What Is Customs Clearance?

Customs Clearance Defined

Customs clearance is the formal process by which imported goods are reviewed, approved, and released by U.S. Customs and Border Protection (CBP). Every commercial shipment entering the United States must go through customs clearance before the goods can be delivered to the importer. The process ensures that the shipment complies with all applicable U.S. laws, that the correct duties and taxes are paid, and that any products regulated by partner government agencies (FDA, USDA, EPA, CPSC, etc.) meet those agencies' requirements.

In practical terms, customs clearance is the bridge between your cargo arriving at a U.S. port and your cargo being released for delivery. If customs clearance goes smoothly, your goods move from the port to your warehouse within hours. If it does not, your goods sit at the port accumulating storage charges, demurrage fees, and delivery delays that ripple through your entire supply chain.

The 5-Step Customs Clearance Process

Customs clearance follows a structured sequence. While the specific details vary depending on the type of goods, the port of entry, and the applicable regulations, every import goes through these five fundamental steps.

Step 1: Pre-Arrival Filing

Before the goods arrive at the U.S. port, certain filings must be submitted to CBP. For ocean shipments, the Importer Security Filing (ISF) — commonly called the "10+2" — must be filed at least 24 hours before the cargo is loaded onto the vessel at the foreign port. This advance filing gives CBP and other agencies the information they need to assess the shipment's risk before it reaches U.S. waters.

Failure to file the ISF on time can result in penalties of $5,000 per violation. In some cases, CBP may also issue a "do not load" order, preventing the cargo from being put on the vessel at all. Your customs broker coordinates the ISF filing by gathering data from you and your overseas suppliers and submitting it through CBP's Automated Commercial Environment (ACE).

For goods regulated by partner government agencies, additional pre-arrival filings may be required. FDA-regulated food imports, for example, require a prior notice filing before the goods can arrive at the port.

Step 2: Document Submission

As the shipment approaches or arrives at the port, the importer (or their customs broker) assembles and submits the documents required for customs clearance. The core documents include:

• Commercial invoice — issued by the seller, showing the description of goods, quantity, unit price, total value, and terms of sale (Incoterms). This is the primary document CBP uses to determine the customs value.
• Packing list — a detailed list of the contents of each package, carton, or container in the shipment, including weights and dimensions.
• Bill of lading (ocean) or air waybill (air) — the transportation document issued by the carrier, serving as a receipt for the cargo and a contract of carriage. The bill of lading also identifies the consignee — the party to whom the goods are being delivered.
• Arrival notice — issued by the carrier or freight forwarder, notifying the consignee that the shipment has arrived or is about to arrive at the port.

Depending on the product, additional documents may be required: certificates of origin for trade agreement claims, PGA-specific forms (FDA prior notice, USDA permits, EPA certifications), lab test reports, product specifications, and other supporting documentation. Your customs broker identifies which documents are needed and ensures they are complete and accurate before filing.

Step 3: Entry Filing

With all documents assembled, the customs broker files the customs entry with CBP through the Automated Commercial Environment (ACE). The entry includes the HTS classification of every product in the shipment, the customs value, the country of origin, the applicable duty rate, and all required PGA data elements.

Entry filing is where the expertise of a customs broker is most critical. The broker must assign the correct HTS code (from over 17,000 options), determine the proper customs value (which involves understanding transaction value, assists, royalties, and other valuation adjustments), and identify all applicable special tariffs (Section 301, Section 232, AD/CVD). Any error in these fields can trigger a CBP hold, penalty, or rate advance.

The entry must be filed within 15 calendar days of the shipment's arrival at the port. Most brokers file on the day of arrival or even before arrival (preliminary entry) to speed up the clearance process. Greenwich Mercantile guarantees filing within 30 minutes of receiving complete documentation from the importer.

Step 4: CBP Review

After the entry is filed, CBP reviews it through a combination of automated risk assessment and, in some cases, manual review. CBP's Automated Targeting System (ATS) evaluates every entry against risk criteria, trade compliance history, and intelligence data to determine whether the shipment requires further scrutiny.

Most entries are processed and released without manual intervention — CBP's system validates the data, confirms the duty payment, and issues a release. However, some shipments are selected for additional review or examination:

• Document review — CBP may request additional documentation to verify the classification, value, or origin of the goods.
• Non-intrusive examination — the container is scanned using x-ray or VACIS (Vehicle and Cargo Inspection System) technology without opening it.
• Intensive examination — the container is opened and the goods are physically inspected. This may include sampling, measurement, and verification against the declared description.

Examinations add time and cost to the clearance process. The importer is typically responsible for exam fees (drayage to and from the exam site, unloading and reloading labor, and exam site charges). An experienced customs broker can help minimize the duration of examinations by responding promptly to CBP requests and providing supporting documentation quickly.

Step 5: Release

Once CBP is satisfied that the entry is compliant — that the classification is correct, the duties have been paid (or secured by bond), and all PGA requirements are met — it issues a release for the shipment. The release message is transmitted electronically to the carrier, port, and customs broker through ACE.

Upon release, the goods can be picked up from the port and delivered to the importer's warehouse or distribution center. The importer has 10 working days after release to file a summary entry and pay any remaining duties owed. This two-stage process (entry for release, then summary entry for payment) is the standard procedure for most formal entries.

What Documents Are Required for Customs Clearance?

The documents required for customs clearance depend on the type of goods, the country of origin, and which government agencies have jurisdiction. However, the following documents are required for virtually every commercial import.

