United States — Import Procedures & Duties

Every importer of merchandise into the United States must comply with the entry filing requirement imposed by 19 U.S.C. § 1484, which obligates the importer of record to file documentation with U.S. Customs and Border Protection (CBP) to secure release of goods from customs custody and enable CBP to assess duties, collect trade statistics, and verify compliance with applicable law. The entry process is governed by statute (19 U.S.C. § 1484) and implementing regulations at 19 C.F.R. Part 142.

The two-step entry framework

The standard entry process consists of two distinct filings:

1. Entry (for release) — CBP Form 3461 or its electronic equivalent, filed within 15 calendar days after the merchandise arrives at the port of unlading or (for in-bond shipments) at the port of destination. This filing, accompanied by a commercial invoice, packing list, and any documentation necessary to determine admissibility, allows CBP to decide whether to release the merchandise from custody. CBP has five working days from presentation to examine the goods and issue a release permit, unless another agency determines admissibility.

1. Entry summary (for duties and statistics) — CBP Form 7501 or its electronic equivalent, filed with estimated duties attached within 10 working days after the time the entry is made. The entry summary provides the information CBP needs for final classification, appraisement, statistical reporting, and liquidation of duties.

This bifurcated structure allows an importer to secure physical release of goods before finalizing duty calculations — a "float" period during which the importer holds the merchandise while preparing the entry summary.

Importer of record

The importer of record is the party responsible for making entry. Under 19 U.S.C. § 1484(a)(2)(B), the importer of record may be the owner or purchaser of the goods, or a licensed customs broker acting on behalf of the owner or purchaser. When a nominal consignee (a party holding goods for another) makes entry, regulations require the broker to serve as importer of record because only the broker has the statutory right to make entry in that scenario.

Live entry exception

An importer may elect — or CBP may require — the filing of a "live entry," in which CBP Form 7501 (the entry summary), with estimated duties attached, is filed at the time of entry, before release. In a live entry, Form 7501 serves as both the entry and the entry summary; no separate Form 3461 is required. CBP may mandate live entry if the importer has repeatedly failed to file timely entry summaries, has not promptly settled liquidated-damages claims for late filing or late payment, has submitted incomplete or erroneous entry summaries, or is habitually delinquent in paying CBP bills. Quota-class merchandise and certain other merchandise designated by CBP Headquarters must always be entered via live entry before release.

Bond requirement

Merchandise may not be released from CBP custody unless the importer has filed a single-transaction or continuous bond (CBP Form 301) with bond conditions specified in 19 C.F.R. § 113.62, executed by an approved corporate surety or secured by cash deposit or U.S. obligations. The bond guarantees that the importer will timely file the entry summary, deposit estimated duties, redeliver merchandise upon CBP demand if it was released subject to conditions, and satisfy other obligations.

Consequences of failure to enter

Merchandise for which timely entry is not made within the 15-day window is treated as unclaimed and subject to general-order procedures under 19 C.F.R. § 4.37 and Part 127, which may result in storage at the importer's risk and expense, and ultimately sale or destruction if entry is not perfected.

Source: 19 U.S.C. § 1484 Source: 19 C.F.R. Part 142 Source: 19 C.F.R. § 142.2 Source: 19 C.F.R. § 142.3 Source: 19 C.F.R. § 142.12 Source: 19 C.F.R. § 142.13 Source: CBP Entry Summary and Post Release Processes

Liquidation is the final determination by U.S. Customs and Border Protection (CBP) of the classification, value, and duties owed on an entry for consumption or drawback. Under 19 C.F.R. § 159.1, liquidation constitutes "the final computation or ascertainment of duties" on an entry, and it triggers the running of two critical statutory deadlines: CBP's power to voluntarily reliquidate the entry, and the importer's right to protest.

One-year liquidation deadline and deemed liquidation

Under 19 U.S.C. § 1504(a)(1) and 19 C.F.R. § 159.11(a), CBP must liquidate an entry within one year from the date of entry (or, for warehouse entries, the date of final withdrawal from warehouse). If CBP does not affirmatively liquidate the entry within one year, the entry is deemed liquidated by operation of law at the rate of duty, value, quantity, and amount of duties asserted by the importer of record. Deemed liquidation provides administrative finality and caps the importer's duty exposure at the amount originally declared on the entry summary (CBP Form 7501).

Extensions of the liquidation period

CBP may extend the one-year liquidation period under 19 C.F.R. § 159.12 if information needed for proper appraisement or classification is unavailable, or if the importer requests an extension in writing before the statutory period expires and demonstrates "good cause"—that is, that more time is needed to present information affecting the entry or that a similar question is under CBP review. Each extension may last up to one year, and the cumulative extension time may not exceed three years, meaning that an entry can remain open for up to four years from the date of entry. If the entry is still unliquidated at the four-year mark (and liquidation is not suspended by statute or court order), the entry is deemed liquidated by operation of law at the importer's declared rate.

Suspension of liquidation

Certain merchandise is subject to suspension of liquidation, which halts the running of the one-year (or four-year) deadline. Under 19 C.F.R. § 159.51, liquidation is suspended only when provided by law or regulation, or when directed by the Commissioner of CBP. The most common scenarios for suspension are antidumping (AD) or countervailing duty (CVD) proceedings, in which the Department of Commerce instructs CBP to suspend liquidation pending final determination of the applicable duties. Merchandise subject to tariff-rate quotas, certain preferential-origin documentation requirements, or admissibility determinations by other agencies (such as FDA or APHIS) may also be subject to suspension. The four-year deemed-liquidation backstop does not apply when suspension remains in effect by statute or court order.

