Saturday, September 30, 2023

2 ENTRY OF GOODS

 

2 ENTRY OF GOODS 

Entry Process 

When a shipment reaches the United States, the importer of record (i.e., the  owner, purchaser, or licensed customs broker designated by the owner, purchaser, or  consignee) will file entry documents for the goods with the port director at the goods'  port of entry. Imported goods are not legally entered until after the shipment has arrived  within the port of entry, delivery of the merchandise has been authorized by CBP, and  estimated duties have been paid. It is the importer of record's responsibility to arrange for  examination and release of the goods. 

Pursuant to 19 U.S.C. 1484, the importer of record must use reasonable care in  making entry. 


NOTE: In addition to contacting CBP, importers should contact other agencies when  questions arise about particular commodities. For example, questions about products  regulated by the Food and Drug Administration should be forwarded to the nearest FDA  district office (check local phone book under U.S. government listings) or to the Import  Division, FDA Headquarters, 301.443.6553. The same is true for alcohol, tobacco,  firearms, wildlife products (furs, skins, shells), motor vehicles, and other products and  merchandise regulated by the other federal agencies for which CBP enforces entry laws.  Appropriate agencies are identified on page 197. 

Addresses and phone numbers for these agencies are listed in the appendix. 

Goods may be entered for consumption, entered for warehouse at the port of  arrival, or they may be transported in-bond to another port of entry and entered there  under the same conditions as at the port of arrival. Arrangements for transporting the  merchandise in-bond to an in-land port may be made by the consignee or by a customs  broker or by any other person with an interest in the goods for that purpose. Unless your  merchandise arrives directly at the port where you wish to enter it, you may be charged  additional fees by the carrier for transportation to that port unless other arrangements  have been made. Under some circumstances, your goods may be released through your  local port of entry, even if they arrive at a different U.S. port from a foreign country.  Prior to the goods' arrival, arrangements for entry must be made at the CBP port of entry  where you intend to file your duties and documentation. 

 Goods to be placed in a foreign trade zone are not entered at the customhouse.  See Chapter 41 for more information on foreign trade zones. 

Evidence Of Right To Make Entry 

Goods may only be entered by their owner, purchaser, or a licensed customs  broker. When the goods are consigned “to order,” the bill of lading, properly endorsed by the consignor, may serve as evidence of the right to make entry. An air waybill may be  used for merchandise arriving by air. 

In most instances, entry is made by a person or firm certified by the carrier  bringing the goods to the port of entry. This entity (i.e., the person or firm certified) is  considered the “owner” of the goods for customs purposes. 

The document issued by the carrier for this purpose is known as a “Carrier’s  Certificate.” An example of this certificate is shown in the Appendix. In certain  circumstances, entry may be made by means of a duplicate bill of lading or a shipping  receipt. When the goods are not imported by a common carrier, possession of the goods  by the importer at the time of arrival shall be deemed sufficient evidence of the right to  make entry. 

Entry For Consumption 

Entering merchandise is a two-part process consisting of: (1) filing the documents  necessary to determine whether merchandise may be released from CBP custody, and (2)  filing the documents that contain information for duty assessment and statistical  purposes. Both of these processes can be accomplished electronically via the Automated  Broker Interface (ABI) program of the Automated Commercial System (ACS). 

 

Entry Documents 

 Within 15 calendar days of the date that a shipment arrives at a U.S. port of entry,  entry documents must be filed at a location specified by the port director. These  documents are:

 • Entry Manifest (CBP Form 7533) or Application and Special Permit for  Immediate Delivery (CBP Form 3461) or other form of merchandise  release required by the port director, 

• Evidence of right to make entry, 

• Commercial invoice or a pro forma invoice when the commercial invoice  cannot be produced, 

• Packing lists, if appropriate, 

• Other documents necessary to determine merchandise admissibility. 

 If the goods are to be released from CBP custody at the time of entry, an entry  summary for consumption must be filed and estimated duties deposited at the port of  entry within 10 working days of the goods' entry. 

Surety 

The entry must be accompanied by evidence that a bond has been posted with  CBP to cover any potential duties, taxes, and charges that may accrue. Bonds may be  secured through a resident U.S. surety company, but may be posted in the form of United States currency or certain United States government obligations. In the event that a  customs broker is employed for the purpose of making entry, the broker may permit the  use of his bond to provide the required coverage. 

