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The dreaded message of “Shipment on Customs Hold” or shipment is “Stuck” in Customs is the response all importers want to avoid. A seamless Customs process improves the supply chain and overall transit time. There are several common reasons a shipment can be placed on hold for a Customs release. The most common reason for shipments being held for Customs clearance is missing documentation and information. Documentation and information gaps can often be corrected at the origin location through process improvement, implementation, and training. Below are five of the most common gaps that can create a hold for ashipment at the border.
1. Missing Commercial Documents
Complete and thorough commercial documents are required for an import broker to file Customs entry with US Customs and Border Protection on behalf of the importer.The most common commercial documents are:
Commercial invoice – Invoice that lists commodities of goods, origin, seller, and buyer
Bill of Lading – Document issued by carrier that shows ownership of freight and transportation
Packing List – Document that shows quantity, weights, and measurements of goods
Arrival Notice – Issued by carrier to notify party to advise goods location and available for Customs release
Depending on the type of goods, this could also include a Toxic Substance Control Act (TSCA) declaration, Dangerous Goods Declaration, or other government agency forms (EPA, FCC, FDA).
2. Broker or Notify Party Missing
On a Bill of Lading, a proper notify party should be listed for arrival notification. This is often listed as the importer’s customs broker. The freight forwarder or carrier will send the arrival notice and commercial documents to the customs broker for import. If this information is not properly listed on the Bill of Lading, cargo can arrive to the port of entry and collect storage while the carrier or freight forwarder tries to turn over the shipment to the importer to file the entry.
3. Incomplete Commercial Invoice
The complete commercial invoice is used to file Customs declaration on behalf of the importer. It is important that all of theinformation reflects the transaction accurately to ensure all Customs regulations are complied. The commercial invoice for entry at minimum must list the following:
- Description of Goods
- Buyer
- Seller
- Shipper
- Ship to location
- Quantity
- Weight
- Value
- Currency
- Country of Origin of each product
- Classification
Any information missing can delay the shipment as the broker is required to report the information on the Customs entry prior to release.
4. Missing Country of Origin
The Country of origin is identified as where a product is manufactured, produced, processed, or grown. Importers frequently mistake country of origin as the country from where the goods were shipped or the country where simple assembly of goods took place. Simple assembly such as packing, painting, or washing of parts does not determine the country of origin as the good has to meet substantial transformation to be considered the country of origin. Country of origin is required to be listed for each item on the commercial invoice.
5. Missing HTS Classification
The HTS classification is required to be listed per item on the commercial invoice per the Codes of Federal Regulation. The classification is required to be filed in the customs entry and determines the amount of duty that will be paid. Please note that if OGA regulations apply such as EPA, FCC, FDA, etc., specific additional product information is required.
Customs entries require a vast amount of information and varies based on the type of goods that are being imported. With over 25 years’ experience Allyn International adept at developing upstream processes that will expedite shipments and improve clearance times. For more information on how Allyn International can assist with your Trade Compliance program, contact sales@allynintl.com for more information.
Allyn Contributor: Kyle Couchois