Voluntary reliquidation by CBP

Under 19 U.S.C. § 1501, CBP may voluntarily reliquidate an entry within 90 days from the date of the original liquidation, notwithstanding the filing of a protest. After the 90-day window closes, CBP may reliquidate only pursuant to a timely protest filed under 19 U.S.C. § 1514, a request under 19 U.S.C. § 1520 (refunds and errors), or certain other narrowly defined circumstances.

Finality and the protest deadline

Under 19 U.S.C. § 1514(a), decisions of CBP with respect to the appraisement, classification, rate of duty, or liquidation of an entry are "final and conclusive upon all persons" unless a protest is filed. For entries made on or after December 18, 2004, a protest must be filed within 180 days of the date of liquidation or the date of the decision being protested (whichever is applicable). For entries made before December 18, 2004, the protest window was 90 days. The 180-day deadline is jurisdictional and strictly construed—if an importer misses the deadline, the liquidation becomes final and the importer loses all administrative and judicial remedies to challenge CBP's classification, valuation, or duty assessment.

Contents and filing of protests

A protest must be filed in writing (or transmitted electronically via the ACE Protest module) and must set forth distinctly and specifically each decision as to which protest is made, each category of merchandise affected, and the nature of and justification for the objection. Under 19 C.F.R. § 174.13, the protest must be filed at the CBP Center where the entry was made (or, for entries liquidated before January 19, 2017, at the port director). While CBP publishes a courtesy notice of liquidation via the Automated Commercial Environment (ACE) system, the legal effective date of liquidation—and the start of the 180-day protest clock—is the date posted on www.cbp.gov, not the date the courtesy notice is transmitted.

CBP review of protests

Under 19 U.S.C. § 1515(a) and 19 C.F.R. § 174.22, the CBP Center director must allow or deny a protest in whole or in part within two years from the date the protest was filed. If CBP does not act within two years, the protest is deemed denied, and the importer may file suit in the U.S. Court of International Trade. An importer may request accelerated disposition of a protest at any time concurrent with or following the filing of the protest (for entries made on or after December 18, 2004) by filing a written request with the Center director. If accelerated disposition is requested, CBP must allow or deny the protest within 30 days; if CBP does not act within 30 days, the protest is deemed denied, and the importer may immediately commence an action in the Court of International Trade.

Judicial review at the Court of International Trade

If CBP denies a protest (or if the protest is deemed denied), the importer has 180 days from the date of the denial to file a summons in the U.S. Court of International Trade under 28 U.S.C. § 1581(a). The Court reviews the protest de novo, meaning it makes its own independent determination of the correct classification, valuation, or duty rate, rather than simply deferring to CBP's decision. Failure to file a timely protest forecloses judicial review—the Court of International Trade has exclusive jurisdiction over protests, and subject-matter jurisdiction depends on the filing of a timely, valid protest.

De minimis threshold for liquidation differences

Under 19 C.F.R. § 159.6, if the net difference between the total duties, fees, taxes, and interest assessed in the liquidation (or reliquidation) of a formal entry and the total estimated duties deposited is less than $20, the difference is disregarded and the entry is endorsed "as entered." This de minimis rule does not apply to differences resulting from a court decision or to differences claimed by the importer in a protest or refund request.

Source: 19 U.S.C. § 1500 Source: 19 U.S.C. § 1501 Source: 19 U.S.C. § 1504 Source: 19 U.S.C. § 1514 Source: 19 U.S.C. § 1515 Source: 19 C.F.R. § 159.1 Source: 19 C.F.R. § 159.6 Source: 19 C.F.R. § 159.9 Source: 19 C.F.R. § 159.11 Source: 19 C.F.R. § 159.12 Source: 19 C.F.R. § 159.51 Source: 19 C.F.R. Part 174

Foreign-Trade Zones (FTZs) are secure areas under U.S. Customs and Border Protection supervision, located in or adjacent to CBP ports of entry, where foreign and domestic merchandise may be admitted without formal customs entry or payment of duties until the merchandise is transferred into U.S. customs territory for consumption. FTZs are established under the Foreign-Trade Zones Act of 1934, as amended (19 U.S.C. §§ 81a–81u), and regulated by the Foreign-Trade Zones Board (15 C.F.R. Part 400) and CBP (19 C.F.R. Part 146). The purpose of FTZs, as stated in the Act, is to "expedite and encourage foreign commerce."

Extra-territorial treatment for tariff purposes

To the extent an FTZ is "activated" under CBP procedures (19 C.F.R. § 146.6), and only for the purposes specified in 19 U.S.C. § 81c, the zone is treated for purposes of the tariff laws and customs entry procedures as being outside the customs territory of the United States. Foreign and domestic merchandise may be admitted into zones for operations including storage, exhibition, assembly, manufacture, and processing, without being subject to formal customs entry procedures and payment of duties, unless and until the foreign merchandise enters customs territory for domestic consumption. Quota restrictions do not normally apply to foreign goods held in zones. Merchandise moved into a zone for export (zone-restricted status) may be considered exported for purposes such as federal excise tax rebates and customs drawback under 19 U.S.C. § 1313.

Activation and zone operations

Before operations in a zone may commence, the zone grantee must submit a zone schedule to the FTZ Board Executive Secretary, and the grantee must obtain approval from CBP for activation of any portion of the approved zone pursuant to 19 C.F.R. Part 146. The Foreign Trade Zone Operator must post a Foreign Trade Zone Operator Bond (CBP Form 301) with bond conditions specified in 19 C.F.R. § 113.73. CBP officials with oversight responsibilities for the port of entry represent the FTZ Board with regard to zones adjacent to that port and are responsible for enforcement, including physical security and access requirements.

