Skip to content
Cargocentric
Cargocentric
  • WHAT WE DO
  • CUSTOMERS
  • RESOURCES
  • ABOUT
+1 650-763-2755
Login

Sign Up

  • WHAT WE DO
  • CUSTOMERS
  • RESOURCES
  • ABOUT

Customs Exams: What, why and when?

One of the most impactful and unpredictable variables in logistics costs are Customs examination fees.  Customs and other government agencies do not publicly disclose exactly how they determine cargo is flagged for exam, but we’ve been able to gather the following:

  • An importer’s track record matters.
    • New importers are more susceptible to exams
    • If an importer has an extended history of compliance, exam occurrences are less frequent
    • A single incident of non-compliance can trigger repeated exams
    • Joining C-TPAT helps build a track record
  • Certain commodities are more susceptible to exams:
    • Dangerous and hazardous goods
    • Product involving plant and animal health
    • Product that might involve copyright infringement.  Many Customs exams result in requesting copies of proper licensing agreements.
  • Descriptions manifested on the cargo can trigger exams.  Importers are encouraged to give detailed descriptions if the name of the product can be misleading.
  • For ocean imports into the United States, 10+2 ISF Filing is required 24 hours prior to a vessel departing the origin port.  If this is not filed on time, containers are likely to be flagged for an X-ray exam.  This also applies to LCL (shared) containers.  IE. If you share a container with other importers, all it takes is one non compliant importer to trigger an X-ray exam.
  • Exam costs vary depending on:
    • Type of exam – Physical vs. X-ray
    • Mode of Transportation – Air occasionally does not result in fees
    • Location – Some ports are more expensive than others

The diagram below shows the complexity of US Customs.  Each government organization and/or department examines cargo for different reasons.  Thus, shipments can be flagged by multiple government organizations and/or departments for exam.

For importers who routinely import, exams are inevitable.  Bottom line is to stay compliant.  Cargocentric’s 30+ years as a licensed Customs brokerage can help.  Sign up to get started.

Category: Shipping 101, CustomsDecember 14, 2016

Author: Jason Ting

https://www.cargocentric.com

Post navigation

PreviousPrevious post:Importing LasersNextNext post:What is a CFS Warehouse?

Related posts

USTR Extends Reinstated Exclusions
December 20, 2022
USTR Reinstates 352 Previously Expired Section 301 Exclusions!
March 23, 2022
New Requirements for FDA Food Facility Registration Renewal (2021-2022)
October 30, 2020
90 Day Postponement of Payment of Certain Duties, Taxes, and Fees
April 21, 2020
COVID-19 – Shelter in Place
March 17, 2020
More China Section 301 List#3 Exclusions Published (February 20, 2020)
February 21, 2020

Leave a Reply Cancel reply

You must be logged in to post a comment.

ABOUT
  • Why Cargocentric?
  • C-TPAT
  • Contact
  • Partner With Us
WHAT WE DO
  • Air Freight
  • Sea Freight
  • Customs Clearance
  • Warehouse and Fulfillment
  • Technology
RESOURCES
  • Shipping 101
  • Customs
  • News
  • Search
  • Annual Bond Application
  • Terms and Conditions
READ OUR LATEST
  • What is a Customs bond?
  • Keep your shipment data private!
  • How to import from China and other countries
  • Read More
Cargocentric
© 2021 CARGOCENTRIC INC. ALL RIGHT RESERVED. TERMS AND CONDITIONS