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Guide to Importing

CHAPTER 2 - Entry Process

Entry Process


    The entry process begins 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 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 Customs and estimated duties have been paid. It is the responsibility of the importer of record 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 the Customs and Border Protection, importers should contact other agencies when questions regarding particular commodities arise. For example, questions about products regulated by the Food & Drug Administration should be forwarded to the nearest FDA district office (check local phone book under "U.S. Government" listings). The same is true for alcohol, tobacco, firearms, wildlife products (furs, skins, shells), motor vehicles and other products and merchandise regulated by the 60 federal agencies for which Customs enforces entry laws.

Types of Entry: 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. Imported merchandise may also be sent to a bonded warehouse under a warehouse entry. Each type of entry is explained later in this chapter. Goods to be placed in a foreign trade zone are not entered at the customhouse (see Chapter 29 for further information).

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Import Requirements

1. An individual may make his own customs clearance of goods imported for personal use or business.

2. Customs and Border Protection does not require an importer to have a license or permit. Other agencies may require a permit, license, or other certification, depending on the commodity.

3. All merchandise coming into the United States must clear customs and is subject to a customs duty unless specifically exempted from this duty by law. Clearance involves a number of steps--entry, inspection, appraisal, classification, liquidation.

4. Customs duties are, generally, an ad valorem rate (a percentage) which is applied to the dutiable value of the imported goods. Some articles, however, are dutiable at a specific rate of duty (so much per piece, liter, kilo, etc.); others are at a compound rate of duty (combination of both ad valorem and specific rates).

5. The dutiable value of merchandise is determined by Customs. Several appraisal methods are used to arrive at this value. Generally, the transaction value of the merchandise serves as the basis of appraisement. Transaction value is the price the buyer actually pays the seller in the transaction for the goods being imported.

6. The Harmonized Tariff Schedule of the United States (HTSUS), issued by the International Trade Commission, prescribes the rates of duty and classification of merchandise by type of product; e.g., animal and vegetable products, textile fibers and textile products.

7. The tariff schedule provides several rates of duty for each item: "general" rates for most-favored nations; "special" rates for special trade programs (free, or lower than the rates currently accorded most-favored nations); and "column 2" rates for imports not eligible for either general or special rates.

8. Processing fees may also apply.
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Right to Make Entry

    Goods may be entered only by the 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 and is considered the "owner" of the goods for customs purposes. The document issued by the carrier is known as a "Carrier's Certificate." An example of the format is shown here, or turn to the Import Documents section in this Guide and review the government's form CBP 7523. In certain circumstances, entry may be made by means of a duplicate bill of lading or a shipping receipt.


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Carrier's Certificate

_______________
(date)

To the Port Director of Customs:

_______________
(port of entry)

The undersigned carrier, to whom or upon whose order the articles described below or in the attached document must be released,* hereby certifies that _______________ of _______________ is the owner or consignee of such articles within the purview of section 484(h), Tariff Act of 1930.

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Marks and number of packages
 
Description and quantity of merchandise--Number and kind of packages
 
Gross weight in pounds
 
Foreign port of landing and date of sailing
 
Bill of lading number
 


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Carrier ___________________________________________________
(name of carrier)

Voyage No. ___________________

Arrived ______________________ _____________________________
(date) (agent)


* Under the tariff laws of the United States, Customs officers do not deliver the goods to the consignee. The goods are released from Customs custody to or upon the order of the carrier by whom the goods are brought to the port at which they are entered for consumption. When the goods are entered for warehouse, they are released from Customs custody to or upon the order of the proprietor of the warehouse.
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In-Bond Entry

    Goods entered in this manner are 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 to an interior port in-bond may be made by the consignee, by a customs broker or by any other person having a sufficient 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 carriers for transportation to that port if other arrangements have not been made.

    Under some circumstances, your goods may be released through your local Customs port even though they arrive at another port from a foreign country. Arrangements must be made prior to arrival at the Customs port where you intend to file your duties and documentation.

    In-bond entries postpone final customs formalities, including payment of duty and processing fee, until the goods arrive at the final port.

Entry for Consumption

    The entry of merchandise is a two-part process consisting of (1) filing the documents necessary to determine whether merchandise may be released from Customs 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 program of the Automated Commercial Systems.

    It is to the importer's benefit to keep a duplicate set of all entry documentation submitted; this is in addition to copies maintained by a customs broker. At any time, Customs may raise importer compliance issues regarding any one of a number of transactions. (This is all in keeping with the Customs mandate for "informed compliance.") Much of the information that Customs is concerned with is provided with the importer's entry documentation. At the very least, retaining copies for your own records will assure backup documentation exists in the event of a Customs audit or formal investigation.

Entry Documents

    Within 5 working days of the date of arrival of a shipment at a U.S. port of entry, entry documents must be filed at a location specified by the port director, unless an extension is granted. These documents consist of:

    a. 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.

    b. Billing of lading, air waybill or carrier's certificate (naming the consignee for customs purposes) as evidence of the consignee's right to make entry.

    c. Commercial invoice, or a pro forma invoice when the commercial invoice cannot be produced, that shows the value and description of the merchandise.

    d. Packing lists, if appropriate.

    e. Other documents necessary to determine merchandise admissibility.

    If the goods are to be released from Customs custody on entry documents, an Entry Summary for Consumption must be filed and estimated duties and processing fees deposited at the port of entry within 10 working days of the time the goods are entered.

    If entry documents have not been filed and an extension has not been granted within the 5 working days, the goods will be sent to the public stores or a general-order warehouse. There they will be held as unclaimed at the risk and expense of the consignee or owner. (See Unentered Goods, in this chapter.)

    When the entry is filed, the importer indicates the tariff classification and pays any estimated duty and processing fees.

Surety

    The entry must be accompanied by evidence that a bond is posted with Customs to cover any potential duties, taxes and penalties that may accrue. Bonds may be secured through a resident U.S. surety company but may be posted in the form of United States money 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, provided no legal or regulatory violations have occurred. Entry summary documentation is filed and estimated duties are deposited within 10 working days of the release of the merchandise at a designated customhouse. Entry summary documentation consists of:
 

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Guide to Importing