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A customs hold occurs when US Customs and Border Protection (CBP) or a Partner Government Agency (PGA) pauses cargo to confirm regulatory compliance. A customs hold interrupts the import process and can add costs for storage, bonded transport, and inspection.Understanding the reasons behind these holds is essential for smooth importing. The right knowledge and preparation make for a better import experience.
Key Takeaways
We’ll go over common US customs hold types, what triggers them, and what importers should do next.
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A customs hold is not a full seizure of your goods. Most holds are temporary, but they can escalate to detention and seizures. A customs hold occurs when US Customs and Border Protection (CBP) decides to suspend, or hold your imported goods. Customs holds can occur at border crossings, ports, and even prior to your shipment’s arrival.
If a shipment appears to be out of compliance with customs regulations, it’s likely to trigger a customs hold. It’s a reality that every importer could face, and understanding and knowing how to navigate them can smoothen your import process significantly.
Customs holds aren't one-size-fits-all. They come in several types, each triggered by a specific issue related to your shipment. Let's break them down one by one.
An inspection is used when CBP decides your shipment needs a closer look, usually to verify its compliance with import regulations like tariff classification, valuation, or admissibility.
This type of hold is not the same as a regular inspection. An inspection hold is also referred to as a commercial enforcement hold when applied to items held due to suspected intellectual property (IP) violations.
For the importer, these types of holds usually end up in a significant amount of time lost. Customs holds can take several weeks to resolve. The size and value of the shipment, in addition to how strictly it’s regulated, are also factors that contribute to whether your shipment is held.
Here are actions you can take to resolve an inspection hold:
Provided everything meets regulation, your shipment will be released, sometimes in just a few days. Many small violations found during inspections can be fixed. However, any customs shipment on a hold has the potential to escalate into a full seizure.
The best way to avoid a lengthy inspection hold starts with proper documentation of your imported goods before they reach their port.
Working with a Licensed Customs Broker can help you clear holds fast!
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A PGA hold includes the involvement of one or more partner government agencies (PGAs).
Some of the more common agencies involved include the:
Of these, the FDA, USDA, and CPSC are the ones that work most closely with CBP. Each PGA has a corresponding enforcement hold listed in the ACE Disposition Guide.
PGAs can apply one of the following statuses to a shipment under a PGA hold. If the shipment is fully or partially approved, you or your broker will receive one or more of the following messages in CBP’s ACE.
If a PGA issues a Hold Intact message regarding your merchandise, the shipment will be sent to a PGA-approved facility. There, the relevant agency will determine the admissibility of the goods in question.
During this process, you may receive notices from CBP about actions they’re taking or actions you’ll need to undertake.
If your entire shipment is found to be non-compliant and inadmissible to the US marketplace, it will be refused entry. This is bad news for any importer. Avoiding this circumstance requires preparation and compliance with CBP and PGA regulations applying to your merchandise. Assistance from a customs broker can reduce the likelihood of a customs or PGA hold.
Customs brokers can also assist you through the hold process should it occur, improving your chances of recovering your merchandise.
An entry processing hold occurs when there are inconsistencies, errors, or missing information on your shipping or customs clearance documents.
Documentation errors can appear on a(n):
Any customs or shipping-related document can have an error that triggers a hold. If the hold is triggered by a manifest or bill-related error, it can trigger some more specific holds like invalid consignee, invalid shipper, or insufficient cargo description. These are the most common since they are required for nearly every commercial shipment.
Actions you can take to correct your documents include:
Documents connected with specific agencies are likely to be inspected more closely. For example, the FDA will check specific health certificates and make sure that labels contain all the right information.
Usually the only major issues with these holds is the time lost while mistakes are corrected. However, there is a chance that goods will be denied entry. This means you would either need to re-export the products or have them destroyed.
Even if goods are packaged the right way and the documents are correct, certain products can still trigger a security hold. Security holds are imposed mainly when there's a potential risk to national security.
Security holds are also known as a CET Hold, or A-TCET. It refers to inspections carried out by the Anti-Terrorism Contraband Enforcement Team.
The nature of the risk could be due to the actual product. Firearms, for instance, usually require permits from the Bureau of Alcohol, Tobacco, and Firearms (ATF). Even with the correct permit, your shipment could trigger a security hold based on sanctions or the configuration of the goods in question.
Improperly declared hazardous material is how new importers often trigger this hold. These are usually found during a standard customs exam.