• Commercial invoice — the seller's detailed statement of the goods sold, including description, quantity, unit price, total price, terms of sale, and the parties involved. CBP uses this as the primary source for customs valuation.
• Packing list — a detailed inventory of the shipment's contents, organized by package, carton, or container, including weights and dimensions.
• Bill of lading or air waybill — the carrier's transportation document, serving as receipt of goods and contract of carriage.
• Arrival notice — notification from the carrier that the shipment has arrived at the port.
• Customs bond — a financial guarantee ensuring CBP will be paid all duties and fees owed (required for all formal entries over $2,500).

Additional documents that may be required depending on the shipment include certificates of origin (for trade agreement claims), FDA prior notice confirmations, USDA phytosanitary certificates, EPA TSCA certifications, CPSC compliance certificates, lab test reports, manufacturer declarations, and country-specific documentation.

Who Is Involved in Customs Clearance?

Several parties play distinct roles in the customs clearance process.

Importer of Record

The importer of record is the entity legally responsible for the imported goods. They bear the financial and legal obligation for paying duties, ensuring compliance, and maintaining records. The importer of record is typically the U.S. buyer of the goods. To learn more about the role, see our guide on what a customs broker is and how they work with importers.

Customs Broker

The customs broker is the licensed professional who files the customs entry, classifies the goods, calculates duties, handles PGA filings, and manages communications with CBP on behalf of the importer. The broker is the importer's representative before the government.

U.S. Customs and Border Protection (CBP)

CBP is the federal agency that processes and releases imported goods. CBP reviews entries, assesses duties, conducts examinations, and enforces trade laws. CBP also coordinates with partner government agencies that have jurisdiction over specific types of goods.

Partner Government Agencies (PGAs)

More than 49 federal agencies regulate imported goods. The most commonly encountered PGAs include FDA (food, drugs, medical devices, cosmetics), USDA (agriculture, meat, plants), EPA (chemicals, vehicles, engines), CPSC (consumer products), FWS (wildlife products), and TTB (alcohol, tobacco). Each PGA has its own compliance requirements that must be satisfied before the goods can be released.

How Long Does Customs Clearance Take?

Most routine customs entries are cleared within a few hours to one business day after the entry is filed with CBP. Shipments that are filed with complete and accurate documentation, have no PGA holds, and are not selected for examination typically move through customs quickly.

However, several factors can extend the clearance timeline significantly:

• Examination — if CBP selects the shipment for examination, clearance can take 3 to 7 business days or longer depending on the type of exam and port congestion.
• PGA holds — if a partner government agency (FDA, USDA, etc.) places a hold on the shipment, clearance is delayed until the hold is resolved. FDA holds can last days to weeks depending on the issue.
• Documentation issues — if documents are missing, incomplete, or inconsistent, CBP may issue a request for information (CF-28), which requires the broker to respond within 30 days.
• Bond issues — if the importer's customs bond is insufficient, expired, or canceled, all entries will be held until a valid bond is in place.

What Causes Customs Clearance Delays?

The most common causes of customs clearance delays are preventable. Understanding them helps importers avoid costly delays in their supply chain.

Missing or Incomplete Documents

This is the number one cause of clearance delays. If the commercial invoice is missing critical fields (product description, value, country of origin), if the packing list does not match the invoice, or if required PGA documents are not filed, CBP will hold the shipment until the issues are resolved. A customs broker reviews all documents before filing to catch and correct these issues.

Incorrect HTS Classification

If CBP disagrees with the HTS code assigned to the goods, it may hold the shipment for review, issue a CF-28 requesting additional information, or issue a CF-29 proposing a different classification and duty rate. Classification disputes can take weeks or months to resolve, during which the importer may face additional costs.

PGA Holds

Products regulated by FDA, USDA, EPA, CPSC, and other agencies must meet those agencies' specific requirements. If PGA filings are incomplete, if the product does not meet the agency's standards, or if the importer's supplier is on an import alert list, the agency can hold the shipment for inspection, sampling, or refusal. PGA holds are particularly problematic for perishable goods, where delays can result in spoilage.

CBP Examinations

CBP has the authority to examine any shipment. Examinations are typically triggered by risk assessment factors including the importer's compliance history, the country of origin, the type of goods, and random selection. While examinations are a normal part of the import process, they add time and cost — and an experienced broker can help expedite the process.

Bond Issues

An insufficient, expired, or canceled customs bond will halt all of an importer's entries. Bond sufficiency should be reviewed annually, and any increase in import volume or duty rates should trigger a review. Your customs broker monitors bond sufficiency and alerts you before issues arise.

Formal vs. Informal Entry

U.S. customs law distinguishes between two types of entries based on the value of the goods being imported.

Informal Entry (Under $2,500)

Shipments valued under $2,500 can be entered through an informal entry process, which has simplified documentation requirements and does not require a customs bond. Informal entries are typically processed more quickly and with less scrutiny than formal entries. However, all PGA requirements still apply regardless of value.

Formal Entry ($2,500 and Over)

Shipments valued at $2,500 or more require a formal entry, which involves full customs documentation, a customs bond, and compliance with all applicable regulations. The vast majority of commercial imports enter through the formal entry process. Certain types of goods — including textiles, footwear, and goods subject to antidumping or countervailing duties — always require a formal entry regardless of value.

Customs Clearance vs. Customs Brokerage

These two terms are often confused, but they refer to different things. Customs clearance is the process — the series of steps required to get imported goods approved and released by CBP. Customs brokerage is the professional service — the work performed by a licensed customs broker to complete that process on behalf of an importer.

Think of it this way: customs clearance is what needs to happen. Customs brokerage is who makes it happen. Every import goes through customs clearance. Most commercial importers hire a customs broker to handle it for them. You can learn more about how a broker helps in our guide on what a customs broker is, or explore the process of filing in our ISF filing guide.