Entry Summary Documentation 

 Following presentation of the entry, the shipment may be examined, or  examination may be waived. The shipment is then released if no legal or regulatory  violations have occurred. Entry summary documentation is filed and estimated duties are  deposited within 10 working days of the entry of the merchandise at a designated  customhouse. Entry summary documentation consists of: 

• Return of the entry package to the importer, broker, or his authorized  agent after merchandise is permitted release,  

• Entry summary (CBP Form 7501), 

• Other invoices and documents necessary to assess duties, collect statistics,  or determine that all import requirements have been satisfied. This paper  documentation can be reduced or eliminated by using features of the ABI. 

Immediate Delivery 

An alternate procedure that provides for immediate release of a shipment may be  used in some cases by applying for a special permit for immediate delivery on CBP Form  3461 prior to arrival of the merchandise. Carriers participating in the Automated  Manifest System can receive conditional release authorizations after leaving the foreign  country and up to five days before landing in the United States. If the application is  approved, the shipment will be released expeditiously after it arrives. An entry summary  must then be filed in proper form, either on paper or electronically, and estimated duties  deposited within 10 working days of release. Immediate-delivery release using Form  3461 is limited to the following types of merchandise: 

• Merchandise arriving from Canada or Mexico, if the port director  approves it and an appropriate bond is on file, 

• Fresh fruits and vegetables for human consumption arriving from Canada  or Mexico and removed from the area immediately contiguous to the  border and placed within the importer’s premises within the port of  importation, 

• Shipments consigned to or for the account of any agency or officer of the  U.S. government, 

• Articles for a trade fair, 

• Tariff-rate quota merchandise and, under certain circumstances,  merchandise subject to an absolute quota. Absolute-quota items require a  formal entry at all times, 

• In very limited circumstances, merchandise released from warehouse  followed within 10 working days by a warehouse withdrawal for consumption, 

• Merchandise specifically authorized by CBP Headquarters to be entitled  to release for immediate delivery. 

Entry For Warehouse 

If one wishes to postpone release of the goods, they may be placed in a CBP  bonded warehouse under a warehouse entry. The goods may remain in the bonded  warehouse up to five years from the date of importation. At any time during that period,  warehoused goods may be re-exported without paying duty, or they may be withdrawn  for consumption upon paying duty at the duty rate in effect on the date of withdrawal. If  the goods are destroyed under CBP supervision, no duty is payable. 

While the goods are in the bonded warehouse, they may, under CBP supervision,  be manipulated by cleaning, sorting, repacking, or otherwise changing their condition by  processes that do not amount to manufacturing. After manipulation, and within the  warehousing period, the goods may be exported without the payment of duty, or they  may be withdrawn for consumption upon payment of duty at the rate applicable to the  goods in their manipulated condition at the time of withdrawal. Perishable goods,  explosive substances, or prohibited importations may not be placed in a bonded  warehouse. Certain restricted articles, though not allowed release from custody, may be  warehoused. 

 

Information regarding bonded manufacturing warehouses is contained in section  311 of the Tariff Act (19 U.S.C. 1311). 

Unentered Goods 

If no entry has been filed for the goods at the port of entry, or at the port of  destination for in-bond shipments, within 15 calendar days after their arrival, the goods  may be placed in a general-order warehouse at the importer’s risk and expense. If the  goods are not entered within six months from the date of importation, they can be sold at  public auction or destroyed. Perishable goods, however, and goods subject to  depreciation and explosive substances may be sold sooner. 

Storage charges, expenses of sales, internal revenue or other taxes, duties, fees,  and amounts for the satisfaction of liens must be taken out of the money obtained from  the sale of the unentered goods. Claims for the surplus proceeds of sale may be filed with  the port director at whose instruction the merchandise was sent to sale. Any claim for  such proceeds must be filed within 10 days of sale and supported with an original bill of  lading.

A photostatic copy or certified copy of the bill of lading may be used if only part  of a shipment is involved in the sale. Carriers, not port directors, are required to notify a  bonded warehouse of unentered merchandise. Once notified, the bonded warehouse  operator/manager shall arrange for the unentered merchandise to be transported to his or  her premises for storage at the consignee’s risk and expense. If the goods are subject to  internal revenue taxes, but will not bring enough to pay the taxes if sold at public auction, they are subject to destruction. 

