Question 1

What is CBP (Customs and Border Protection)?

Accepted Answer

CBP is a federal law enforcement agency within the Department of Homeland Security responsible for regulating and facilitating international trade, collecting import duties, and enforcing US trade laws at all ports of entry.

Question 2

What is ISF filing (Importer Security Filing)?

Accepted Answer

ISF (also called 10+2) is a mandatory filing that importers must submit to CBP at least 24 hours before cargo is loaded onto a vessel bound for the US. It includes 10 data elements from the importer and 2 from the carrier.

Question 3

What is a customs bond?

Accepted Answer

A customs bond is a financial guarantee to CBP ensuring that all duties, taxes, and fees will be paid. It's required for all commercial imports valued over $2,500.

Question 4

What is the difference between single entry and continuous bond?

Accepted Answer

A single entry bond covers one import shipment and costs approximately $50–$100 plus the bond amount (typically equal to the shipment value). A continuous bond covers unlimited entries for 12 months and costs approximately $500–$1,500 annually.

Question 5

What happens during a customs exam?

Accepted Answer

During a customs exam, CBP may perform a document review, a Contraband Enforcement Team (CET) exam, or a full intensive exam (tailgate or devanning). Exams can delay shipments 3–10 business days and incur fees of $300–$1,500+.

Question 6

What is demurrage?

Accepted Answer

Demurrage is a charge assessed by the ocean carrier or port for containers that remain at the port terminal beyond the allowed free time (typically 3–5 free days). Demurrage can cost $100–$400+ per container per day.

Question 7

What is detention in customs context?

Accepted Answer

Detention is a charge by the ocean carrier for the use of a container outside the port terminal beyond the free time. It applies from when the container leaves the port until it's returned empty.

Question 8

How long can containers stay at port?

Accepted Answer

Most ports offer 3–5 free days for import containers. After that, demurrage charges apply daily. Some ports during congestion may impose additional storage fees or require appointments for pickup.

Question 9

What is Section 301 duty?

Accepted Answer

Section 301 duties are additional tariffs imposed on imports from specific countries (notably China) as a trade remedy. These duties can add 7.5%–25%+ to the normal duty rate depending on the product category.

Question 10

What is an FDA hold?

Accepted Answer

An FDA hold occurs when the Food and Drug Administration detains an imported shipment for review. This can happen for food, drugs, medical devices, cosmetics, or tobacco products. Holds may last 1–30+ days.

Question 11

What is USDA inspection?

Accepted Answer

USDA (APHIS) inspects imported agricultural products, plants, seeds, and animal products for pests, diseases, and compliance with phytosanitary regulations. Inspections typically take 1–3 business days.

Question 12

What documents are required for import?

Accepted Answer

Key import documents include: Commercial Invoice, Packing List, Bill of Lading (ocean) or Air Waybill, ISF filing, Entry Summary (CBP Form 7501), customs bond, certificate of origin, and any applicable permits or licenses.

Question 13

How long does customs clearance take?

Accepted Answer

Standard customs clearance takes 1–5 business days. Shipments flagged for examination can take 5–15 business days. Having a licensed customs broker and accurate documentation speeds the process.

Question 14

What is a customs broker?

Accepted Answer

A customs broker is a licensed professional authorized by CBP to conduct customs business on behalf of importers. They prepare and submit entry documentation, calculate duties, and ensure regulatory compliance.

Question 15

What is HTS (Harmonized Tariff Schedule)?

Accepted Answer

The HTS is the US tariff classification system used to determine duty rates for imported goods. Each product is assigned a 10-digit HTS code based on its characteristics, material, and intended use.

Question 16

What is a free trade zone (FTZ)?

Accepted Answer

An FTZ is a designated area within the US where goods can be imported, stored, assembled, or manufactured without paying customs duties until the goods enter US commerce.

Question 17

What is a customs entry?

Accepted Answer

A customs entry is the formal documentation filed with CBP to clear imported goods. It includes the Entry Summary (Form 7501), commercial invoice, and supporting documents.

Question 18

What is duty drawback?

Accepted Answer

Duty drawback is a refund of customs duties paid on imported goods that are later exported or destroyed. Drawback can recover up to 99% of duties, taxes, and fees paid.