Admission procedures and status designation

Merchandise may be admitted into a zone only upon application on a uniquely and sequentially numbered CBP Form 214 ("Application for Foreign Trade Zone Admission and/or Status Designation") and the issuance of a permit by the port director. Exceptions to the CBP Form 214 requirement exist for merchandise temporarily deposited (19 C.F.R. § 146.33), transiting merchandise (§ 146.34), or domestic merchandise admitted without permit (§ 146.43).

At the time of admission, the zone user designates one of three zone statuses for foreign merchandise:

• Privileged foreign status — applies to foreign merchandise that has not been manipulated or manufactured so as to effect a change in tariff classification. Under 19 C.F.R. § 146.41, an application for this status must be filed on CBP Form 214 at the time of admission or any time thereafter before the merchandise has been manipulated or manufactured in a manner that changes its tariff classification. Once granted, privileged foreign status cannot be abandoned and remains applicable to the merchandise even if changed in form by manipulation or manufacture (except for recoverable waste), as long as the merchandise remains within the purview of the Act. When privileged foreign merchandise is transferred into customs territory for consumption, it is entered and duty is assessed on the article in its condition as admitted into the zone.

• Nonprivileged foreign status — applies to foreign merchandise admitted without a request for privileged foreign status, or merchandise that has undergone manipulation or manufacturing that changed its tariff classification. When nonprivileged foreign merchandise is transferred into customs territory for consumption, duty is assessed on the article in its condition at the time of transfer.

• Zone-restricted status — applies to merchandise admitted for purposes of exportation only. Foreign merchandise in zone-restricted status may not be transferred into customs territory for consumption; it may be entered for warehouse in the same or at a different port only for storage pending exportation, unless the FTZ Board has approved another disposition.

Inverted tariff benefit and the duty-choice rule

The principal duty-minimization advantage of FTZ production activity is the "inverted tariff" benefit. When a manufacturer uses foreign components or materials admitted to a zone in nonprivileged foreign status to produce a finished product, the manufacturer has a choice at the time of transfer to customs territory: pay duties either (1) at the rate applicable to the foreign components in their condition as admitted into the zone, or (2) at the rate applicable to the finished product. If the finished product's duty rate is lower than the duty rate that would apply to the foreign components, the manufacturer realizes an inverted tariff saving. This choice is exercised at the time of entry for consumption.

Transfer to customs territory for consumption

Entry for foreign merchandise that is to be transferred from a zone into customs territory for consumption is made by filing CBP Form 3461, CBP Form 7501, or other applicable CBP forms. The port director accepts receipt of any entry in proper form, and the merchandise described therein is considered to have been constructively transferred to customs territory at that time, even though the merchandise remains physically in the zone. If the entry is thereafter rejected or cancelled, the merchandise is considered at that time to be constructively transferred back into the zone in its previous zone status. Duties are assessed and liquidated under the same procedures that govern regular consumption entries.

Weekly entry filing

Under 19 C.F.R. § 146.67(c), an FTZ user that transfers merchandise from a zone for consumption on a regular basis may be authorized by the port director to file weekly entries covering all merchandise transferred during the prior week, provided the user meets reliability, bond-sufficiency, and record-keeping requirements established by CBP. Weekly entry reduces administrative burden for high-volume zone users and aligns duty payment with transfer activity.

Restrictions on use of zones

Under 15 C.F.R. § 400.14(c), zone procedures may not be used to circumvent antidumping duty (AD) or countervailing duty (CVD) actions under 19 C.F.R. Part 351. Items subject to AD/CVD orders, or items which would be otherwise subject to suspension of liquidation under AD/CVD proceedings, may be admitted to a zone only under conditions prescribed by the FTZ Board. Textiles and textile products admitted into a zone that were subject to quota, visa, or export license requirements in their condition at the time of admission may not be subsequently transferred into customs territory for consumption if, during the time the merchandise is in the zone, there has been a change (1) in the country of origin, (2) to exempt from quota/visa/license requirements (other than by statute, treaty, executive order, or Presidential proclamation), or (3) from one textile category to another (19 C.F.R. § 146.63(d)).

Source: 19 U.S.C. Chapter 1A (Foreign-Trade Zones Act) Source: 15 C.F.R. Part 400 (FTZ Board Regulations) Source: 19 C.F.R. Part 146 (CBP FTZ Regulations) Source: 19 C.F.R. § 146.41 (Privileged foreign status)

Duty drawback is the refund of certain duties, internal revenue taxes, and fees paid upon importation of merchandise that is subsequently exported or destroyed, or used in the manufacture of articles that are exported or destroyed. Drawback is codified in 19 U.S.C. § 1313 and implemented by regulations at 19 C.F.R. Part 190. It allows importers, manufacturers, and exporters to recover most of the customs duties and certain taxes paid at the time of importation, effectively eliminating the duty burden on goods that do not remain in U.S. commerce for consumption.

Three principal types of drawback

Under 19 U.S.C. § 1313 and 19 C.F.R. Part 190, drawback is available in three principal forms:

1. Manufacturing drawback (§ 1313(a), (b)) — When imported merchandise is used in the manufacture or production of articles in the United States, and those articles are exported or destroyed under CBP supervision within 5 years of the date of importation of the imported merchandise, the manufacturer may claim drawback of up to 99% of the duties, taxes, and fees paid on the imported merchandise. Under 19 U.S.C. § 1313(b), the manufacturer may also designate duty-paid domestic or imported merchandise of the same kind and quality as a substitute for the actual imported merchandise used, provided the substituted merchandise is used within the same 5-year period. The statute permits substitution regardless of whether the imported merchandise was actually incorporated into the exported article, so long as the manufacturer used merchandise classifiable under the same 8-digit HTS subheading number as the imported merchandise during the relevant period.

