Importing goods into the United States involves more than arranging ocean freight and paying duties. Before a shipment can enter U.S. commerce, the importer must provide accurate product information, establish the correct customs value, meet filing deadlines and address any requirements imposed by other government agencies. That’s why having an established import customs clearance process is essential if you want to avoid delays, penalties and other charges.
Following are practical steps that should be taken during the import customs clearance process.
Engage Your Customs Broker Early
A licensed customs broker prepares and submits entry information to CBP on the importer's behalf, using information supplied by the importer and other parties. The broker may also arrange bond coverage, coordinate duty payments and help address agency requirements as part of the import customs clearance process.
The importer still needs to supply accurate information and authorize the broker to act. This typically involves a customs power of attorney and the information required to establish the importer's identity and responsibilities.
Give the broker the commercial invoice, packing list, product specifications, origin information and other available documents as early as possible. If a product is unfamiliar or subject to special requirements, discuss it before the shipment departs.
A broker can help identify questions and explain filing requirements, but the importer is responsible for the accuracy of its declarations and for researching whether the goods are subject to restrictions.
For more on the division of responsibilities, see I.C.E. Transport's article, What Is a Freight Forwarder vs. a Customs Broker?.
Check Details Before the Shipment Leaves the Origin Country
To help ensure a smooth customs clearance process, the best time to identify a documentation problem is before the cargo is loaded. Once a shipment has cleared export customs at origin, the seller may be reluctant to revise the commercial invoice, even when the U.S. importer or broker identifies an error.
Compare the commercial invoice against the purchase order. Check the seller and buyer information, product descriptions, quantities, unit prices, currency and country of origin. Confirm that the invoice describes the actual goods being shipped and that the values agree with the commercial terms.
CBP will require a commercial invoice in English. If the seller issues the original in another language, arrange an English version or a line-by-line translation before sending the documents to the customs broker.
CBP has its own conversion tool for many foreign currencies. If a particular foreign currency is recognized by CBP, all a broker has to do is provide the foreign currency amounts and those amounts will automatically be converted to USD at the official exchange rate on the day of shipment departure. However, if a currency is not recognized, the importer must provide an invoice with USD values.
Confirm the Correct HS Classification
The U.S. Harmonized Tariff Schedule (HTS) code tells CBP the merchandise being imported, which then determines the applicable U.S. duty rate. Classification also determines whether additional tariffs or government agency requirements apply. This makes it a key piece of any customs clearance process.
A broad product description rarely gives a broker enough information to classify unfamiliar merchandise confidently. For instance, clothing classification may depend on the intended use: men or women, seasonal apparel, type of fiber, etc. Furniture also requires detail. A description such as “furniture” leaves unanswered whether the goods are teak dining room furniture, antique furniture, bedroom furniture, or something else.
Provide enough product detail for the customs broker to distinguish between potentially applicable classifications. Depending on the merchandise, this may include material composition, construction, function, dimensions, intended use and manufacturing details.
Do not assume that a supplier's classification is automatically correct for U.S. entry. The six-digit international harmonized system (HS) code is a useful reference, but the importer and broker must establish the appropriate, 10-digit HTS code
“Just providing the HS code may not help,” said Andrew Rozek, president of freight forwarder I.C.E. Transport of New Jersey. “That’s when the broker has to have a conversation with the importer, or the importer with the shipper, to get to the bottom of exactly what the product is. The more digits a broker has to work with, the better.”
Rozek cited an example to illustrate the importance of detailed descriptions and proper HTS classification for import customs clearance. I.C.E. Transport handled a shipment of antiques in which some items were described simply as wooden boxes, although they contained materials such as ivory, mother-of-pearl and deer antlers. The importer of record (IOR) had cargo from several shippers in their containers and did not know the full details about those items.
The shipment was selected for inspection by the U.S. Fish and Wildlife Service. The vague descriptions failed to disclose materials that required attention under wildlife regulations, leading to the cargo being seized.
“You want to be as specific and detailed as possible about the HTS codes on commercial invoices as well as the item description, because issues like this can be prevented ahead of time,” Rozek said.
