If you are an importer, you must become familiar with the circumstances under which a cargo is considered unclaimed or abandoned by US Customs (CBP).
In the last few months, there has been an increase in unclaimed and abandoned cargo by the importers due to unexpectedly higher duties. In this blog, we explain how these situations are handled under the eyes of CBP.
1) Unclaimed Merchandise
If merchandise remains in CBP custody unpaid for 6 months (or shorter if specified), it’s labeled unclaimed and potentially abandoned, including goods entered in bond or for exportation.
2) General Order (Rejected cCargo)
As per CBP “when merchandise is sent to General Order (GO) it means the imported goods are held in a special warehouse (General Order warehouse) because they are missing proper documentation or cannot be quickly cleared through customs, and if not cleared within a set period (typically 3 months), they will be auctioned or confiscated”.
Goods are placed under General Order if:
- The importer fails to make an entry within 15 days of arrival at the final port of destination.
- Entry is incomplete (e.g., missing documents or insufficient payment of duties).
- The port director believes the goods are not correctly or legally invoiced.
What Happens After GO?
- After the 15-day period, the goods are moved to a General Order warehouse (a type of bonded warehouse).
- The importer is responsible for the transportation and storage costs of the goods in the General Order warehouse.
- If the goods remain uncleared for more than six months, they will be auctioned or confiscated by the government.
3) Abandoned Cargo
Merchandise is abandoned either involuntarily or voluntarily.
When does Involuntary Abandonment Occur?
- When items for trade fairs are not removed 3 months after the fair concludes.
- When goods remain in a bonded warehouse beyond the 5-year warehouse period with unpaid duties.
When is Merchandise Voluntarily Abandoned?
- When the port director takes merchandise at the request of the consignee, or owner or master of the vessel, or person in charge of the vehicle in which the merchandise was imported.
- When merchandise is abandoned by the importer within 30 days after entry or post-examination.
- When articles entered for a trade fair under the provisions of section 3 of the Trade Fair Act of 1959 (19 U.S.C. 1752), which have been abandoned within 3 months of the closing of the fair.
- When merchandise in a bonded warehouse is abandoned by the consignee within 3 years of the date of original importation.
Handling Merchandise Beyond Legal Limits
CBP has clear processes for the disposition of merchandise in its custody beyond the time stipulated by law. In summary, merchandise will be subject to sale, retained for official use, destroyed, or disposed of as authorized by the Commissioner of Customs under the law.
How to Protect your Cargo
PROMPTUS is a licensed C-TPAT certified customs broker in the United States. We handle ISF’s filings, Consumption entries, FTA entries (DR-Cafta, USMC, etc.), and entries involving any other government agencies. We keep importers informed of specific deadlines for entry submission in order to avoid the involuntary abandonment of the cargo.
We are ready to help you navigate the necessary paperwork and regulations, making your import process into the United States worry-free.
Contact us today at 1-877-776-6799 or email info@promptus.us
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