Your Top Questions about Customs and Taxes on Puerto Rico Freight, Answered
With a population that’s just over three million, Puerto Rico can offer your business a quick and relatively simple way to expand your customer base. This can be especially true if you already have a successful business model in another Jones Act destination. With the help of a good freight forwarder, you may be able to rapidly duplicate this setup to serve the Puerto Rico market.
As we deliver full-service logistics solutions to Puerto Rico, we’ve gotten a number of questions about customs and taxes when shipping freight to and from Puerto Rico. To help you decide whether doing business in Puerto Rico is right for you, we’ll answer those questions (and more)!
Of course, if you have questions that aren’t answered in this article, you can always reach out to our experts. We’d be happy to get you the information you need—or put together a quote for your next Puerto Rico freight shipment.
Question #1: What Are the Most Common Mistakes Businesses Make When Shipping to Puerto Rico?
Shipping freight to Puerto Rico is a fairly straightforward process, but the most common mistake we see is simple errors in documentation. For example, if the value stated on your commercial invoice doesn’t exactly match the value on your Electronic Export Information (EEI) filing, this inconsistency can raise a red flag. Your shipment will likely be held until the mistake is corrected.
Working with a freight forwarder experienced in shipping freight to Puerto Rico can help you avoid common mistakes like this—and keep your freight moving efficiently.
Question #2: Is Puerto Rico a U.S. Territory?
Yes. Puerto Rico became an unincorporated territory in 1898. Today, the Commonwealth of Puerto Rico has the largest population by far of the five populated U.S. territories. Puerto Rico residents are citizens of the United States, although they do not pay federal taxes and they do not get to vote in the presidential election.
Most importantly, though, Puerto Rico’s territorial status means that shipments between Puerto Rico and other U.S. destinations are considered domestic. This becomes more important in the next section.
Do U.S. Tariffs Apply to Puerto Rico?
Because Puerto Rico is a U.S. territory, shipments to Puerto Rico that originate in the U.S. are not considered exports. Therefore, duties are not applied to domestic shipments to Puerto Rico. International shipments sent directly to Puerto Rico may be subject to import tariffs.
Both domestic and international shipments to Puerto Rico are subject to an excise tax of 11.5% for most goods. You’ll find more information on that excise tax in the following sections.
Question #3: Will My Puerto Rico Freight Shipments Go Through Customs?
Shipments with a non-U.S. origin or destination will go through customs at some point. Shipments between Puerto Rico and other U.S. destinations do not need to be cleared by U.S. customs.
Let’s break it down:
Domestic Shipments Arriving to Puerto Rico:
- Freight shipments coming from another U.S. destination—the continental 48, for example—will not need to clear through U.S. customs.
International Shipments Arriving to Puerto Rico:
- Freight shipments arriving directly to Puerto Rico from an international origin point must first clear U.S. Customs.
Shipments Leaving Puerto Rico for the U.S.:
- Freight shipments headed from Puerto Rico to another U.S. destination will not be subject to inspection by U.S. Customs.
Shipments Leaving Puerto Rico for International Destinations:
- Shipments headed to international destinations will be subject to any customs regulations and inspections that apply at the destination country.
Question #4: What Taxes Will I Pay for Goods Shipping to and from Puerto Rico?
Different regulations apply to domestic shipments coming from another part of the United States and international shipments arriving from outside the U.S.:
Domestic Shipments Arriving to Puerto Rico:
- Because Puerto Rico is a territory, no customs duties or tariffs are assessed on goods arriving from the U.S.
- However, these goods are subject to an excise tax. For many goods, the tax is 11.5%, although it differs depending on your goods. (For more on figuring out the excise tax for your specific shipment, reach out to us.)
- This tax is directly paid to the Puerto Rico Department of Treasury (el Departamento de Hacienda de Puerto Rico) through their online platform, SURI (Sistema Unificado de Rentas Internas).
- Shipments must be paid for and cleared by Hacienda before they can be released and delivered.
How Can I Find Out the Specific Excise Tax Rate for My Goods?