The lesson for importers is straightforward: know what is in the shipment and describe it accurately. The Importer of Record (IOR) remains responsible for the declaration even when a supplier, customer or another party provided the goods.
Verify Country of Origin
The country from which a shipment departs is not necessarily the country of origin. Goods purchased from a supplier in one country may contain components manufactured elsewhere, and routing merchandise through another country does not automatically change its origin.
Rozek said the actual country of origin must be declared on the commercial documents. For example, if products assembled in Lithuania contain identifiable parts manufactured in China, they need to be identified separately because origin affects tariff treatment. This is especially important in today’s volatile trade environment, with tariffs and agreements between countries constantly shifting. Check out our article on ways to mitigate tariff costs on international shipments.
The importer should obtain reliable origin information from the seller and investigate discrepancies before the shipment leaves. Depending on the product and applicable rules, determining origin may require more than identifying where final assembly occurred.
The consequences of an inaccurate declaration can be significant. If CBP determines that imported goods have a different origin from the one declared, the importer will likely owe additional duties and face penalties.
Establish the Correct Customs Value
Customs valuation is CBP’s reference to calculate duties and fees. For many commercial imports, the starting point is the transaction value, generally the price actually paid or payable for the goods being imported, subject to applicable adjustments.
The commercial invoice is an important starting point, but the invoice total may not capture every amount required for customs valuation. Depending on the transaction, additions can include packing costs, seller commissions, assists, royalties or license fees required as a condition of sale, and proceeds from subsequent resale that accrue to the seller. These amounts are subject to specific customs valuation rules.
An assist may arise when the buyer supplies a manufacturer with materials, components, tools, molds or qualifying design work free of charge or at a reduced cost for use in producing the imported merchandise. The relevant value may need to be allocated across the goods produced.
Related party transactions can require additional scrutiny. If the importer and seller are related, the importer may need documentation showing that the relationship did not influence the price.
International freight and cargo insurance are generally treated differently from the price of the merchandise for transaction value purposes when separately identified, but the applicable rules and other valuation circumstances should be reviewed with the broker.
If the invoice does not reflect the full transaction, tell your broker. Don’t assume that the invoice total alone settles the customs value.
Secure a Customs Bond
A customs bond provides a financial guarantee to CBP that the importer will meet specified obligations, including payment of duties, taxes and fees. A bond is generally required for formal entries, subject to applicable exceptions and requirements.
Importers typically choose between two common bond types:
- Single entry bond: Covers a particular customs entry and is often used for occasional imports.
- Continuous bond: Covers multiple entries over its effective period and is generally more practical for businesses importing regularly.
Ocean shipments subject to the Importer Security Filing (ISF) requirement also need appropriate ISF bond coverage. Depending on the arrangement, the importer may need separate bond coverage for the ISF and the customs entry.
Bond requirements and costs depend on the shipment, entry type, duty exposure and other factors. Higher duties can increase the bond amount needed, so importers should review coverage when tariff changes or growing import volumes alter their exposure.
File the ISF Before the Ocean Shipment Departs
For most ocean cargo entering the U.S., the ISF is due no later than 24 hours before the cargo is loaded onto the vessel destined for the United States. Commonly called the "10+2" filing, it supplies information in advance that CBP uses to assess cargo security risks.
The importer or its authorized agent must provide the required information, including seller, buyer, manufacturer or supplier, ship-to party, importer identification, consignee identification, country of origin, and commodity HTS information. Container stuffing location and consolidator information are also required, with applicable timing rules.
The customs broker cannot complete the filing without the necessary data. Waiting until the final hours before loading leaves little time to resolve missing or inconsistent information. CBP may assess liquidated damages of up to $5,000 per violation for inaccurate, incomplete or untimely filings. I.C.E. Transport's ISF filing guide explains the required information and filing deadline.
Reconcile the Commercial Invoice, Packing List and Bill of Lading
These documents serve different purposes, but the information must make sense together. The commercial invoice supplies information used for import customs clearance purposes, while the packing list helps the broker and forwarder understand the shipment's packages and how the cargo is loaded. The bill of lading identifies the shipment and documents its carriage.
