Quick answer
Import usually means bringing goods or services made abroad into the United States. In contracts, it matters because the importer of record must make customs entry, pay tariffs, and satisfy quota rules. Before signing, check who holds importer-of-record status and who pays duties.
Definitions
Bringing goods or services made in another country into the United States is an import; the buyer who receives them becomes the importer of record. That status obligates the importer to make customs entry, pay any tariff owed, and comply with import quotas and trade-agreement rules enforced by the customs authority. The foreign seller is the exporter — a different role entirely — so contracts must allocate who bears these duties.
Buying something from another country is like borrowing a book from another school's library: your own librarian checks it first, and you pay any fine before it's yours.
Term context
Import sits in customs and international trade law — a regulatory category controlling the cross-border movement of goods, not a common-law doctrine. It governs whether foreign-produced goods may enter U.S. commerce, how much duty is owed, and which quotas or trade agreements apply.
Ignore the rules and U.S. Customs can seize the shipment, impose penalties that reach the full value of the goods, and pursue the importer of record personally for unpaid duties. The importer — not the foreign exporter — bears that risk.
Import obligations attach the moment foreign-made goods arrive at a U.S. port of entry. The importer of record must file a customs entry within 15 days of arrival and pay the duty assessed on the shipment.
The term appears in customs entry paperwork, commercial invoices, bills of lading, and international purchase orders that allocate shipping and duty costs through Incoterms. It also appears in the Harmonized Tariff Schedule, where customs classifies goods and sets duty rates, and in trade agreements granting preferential treatment between countries.
The importer of record — usually the U.S. buyer, often acting through a licensed customs broker — gains title and possession of the goods but owes the duties, the entry filings, and any penalties. By contrast, the foreign exporter's core risk is nonpayment, because U.S. customs obligations stay with the importer unless the sales contract shifts them.
First, the importer or its licensed customs broker files an entry with U.S. Customs and Border Protection when the shipment arrives, attaching the commercial invoice and bill of lading. Customs then classifies the goods under the Harmonized Tariff Schedule, checks any quota or trade-agreement restriction, and assesses the duty. Once the importer pays and posts any required customs bond, the goods are released into U.S. commerce.
Contract relevance
Ignore the rules and U.S. Customs can seize the shipment, impose penalties that reach the full value of the goods, and pursue the importer of record personally for unpaid duties. The importer — not the foreign exporter — bears that risk.
Document context
| Document type | Section | Why it matters |
|---|---|---|
| International supply agreement | Delivery and Incoterms clause | Sets which party bears import costs and customs risk once goods ship |
| Distribution agreement | Appointment and territory clause | Establishes whether the distributor imports product in its own name and pays duties |
| Purchase order or sales contract | Price and delivery terms | Determines whether the quoted price includes tariffs or ends at the foreign port |
| Customs broker engagement letter | Scope of services and power of attorney | Authorizes the broker to make entry and pay duties on the importer's behalf |
| Import agency agreement | Duties and responsibilities clause | Allocates importer-of-record status between principal and agent |
| Commercial letter of credit | Documents required clause | Payment releases only against shipping and origin documents, so gaps in import paperwork can stall funds |
| Cross-border services agreement | Territory and performance clause | Clarifies whether delivering services to U.S. customers triggers import-related obligations |
Contract language
| Contract wording | Plain-English meaning | What to check |
|---|---|---|
| "Buyer shall be the importer of record and shall pay all duties, tariffs, and customs charges" | Buyer's name goes on the customs entry and Buyer pays the tax bill | Confirm your company can legally serve as importer and budget the duty cost |
| "Delivery shall be DDP (Incoterms 2020) at Buyer's warehouse" | Seller delivers goods cleared, with all import duties already paid | Verify the foreign seller can actually act as U.S. importer of record — many cannot |
| "Goods are sold FOB [named foreign port]" | Cost and risk of importing shift to Buyer once goods load at the foreign port | Line up a customs broker and entry filing before the shipment leaves |
