Freight & customs

US customs clearance, start to finish

What happens between a vessel leaving Yantian and a container arriving at your warehouse: the filings, the documents, the fees, the exams, and the two clocks that start charging you the moment the box lands.

Read this first

We are not a customs broker, and that is not a technicality

Filing a customs entry on someone else's behalf requires a federal license. Source Launch Fulfill does not hold one and does not file entries. We book the freight, we coordinate the paperwork, and we hand the entry to a licensed customs broker at the port. Every US port we use has one.

We say it this plainly because plenty of companies in this industry blur it, and the blurring matters: the party legally answerable to CBP for your classification, your declared value and any penalty is you, the importer of record. Knowing who is actually licensed to do what in your chain is part of knowing where that liability sits.

The sequence

Eight things happen, in this order

Most import problems are not clearance being difficult. They are one of these steps being started later than it should have been.

  1. 24 hours before the vessel loads

    ISF filed

    Importer Security Filing, the "10+2". Ten data elements from you, two from the carrier, transmitted to CBP before the box is loaded in Asia, not before it arrives here.

    Late or wrong ISF carries a liquidated damages claim of up to $5,000 per violation, and it is assessed against the importer of record, which is you.

  2. Transit

    Vessel sails

    Between two and six weeks depending on the lane and the service. Nothing is required of you, and it is the right time to have the entry paperwork ready rather than to start assembling it.

    This is also where a rollover happens if the booking was tight. It shows as a new ETA rather than as a phone call.

  3. Roughly 5 days before berthing

    Arrival notice

    The carrier or forwarder issues it. It carries the vessel, the ETA, the container number and the charges due before the container can be released.

    The trigger to make sure a delivery appointment and a trucker exist. Arranging them after arrival is how demurrage starts.

  4. Up to 5 days before arrival, or at arrival

    Entry filed

    Your licensed customs broker transmits the entry (CBP Form 3461) with the classification, value and origin. CBP responds with a release, a hold, or an exam instruction.

    Filing early is free and buys you the time to resolve a problem while the goods are still on the water.

  5. At arrival

    Release or exam

    Most containers are released electronically and move. A minority are selected for X-ray, a tailgate look, or a full intensive exam at a Centralized Examination Station.

    You pay for the exam and for the time it costs whether or not anything is found. There is no appeal and no refund for a clean result.

  6. Within 10 working days of release

    Entry summary and duty

    CBP Form 7501, with duty, MPF and HMF paid. Usually paid by the broker on your behalf under an ACH arrangement and billed on.

    Release and payment are separate events. Goods can be moving while the duty is still outstanding, which surprises people the first time.

  7. After release

    Delivery and devanning

    The container moves to the warehouse, gets unloaded, and the count is verified against the packing list.

    The last point at which a short shipment can be raised with any leverage. We receive containers at our open facilities and flag discrepancies on arrival.

  8. Usually 314 days later

    Liquidation

    CBP finalizes the entry. Until then it is provisional and can be adjusted.

    Genuinely worth knowing: a duty refund claim, or an unwelcome bill, can arrive most of a year after you thought the shipment was finished.

Paperwork

Six documents, and what each one is really for

Commercial invoice

Seller, buyer, description, quantity, unit price, total value, currency, Incoterm, country of origin.

The value on it is what duty is calculated from. Understating it is fraud, not a negotiation, and it is the single most common thing an overseas supplier will offer to do for you.

Packing list

Carton count, carton dimensions, gross and net weight, and what is in each carton.

What the exam and the devanning check are measured against. Vague packing lists turn a five-minute count into an afternoon.

Bill of lading or air waybill

The carrier's contract and receipt. An original bill of lading is also a document of title: whoever holds it can claim the goods.

Telex release or a seaway bill avoids couriering an original around the world, and which one you are on should be decided before the goods ship, not at the port.

Arrival notice

Issued by the carrier. Vessel, ETA, container, and the charges owed.

Read the charges line. It is where terminal handling, documentation and chassis fees first appear in writing.

Customs bond

A financial guarantee to CBP that duties will be paid. Single-entry or continuous.

Required on essentially every commercial ocean import. Continuous costs more up front and less per shipment past roughly three or four entries a year.

Any PGA paperwork

FDA prior notice, FCC declarations, CPSC certificates, USDA or EPA filings, depending entirely on what the product is.

This is the one that catches first-time importers, because the requirement attaches to the product rather than to the shipment, and nobody in the chain volunteers it.

The money

What you actually pay at the border

Duty is the one everybody knows about and rarely the only line. Here is the full set.