If you’re working with a licensed Non-Vessel Operating Common Carrier (NVOCC) like I.C.E. Transport, there are advantages to booking global shipments using an NVOCC Bill of Lading.
The broker may need details from both the invoice and packing list to classify the goods. Depending on the classification, CBP may require net weight, gross weight, piece count or another unit of measure.
“A broker may need to look at both because certain classifications ask you for different details,” Rozek explained. “One classification may ask you for the net weight of the product, another for gross weight, another for the number of pieces or number of square meters if it’s textiles or carpeting. For brokers, the packing list acts like a backup to a commercial invoice.”
Discrepancies between the various documents can trigger questions or holds. Customs’ systems may flag values that appear inconsistent with the declared weight or quantity. If the paperwork indicates a different piece count from the cargo actually in the container, an inspection can expose the mismatch and lead to a corrected entry or penalties.
Check for any Government Agency Requirements
CBP is not the only agency that may regulate imported merchandise as part of the import customs clearance process. Depending on the product, requirements may involve the Food and Drug Administration (FDA), U.S. Department of Agriculture (USDA), Environmental Protection Agency (EPA), Fish and Wildlife or another agency.
The IOR is responsible for determining whether the goods are admissible and whether permits, declarations, certificates or additional filings are required. A customs broker or freight forwarder can help identify potential requirements, but the importer should raise questions before shipment.
Materials derived from wildlife, food products, plants, chemicals and other regulated goods may require particular attention. Even when an item can legally be imported, it may need to be declared accurately and accompanied by supporting documentation.
Rozek recommends contacting the broker or forwarder when an importer is uncertain. More involved questions may require additional research or consulting work. “It never hurts to contact them with a question about agency jurisdiction, or what is allowable or not for entry,” he said.
Track Entry Filing, Cargo Release and Duty Payment
The import customs clearance process at port involves several related steps. The broker submits the entry information needed for CBP to make a release decision. CBP may release the cargo if the filing is acceptable and no examination or other agency hold prevents release. The entry summary and payment of duties follow their applicable deadlines.
For many formal entries, the entry summary and estimated duties are due within 10 working days after entry, subject to the applicable rules and circumstances. Importers should confirm the specific deadlines with their broker rather than assuming that every filing or release follows an identical schedule.
Rozek warns against using the available time as a reason to delay. Cargo sitting at the port accumulates storage charges. If documentation or clearance requirements are not resolved within the 15-day window from arrival at the U.S. port, the shipment may enter General Order status, which can lead to additional expense and, in some circumstances, seizure and sale or other disposition after a six-month holding period.
“Everything becomes that much more expensive to get out of General Order,” Rozek said. “The more time that passes, the worse the consequences on the importer.”
Review the Entry Summary and Correct Errors Promptly
Once the broker provides the entry summary, the importer should review it instead of assuming every detail is correct. Check the product classification, entered value, quantities, country of origin, duty rates and assessed charges against the commercial documents and agreed transaction terms.
Rozek emphasized that it is easier to resolve errors early. If a classification, quantity or origin declaration needs correction, contact the broker immediately. Depending on the entry's status and the applicable rules, the correction may require a revised filing or a post-summary correction. Additional duties, interest or other consequences may apply if an error is addressed after payment becomes due.
A Repeatable Import Customs Clearance Process Saves Money and Avoids Delays
A reliable customs clearance process starts with accurate information and enough lead time to resolve questions. Importers that review product descriptions, classification, origin and valuation before departure give their brokers a stronger foundation for filing. Timely ISF submission, appropriate bond coverage and prompt review of the entry summary help reduce avoidable delays and costs.
I.C.E. Transport, in business for nearly 40 years, coordinates international freight forwarding services to help importers prepare documentation, manage filing requirements and address questions during the entire shipment process. Whether you’re planning your first import shipment into the U.S. – or want to evaluate a customs process that’s been in place for years – contact I.C.E. Transport today. We can help evaluate your import customs clearance process and set you up for smooth sailing.