| "Price includes all taxes and duties" | Seller claims the quoted price already covers customs charges | Ask which duties are included and who covers tariffs imposed after the quote date |
| "Each party shall comply with all applicable import and export laws" | Both sides must follow customs rules on their own end | Pair the general promise with specifics: quotas, licensing, origin documents |
Red flags
No importer of record named anywhere
U.S. Customs and Border Protection holds whoever files entry responsible for duties and penalties, and silence invites a fight over that bill
What to check: Ask directly whose name goes on the entry and put it in writing
"Duties included" with no itemized list
Antidumping and countervailing duties can dwarf the base tariff rate
What to check: Request a written breakdown of exactly which charges the price covers
Delivery term stated without a named place or Incoterms edition
"DDP" or "FOB" standing alone leaves the cost split and transfer point ambiguous
What to check: Insist on the term, the named port, and the edition year
Foreign seller promising to "handle U.S. customs"
A seller with no U.S. presence often cannot legally act as importer of record
What to check: Confirm the seller has a U.S. entity or restructure so the buyer's broker clears the goods
Silence on tariffs imposed after signing
A new tariff can add double-digit percentages to landed cost overnight
What to check: Negotiate a price-adjustment clause naming who absorbs new duties
"Compliance with all laws" as the only customs provision
Generic language assigns no quota, licensing, or recordkeeping duty to anyone
What to check: Replace it with named obligations: entry filing, record retention, origin documentation
Wording examples
Vague wording
"Seller is responsible for import formalities"
Clearer wording
"Seller shall make customs entry as importer of record through a licensed broker, pay all duties, tariffs, and customs fees, and deliver goods cleared to Buyer's warehouse"
Vague wording
"Price includes all taxes"
Clearer wording
"Price includes U.S. import duties and tariffs in effect on the purchase order date; any tariff imposed after that date will appear as a separate invoice line item"
Vague wording
"Buyer handles customs"
Clearer wording
"Buyer shall act as importer of record, engage its own customs broker under a power of attorney, and pay all duties within ten days of entry"
Note: “clearer” means easier to read — not legally reviewed or guaranteed safe.
Pre-signature checklist
Name the importer of record — by company name, in the contract itself
Confirm the Incoterm, the named place, and the edition year
Ask whether the quoted price includes duties, and which ones
Add a clause covering tariffs imposed or raised after signing
Check whether the goods face quotas, licensing, or antidumping duties
Verify origin documents support any trade-agreement tariff claim
Assign who keeps customs records — the retention period runs about five years
Decide who bears the cost of customs exams, holds, and seizures
Party impact
| Party | What this party should check |
|---|---|
| Buyer / Importer | Confirm importer-of-record status, total duty cost, broker authority, and recordkeeping duties before goods ship |
| Seller / Exporter | Check the delivery term — DDP makes the seller responsible for U.S. entry, which may be impossible without a U.S. presence |
| Customs broker | Verify the power of attorney scope and who reimburses duties, fees, and fines |
| Distributor | Confirm whether it imports in its own name and whether territory rights match the customs burden |
| Freight forwarder | Check who directs the shipment at the port of entry and who pays storage if goods stall |
Comparison
| Related term | Plain meaning | Main difference from import |
|---|---|---|
| Export | Sending goods out of one country for sale in another | Export is the seller's side of the same transaction; import is the buyer's receiving side |
| Importer of record | The legal entity answerable to customs for entry, duties, and compliance | Import names the transaction; importer of record names who answers to customs for it |
| Tariff (duty) | A tax a government levies on goods entering the country | The tariff is a cost of importing, not the act of bringing goods in |
| Import quota | A government cap on how much of a product may enter | A quota limits the volume of imports; it does not define the import itself |
| Customs entry | The filing that declares incoming goods to the customs authority | Entry is the paperwork step that legally completes an import |
| Incoterms | Standard trade terms that split delivery costs and risks between buyer and seller | Incoterms allocate import burdens between the parties; they do not create the import |
Missing or vague
If the contract never names an importer of record, buyer and seller can end up fighting over a customs bill neither expected to pay.
