Duty-Free reimportation of goods into the United States

Understanding the reimportation process for goods exported for processing

Proper planning is crucial when exporting goods for contract manufacturing to avoid unexpected costs and complications upon reimportation into the United States. Duty exemption and reimportation under a customs-free regime are not automatic and must be assessed on a case-by-case basis.

Goods originally from the United States that are exported and subsequently reimported may qualify for duty-free reentry, provided that the returning items:

• Have not increased in value, or
• Have not undergone a fundamental change in nature due to processing abroad.

The eligibility criteria for duty-free reimportation vary depending on the type of product and the processes applied. In other words, what constitutes an increase in value or a change in nature depends on the specific product initially exported. For this reason, businesses must analyze these factors before proceeding with export for processing and subsequent reimportation into the U.S.

The same manufacturing process applied to two different types of products may result in different outcomes: Product A may qualify for duty-free reimportation, while Product B may be subject to import duties.

Customs procedures for reimporting goods into the U.S.

Each transaction, product, and manufacturing process requires a specific request at the time of reimportation

Duty exemption for reimported goods is NOT based on customs classification or HTS code. To benefit from the duty-free provision, a specific request must be submitted to U.S. Customs upon reimportation. The product will be classified separately under the applicable exemption provision. Documentation proving the original U.S. origin of the goods must be provided. While standard forms are available, businesses must establish a system to collect and prepare these documents before exporting the goods.

Export licensing requirements in the United States

Proper classification of products is required before shipment

The U.S. Department of Commerce (DOC) oversees the export of dual-use technologies, which include products that may have both civilian and military applications.

Regulated products may be restricted from export or require specific licenses before shipment. Therefore, businesses must carefully assess the products they intend to export for processing and classify them according to U.S. export control regulations. This includes compliance with DOC-BIS regulations and the relevant export control lists at the time of exportation.

Export classification is necessary for two key reasons:

• To determine the product's classification category.
• To establish whether the product can be exported under its classification and, if so, whether an export license is required and what type of license applies.

Need Assistance with U.S. Customs Procedures?

We provide expert guidance on customs operations in the United States, whether you need to import goods into the U.S. or export them abroad.