US Customs Clearance Explained: ISF, Duties, and What to Expect

|Overview of US Customs

Every commercial shipment entering the US must clear customs through US Customs and Border Protection (CBP). The process involves documentation, duty assessment, and possible physical inspection.

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|Required Documents

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|The Customs Process Step by Step

1. ISF Filing (24 hrs before departure) — Your broker submits 10 data elements to CBP
2. Entry Filing (at arrival) — Formal customs entry with HTS classification
3. Duty Assessment — CBP calculates duties based on HTS code and declared value
4. Examination (if selected) — 2-5% of containers are physically inspected
5. Release — Goods cleared for domestic transport
6. Duty Payment — Due within 10 working days of release

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|Understanding HTS Codes

The Harmonized Tariff Schedule is a 10-digit code system that determines your duty rate. Getting the classification right is critical.

Example: A wooden dining table is HTS 9403.60.8080 — duty rate 0%.

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|Common Mistakes That Cause Delays

1. Missing or late ISF filing (penalty: $5,000-$10,000)
2. Incorrect HTS classification (overpaying or underpaying duties)
3. Undervaluing goods on commercial invoice (fraud risk)
4. Missing certificates or test reports (FDA, FCC, CPSIA)
5. Inconsistent documentation between invoice and B/L