Question 19

What is a prior notice for FDA?

Accepted Answer

Prior notice is an FDA requirement for food imports. Importers must notify FDA before arrival of any food shipment. It can be submitted through the FDA Prior Notice System Interface.

Question 20

What is an anti-dumping duty?

Accepted Answer

Anti-dumping duties are extra tariffs on imports sold in the US at prices below fair market value. They protect domestic industries from unfair foreign competition.

Question 21

What is a countervailing duty?

Accepted Answer

Countervailing duties offset foreign government subsidies on exported goods. CBP collects these duties to level the playing field for domestic producers.

Question 22

What is Lacey Act compliance?

Accepted Answer

The Lacey Act requires importers to declare the scientific name, country of harvest, quantity, and value of plant products (including wood and paper). Non-compliance can result in seizure and penalties.

Question 23

What is a CPSC hold?

Accepted Answer

CPSC (Consumer Product Safety Commission) may detain imports of consumer products for testing and compliance verification. This commonly affects toys, electronics, children's products, and textiles.

Question 24

What is an immediate delivery?

Accepted Answer

Immediate delivery (CBP Form 3461) allows goods to be released from CBP custody before the formal entry summary is filed. It's used for perishables, time-sensitive cargo, and regular importers.

Question 25

What is a bonded warehouse?

Accepted Answer

A bonded warehouse is a CBP-authorized facility where imported goods can be stored without payment of duties for up to 5 years. Duties are paid only when goods are withdrawn for domestic consumption.

Question 26

What is ACE (Automated Commercial Environment)?

Accepted Answer

ACE is CBP's primary electronic system for processing imports and exports. All entry filings, ISF submissions, and cargo releases are managed through ACE.

Question 27

What is a PGA (Partner Government Agency)?

Accepted Answer

PGAs are federal agencies (FDA, USDA, EPA, CPSC, TTB, etc.) that regulate specific types of imports. Many PGA requirements are now filed electronically through ACE.

Question 28

What is the merchandise processing fee (MPF)?

Accepted Answer

MPF is a fee charged on most imported goods, calculated at 0.3464% of the value of the merchandise, with a minimum of $31.67 and a maximum of $614.35 per entry.

Question 29

What is harbor maintenance fee (HMF)?

Accepted Answer

HMF is a fee of 0.125% of the value of cargo imported through US seaports, used to fund harbor maintenance and dredging projects.

Question 30

What is a foreign trade zone admission?

Accepted Answer

An FTZ admission allows goods to enter a Foreign Trade Zone without paying customs duties. Goods can be stored, assembled, or manufactured within the zone before entering US commerce.

Question 31

What is C-TPAT?

Accepted Answer

C-TPAT (Customs-Trade Partnership Against Terrorism) is a voluntary partnership between CBP and importers to strengthen supply chain security. Members receive expedited processing and fewer inspections.

Question 32

What is a trusted trader program?

Accepted Answer

Trusted trader programs (like C-TPAT, AEO) give qualifying importers benefits such as reduced exams, faster clearance, and priority processing in exchange for meeting security standards.

Question 33

What is a customs power of attorney?

Accepted Answer

A customs power of attorney authorizes a customs broker to act on behalf of an importer for customs transactions. It must be executed before a broker can file entries.

Question 34

What is a forced labor hold?

Accepted Answer

Under the Uyghur Forced Labor Prevention Act (UFLPA), CBP may detain imports suspected of being produced with forced labor. Importers must prove products were not made with forced labor to secure release.

Question 35

What is a withhold release order (WRO)?

Accepted Answer

A WRO is issued by CBP to detain imported goods suspected of being produced with convict, forced, or indentured labor. The importer must provide evidence of lawful production or the goods are excluded.

Question 36

What happens if you miss ISF filing deadline?

Accepted Answer

Missing the ISF filing deadline (24 hours before vessel loading) can result in penalties of $5,000 per violation, cargo holds, and increased inspections on future shipments.

Question 37

What is a liquidation in customs?

