How US Customs Clearance Works: Step by Step
Every commercial import entering the United States must clear US Customs and Border Protection (CBP). Here's exactly what happens — and what you need to do at each step.
Timeline Overview
| Step | When | Who Does It |
|---|---|---|
| ISF Filing | 72+ hours before vessel departure | Customs broker |
| Entry Filing | Before or upon vessel arrival | Customs broker |
| CBP Review | Upon arrival | CBP |
| Exam (if selected) | 1–5 days after arrival | CBP / contracted exam site |
| Duty Payment | 10 working days after entry | Importer / broker |
| Cargo Release | After CBP clearance | Terminal |
| Entry Summary (CF 7501) | Within 10 working days of entry | Customs broker |
| Liquidation | 314 days after entry | CBP |
Step 1: Importer Security Filing (ISF / 10+2)
When: At least 24 hours before vessel loading at origin port (72 hours recommended)
What's filed:
- Manufacturer name and address
- Seller name and address
- Buyer name and address
- Ship-to party
- Container stuffing location
- Consolidator name
- HTSUS number (6-digit minimum)
- Country of origin
- Importer of record number
Penalty for late/missing ISF: $5,000 per violation + potential cargo hold
Step 2: Obtain a Customs Bond
Before filing entry, you need a customs bond — a financial guarantee to CBP that duties and fees will be paid.
| Bond Type | Cost | Best For |
|---|---|---|
| Single Entry Bond | ~$5 per $1,000 of cargo value | Occasional importers (<3 entries/year) |
| Continuous Bond | $500–$2,000/year | Regular importers (3+ entries/year) |
Step 3: Entry Filing
Your customs broker files the entry electronically through ACE (Automated Commercial Environment).
Documents required:
- Commercial invoice
- Packing list
- Bill of lading / airway bill
- Arrival notice
- ISF confirmation
- Any permits/licenses (FDA, USDA, EPA, etc.)
Entry types:
| Type | Code | Use Case |
|---|---|---|
| Consumption Entry | 01 | Standard import for domestic use |
| FTZ Entry | 06 | Foreign Trade Zone admission |
| Warehouse Entry | 21 | Bonded warehouse storage |
| Temporary Import | 23 | Goods to be re-exported |
Step 4: CBP Review & Examination
CBP reviews every entry. Most are released without exam (about 95%). If selected for exam:
| Exam Type | What Happens | Duration |
|---|---|---|
| Document Review | CBP reviews paperwork only | 1–2 days |
| Tailgate Exam | Quick visual check at terminal | 1–2 days |
| Intensive Exam (CET) | Container moved to exam facility, fully unpacked | 3–7 days |
| X-Ray/NII Exam | Non-intrusive imaging | 1–2 days |
Exam costs (paid by importer): $300–$1,500+ depending on exam type and facility.
Step 5: PGA (Partner Government Agency) Holds
If your product is regulated by another agency, CBP won't release it until that agency clears it:
| Agency | Products | What's Needed |
|---|---|---|
| FDA | Food, drugs, cosmetics, medical devices | Prior Notice, product registration |
| USDA/APHIS | Meat, produce, plants, wood packaging | Phytosanitary certificate, ISPM-15 |
| EPA/TSCA | Chemicals, pesticides, vehicles | TSCA certification, EPA Form 3520-1 |
| CPSC | Consumer products, toys, textiles | Testing certificates, GCC |
| FCC | Electronics with radio frequency | FCC Declaration of Conformity |
| TTB | Alcohol, tobacco | COLA, import permit |
Step 6: Duty Payment
| Fee | Rate | Due Date |
|---|---|---|
| Duty | Per HTSUS classification | 10 working days from entry |
| MPF | 0.3464% ($31.67 min, $614.35 max) | With duty |
| HMF | 0.125% (ocean only) | With duty |
Payment methods: ACH debit (most common), check, or Customs broker pays on behalf and invoices importer.
Step 7: Cargo Release
Once CBP issues a release message, the terminal allows the container to gate out. Your drayage provider can then pick it up.
Common release delays:
- CBP exam selection
- PGA holds (FDA, USDA)
- Missing or incorrect paperwork
- Bond issues
- Unpaid duties from prior entries
Step 8: Post-Entry — Liquidation
CBP has 314 days from the entry date to finalize (liquidate) the entry. During this period, CBP may:
- Reclassify the HTS code
- Change the dutiable value
- Assess additional duties
- Issue refunds if duties were overpaid
How to Avoid Customs Holds
- File ISF on time — late ISF = automatic flag
- Classify correctly — wrong HTS code triggers review
- Complete documentation — missing invoices or permits = hold
- Accurate values — undervaluation triggers audit
- PGA pre-clearance — file FDA Prior Notice, USDA permits before arrival
- Use a continuous bond — avoids bond sufficiency issues
- Maintain compliance history — CBP rewards consistent, accurate importers with fewer exams
Calculate Your Total Import Cost
Use our free Customs Duty Calculator to estimate duties, fees, and total landed cost before your shipment arrives.
The Bottom Line
Customs clearance doesn't have to be painful. The key is preparation — correct classification, early filing, complete documentation, and a licensed broker who knows the process.
Need customs clearance? Contact Indray Inc — our licensed brokers clear thousands of entries monthly at every US port.
