How do I Export Farm Equipment From Ohio to Cambodia?

Large container carrier ships transport agricultural equipment.

The U.S. International Trade Administration defines agricultural equipment as "farm field or farmstead machinery used for the production of crops and agricultural livestock." This definition embraces tractors, combines and implements suited for tractor attachments. The leading makers of such machinery are concentrated in the United States, though they may operate production facilities around the world. Furthermore, individual owners of this equipment now have access to international markets. Consequently, a corn belt farmer from Ohio, for example, can turn a profit by selling a hay baler to an agricultural concern in a developing country like Cambodia. Normal trade relations with that country make low tariffs likely. The legal procedure for conveyance, however, requires careful adherence.

Instructions

1. Select a party to whom the logistics of the export transaction will be delegated. Options include yourself, a freight forwarding company or a shippers' association. The latter two organizations will charge for the task, by imposing either a service fee or membership dues. Their cost effectiveness will depend on the frequency of utilization and the value of the shipments.

2. Visit the U.S. Customs and Border Protection (CBP) website to familiarize yourself with U.S. rules governing importing and exporting. Unless you are going to be a high-volume exporter, you will likely be shipping the contents yourself.

3. Hire an over-ground carrier to move your goods to the port of departure. Employ a container carrier to convey the machinery across the ocean. You can find a list of port authorities on the American Association of Port Authorities website. Container shipping lines are listed on the membership webpage of the Container Owners Association.

4. Obtain an Employer Identification Number from the Internal Revenue Service. You can do this online and participate in the Automated Export System (AES).

5. Fill out and sign a Letter of Intent to apply for participation in AES, indicating your willingness to abide by CBP rules and regulations. This may be an online submission. A CBP agent will then contact you.

6. Discuss your export plans with the agent, who can advise you not only on U.S. regulations, but also on the fees and duties that Cambodia may impose. Choose the best AES interface option in consultation with the agent. Make an appointment for CBP to test your computer system for AES compatibility.

7. Transmit an inventory of your shipment to AES once your connection is up and running. The transmission should contain Vehicle Identification Numbers if the agricultural equipment is self propelled. CBP will examine your information and confirm it with the carrier. Any discrepancies will result in an error message. Otherwise, your AES program will receive a confirmation. Notify your receiving party in Cambodia of the shipping details and expected arrival of goods.

8. Confirm with your ground carrier the arrangements to deliver the equipment to the container carrier. Make sure all requirements are satisfied by 72 hours ahead of the cargo departure from the United States. AES will transmit a notification of the equipment arrival in Cambodia.

Tips & Warnings

• Tractors or other self-propelled machines are treated as motor vehicles. You must forward hard copies of the original title to CBP well in advance of the anticipated shipping date. Newly assembled vehicles without a title call for a manufacturer's statement of origin.

• Cambodia imposes a 10 percent value-added tax on manufactured goods. Keep that in mind when pricing your agricultural equipment.

• Most carriers want payment in full prior to shipment. At the same time, an increasing number of foreign purchasers seek to buy on credit. Look into export insurance to assure payment for the cargo.

References

• U.S. Dept. of Commerce International Trade Administration; Agricultural Equipment Industry Assessment
• U.S. Dept. of Commerce International Trade Administration; Export.gov; International Logistics
• U.S. Dept. of Homeland Security Customs and Border Protection; Export Documents, Licenses and Requirements
• U.S. Dept. of Homeland Security Customs and Border Protection; Automated Export System (AES)
• U.S. Dept. of Homeland Security Customs and Border Protection; Exporting a Motor Vehicle
• Embassy of the United States of America, Phnom Penh, Cambodia; Trade Summary and Import Policies

Resources

• American Association of Port Authorities
• Container Owners Association
• Ohio Department of Development