Accepted Answer

Liquidation is CBP's final determination of the amount of duties owed on an import entry. It occurs approximately 314 days after the date of entry and is the point at which the entry becomes final.

Question 38

What is a protest in customs?

Accepted Answer

A protest (CBP Form 19) is a formal challenge to CBP's decision on classification, valuation, or duty assessment. It must be filed within 180 days of liquidation.

Question 39

What is country of origin marking?

Accepted Answer

US law requires most imported goods to be marked with the country of origin in English (e.g., 'Made in China'). The marking must be conspicuous, legible, and permanent.

Question 40

What is a carnet?

Accepted Answer

An ATA Carnet is an international customs document that allows temporary duty-free import of goods (samples, professional equipment, exhibition goods) for up to one year.

Question 41

What is an in-bond shipment?

Accepted Answer

An in-bond shipment moves through the US under CBP supervision without being entered for consumption. It allows cargo to move from one port to another or to a bonded facility.

Question 42

What is customs valuation?

Accepted Answer

Customs valuation determines the value of imported goods for duty assessment. The primary method is transaction value — the price actually paid or payable for the goods.

Question 43

What is classification in customs?

Accepted Answer

Classification assigns the correct HTS code to imported goods, which determines the applicable duty rate. Proper classification requires understanding product composition, function, and end use.

Question 44

What is an exclusion order?

Accepted Answer

An exclusion order prevents specific products from entering the US, typically issued by the International Trade Commission (ITC) for intellectual property violations (e.g., patent infringement).

Question 45

What is a bonded carrier?

Accepted Answer

A bonded carrier is a transportation company authorized by CBP to transport bonded merchandise between ports, bonded warehouses, and foreign trade zones.

Question 46

What is a CBP hold code?

Accepted Answer

CBP hold codes are status indicators in the ACE system showing why a shipment is being held. Common codes: 1H (intensive exam), 1C (document review), 5A (FDA hold), 5B (USDA hold).

Question 47

What is the de minimis threshold?

Accepted Answer

The de minimis threshold is the value below which imported goods are exempt from duties and formal entry requirements. For most US shipments, this is $800.

Question 48

What is entry type 01 vs type 11?

Accepted Answer

Type 01 is a formal consumption entry for goods entering US commerce. Type 11 is an informal entry used for shipments valued under $2,500 that don't require a customs bond.

Question 49

What is a temporary import bond?

Accepted Answer

A temporary import bond allows goods to enter the US duty-free for a limited time (typically 1 year) for specific purposes like repair, testing, exhibition, or demonstration.

Question 50

What is a free time at port?

Accepted Answer

Free time is the period (usually 3–5 calendar days) during which containers can remain at the port terminal without incurring storage or demurrage charges.

Question 51

What is the difference between demurrage and detention?

Accepted Answer

Demurrage is charged while the container is at the port terminal beyond free time. Detention is charged for the use of the container outside the terminal beyond free time.

Question 52

What is a chassis pool?

Accepted Answer

A chassis pool is a shared inventory of intermodal chassis at ports and rail terminals. Truckers check out chassis to transport containers and return them after use.

Question 53

What is pier pass?

Accepted Answer

PierPass is a program at the Port of Los Angeles and Long Beach that charges a Traffic Mitigation Fee on containers moved during peak hours (7AM–6PM, Mon–Fri) to reduce congestion.

Question 54

What is a terminal exam fee?

Accepted Answer

A terminal exam fee covers costs of moving a container within the terminal for a CBP examination. Fees range from $300–$1,500 depending on the exam type (tailgate vs. intensive/devanning).

Question 55

What is pre-clearance?

Accepted Answer

Pre-clearance allows CBP to process entry documentation and release cargo before the vessel arrives at a US port. This can reduce clearance time from days to hours.

Question 56

What are partner government agency (PGA) message sets?

Accepted Answer

PGA message sets are standardized electronic filing formats that allow importers to submit regulatory data for multiple agencies (FDA, USDA, EPA, etc.) through the ACE single window.

Question 57

What is a broker entry packet?

Accepted Answer

A broker entry packet is the set of documents an importer provides to their customs broker for filing: commercial invoice, packing list, bill of lading, and any licenses or permits.

