Customs entry, also known as customs clearance or customs declaration, is the process of complying with legal requirements and submitting necessary documentation to the customs authorities of a country to enable the import or export of goods across international borders. This process involves various procedures such as providing information about the goods being imported or exported, paying applicable taxes and duties, and obtaining any required permits or licenses. Failure to properly comply with customs entry requirements can result in significant delays, fines, or even seizure of goods. Thus, understanding the customs entry process is essential for businesses engaged in international trade to avoid potential legal and financial risks.
The information that is required in the Customs entry form:
Country of origin
Description of the goods
Cost, insurance and freight (CIF) value or the goods
Customs classification number, and
Approximate amount of duties you expect to pay on the goods.
There are 2 types of Customs entry: formal Customs Entry and informal Customs Entry.
Formal Customs Entry: Goods or merchandise valued at least, total up to 2500 USD, or higher must be covered by either an entry or surety bond in order to be accepted into the country. That means they all need a formal entry. Usually, these goods are imported for commercial purposes. Importers who already have customs entry bonds on file with the Customs and Border Protection (CBP) are allowed to receive their goods before they’ve paid their taxes, fees, and duties.
Informal Customs Entry: Unlike formal customs, informal customs goods do not require an entry bond. Informal entries are typically granted to goods less than $2,500, and they are considered to be for consumption purposes. But there are some exceptions. One of the most notable exceptions is textile imports. For textiles, entries valued at $250 or over need to be declared as formal. You can confirm any exceptions with your specific port of entry.