Goods may sit at the port accruing storage and demurrage while each side insists the other must file entry.
A tariff imposed after signing becomes a raw power struggle, because no clause says who absorbs the increase.
Customs penalties for misclassification or late entry land on whoever filed, and that party may have no indemnity to fall back on.
Even risk of loss turns murky when the contract never pinned down where import responsibility passed from seller to buyer.
Document map
| Contract section | What to inspect |
|---|---|
| Definitions | Whether "Import," "Goods," and "Territory" are defined and consistent with customs usage |
| Delivery and Shipping | The Incoterm, named place, port of entry, and which party clears customs |
| Price and Payment | Whether the price includes duties and how new tariffs get handled |
| Taxes, Duties, and Tariffs | Which party pays each customs charge, and by when |
| Compliance with Laws | Specific import obligations: quotas, licensing, origin documents, record retention |
| Risk of Loss and Title | When ownership and risk pass — before, during, or after customs clearance |
| Indemnification | Who backs the importer if customs imposes fines, seizures, or retroactive duties |
| Term and Termination | What happens to in-transit goods and open customs entries if the deal ends |
Visual model
A Chicago electronics retailer orders 500 phone chargers from a Shenzhen factory; as importer of record, the retailer pays the assessed tariff on the declared value at the port of entry before customs releases the shipment.
A specialty food importer's cheese shipment exceeds the annual import quota; customs holds the excess in a bonded warehouse until the new quota year opens.
An apparel brand misclassifies garments on its customs entry to lower the duty rate; a customs audit three years later produces a bill for back duties plus penalties.
Questions & answers
Import usually means bringing goods or services made abroad into the United States. In contracts, it matters because the importer of record must make customs entry, pay tariffs, and satisfy quota rules. Before signing, check who holds importer-of-record status and who pays duties.
Buying something from another country is like borrowing a book from another school's library: your own librarian checks it first, and you pay any fine before it's yours.
Ignore the rules and U.S. Customs can seize the shipment, impose penalties that reach the full value of the goods, and pursue the importer of record personally for unpaid duties. The importer — not the foreign exporter — bears that risk.
Import obligations attach the moment foreign-made goods arrive at a U.S. port of entry. The importer of record must file a customs entry within 15 days of arrival and pay the duty assessed on the shipment.
The term appears in customs entry paperwork, commercial invoices, bills of lading, and international purchase orders that allocate shipping and duty costs through Incoterms. It also appears in the Harmonized Tariff Schedule, where customs classifies goods and sets duty rates, and in trade agreements granting preferential treatment between countries.
The importer of record — usually the U.S. buyer, often acting through a licensed customs broker — gains title and possession of the goods but owes the duties, the entry filings, and any penalties. By contrast, the foreign exporter's core risk is nonpayment, because U.S. customs obligations stay with the importer unless the sales contract shifts them.
First, the importer or its licensed customs broker files an entry with U.S. Customs and Border Protection when the shipment arrives, attaching the commercial invoice and bill of lading. Customs then classifies the goods under the Harmonized Tariff Schedule, checks any quota or trade-agreement restriction, and assesses the duty. Once the importer pays and posts any required customs bond, the goods are released into U.S. commerce.
If the contract never names an importer of record, buyer and seller can end up fighting over a customs bill neither expected to pay. Goods may sit at the port accruing storage and demurrage while each side insists the other must file entry. A tariff imposed after signing becomes a raw power struggle, because no clause says who absorbs the increase. Customs penalties for misclassification or late entry land on whoever filed, and that party may have no indemnity to fall back on. Even risk of loss turns murky when the contract never pinned down where import responsibility passed from seller to buyer.
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Wikipedia
Import is the activity within international trade which involves buying and receiving goods and services produced in another country. An importer is a person, organization or country receiving imported goods which have been exported from another country....
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Source & disclosure
This page is an AI-assisted plain-English explanation based on LexPredict Legal Dictionary context and contract-review patterns. It is not legal advice. Meaning may vary by jurisdiction, industry, and exact clause wording.
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