1. Unused merchandise drawback (§ 1313(j)) — When imported merchandise on which duties have been paid is exported or destroyed under CBP supervision without having been used in the United States, the exporter or destroyer (or, by assignment, another party) may claim drawback of 99% of the duties, taxes, and fees. Under 19 U.S.C. § 1313(j)(2), the claimant may substitute commercially interchangeable merchandise—merchandise classifiable under the same 8-digit HTS subheading and of the same kind and quality—for the imported merchandise, provided the substituted merchandise is exported or destroyed within 5 years of importation of the designated imported merchandise and has not been used in the United States prior to export or destruction.

1. Rejected merchandise drawback (§ 1313(c)) — When imported merchandise is found not to conform to sample or specification, or is shipped without the consent of the consignee, and is returned to CBP custody for export or destruction within 5 years of importation, the importer may claim a refund of 99% of the duties paid. Rejected merchandise need not be exported in its original condition; it may be repaired or reconditioned before export or destruction.

99% cap and limited exceptions

The Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) established a statutory cap limiting drawback to 99% of the eligible duties, taxes, and fees paid on the imported merchandise, with the importer or claimant retaining 1% of the duty liability. The 99% cap applies to manufacturing drawback under § 1313(a) and (b), unused merchandise drawback under § 1313(j), and rejected merchandise drawback under § 1313(c). A limited number of drawback claims remain eligible for 100% recovery, including claims under § 1313(d) (substitution of finished petroleum derivatives) and certain other statutory exceptions. Under 19 C.F.R. § 190.51, claims exceeding the applicable percentage cap will not be paid until corrected by the claimant.

Filing deadline — 5 years from importation

Drawback claims must be filed within 5 years from the date of importation of the designated imported merchandise, under 19 C.F.R. § 190.101(e)(1). This uniform deadline replaced the prior 3-year window and applies to manufacturing, unused merchandise, and rejected merchandise drawback claims. One exception remains: claims filed under 19 U.S.C. § 1313(d) (finished petroleum derivatives) must be filed within 3 years from the date of exportation of the exported article.

Claim filing and electronic submission

Since February 24, 2019, all drawback claims must be filed electronically through the Automated Commercial Environment (ACE) using the Automated Broker Interface (ABI). Paper claims are no longer accepted. A complete claim under 19 C.F.R. § 190.51 must include documentation of the importation (entry number, date, port, HTS classification, and duties paid), documentation of the exportation or destruction (proof of export via Electronic Export Information (EEI) or CBP-supervised destruction certificate), and certifications that all merchandise was not used in the United States (for unused merchandise claims) or that the manufacturing and export or destruction occurred within the statutory period (for manufacturing claims).

Claimants may file through a licensed customs broker, purchase ABI-certified software and establish a direct connection to CBP, or engage a service bureau. All claims must satisfy the requirements of 19 C.F.R. Part 190 and the ACE Drawback CATAIR technical specifications published by CBP.

Accelerated payment

A claimant may apply for accelerated payment of drawback under 19 C.F.R. § 190.92, which allows CBP to pay estimated drawback before liquidation of the drawback claim. Accelerated payment is conditioned on CBP approval of the claimant's application and on the claimant maintaining a sufficient continuous customs bond. Payment under accelerated payment does not constitute liquidation of the claim; CBP retains authority to reliquidate if subsequent review discloses an overpayment or an error. Accelerated payment approval is specific to the drawback office and may be revoked if the claimant's compliance record deteriorates or if unresolved customs charges remain outstanding.

Restrictions on drawback to USMCA countries

When merchandise is exported to Canada or Mexico under the United States–Mexico–Canada Agreement (USMCA), drawback is limited by 19 U.S.C. § 4534 and 19 C.F.R. § 182.44. Goods that qualify as originating under USMCA Chapter 4 rules of origin and that are imported duty-free under USMCA preferential tariff treatment are generally ineligible for drawback when subsequently exported to a USMCA country, unless the goods fall within a statutory exception. Goods exported to Canada or Mexico in the same condition as imported (subject only to minor operations such as testing, cleaning, repacking, or inspection) remain eligible for drawback, as do goods not entitled to preferential USMCA treatment on export. The USMCA drawback restrictions replaced the prior NAFTA limitations on January 1, 2020 (the date USMCA entered into force was July 1, 2020).

Exclusion of certain duties from drawback

Certain duties imposed under trade-remedy or national-security statutes are excluded from drawback eligibility. Section 232 duties (imposed under 19 U.S.C. § 1862 for national-security reasons) are not eligible for drawback, per Presidential Proclamations 9739 and 9740. Antidumping and countervailing duties imposed under 19 U.S.C. § 1673 and § 1671 are also excluded from drawback. Section 301 duties (imposed under 19 U.S.C. § 2411 in response to unfair trade practices) are eligible for drawback, and claimants must report both the Chapter 99 HTS number (the additional-duty provision) and the underlying Chapter 1–97 HTS classification on the drawback claim, as instructed in CBP CSMS Message 19-000050.

