Material & Disbursement Services (MSD)
POLICY 60
Effective Date: 07/01/1995
Last Modified Date: 02/12/2004
Lead Time
Estimated delivery times for international orders must take into consideration the time required to comply with U.S. and foreign trade regulations, to transact business through U.S. and foreign customs agents, and to arrange for long-distance shipment of goods.
Customs and Tariff Regulations
All goods shipped into the U.S. from other countries are subject to U.S. customs and tariff regulations. To expedite regulatory compliance for incoming shipments from foreign sources, the University uses the services of a customs broker. Purchasing Services attaches a special consignment identification form to the Purchase Order for the foreign-sourced goods.
Special Approval and/or Licensing
Certain incoming foreign products, such as agricultural products or drugs, may be subject to special approvals and/or licensing provisions. For such items, the using department must contact the appropriate Federal agency (U.S. Department of Agriculture, Food and Drug Administration, etc.) to determine the required approval process. The U.S. Department of Commerce may also be contacted for assistance in determining which products require special approvals.
Special Exemption from Customs Charges
Items than can be documented as not available from U.S. suppliers can sometimes be exempted from customs charges. The department can request such exemption from the U.S. Department of Commerce (DOC) by submitting a completed DOC form ITA-338P (available from Purchasing). The department must obtain this exemption from the Department of Commerce before submitting the Purchase Requisition to Purchasing. Because the exemption approval process can take up to 60 days or more, submit the application to the Department of Commerce as early as possible.
Submitting Requisitions
The small order procedure cannot be used to obtain goods from foreign sources, even when goods are obtained at no charge to the University. Instead, request foreign-source purchases on the standard Purchase Requisitions. Although encumbrances and final debiting of University budget account(s) for the requisition are calculated in U.S. dollars, actual payment is made in the appropriate foreign currency at the current exchange rate at the time of payment.
Separate Requisition Required for Customs Services Rendered
After the goods are received from the designated foreign source, the broker will bill the University separately for the customs duties, reporting fees, and other administrative costs related to processing the order through U.S. Customs. The brokerage services invoices is sent to Purchasing, which contacts the using department and requests a separate requisition for payment of these services.
Additional Information
See also: MSD Policy 56, Zero-Dollar Purchase Orders
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