An important consideration when importing is what happens if customs holds your cargo. When importing into the US, a small mistake can result in a customs hold until the importer solves the issue. This can lead to delays and monetary penalties. If the importer does not fix the issue within a certain period, it could lead to seizure of the goods. For business importers, this can be significantly disruptive because customers expect their cargo. This article explains what could cause a hold and how to prevent it.
What Happens If Customs Holds Your Cargo And What Causes This?
When cargo is placed on hold, government agencies like CBP (Customs and Border Protection) stop it from clearing. The purpose is to check it for regulatory compliance. Customs could hold your cargo for various reasons, with a common one being incorrect paperwork. A small typo or missing detail can warrant further scrutiny. Incorrect data entry and classifications can also lead to holds. Importing prohibited items such as certain raw meats, hazardous materials, and illegal narcotics can lead to holds as well. Holds can also come from governing agencies like the Food and Drug Administration (FDA) inspecting cargo under their jurisdiction.
How Can You Prevent A Hold?
While it is important to understand why customs could hold your cargo, it is equally essential to know how to prevent a hold. Importers can reduce the likelihood of holds by ensuring the documentation is accurate and error-free. The documents that the shipper should check for include:
- Bill of Lading or Airway Bill
- Commercial Invoice
- Packing List
- Certificate of Origin
Additional documents may be required depending on the cargo type. Using the correct Harmonized Tariff Schedule (HTS) classification is also important. This allows the appropriate tax calculation, which can prevent potential holds. Entries and security filings, like the Importer Security Filing (ISF), must be completed at least 24 hours before the cargo goes on a vessel. If a hold does happen, shippers must respond quickly to prevent further penalties.
Customs holds can disrupt the supply chain, whether you are a business or a single importer. Along with the tips the article mentions, another way to prevent a hold is to speak with a customs broker. A broker is a licensed individuals or corporation that arrange customs clearance for imports on behalf of the importer. In the US, brokers ensure compliance with CBP by offering a range of solutions for shippers. These solutions can include calculating duties, providing documentation, filing entries, and more. Contact Customs Made Easy at 305-506-1348 or info@customsmadeeasy.com to learn about our solutions for clearing your goods from Customs.
