What is a Customs Entry?

It is an import declaration made by the importer or a customs broker authorized to represent the importer. Its purpose is to obtain customs clearance for goods entering a country. In general, customs declarations must be filed electronically in the US except for travelers who may lodge a paper-based declaration.

U.S. Customs and Border Protection (CBP) collects and reviews the information on the importer declaration to assess duties, collect statistics, and determine whether other requirements of law have been met before authorization for the release of the cargo.

As defined by CPB the Entry process consists of 5 stages:

  • 1. Contact CBP:
    Contact CBP at the port of entry to make the arrangements where the consignment will arrive, and documentation and duties will be filed.
  • 2. Declare Entry
    Declare entry for goods once they arrive in the U.S. The importer must declare how the goods will be entered once they arrive.
  • 3. File Cargo Release
    Upon entering the U.S., the importer of record has up to 15 days to file a Cargo Release for the goods. Entry documents must be filed within 15 calendar days of the date that a shipment arrives.
  • 4. File Entry Summary
    An entry summary (CBP Form 7501) must be filed within 10 days of the cargo’s release from CBP custody. An entry summary must be filed and estimated duties deposited within 10 working days after entry of the merchandise.
  • 5. Pay Estimated Duties
    Within 10 days of the release of the cargo, the importer must pay the estimated duties on their imported goods. This is an estimated amount the importer pays at the time the goods arrive in the U.S.
  • https://www.cbp.gov/node/384989/

The above process is electronically executed through the ACE (the Automated Commercial Environment) system.

What is ACE?

ACE is a digital platform that serves as a centralized access point for the trade community to interact with the Customs and Border Protection (CBP) agency as well as its Partner Government Agencies (PGA). It is the system of record by which electronic trade transactions are conducted and recorded by CBP. Below is an overview of the most common Entry types done through this system:

Types of Entries

  • Consumption
    A consumption entry is used when goods are imported for use into the United States and is going directly into the commerce of the United States without time or use restrictions placed on them.
    A consumption entry may be formal or informal depending on the circumstances. However, most of the consumption entries are formal and the goods that are being imported are intended for commercial purposes and/or “resale” which requires filing an Entry Summary (CBP 7501) and acquiring a CBP bond (CBP 301). This covers a broad range of commodities (i.e. textiles, electronics, food etc.) entering the United States
  • Consumption Quota/Visa
    These are entries in which the products being imported are subjected to quotas. Import quotas are quantity controls that regulate the amount (volume) of various commodities that can be imported into the United States during a specified period. Quotas are established by legislative enactments and Presidential proclamations/Executive Orders issued according to specific legislation.
  • Consumption – Antidumping/Countervailing Duty
    These are entries for products that have been listed as Anti-dumping or Countervailing products. Antidumping and countervailing duties will be assessed in these entries, and these are intended to offset the value of dumping and/or subsidization, thereby leveling the playing field for domestic industries injured by such unfairly traded imports.
  • Warehouse Entry
    A Warehouse Entry is filed with customs to declare imported goods that will be placed in a bonded warehouse. A bonded warehouse is a secure facility where imported goods are stored without paying duties or taxes until they are withdrawn.
  • Temporary Importation Bond (TIB)
    As defined by CBP, a “Temporary Importation under Bond (TIB) is a temporary importation of goods under bond, not imported for sale or sale on approval, without payment of duty with the intent to export or destroy the goods within a certain period of time not to exceed three years from the date of importation. Failure to export or destroy the articles in accordance with the regulations within the appropriate period of time will result in liquidated damages. The only goods that qualify for TIB entry are those listed in the fourteen subheadings 9813.00.05 through 9813.00.75 of the Harmonized Tariff Schedule of the United States (HTSUS)”.

Other Customs Entries are:

  • Warehouse Withdrawal Consumption
  • Drawback
  • Defense Contract Administration Service Region (DCASR)
  • Government – Dutiable

Need Help? Hire A Customs Broker!

Working with a C-TPAT certified customs broker such as Promptus can help you with a smooth clearing process through Customs. In addition to being a licensed Customs Broker, Promptus is a global logistics company that offers freight forwarding services to companies all over the world. Our brokers will assist you in navigating customs regulations and procedures. Contact us today at 1-877-776-6799.