Record retention — 3 years from liquidation

Under 19 C.F.R. § 190.51(a)(2)(xvi), all records supporting a drawback claim must be retained by the claimant for 3 years from the date of liquidation of the drawback claim. This period replaced the prior rule tying retention to the date of payment and aligns drawback recordkeeping with the general customs recordkeeping requirement under 19 U.S.C. § 1508. Records include import entry summaries, commercial invoices, proof of export or destruction, certificates of delivery or manufacture, and evidence that merchandise was not used in the United States (for unused merchandise claims).

Source: 19 U.S.C. § 1313 Source: 19 C.F.R. Part 190 (Modernized Drawback) Source: 19 C.F.R. § 190.51 (Completion of drawback claims) Source: 19 C.F.R. § 190.92 (Accelerated payment) Source: 19 U.S.C. § 4534 (USMCA drawback) Source: CBP Drawback Overview

A customs bond is a prerequisite to release of imported merchandise from CBP custody and to certain other customs transactions. Under 19 U.S.C. § 1623 and 19 C.F.R. Part 113, CBP requires an importer of record, or another party engaged in customs activities, to post a bond guaranteeing that duties, taxes, and fees will be paid, that merchandise will be redelivered on demand if released conditionally, and that the principal will comply with all applicable customs laws and regulations. Bonds are executed on CBP Form 301 and must be supported by either an approved corporate surety listed in Treasury Department Circular 570, cash deposit, or U.S. government obligations in lieu of surety.

Single-transaction vs. continuous bonds

Under 19 C.F.R. § 113.62, a bond for basic importation and entry may be either a single-transaction bond or a continuous bond. A single-transaction bond secures one customs transaction only—typically one consumption entry or one withdrawal from warehouse. A continuous bond, by contrast, covers all of the principal's transactions during the bond term, which runs until terminated by the principal or surety, or until CBP cancels the bond for cause. A continuous bond is required if the importer files entries at more than one port or if the importer makes frequent entries; for occasional one-off importations, CBP may accept a single-transaction bond.

Minimum continuous bond amount — $50,000

Under CBP's bond-amount guidelines (published February 2024), the minimum limit of liability for a continuous bond covering basic importation and entry (Activity Code 1) is $50,000, regardless of the value or dutiable amount of the merchandise. For importers with significant annual duty liability, CBP calculates the required continuous bond amount as 10% of the total duties, taxes, and fees paid by the importer during the preceding calendar year, provided that amount exceeds $50,000. If no imports were made during the preceding year, the bond amount is based on the duties, taxes, and fees the applicant estimates will accrue during the current calendar year, subject to CBP approval of the estimate. The application for a continuous bond must be submitted to the Director, Revenue Division, and must include the general character of the merchandise to be entered and the total amount of duties, taxes, and fees from the preceding calendar year, under 19 C.F.R. § 113.11(b).

Single-transaction bond amounts

For a single-transaction bond, CBP typically requires a bond amount equal to the value of the merchandise plus applicable duties, taxes, and fees, unless CBP determines that a greater or lesser amount is necessary to protect the revenue. For entries with no duty liability (e.g., articles entered under a duty-free tariff provision), the bond must cover at least one times the merchandise processing fee or $100, whichever is greater, if the merchandise processing fee is applicable. The minimum amount of any customs bond is $100 under 19 C.F.R. § 113.13(a), except where statute or regulation expressly authorizes a lesser amount.

Approved corporate sureties and cash in lieu of surety

A corporate surety on a customs bond must be named in Treasury Department Circular 570, which lists corporations authorized to act as sureties on federal bonds and the maximum amount (the "underwriting limit") for which each may be accepted. Under 19 C.F.R. § 113.31, CBP will not accept a corporation as surety unless it is named in the current Circular 570 as amended by Federal Register notice, and a bond may not exceed the surety's underwriting limit unless the excess is protected by reinsurance or other collateral as prescribed in 31 C.F.R. § 223.11. Alternatively, under 19 U.S.C. § 1623(e) and 19 C.F.R. § 113.40, the principal may deposit cash or U.S. government obligations in an amount equal to the bond amount in lieu of posting a surety bond. A CBP Form 301 designating the appropriate activity must still be filed when cash or U.S. obligations are deposited.

Bond conditions — basic importation and entry

Under 19 C.F.R. § 113.62, a bond for basic importation and entry must contain conditions obligating the principal to:

• Pay all duties, taxes, and fees on merchandise entered or withdrawn, or other amounts owed to CBP;
• Timely file the entry summary (CBP Form 7501) within 10 working days after entry, or such other period as CBP allows;
• Redeliver merchandise on demand by CBP if the merchandise was released conditionally before all required evidence is produced, before its quantity and value are determined, or before its right of admission is determined (redelivery demand must be made within 30 days of release or 30 days after the end of the conditional-release period, whichever is later);
• Comply with all laws and regulations governing admission of merchandise, including marking with country of origin;
• Exonerate the United States and its officers from any risk, loss, or expense arising out of the importation or entry; and
• Pay the compensation and expenses of any CBP officer required by law or regulation.

If the principal defaults on any bond condition, the obligors (principal and surety, jointly and severally) are liable for liquidated damages in amounts specified by regulation or for the amount of unpaid duties, taxes, and fees, whichever applies.

Periodic bond-sufficiency review and additional security

Under 19 C.F.R. § 113.13(c), CBP periodically reviews each bond on file to determine whether the bond remains adequate to protect the revenue and ensure compliance. If CBP determines that a bond is insufficient, CBP will notify the principal and surety in writing, and the principal has 15 days from the date of notification to remedy the deficiency by increasing the bond amount or posting additional security. Notwithstanding the foregoing, if CBP determines that acceptance of a transaction under a continuous bond would place the revenue in jeopardy or hamper enforcement, CBP may immediately require additional security in the form of a cash deposit or single-transaction bond for any or all of the principal's transactions.

