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