing system, but that doesn't work in the case of regular air cargo or sea cargo shipments. In those cases the importer outside of the US must be registered as a non-resident importer, or he can appoint someone in the US who is willing to accept all risks and legal and financial responsibility of acting on his behalf. There are a number of logistics operators who offer this service, but it is costly because of the risks involved.

UPS may or may not have set up the OP as a non-resident importer, (quite likely they have although not required) and he seems very confused regarding what he has arranged, or what has been arranged for him. As he has purchased a bond it seems likely that he is the IOR, but he needs UPS to clarify for him.

It is true that Customs Brokers are not permitted to act as IOR for regular air cargo or sea cargo shipments, even if the value is less than $2,500.

Walter

 

[steinmann.daneel]

UPS are currently acting as your Importer Of Record (IOR). Generally other couriers will do the same for you if you ask. Many freight forwarders will do it also. In some cases prepping services will do it for you.

As an alternative, you can use a Customs Broker located in the same state as the port of entry. Provided they have your Power of Attorney to act on your behalf they can also act as your IOR. NOTE: Most freight forwarders employ customs brokers. The arrangement you have with UPS comes within the scope of this procedure.

Using a prepping service gives you the advantage of avoiding having your supplier learn how you are selling, as well as avoiding Amazon learning where you are buying your product. Both of them could decide to bypass you.

Walter

Hi Walter, I would just like to follow up on this question. I would love to know if this is still the case and that UPS and other FF is still willing to act as IOR? I've heard that this might sometimes be something the do not want to do?

 

[Walter Hay]

Hi Walter, I would just like to follow up on this question. I would love to know if this is still the case and that UPS and other FF is still willing to act as IOR? I've heard that this might sometimes be something the do not want to do?

Generally the Air Couriers will do that automatically, but freight forwarders will only agree to do it sometimes. If shipping direct to Amazon FBA I suggest you ask Shapiro to handle the clearance for you.

They are expert in handling shipments to Amazon FBA. Scroll down to the Amazon FBA, E-commerce section on their home page here: Supply Chain Management, Freight Forwarder, Shipping | Shapiro

Walter

 

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