Step-by-Step US Customs Entry Process for Importers

Overview of the US Customs Entry Process

Every commercial shipment entering the United States must be declared to U.S. Customs and Border Protection (CBP) through a formal or informal entry process. The entry process has evolved significantly with the adoption of the Automated Commercial Environment (ACE), which now handles virtually all entry filings electronically. Understanding each step of this process is essential for importers to avoid delays, penalties, and unnecessary costs. This guide walks you through the process from beginning to end.

Pre-Arrival: Getting Ready Before Your Goods Ship

1. Obtain your Importer of Record (IOR) number — typically your EIN or SSN.
2. Secure a customs bond: single-entry for one-time imports, or continuous for regular imports.
3. Execute a Power of Attorney (POA) if using a licensed customs broker.
4. Register for ACE (Automated Commercial Environment) through CBP's portal.
5. Classify your products under the correct HTS codes before the shipment arrives.
6. Gather all required documents: commercial invoice, packing list, bill of lading/airway bill, and any PGA (Partner Government Agency) documentation.

Step 1: Pre-Arrival Filing (ISF / 10+2)

For ocean shipments, the Importer Security Filing (ISF), commonly known as '10+2', must be filed at least 24 hours before the goods are loaded onto a vessel destined for the United States. The ISF contains 10 data elements from the importer (including seller, buyer, manufacturer, ship-to party, HTS codes, and container stuffing location) and 2 from the carrier. Failure to file the ISF on time can result in a $5,000 penalty per violation. Air shipments do not require ISF but have their own advance manifest requirements.

Step 2: Arrival and Entry Filing

When goods arrive at a US port, the entry must be filed within 15 calendar days. Your customs broker submits the entry data electronically through the Automated Broker Interface (ABI) into CBP's ACE system. This includes the entry manifest (CBP Form 3461 equivalent), which requests release of the goods. CBP processes the entry and either releases the shipment immediately, holds it for document review, or selects it for physical examination.

Step 3: CBP Review and Examination

Most entries are released without examination — CBP uses a risk-based targeting system to identify shipments that require closer inspection. If your shipment is selected for examination, CBP may conduct a document review (requesting additional paperwork), a non-intrusive inspection (X-ray or gamma-ray scan), or a physical inspection (opening containers and inspecting goods). Examination costs — including trucking, unloading, and port fees — are borne by the importer. Examination rates vary by port but typically affect less than 5% of entries.

Step 4: Entry Summary and Duty Payment

Within 10 working days after goods are released, the entry summary (CBP Form 7501 equivalent) must be filed, accompanied by payment of estimated duties, taxes, and fees. The entry summary contains the detailed declaration: HTS codes, country of origin, customs value, duty rates, MPF, HMF, and any additional tariffs. If you participate in the Periodic Monthly Statement (PMS) program, duty payments for all entries filed during a month are consolidated into a single monthly payment, improving cash flow management.

Step 5: Liquidation

Liquidation is CBP's final determination of the correct duties, taxes, and fees owed on an entry. It typically occurs 314 days after the entry date, but CBP can extend liquidation for up to four years in certain cases. If CBP's determination matches your declared amounts, no action is required. If CBP assesses additional duties, you will receive a bill. If you overpaid, you are entitled to a refund. You have 180 days from the date of liquidation to file a protest if you disagree with CBP's determination.

After Liquidation: Recordkeeping

Under the Mod Act, importers must retain all entry-related records for five years from the date of entry. This includes invoices, packing lists, transport documents, entry summaries, payment receipts, and any correspondence with CBP or your broker. Records must be accessible and producible within a reasonable time if CBP requests them. Electronic records are acceptable as long as they are complete and legible.