Rates current as published by CBP. The MPF percentage and the HMF rate have been stable for years; the MPF per-entry floor and ceiling are adjusted for inflation every October, so confirm the current figures with your broker rather than with any page, including this one.
LineRateNotes
DutySet by HTS classificationAnything from zero to a great deal, determined by the ten-digit HTS code your product classifies under and its country of origin. Trade remedies and additional tariffs sit on top of the base rate.
Merchandise Processing Fee0.3464% of entered valueSubject to a per-entry floor and ceiling that CBP adjusts every October. Informal entries pay a small flat fee instead.
Harbor Maintenance Fee0.125% of valueOcean freight only, and there is no minimum or maximum. Air shipments do not pay it.
Customs broker feePer entryThe licensed broker's own charge for preparing and transmitting the entry, plus line charges for additional HTS lines and any PGA filings.
BondPer entry or annualA single-entry bond is priced off the value of the shipment; a continuous bond is an annual figure covering everything you import in the year.
ISF filingPer filingUsually charged by whoever transmits it, and separate from the entry fee.

The two percentages are worth committing to memory because they apply to nearly every ocean shipment and they are easy to forget when you are modeling landed cost: 0.3464% MPF on entered value, and 0.125% HMF on ocean cargo. On a $60,000 container that is roughly $208 and $75 respectively, before a dollar of duty.

Classification

Why duty cannot be quoted from a photograph

Duty is a function of the ten-digit HTS code your product classifies under and where it was made. Classification turns on material composition, construction, function and sometimes intended use, resolved through a hierarchy of interpretive rules. Two products that look identical on a table can land in different headings and pay very different rates.

So when a supplier, a freight agent or a website tells you the duty rate confidently from a picture and a description, they are guessing, and the consequence of the guess is yours rather than theirs. A licensed broker classifies it properly. For a genuinely borderline product you can request a binding ruling from CBP before you import, which is free, takes some weeks, and converts an argument into a document.

Questions

Frequently asked

Do I need a customs broker?

Legally, no: you are allowed to clear your own goods as the importer of record. Practically, for a commercial ocean shipment, almost everyone uses one, because the entry has to be transmitted electronically into CBP's system, the classification has to be defensible, and the penalties for getting it wrong land on you rather than on whoever advised you. Source Launch Fulfill is not a licensed customs broker and does not file entries. We work with licensed brokers at every US port we use and hand them the entry.

Why will nobody quote me duty from a photo of my product?

Because duty depends on the HTS classification, and classification depends on material composition, construction, function and sometimes intended use, in a hierarchy of rules that runs to thousands of pages. Two products that look identical can classify differently and pay very different rates. Anyone who gives you a confident duty rate from a picture is guessing, and you carry the consequence of the guess, not them. A licensed broker will classify it properly, and for a genuinely difficult product you can request a binding ruling from CBP in advance.

What is the $800 de minimis rule now?

It used to be that shipments valued under $800 could enter the US duty free under Section 321, which is what a great deal of direct-from-China ecommerce was built on. That exemption is suspended. Low-value shipments now require a formal or informal entry with duty paid. Any guide still assuming free entry under $800 is out of date, and this is worth re-checking with your broker rather than trusting any page, including this one.

What is the difference between demurrage, detention and per diem?

Demurrage is charged by the terminal for a container sitting inside the port past its free days. Detention is charged by the carrier for keeping their container outside the port too long after you collected it. Per diem is another name for detention. They run on different clocks and are billed by different parties, which is why people are surprised to receive both. The way to avoid them is a delivery appointment and a trucker arranged before the vessel berths, not after.

My container was picked for an exam. Can I do anything?

No. Selection is CBP's and you will not be told why. An X-ray costs you a delay of days; an intensive exam means the container is trucked to an examination station, unloaded, inspected and reloaded, and can take a couple of weeks. You pay for all of it including the trucking, and you pay it whether or not anything is found. The only real mitigation is a clean, accurate entry, because vague descriptions and mismatched paperwork raise your odds.

Is my cargo insured while all this is happening?

Not unless you arranged it. The carrier's liability is capped by law rather than being insurance, and under COGSA that cap is $500 per package. Our page on marine cargo insurance and claims covers the three levels of cover, what all of them exclude, and what general average can cost you on a container that was never damaged.

Who is the importer of record?

The party legally responsible to CBP for the entry: the accuracy of the classification and value, the duty, and any penalty. Usually your company. It is not a formality, and it is not something to let a supplier or a freight agent hold on your behalf without understanding what you have given away.

Does DDP mean I do not have to deal with any of this?

It means the seller is responsible for it, which is not the same as it going away. Some DDP arrangements out of Asia are excellent. Others rely on undervaluation or on someone else's importer of record, and when CBP unwinds one of those it is generally the US business receiving the goods that gets the letter. If you are buying DDP, ask who is named as importer of record and what value is being declared.

How long does clearance actually take?

For a clean entry with no exam and no PGA involvement, release is often the same day the vessel is available, because the entry was filed before arrival. Add days for a PGA review, and add one to three weeks for an intensive exam. The variable is almost never CBP being slow; it is paperwork that arrived late or did not match.

Or let us run it

Booked, cleared and received in one chain

We book the space, coordinate the documents, hand the entry to a licensed broker at the port of arrival, and take delivery into our own warehouse, so the container is not accruing demurrage while somebody hunts for a receiving appointment.

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