ODC Tax on Imported Products
Importers who bring products made with ozone depleting chemicals into the United States may owe a federal levy tied to content and production methods. ODC Tax on Imported Products focuses on goods whose manufacture used listed chemicals even if those chemicals are not present in the final item. If you import refrigeration equipment, foam goods, propellants solvents or fire suppression devices you should review your supply chain and entry records. This guide explains obligations documents and a simple way to e-file with eFileExcise720.
Quick eFile 720!
When an import becomes taxable
Tax liability often arises when the product enters the United States or when it is first sold after import. The responsible party is usually the importer of record or the first domestic seller. The key is to know whether the product was manufactured using an ODC and to have paperwork that proves how you determined that fact. Ask suppliers for statements about chemical use during manufacture and attach those statements to your entry files to ensure compliance with environmental tax requirements.
What to collect at the port and beyond
Strong records keep your import program audit ready. Build a simple packet for each shipment that includes supplier declarations, product specifications bills of lading commercial invoices entry summaries and any lab or testing data. Track the date of entry, the Harmonized System code, the description of the quantity, the country of origin and the counterparty. Keep the same unit of measure across all files so you can reconcile totals without delay.
Calculating the import liability
Your calculation connects product content to the applicable tax rules. Some items are taxed based on the amount of chemical used in production while others rely on equivalent measurements or conversion factors set by regulation. Align units with your supplier statements so your numbers tell a clear story. A simple worksheet that ties each entry line to a rate and a total can prevent mistakes and reduce rework.
How eFileExcise720 supports import filers
eFileExcise720 gives importers an easy online path to complete filings on time.
- Create a free account and use the dashboard to enter shipment data review totals and transmit securely.
- The system supports categories tied to imported goods made with ODC and it can handle amendments when you must correct a prior quarter.
- Data stays protected with strong security while our support team answers questions so you can move from setup to submission without stress.
Step by step filing for imports
Use this quick sequence to finish your return without delay.
- Open a new return for the quarter and select the import category.
- Add importer of record details including legal name address and EIN.
- Enter each entry line with product description quantity date and counterparty.
- Review totals pay any balance due and transmit through secure submission.
- Download your stamped copy and file it with your entry documents.
Avoid common import mistakes
Many importers misjudge content because supplier statements are missing or unclear.
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The final person I talked to was able to really help me and stayed on the line until the issue was resolved. I was about to end the call but she convinced me that she knew what i needed to do. A very good customer service person. Superior!.
The final person I talked to was able to really help me and stayed on the line until the issue was resolved. I was about to end the call but she convinced me that she knew what i needed to do. A very good customer service person. Superior!.
Frequently Asked Questions
Conclusion
ODC Tax on Imported Products matters for any importer who brings in goods produced with listed chemicals. With clear supplier statements, organized entry packets, and consistent units, you can calculate the liability and file Form 720 on time. eFileExcise720 provides an IRS authorized online path to prepare, submit and store your return with confidence. Create your free account today and keep your import program compliant quarter after quarter. If you are unsure about whether your product involves an ODC during manufacture ask for a written statement from the supplier and keep it with your import files. Clear documentation protects you during a review and speeds up the filing process because your numbers match the evidence you hold. Start now with eFileExcise720 pick your quarter and finish your import filing in minutes. If you operate across several ports, set a single standard for unit naming and document storage. Use one folder per entry with the same label format so your team can retrieve proof fast. Create calendar reminders for due dates and test your submission at least a week before the deadline to avoid stress. Clear process reduces risk, saves time and improves accuracy during audits or inquiries. Train staff who handle purchasing logistics and compliance so everyone knows how to collect documents and verify supplier statements. With consistent training your entries match your calculations and your filing is faster with fewer surprises for your business. In every quarter.