Clearing Customs: The Importation, Entry, and Liquidation Process

• Author: Matt Nakachi, Marisa Mar-Jones, George Tuttle, II, Jennifer Horvath
• Pages: 11-40

CHAPTER 2

Clearing Customs: The Importation,

Entry, and Liquidation Process

MATT NAKACHI, MARISA MAR-JONES, GEORGE TUTTLE III,

JENNIFER HORVATH1

H INTRODUCTION TO THE CLEARANCE PROCESS

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

cleared or “entered” through U.S. Customs and Border Protection (CBP).2 CBP

requirements and procedures for merchandise imported into the United States

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

tation 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 entr y 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 require-

ments, (2) entry process and requirements, (3) CBP examination, detention, and

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

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

entry located throughout the U.S. Customs territory.3 Numerous CBP officials

are involved in the clearing process, including entry and import specialists, who

review the paperwork or filings submitted by importers and customs brokers,4

and officers, who physically inspect goods before release. There are many differ-

ent methods used to clear goods through CBP, depending on the intent of the

importer. There are also special entry requirements for people, personal prop-

erty, and vessels arriving in the United States. This chapter focuses on the formal

importation and entry of commercial goods,5 and the most common type of

commercial transactions, namely imports for consumption in the United States.

Other topics concerning Customs clearance methods and processes for commer-

cial goods are discussed in Chapter 6, such as entry under programs to reduce

duties or avoid certain import requirements, including temporary imports for

immediate 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 entr y process is orga-

nized in the sequence that the procedures of the entr y process occur. Because of

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

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12 CHAPTER 2

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

ing the process in greater detail.

H PRE-ENTRY PREPARATION AND REQUIREMENTS

Even before importing goods into the United States there are a number of steps

and legal requirements that importers must follow: () the importer must ensure

that it has the legal right to import the goods; (2) certain documents must be filed

prior to importation; (3) the importer should consider obtaining the services of

a customs broker to assist with entry filing requirements; (4) the importer must

obtain a customs bond that secures import entry transactions; and (5) the importer

must ensure that it has the documents and information needed to provide CBP

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 Entr y—Entry must

be filed within 15 calendar

days after impor tation.

Entry Summary/Entr y 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—Cus-

toms 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

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