The complexities of manually carrying items for import and export

Commercial carry-on shipments are classified as imports or exports and therefore require the same compliance review as items shipped in standard packaging.

Does your organization engage in the import or export of manual shipping of commercial items? If so, do you have a formal policy or procedure to ensure compliance with relevant regulations?

In today’s globalized world, it’s not uncommon for travelers to find themselves needing to transport business items across borders. Whether you’re a small business owner attending a trade show or an employee at a Fortune 500 company delivering spare parts to customers, holding business items in hand presents a unique set of challenges. Not only do you have more issues to deal with when taking them with you, but you also have the potential for export violations.

Here’s a closer look at the issues you may encounter when traveling with business items.

1. Customs regulations and compliance

One of the most critical factors to consider is the customs regulations in the departure and destination countries. Unlike personal items, business items are subject to greater scrutiny. Each country has its own set of rules regarding importing or exporting items, often requiring specific documentation. Failure to comply can result in confiscation, fines, and even legal consequences. It is important to have a representative from the customs broker meet the traveler at the airport or ensure that the appropriate documentation is submitted to customs and provided to the traveler.

• Prohibited items: Certain items may be banned entirely, including certain electronics, chemicals or agricultural products.
• Import license: Some items require an import permit or license, which can complicate your travel plans.

2. Tariff and tax implications

When shipping commercial items, you may be required to pay duties and taxes. Many countries have minimum thresholds, or exemption limits, below which no duties are imposed. However, if your shipment exceeds this limit, you may face unexpected charges upon arrival.

• Tariff calculation: It is crucial to understand how duties are calculated based on the value and classification of the item. Make sure you have receipts and invoices with you for accurate reporting.

3. Documentation requirements

When carrying commercial cargo, proper documentation is crucial. This may include:

• commercial invoice: Describe in detail the nature, value and terms of sale of the goods.
• Shipping label: Even for carry-on items, having a shipping label can help clarify the item’s intended use.
• Export declaration: Some countries require formal declarations for exported goods.

Not having the correct documentation may result in customs delays or even denial of entry for your items.

4. Security check

Airports have strict security measures for all passengers, but commercial items may attract extra attention. Security personnel may need to inspect your shipment, especially if it is bulky or unusual.

• Prohibited items: Make sure none of your belongings are on the prohibited list for air travel as this may result in confiscation or delays.

5. Risk of loss or damage

When you carry commercial cargo, the risk of loss or damage increases. Airlines generally have limited liability for lost or damaged luggage, which may not cover the full value of the commercial item.

• Package: Make sure items are packaged securely and prevent potential damage during shipping.
• Insurance: Consider purchasing travel insurance that covers commercial goods for added peace of mind.

6. Personal use and commercial use

Customs officials may scrutinize the difference between personal items and business items. If you carry multiple items of the same product, they may question your intentions.

• Clear purpose: Be prepared to explain the purpose of your items and provide documentation to support your claims of personal use versus commercial intent.

Problems can also arise when employees take company laptops to foreign destinations. Recently, RTX reached a $200 million settlement with the U.S. State Department for more than 750 export violations. Some of the breaches occurred when employees traveled abroad with company laptops. In all of these cases, while employees were abroad, they attempted or successfully logged into computers containing ITAR controlled material.

It’s important to know what’s on your laptop and whether employees are accessing ITAR-controlled material. If there is no reason to come into contact with controlled materials, then it may be a good idea for employees to travel with a sanitized laptop.

in conclusion

Carrying commercial items across borders manually can be a complex endeavor. The carry-on must contain a commercial or pro forma invoice and any applicable license or license exceptions. All commercial items must be declared to customs upon arrival in the importing country. Additionally, any duties or taxes incurred must be paid, and travelers should retain receipts of these payments. It is recommended to avoid cash payment obligations and your company should have clear policies and procedures in place to manage these transactions.

Prior to departure, all carry-on items should be approved by in-house trade compliance staff to ensure there are no issues related to export compliance and to determine if additional requirements, such as an export license, are needed. With careful planning and awareness of potential challenges, you can confidently navigate the complexities of commercial cargo shipping

Do you need help setting up an export or import compliance program? Schedule a free consultation with one of our team members today.