Your freight forwarder should be able to assist. Our Puerto Rico freight experts would also be happy to help. We can help streamline your Puerto Rico logistics, including the documentation. Get in touch for a complimentary consultation.
International Shipments Arriving to Puerto Rico:
- Shipments arriving directly to Puerto Rico from international destinations will be subject to the excise tax and clearance by Hacienda, as described above. They may also be subject to U.S. import tariffs.
Shipments Leaving Puerto Rico for the U.S.:
- These shipments will not be subject to excise taxes or tariffs.
Shipments Leaving Puerto Rico for International Destinations:
- As with any international shipment, your goods will be subject to any applicable local tariffs and taxes at the final destination.
Question #5: What Documentation Will I Need for Shipping Freight to Puerto Rico?
For domestic freight shipments to Puerto Rico, you will need to provide documentation in order to get your shipment cleared by Hacienda. In general, this includes:
- A standard bill of lading
- A commercial invoice listing the market value of the goods shipped
- An Electronic Export Information (EEI) filing if the declared value of any commodity shipped exceeds $2,500
Is EEI Required for Puerto Rico?
Yes, if you’re sending any commodity with a value above $2,500 between Puerto Rico and another U.S. destination, you’ll need to file Electronic Export Information (EEI) in the Automated Export System (AES). Additionally, if a validated export license is required to export the commodity, an EEI filing is also required.
Your freight forwarder can help you prepare your documentation for shipping freight to Puerto Rico. In some cases, your forwarder can also submit this documentation on your behalf.
Exact documentation requirements will change for every shipper’s unique circumstances. It’s best to check with your freight forwarding partner to determine exactly what you need.
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Question #6: How Do I Get Set Up to Pay My Puerto Rico Excise Taxes to Hacienda?
The easiest and best way to get started is to establish an account with SURI (Sistema Unificado de Rentas Internas):
- From the SURI homepage, scroll down to the “Registration” section.
2. Choose “Create SURI Logon” and follow the prompts to set up your SURI account.
Once you’ve established an account, you can make direct payments for your shipments to ensure the timely release of your goods.
Tip: If you don’t read Spanish, you can choose “English” at the top right to translate the page from Spanish to English.
What Are the Penalties for Late Payment of Excise Taxes In Puerto Rico?
The most common penalty for late payment of your excise tax for incoming freight is delayed release of your freight by Hacienda. Pay your tax invoice as soon as possible to keep your cargo moving once it arrives in Puerto Rico.
How Long Does It Take Freight Shipments to Clear Hacienda?
If your payments have been made and all your documentation lines up, most shipments clear Hacienda quickly. Only a small percentage is held at all and, in our experience, most of those are released within 24 hours.
Question #7: What If Something Goes Wrong and My Shipment Doesn’t Get Released by Hacienda?
This is when it pays to have a partner on the ground in Puerto Rico. In case of a problem, there’s a network of couriers and runners who can help get corrected paperwork over to the local Hacienda office to remedy any potential errors.
Your freight forwarder should be able to facilitate any issues concerning documentation. That being said, it’s important to work with a freight provider that has a local footprint in Puerto Rico. They’ll simply find it easier to untangle any possible challenges.
Question #8: How Fast Can I Ship Freight to Puerto Rico?
Transit time between the Port of Jacksonville (JAXPORT) and the Port of San Juan is three days. More specifically:
- Tuesday sails arrive on Friday
- Friday sails arrive on Monday
After the vessel arrives—and assuming normal clearance by Hacienda—freight is made available for pickup by the following morning. Earlier pickup may be available, depending on how quickly the vessel is unloaded in San Juan.
Question #9: What If I Have More Questions?
Reach out to us for a complimentary consultation with one of our Puerto Rico freight experts! We can assist with any queries you might have about accessing the Puerto Rico market and establishing your supply chain.
With multiple sail dates each week as well as the ability to receive freight in several U.S. locations, we can connect you with a flexible and affordable logistics solution to Puerto Rico. Additionally, we have on-island resources that allow us to deliver seamless, door-to-door service. There’s significant potential for growth opportunities in Puerto Rico, and we’d love to help you set up a logistics solution to expand your customer base.
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