Question 58

What is a steel tariff?

Accepted Answer

Steel tariffs (Section 232) impose a 25% duty on most imported steel products. Some countries have negotiated tariff-rate quotas or exemptions through bilateral agreements.

Question 59

What is a tariff-rate quota (TRQ)?

Accepted Answer

A TRQ allows a specified quantity of a product to be imported at a lower duty rate. Once the quota is filled, imports above that quantity are subject to a higher duty rate.

Question 60

What is a reconciliation entry?

Accepted Answer

Reconciliation is a CBP program allowing importers to flag entries for future adjustment of value, classification, or trade program eligibility without waiting for liquidation.

Question 61

What is the export control classification number (ECCN)?

Accepted Answer

An ECCN is a five-character code that identifies items on the Commerce Control List for export licensing purposes. Items with an ECCN may require a license before export.

Question 62

What is a vessel manifest?

Accepted Answer

A vessel manifest is a detailed list of all cargo aboard a ship, filed with CBP 24 hours before arrival. It includes container numbers, shippers, consignees, and commodity descriptions.

Question 63

What is a free alongside ship (FAS)?

Accepted Answer

FAS is an Incoterm where the seller delivers goods alongside the vessel at the named port of shipment. Risk transfers to the buyer once goods are placed alongside the ship.

Question 64

What is a CIF shipment?

Accepted Answer

CIF (Cost, Insurance, Freight) is an Incoterm where the seller pays for transportation and insurance to the destination port. Risk transfers to the buyer when goods are loaded on the vessel.

US Customs FAQ

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US Customs FAQ

1. What is CBP (Customs and Border Protection)?

2. What is ISF filing (Importer Security Filing)?

3. What is a customs bond?

4. What is the difference between single entry and continuous bond?

5. What happens during a customs exam?

6. What is demurrage?

7. What is detention in customs context?

8. How long can containers stay at port?

9. What is Section 301 duty?

10. What is an FDA hold?

11. What is USDA inspection?

12. What documents are required for import?

13. How long does customs clearance take?

14. What is a customs broker?

15. What is HTS (Harmonized Tariff Schedule)?

16. What is a free trade zone (FTZ)?

17. What is a customs entry?

18. What is duty drawback?

19. What is a prior notice for FDA?

20. What is an anti-dumping duty?

21. What is a countervailing duty?

22. What is Lacey Act compliance?

23. What is a CPSC hold?

24. What is an immediate delivery?

25. What is a bonded warehouse?

26. What is ACE (Automated Commercial Environment)?

27. What is a PGA (Partner Government Agency)?

28. What is the merchandise processing fee (MPF)?

29. What is harbor maintenance fee (HMF)?

30. What is a foreign trade zone admission?

31. What is C-TPAT?

32. What is a trusted trader program?

33. What is a customs power of attorney?

34. What is a forced labor hold?

35. What is a withhold release order (WRO)?

36. What happens if you miss ISF filing deadline?

37. What is a liquidation in customs?

38. What is a protest in customs?

39. What is country of origin marking?

40. What is a carnet?

41. What is an in-bond shipment?

42. What is customs valuation?

43. What is classification in customs?

44. What is an exclusion order?

45. What is a bonded carrier?

46. What is a CBP hold code?

47. What is the de minimis threshold?

48. What is entry type 01 vs type 11?

49. What is a temporary import bond?

50. What is a free time at port?

51. What is the difference between demurrage and detention?

52. What is a chassis pool?

53. What is pier pass?

54. What is a terminal exam fee?

55. What is pre-clearance?

56. What are partner government agency (PGA) message sets?

57. What is a broker entry packet?

58. What is a steel tariff?

59. What is a tariff-rate quota (TRQ)?

60. What is a reconciliation entry?

61. What is the export control classification number (ECCN)?

62. What is a vessel manifest?

63. What is a free alongside ship (FAS)?

64. What is a CIF shipment?

65. What is FOB in importing?

66. What is the first sale rule?

67. What is an AD/CVD cash deposit?

68. What is a scope ruling?

69. What is marking duty?

70. What is the penalty for undervaluation?

71. What is a customs audit?

72. What is record keeping for imports?

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