Termination of continuous bonds

A continuous bond remains in effect until terminated. Under 19 C.F.R. § 113.25, termination may be effected by the principal or surety upon written notice to CBP, but termination does not relieve the obligors of liability for any transaction occurring before the effective date of termination. If a bond is terminated, no new customs transactions may be charged against the bond, and the principal must file a new bond in an appropriate amount on CBP Form 301 before further customs activity may be transacted.

Source: 19 U.S.C. § 1623 Source: 19 C.F.R. Part 113 (CBP Bonds) Source: 19 C.F.R. § 113.11 (Bond application) Source: 19 C.F.R. § 113.13 (Amount of bond) Source: 19 C.F.R. § 113.62 (Basic importation and entry bond conditions) Source: CBP, A Guide for the Public: How CBP Sets Bond Amounts (February 2024)

Temporary Importation Under Bond (TIB) is a customs procedure that permits certain merchandise to be imported into the United States temporarily, without payment of duty or merchandise processing fees, under a bond securing the importer's obligation to export or destroy the merchandise within a specified period—typically one year from the date of importation, extendable to a maximum of three years. TIB is codified in HTSUS Chapter 98, Subchapter XIII (headings 9813.00.05–9813.00.75) and governed by 19 C.F.R. §§ 10.31–10.40. The procedure is designed for goods that will not remain in U.S. commerce for consumption and are not imported for sale or sale on approval.

Statutory exclusions — not for sale or sale on approval

Under U.S. Note 1(a) to HTSUS Subchapter XIII, Chapter 98, merchandise entered under TIB may not be imported for sale or for sale on approval. This bright-line rule disqualifies goods intended for commercial distribution or trial sales, regardless of whether the importer ultimately exports them. The prohibition applies to all fourteen TIB subheadings (9813.00.05 through 9813.00.75), and CBP officers may deny TIB entry if documentation or commercial circumstances suggest a sales purpose.

Common TIB categories and HTSUS headings

The TIB framework provides fourteen distinct subheadings, each tailored to a specific use case. The most frequently invoked categories include:

• 9813.00.05 — Articles to be repaired, altered, or processed, including processes that result in articles manufactured or produced in the United States. This broad heading covers everything from machinery sent for calibration to raw materials imported for processing into finished goods that will be exported. CBP has ruled that "processing" includes both minor procedures (slitting steel strip) and extensive manufacturing (welding imported titanium into tubing), provided the article is exported after the operation.

• 9813.00.20 — Samples solely for use in taking orders for merchandise. The samples must be used exclusively for soliciting orders; any sale or distribution of the sample itself violates the bond.

• 9813.00.30 — Articles imported for exhibition or use at a public exposition, athletic or racing contest, or similar public event, for which no purse is awarded. This heading is frequently used for trade-show displays and demonstration equipment.

• 9813.00.50 — Professional equipment, tools of trade, and repair components for professional equipment or tools of trade, necessary for carrying out the business activity, trade, or profession of a business visitor. Examples include broadcast cameras imported by a foreign film crew, medical diagnostic equipment for a visiting specialist, or construction tools for a short-term project.

• 9813.00.75 — Motion-picture advertising films. Under U.S. Note 1(d), these films must be exported within six months from the date of importation, and the six-month period may not be extended.

Entry procedures and documentation

Entry for TIB is made on CBP Form 3461 (Entry/Immediate Delivery) or CBP Form 7533 (In-Bond Application), supported by the documentation required by 19 C.F.R. § 142.3 (commercial invoice, packing list, bill of lading). An entry summary (CBP Form 7501 or electronic equivalent) must be filed within 10 days after entry, in accordance with 19 C.F.R. § 142.12. If CBP Form 7501 is filed at the time of entry, it serves as both entry and entry summary, and no separate Form 3461 is required.

Each TIB entry summary must include, in addition to the data shown on a regular consumption entry summary: (i) the HTSUS subheading number under which entry is claimed (e.g., 9813.00.05); (ii) a statement of the use to be made of the articles in sufficient detail to enable the CBP Center director to determine whether they qualify for the claimed subheading; and (iii) a declaration that the articles are not to be put to any other use and are not imported for sale or sale on approval.

Exceptions to formal entry

Under 19 C.F.R. § 10.31(a)(1), when 19 C.F.R. § 10.36 or § 10.36a applies (vehicles, pleasure boats, or aircraft imported by nonresidents), or when the aggregate value of the articles does not exceed $250, the importer may use the form prescribed for informal entry instead of CBP Form 3461 or 7533. In addition, under § 10.31(b), a port director may waive formal entry and security for a vehicle or craft brought in by a nonresident to participate in a race or contest for which no money purse is awarded, if the director is satisfied as to the importer's identity and good faith—but only if the article will remain in the United States for 90 days or less. If it becomes apparent at the time of arrival that the article will remain beyond 90 days, formal entry and bond are required.

Bond requirement — double the estimated duties

Under 19 C.F.R. § 10.31(f), a TIB entry must be supported by a bond on CBP Form 301, containing the bond conditions set forth in 19 C.F.R. § 113.62, in an amount equal to double the duties and fees that would accrue if the articles were entered for consumption (or such larger amount as the Center director states in writing is necessary to protect the revenue). Cash deposits in the amount of the bond may be accepted in lieu of sureties, or, if appropriate, an ATA carnet under 19 C.F.R. Part 114 may be filed in lieu of a bond on CBP Form 301.