 

Mail Entries 

Importers have found that in some cases it is to their advantage to use the national  postal service—that is, a country's mail system, rather than courier services—to import  merchandise into the United States. Some benefits to be gained are: 

• Ease in clearing shipments through CBP. The duties on parcels valued at  $2,000 or less are collected by the letter carrier who delivers the parcel to the  addressee (see note on page 16), 

• Savings on shipping charges: smaller, low-valued packages can often be sent  less expensively through the mails, 

• No formal entry required on duty-free merchandise not exceeding $2,000 in  value, 

• No need to clear shipments personally if under $2,000 in value. 

 Joint CBP and postal regulations provide that all parcel post packages must have  a CBP declaration securely attached to the outer wrapping giving an accurate description  of the contents and their value. This declaration can be obtained at post offices  worldwide. Commercial shipments must also be accompanied by a commercial invoice  enclosed in the parcel bearing the declaration. 

Each mail parcel containing an invoice or statement of value should be marked on  the outer wrapper, on the address side, “Invoice enclosed.” If the invoice or statement  cannot be conveniently enclosed within the sealed parcel, it may be securely attached to  the parcel. Failure to comply with any of these requirements will delay clearance of the  shipment through CBP. 

Packages other than parcel post—for example, letter-class mail, commercial  papers, printed matter, or samples of merchandise—must bear on the address side a label,  Form C1, provided by the Universal Post Union, or the endorsement “May be opened for  customs purposes before delivery,” or similar words definitely waiving the privacy of the  seal and indicating that CBP officers may open the parcel without recourse to the  addressee. Parcels not labeled or endorsed in this manner and found to contain prohibited  merchandise, or containing merchandise that is subject to duty or tax, are subject to  forfeiture. 

A CBP officer prepares the CBP entry (a form) for mail importations not  exceeding $2,000 in value, and the letter carrier at the destination delivers the parcel to  the addressee upon payment of duty. If the value of a mail importation exceeds $2,000,  the addressee is notified to prepare and file a formal CBP entry (also called a consumption entry) for it at the CBP port nearest him. A commercial invoice is  required with the entry. 

A CBP processing fee of $5.00 will be assessed on each item of dutiable mail for  which a CBP officer prepares documentation. The postal carrier will collect this nominal  fee on all dutiable or taxable mail along with the duty owed. There is also a postal fee (in  addition to prepaid postage) authorized by international postal conventions and  agreements as partial reimbursement to the Postal Service for its extra work in clearing  packages through CBP and delivering them. 

NOTE: The following general exceptions apply to the $2,000 limit: 

• Articles classified in Subchapters III and IV, Chapter 99, Harmonized  Tariff Schedule, 

• Billfolds and other flat goods, 

• Feathers and feather products, 

• Flowers and foliage, artificial or preserved, 

• Footwear, 

• Fur, articles of, 

• Gloves, 

• Handbags, 

• Headwear and hat braids, 

• Leather, articles of, 

• Luggage, 

• Millinery ornaments, 

• Pillows and cushions, 

• Plastics, miscellaneous articles of, 

• Rawhides and skins, 

• Rubber, miscellaneous articles of, 

• Textile fibers and products, 

• Toys, games, and sports equipment, and 

• Trimmings. 

The limit for these articles is $250, except for textiles (fibers and products).  Virtually all commercial shipments of textiles require formal entry, regardless of value.  Unaccompanied shipments of made-to-measure suits from Hong Kong, a category that  includes single suits for personal consumption, also require a formal entry regardless of  the suit’s value. 

Transportation Of Merchandise In Bond 

Not all merchandise imported into the United States and intended for domestic  commerce is entered at the port where it arrives.

The importer may prefer to enter the  goods at a different location in the United States, in which case the merchandise will have to be further transported to that location. In order to protect United States revenue  in these cases, the merchandise must travel in a bonded status from the port of arrival to  the intended port of entry. This process is referred to as traveling under Immediate  Transportation procedures and is accomplished by the execution of CBP Form 7512  (Transportation Entry and Manifest of Goods Subject to CBP Inspection and Permit). 

The merchandise is then placed with a carrier who accepts it under its bond for  transportation to the intended destination, where the normal merchandise entry process  will occur.