Customs Entry

Definition

A customs entry is the formal declaration filed with CBP to import goods into the United States. It includes the classification (HTS code), declared value, country of origin, and duty calculation for the shipment. Entries must be filed within 15 calendar days of the cargo's arrival at the U.S. port.

Why it matters

The customs entry determines how much duty the importer pays and whether the shipment clears or gets held for examination. Entry preparation requires the commercial invoice, packing list, bill of lading, and often an ISF already on file. Errors in classification or valuation can trigger penalties, liquidated damages, or delays.

Formal vs. informal entries

Shipments valued at $2,500 or more must be filed as formal entries (CBP Form 7501). Shipments below $2,500 may qualify for informal entry treatment with simplified documentation and no bond requirement, though some commodity categories require formal entry regardless of value. Shipments valued at $800 or below may qualify for Section 321 de minimis clearance with no duty and minimal documentation. Most ocean import shipments handled by freight forwarders are formal entries due to value thresholds.

The 15-day rule and what happens when it lapses

A formal entry must be filed within 15 calendar days of the cargo's arrival. If no entry is filed, CBP initiates a General Order process and the cargo is moved to a CBP-bonded warehouse at the importer's expense. Retrieval requires filing the entry and paying warehouse fees. In practice, most forwarders file the entry before the cargo arrives if the ISF and documents are in order, using a pre-arrival or pre-filed entry process. The 15-day clock is a backstop for problem jobs, not the target filing date for a well-run operation.

Liquidation and the final duty determination

After an entry is filed and duties are paid, CBP does not immediately close the transaction. The entry remains open for liquidation, which is CBP's final legal determination of the correct duty owed. Liquidation typically occurs within 314 days of the entry filing date. CBP may reliquidate an entry upward if it finds the declared classification, value, or origin was incorrect, assessing additional duties plus interest. Entries with antidumping or countervailing duty exposure have extended liquidation periods measured in years. This is why HTS accuracy matters at filing: errors do not always surface at the time of clearance. They surface at liquidation.