Chapter 2. Clearing Customs: The Importation, Entry, and Liquidation Process

• Author: Paul Hegland
• Pages: 9-37

CHAPTER 2

Clearing Customs: The

Importation, Entry, and

Liquidation Process

Paul Hegland

INTRODUCTION TO THE CLEARANCE PROCESS H

All goods imported into the Customs territory of the United States must be

cleared or “entered” through U.S. Customs and Border Protection (CBP). CBP

requirements and procedures for merchandise imported into the United States

begin before the goods are loaded aboard the vessel or other means of transporta-

tion from the country of export, continue through arrival of the goods into the

United States, and do not conclude until long after the goods are released by CBP.

There are many potential pitfalls that may result in excess duties, exclusion or

denial of entry of the merchandise, or penalty actions by CBP throughout the

process. Most steps in the process are time sensitive.

This chapter is divided into four sections: () pre-entry preparation and

requirements, (2) entry processes and requirements, (3) CBP examination, deten-

tion, and release, and (4) post-entry procedures, finality, and correctability of

entries.

Clearing goods through CBP occurs at one of the over 325 local CBP ports

of entry located throughout the U.S. Customs territory.2 Numerous CBP officials

are involved in the clearing process, including import specialists, who review the

paperwork or filings submitted by importers, and officers, who physically inspect

goods before release. There are many different methods used to clear goods

through CBP, depending on the intent of the importer. There are also special

entry requirements for people, personal property, and vessels arriving in the

United States. This chapter focuses on the importation and entry of commercial

goods, and the most common type of commercial transactions, namely imports

for consumption in the United States. In Chapter 6, “Duty Savings Opportunities:

Introduction to Trade Agreements, Unilateral Preference Programs, and Other

Duty Savings Mechanisms,” we address other types of Customs clearance meth-

ods and processes for commercial goods, which allow importers to reduce duties

or avoid certain import requirements, including temporary imports for immediate

9

The editors would like to thank Alex Schaefer, Counsel, Crowell & Moring, and Nicole Jenkins, Associate, Crowell

& Moring, for the assistance they provided in the preparation of this chapter.

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10 CHAPTER 2

Pre-Entry Preparation

and Requirements

(Before Shipment)

• Right to make entry

• Customs broker

• Customs bond

• Other agency

compliance

• HTS classification,

valuation, origin

• Support for prefer-

ence claims

Importer Security

Filing (ISF)—No less than

24 hours before vessel

departs foreign port.

Importation/Arrival—When

merchandise arrives at port

(Sea) or in U.S. customs

territory (Other).

Time of Entry—Entry must

be filed within 15 calendar

days after importation.

Entry Summary/Entry Docu-

mentation—Must file entry

summary with duty payment

within ten working days after

entry if filed separately from

entry documentation.

Examination—Usually

reserved for high-risk

shipments.

Liquidation—Occurs in a

cycle of 314 days after the

date of entry. By statute

and Customs regulations

one year from the date of

entry.

Post-Entry Procedures

• Supplemental Informa-

tion Letters/Post-Entry

Amendments

• Reconciliation

Detention or Release—

Customs has five days to

either detain or release the

merchandise.

Extension of Time for Liq-

uidation—May be extended

up to one year at a time for

a total of four years from

the date of entry.

Suspension of Time for

Liquidation—After removal

of suspension entry must

be liquidated within six

months after receiving

notice of removal.

Reliquidation—Notice

begins 180-day period for

filing a protest against the

decisions in the

reliquidation.

Customs Entry Time Flow Chart

export, temporary imports for processing and export, and imports into bonded

warehouses or foreign trade zones.

To the extent possible, this review of the import and entry process is orga-

nized in the sequence that the procedures of the entry process occur. Because of

the complicated nature of these processes, and because of the existence of time

deadlines throughout, we begin with a time-oriented flow chart, before examining

the process in greater detail.

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