Entry (Customs)

Summary of Entry (Customs)

The administrative processing associated with foreign merchandise that has landed in the United States for consumption, warehousing, or other reasons. The act of entry involves the submission to U.S. Customs of documents that identify the owner of the goods, the type and character of the merchandise, value for duty purposes, and other relevant information upon which the customs authorities may rely in deciding whether the merchandise is permitted admission into the United States, which permits or licenses, if any, apply to the importation, and what rate of duty is to be assessed. All imports must be entered within five working days of arrival at a U.S. port of entry, unless an extension of time is permitted by the district or area director of customs. Failure to make entry within the prescribed time period will cause the goods to fall into the condition of General Order (read this and related legal terms for further details) under which the unentered merchandise will be transported into a customs bonded warehouse (read this and related legal terms for further details); the goods will remain there, at the owner’s expense, until entry is effected. If entry is not made within one year from transfer into general order, the goods will be considered abandoned and sold or destroyed by customs authorities. In case of perishable or dangerous merchandise, customs may effect disposal immediately.

Customarily, entry is made by the owner of the goods or his authorized agent, usually a licensed customhouse broker. The common carrier that transported the merchandise into the United States will provide U.S. Customs with a carrier s certificate (read this and related legal terms for further details) naming the owner of the goods; customs will rely upon this document in permitting a party to make entry. In the event a carrier’s certificate is not available, is lost, or cannot be provided for any reason, ownership of the goods may be established by presentation of a bill of lading or air waybill. In those cases where the goods do not arrive by common carrier, possession alone is normally sufficient to establish right to make entry.

The owner of the merchandise or his customhouse broker will supply to customs officers at the port of entry the following: carrier’s certificate or other evidence of right to make entry; entry manifest (Customs Form 7533) or application and special permit for immediate delivery; invoices or other documents establishing value; such other documentation as may be required by virtue of the nature of the shipment (e.g., certificate of origin if exemption from duty is requested on the basis of country of manufacture); and evidence that a cash deposit or a surety bond has been lodged with customs to cover any duties, taxes, or penalties applicable to the given shipment.

Following submission of the required documentation, customs will examine the merchandise and, provided that there are no violations or restrictions, release it. Estimated duties must be deposited at the designated customhouse within ten working days of the release of the goods.

There are many different types of entries possible, depending upon the purpose for which the merchandise enters the United States or the character of the goods themselves.

The following are common types of entries, each illustrated on the following pages.

1. Consumption entry is used when the imported merchandise is to be introduced directly into commerce, either as a finished product or an intermediate good, to be used in the United States.

2. Warehouse entry is used in those cases where the imported merchandise is not required for immediate use; duties and taxes may be deferred until the goods are required by placing them in a special customs-licensed warehouse. Goods may remain in the bonded warehouse up to five years from the date of importation, during which period the merchandise may be re-exported without duty obligation. In some cases, the imported product may be manufactured, sorted, packed, or otherwise manipulated within the warehouse. Upon withdrawal, duties will be levied upon the goods in their new form. Goods are withdrawn from a bonded ware-house by filing a consumption entry.

3. Transportation and exportation entry is used when goods of foreign origin are being transported across the territory of the United States while en route to another foreign destination, e.g., when Canadian merchandise transits the United States to meet a ship in New York for export to France. Such transportation across the United States is usually performed by common carriers specially licensed by U.S. Customs. Cross-reference: Duty; Tariff (Customs); Tariff Schedules of The United States.

(Main Author: William J. Miller)