What is an IRS number for customs?

by Samuel C. Customs Advisor

What is an IRS number for customs?

Importing in the United States is highly regulated and involves much work for importers. It can be a tricky process for new importers who have no previous experience of purchasing goods from abroad and getting them inboard. For inexperienced businesses and first-timers, it is always recommended to work with customs brokers and freight forwarders to meet specific federal requirements and to make the process smooth. Besides this, importers should familiarize themselves with the U.S. Customs and Border Protection (CBP) policies and other necessary prerequisites prior to actually importing goods.

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What is IRS number?

The Internal Revenue Service (IRS) Tax Number is a kind of identification number used by customs to approve imports for entry in the US. This is also called Importer Number that is assigned by the CBP to the Importer of Record. Apart from customs bonds CA, it is regularly needed during the importing process for various clearances and approvals.

Upon the arrival of goods at the entry port, CBP requires documentation and conduct clearance process for each shipment. It includes shipment details such as the identity of the Importer of Records/Consignee/Purchaser/Final Owner of Merchandise along with Customs Surety Bond and other documents.

There are two types of IRS numbers:

· Employer Identification Number (EIN): Issued to business entities

· Social Security Number (SSN): Issued to individuals

How to Know Your Importer Number?

Basically there are two methods you can check your importer number. One is by using your EIN/Tax ID, with which, you have to add two zeroes at the end of your EIN/Tax ID number. The other method is needed when you don’t have an EIN (in case, when you’re an individual or a Sole Proprietary Company), in which, the Social Security Number of the consignee is considered the importer number. You may contact customs brokers for information on customs bonds and importer number.

What is the use of Customs Form 5106?

A Customs Form 5106 is used by U.S. Customs to input the name, physical address, and IRS number of the consignee into their database. The Customs Form 5106 must be on file for all consignees at the time of entry. Customs keep your importer number in its database usually not more than one year and hence if you do not make an import for a year there is a chance that your data may be voided by the customs. If your number has been voided then you have to submit Form 5106 to once again feed your details in the custom’s database.

If a Form 5106 is not on file, you may contact your customs broker and he/she can guide you through the further process. Brokers are licensed professionals who can help with customs surety bond and OTI bonds CA as well.

In conclusion, it is important to know that people or businesses that tend to import goods from foreign countries must possess an IRS number.