When articles are entered under subheading 9813.00.05, 9813.00.20, or 9813.00.50 without formal entry (as permitted under § 10.36 or § 10.36a), or when the bond amount is less than $25, the bond shall be without surety or cash deposit, and the bond shall be modified to so indicate. In addition, nationals of certain countries listed in the USMCA, USMCA implementing regulations, and other free-trade agreements (including nationals of Canada, Mexico, Singapore, Chile, Morocco, Australia, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, Costa Rica, Bahrain, Oman, Peru, the Republic of Korea, and Colombia) are exempt from posting a bond or cash deposit for professional equipment, press/broadcasting equipment, cinematographic equipment, articles for sports purposes, and articles for display or demonstration.

Period of stay and extensions

Under U.S. Note 1(a), merchandise entered under TIB may remain in the United States for one year from the date of importation. The importer may apply for an extension for one or more additional periods, which when added to the initial period may not exceed three years from the date of importation. Extensions are granted under 19 C.F.R. § 10.37 by the Center director upon written application filed before expiration of the initial or extended period. One exception: motion-picture advertising films (9813.00.75) must be exported within six months, and no extension is permitted.

Exportation or destruction — bond cancellation

To cancel the TIB bond and avoid liquidated damages, the importer must export or destroy the merchandise under CBP supervision before the expiration of the authorized period. Under 19 C.F.R. § 10.38, proof of exportation is established by filing appropriate export documentation (Electronic Export Information via the Automated Export System, or a certificate of lading for vessel or air cargo) showing the articles covered by the TIB entry were exported. If the importer elects to destroy the merchandise in lieu of exportation, destruction must take place under CBP supervision, and a destruction certificate must be filed with the Center where the entry was made.

Liquidated damages for failure to export or destroy

If the importer fails to export or destroy the articles within the authorized period, CBP will issue a notice of redelivery demanding return of the merchandise to CBP custody. Under 19 C.F.R. § 172.1, if the importer does not comply with the redelivery demand, CBP will assess liquidated damages under the bond. The liquidated damages amount is double the estimated duties on the merchandise not returned, except that for samples solely for use in taking orders, motion-picture advertising films, professional equipment, tools of trade, and repair components for professional equipment or tools of trade, the liquidated damages are 110% of the estimated duties. The importer may file a petition for relief from liquidated damages under 19 C.F.R. Part 172 if there is a valid reason for the failure to export or destroy (for example, destruction by fire, theft, or government seizure).

No liquidation of duties — consumption entries required for domestic use

Under 19 C.F.R. § 10.31(h), TIB entries are not liquidated, because the transaction does not involve liquidated duties. If the importer decides to retain the merchandise in the United States for consumption, the importer must file a consumption entry (CBP Form 7501) and pay duties, taxes, and fees at the rate applicable on the date of withdrawal for consumption. This obligation arises before the expiration of the TIB period if the importer's intent changes. Certain goods originally entered under TIB and subsequently exported to Canada or Mexico may trigger a duty obligation or liquidated damages under USMCA rules (19 C.F.R. § 182.53).

Restrictions on quota and trade-remedy merchandise

Merchandise subject to quota restrictions may be entered under TIB, but the quota is charged at the time of TIB entry (not at the time of subsequent withdrawal for consumption). For example, fine-denier polyester staple fiber entered under 9813.00.05 (TIB) is subject to a quantitative absolute quota under Presidential Proclamation 10857, and the quota is charged when the TIB entry summary is filed. Merchandise subject to antidumping or countervailing duties may also be entered under TIB; the estimated AD/CVD deposit would be included in the bond calculation (double the estimated duties), but no deposit is collected unless the merchandise is later withdrawn for consumption.

Source: 19 C.F.R. Part 10, Subpart A (Temporary Importations Under Bond) Source: 19 C.F.R. § 10.31 (Entry; bond) Source: 19 C.F.R. § 10.37 (Extension of time for exportation) Source: 19 C.F.R. § 10.38 (Proof of exportation) Source: HTSUS Chapter 98, Subchapter XIII (via CBP)

The merchandise processing fee (MPF) is a user fee assessed by U.S. Customs and Border Protection on imported merchandise to fund the cost of processing entries and releases. MPF is codified in 19 U.S.C. § 58c and implemented by regulations at 19 C.F.R. § 24.23. Unlike customs duties, which vary by tariff classification, MPF is a uniform ad valorem fee imposed on nearly all formal entries, subject to statutory minimum and maximum caps and certain exemptions for goods qualifying under free-trade agreements or special trade-preference programs.

Ad valorem rate — 0.3464%

Under 19 C.F.R. § 24.23(b)(1)(i)(A), merchandise that is formally entered or released is subject to an ad valorem fee of 0.3464 percent of the value of the merchandise. The fee is based on the customs value of the merchandise as determined under 19 U.S.C. § 1401a (transaction value). The 0.3464% rate has remained stable since the American Jobs Creation Act of 2004; it is not adjusted annually. The fee is due and payable to CBP by the importer of record at the time of presentation of the entry summary (CBP Form 7501).

Minimum and maximum caps — annually adjusted for inflation

The MPF ad valorem fee is subject to statutory minimum and maximum caps that are adjusted annually for inflation under the Fixing America's Surface Transportation Act (FAST Act), which amended 19 U.S.C. § 58c(b)(9)(A)(i) to require annual CPI-U (Consumer Price Index—All Urban Consumers) adjustments using Fiscal Year 2014 as the base year. Under 19 C.F.R. § 24.22(k), CBP must determine annually whether the fees and corresponding limitations must be adjusted to reflect inflation and publish the adjusted amounts in the Federal Register.

