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Most people know that the rules and regulations associated with import/export are quite complex. Even when you properly dot all your i’s and cross all your t’s, you can still run into trouble. Knowing where to turn when you get into trouble with international shipping and US Customs can save you both time and money.
Guy Chemical is a manufacturer of adhesives and sealants located in Somerset, PA. Approximately half of our gross revenue is derived from exporting, and many of our raw materials are imported from several countries. We are a company with years of import/export experience.
A few years ago, prior to Covid, we had a US-based customer that was growing rapidly with us. The steep increase in sales put a strain on our purchasing department to keep the raw materials necessary to produce this customer’s products in stock.
We desperately waited for the arrival of a container of 330,000 empty aluminum tubes that we ordered from a supplier in India. These tubes were required to package silicone gasket maker, used for engine assembly, and the customer was calling almost every day asking for their order.
As fate would have it, when the ship arrived and the container was offloaded, US Customs flagged our container for an examination. This is a fairly common practice by the US Government to stem the flow of drugs and undeclared goods into our country. And, when US Customs does an inspection, they charge the company who is importing the goods for the cost of conducting the exam.
When an import container arrives at a US port, we only have a specified number of days to clear and pick up our goods before the steamship company begins to charge us for detention and storage. After a week of waiting for the examination to be complete, I still had not received notice that the exam was complete, and my container was released. I was now not only being charged by US Customs for the exam, but I was also incurring additional detention and storage charges, and my customer was beginning to think I was making the whole story up to hide inefficiencies at my company.
I was desperate, so I picked up the phone and called US Customs to inquire on the status of my goods. I don’t know if I caught the US Customs enforcement officer who answered the phone, on a bad day, but she was not kind and helpful to say the least. She told me she could not give me any information about my goods and just by calling, I was making the matter worse!
Four weeks went by without any word about my container. My customer was livid. I felt completely helpless and abused by our government. So, I picked up the phone and called the office of my congressman to see if they could offer any help. My congressman had a staffer who specialized in helping people and businesses in dealing with government issues such as this.
My congressman took my matter to the House Ways and Means Committee, who did an immediate investigation. Within 3 days I received word that my container was released, and ALL my penalties and fees were waived! Apparently, the US Customs enforcement officer I had spoken with clicked on a selection in their computer system that prevented my container from being released.
Lesson learned is that your congressman can be a valued asset when dealing with government issues. To save yourself time and frustration, reach out to your congressman early when encountering problems with the government bureaucracy.
Note: Guy Chemical was the SBA’s Exporter of the Year in 2013 for the Western District of Pennsylvania
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