The methodology for adjusting the fees under 19 C.F.R. § 24.22(k) compares the average of the CPI-U for the current year (June of the prior calendar year through May of the current calendar year) with the average of the CPI-U for the comparison year (the preceding 12-month period). If the calculated ad valorem fee (0.3464% of value) is less than the adjusted minimum, CBP collects the minimum; if the calculated fee exceeds the adjusted maximum, the fee is capped at the maximum.

CBP publishes the adjusted minimum and maximum caps each fiscal year in a Federal Register notice, typically in July, with the new rates effective October 1. The specific minimum and maximum amounts for the current fiscal year and prior fiscal years are set forth in the Federal Register notices adjusting fees under 19 U.S.C. § 58c and 19 C.F.R. § 24.22(k).

Manual-entry surcharge

Under 19 U.S.C. § 58c(b)(9)(A)(ii) and 19 C.F.R. § 24.23(b)(1)(i)(B), a surcharge is added to the ad valorem MPF if the entry or release is filed manually (not electronically via ACE). The base surcharge is $3, subject to annual CPI-U adjustment under 19 C.F.R. § 24.22(l). The surcharge applies whether the entry is filed by the importer or broker; it does not apply if the entry is filed electronically.

Exemptions under free-trade agreements and preference programs

Under 19 C.F.R. § 24.23(c), MPF does not apply to certain merchandise that qualifies for duty-free or preferential treatment under U.S. free-trade agreements or special trade-legislation programs, provided the merchandise originates in the partner country or beneficiary country and is entered with a valid claim for preferential treatment. The regulation enumerates the following categories of exemptions:

• Products of countries listed in general note 3 to the HTSUS — Under 19 C.F.R. § 24.23(c)(1), MPF does not apply to any article that is a product of any country listed in subdivision (c)(ii)(B) or (c)(v) of general note 3 to the Harmonized Tariff Schedule of the United States. General note 3(c)(ii)(B) lists Canada, and general note 3(c)(v) lists Mexico under the United States–Mexico–Canada Agreement (USMCA). This exemption applies to goods that originate under the applicable FTA rules of origin and are marked or eligible to be marked as goods of the partner country.

• Articles provided for under Chapter 98 of the HTSUS — Under 19 C.F.R. § 24.23(c)(2), MPF does not apply to any article provided for under any item in Chapter 98 of the HTSUS, except subheading 9802.00.60 or 9802.00.80. Articles classified under subheadings 9802.00.60 and 9802.00.80 remain subject to MPF.

• Other free-trade agreements and preference programs — The regulation at 19 C.F.R. § 24.23(c) also provides MPF exemptions for goods entered under the Caribbean Basin Economic Recovery Act (CBERA), the Generalized System of Preferences (GSP), the African Growth and Opportunity Act (AGOA), the Compact of Free Association (Freely Associated States), and goods from U.S. insular possessions, among others. The importer must meet the applicable rule of origin and all other program requirements and must claim the exemption at the time of entry.

CBP has published guidance on MPF exemptions under preferential trade programs, including the treatment of Tariff Preference Level (TPL) goods, over-quota tariff-rate-quota (TRQ) goods, and originating unconditionally free goods. Specific guidance is available on the CBP website and in CBP CSMS messages and Federal Register notices implementing each FTA or preference program.

Post-importation refunds of MPF under USMCA

When USMCA entered into force on July 1, 2020, post-importation refunds of MPF on USMCA claims filed under 19 U.S.C. § 1520(d) were initially prohibited. Title VI, § 601(e) of the Consolidated Appropriations Act of 2021 retroactively authorized refunds of MPF on approved USMCA post-importation claims, effective July 1, 2020. Guidance on how to pursue an MPF refund via a § 1520(d) protest or via reconciliation is available in CBP's ACE Entry Summary Business Rules and CBP Publication No. 1197-082 (Reconciliation External Guidance).

Informal entries — flat fees

MPF does not apply to most informal entries (entries of merchandise valued at $2,500 or less). Instead, under 19 C.F.R. § 24.23(b)(2), a flat processing fee applies depending on whether the entry is automated, manual, or prepared by CBP personnel. The base amounts are $2, $6, and $9, respectively, as adjusted annually for inflation under 19 C.F.R. § 24.22(k). Express consignment carrier facilities and small airports may be subject to different fees under 19 C.F.R. § 24.23(b)(3) and (b)(4).

Treatment as a customs duty for enforcement and jurisdiction

Under 19 C.F.R. § 24.23(a)(1), MPF is treated as if it were a customs duty for purposes of all administrative and enforcement provisions under the customs laws and regulations, other than those laws and regulations relating to drawback. For purposes of this paragraph, any penalty assessable in relation to an amount of customs duty, whether or not any such duty is in fact due and payable, is assessed in the same manner with respect to any fee required to be paid under 19 C.F.R. § 24.23. Under 19 C.F.R. § 24.23(a)(2), for purposes of determining the jurisdiction of any court or agency of the United States, MPF is treated as if it were a customs duty. Protests of MPF assessments are filed and reviewed under 19 U.S.C. § 1514 (the same procedure as duty protests), and judicial review is available in the U.S. Court of International Trade.

Source: 19 U.S.C. § 58c (Fees for customs services) Source: 19 C.F.R. § 24.23 (Fees for processing merchandise) Source: 19 C.F.R. § 24.22 (Fees for certain services) Source: CBP Merchandise Processing Fee guidance