A shipment’s country of origin could also trigger a security hold for reasons such as:
In the case of health hazards, some countries deal with endemic diseases. It basically means that the diseases are common within that limited area, but follow predictable patterns, like malaria. The best way to reduce the risk of security holds is by accurately classifying your goods. Be sure to declare any hazardous materials properly, and be aware of any restrictions relating to your shipment's origin or destination.
Such a hold can result in CBP’s determination that the shipment is deliberately unlawful or out of compliance. Importers found to be in deliberate violation of importing regulations are subject to punitive actions ranging from fines to seizure and destruction of merchandise and even imprisonment in extreme circumstances.
The hold is often because of import issues such as:
Consider the following scenarios that can lead to imported goods being denied entry:
These examples highlight the intricate and complex nature of importing goods. The cases above get caught because of violations of laws deep within import standards.
It’s one of the many reasons USA Customs Clearance offers consulting sessions with licensed brokers who have spent years looking into such laws.
An agricultural hold is imposed on goods that pose a potential risk to US agriculture and usually involve a quarantine. While it is a specific type of PGA hold, it’s worth mentioning separately since plant imports are relatively common and can be classified as high-risk based on country of origin.
As a definition, agricultural holds could almost be used interchangeably with inspection holds, since it involves a PGA. In this case, specifically the USDA or their Animal and Plant Health Inspection Service (APHIS) department.
Over the years, invasive species have caused billions of dollars worth of damage to the agricultural economy as well as the ecosystem in general.
These are just three examples of the many invasive species that the USDA is actively trying to prevent entry of and control. When species that pose severe threats to major aspects of the agricultural industry, there is a high chance that the USDA will demand the entire shipment be destroyed.
New importers should carefully vet any suppliers they use for agricultural products. Ensure your APHIS-regulated imports are treated and that there is a phytosanitary certificate provided.
Customs hold codes are used to show cargo status in ACE. They’re categorized in the CBP disposition guide. While some of these codes are simply used to show the status of cargo as it goes through the standard customs procedure, others specifically express holds and/or the reasons a hold is applied.
There are some hold codes that occur more frequently than others, and they warrant closer examination.
The 1H customs cold indicates that the merchandise is being held per a manually-posted order from CBP. This can occur either at the port of entry or a designated CBP examination station. This hold code is used for various reasons including compliance checks, random sampling, or suspicion of non-compliance with regulations.
This hold is applied at a port of discharge by CBP, and it changes the bill status of the merchandise to “HELD”. The cargo cannot be released from the point of discharge until the hold is removed by CBP.
A 7H code means that CBP has ordered a Non-Intrusive Inspection (NII) of the cargo. The cargo will be held pending satisfactory passing of the NII. This typically entails additional x-ray or imaging, methods that don’t require packages to be opened.
This is just a small sample of the hundreds of codes CBP uses to indicate the status of a given shipment. They’re used for everything from port of entry changes to prohibition of loading within a given area.
CBP and PGAs record actions using disposition codes in ACE. Any hold typically leads to an intensive exam if issues persist . These short codes are used in the Automated Manifest System (AMS) to show specific actions being taken against certain imports.
No matter what triggers an official CBP hold, you can bet it’s going to result in an intensive exam of your imports. Let’s continue breaking down the actual process and how it can affect your business.
When a shipment is put on hold, it can't leave the port of discharge. If CBP determines further examination is required, your merchandise will be moved to a Centralized Examination Station (CES). Importers bear the cost of transport, storage, and inspection under these circumstances.
From start to finish, these are the typical steps involved in the holds process:
CBP will either inform the Importer of Record (IOR) directly or have the message passed along via the carrier or customs broker. Official notifications include the reason for the hold along with suggestions on the next steps to take.
Once a shipment is officially being held for additional inspection, it gets transferred to a CES. These locations are privately owned, but supervised by CBP. It’s considered extra storage time, so you will be paying for the privilege.
An in-depth examination at the CES is done to verify content, quality, or safety of a shipment. CBP uses advanced vehicle and cargo inspection systems to detect illegal or prohibited items. These systems can include large-scale X-ray machines, gamma-ray imaging systems, and even radiation detection devices
There are three possible outcomes to customs hold and exam.
When CBP seizes an entire shipment, they’ll follow up with the shipper through a notice of seizure. At this stage, there may still be a chance to salvage your shipments. During a forfeiture proceeding, a PGA may present other options that allow a shipment to be salvaged or allowed entry.
Whether these make sense from a financial point of view depends on your current business plans. Sometimes, even when a shipment can be saved, the final cost to do so is more than the potential profit the products could generate.
CBP will either inform the Importer of Record (IOR) directly or have the message passed along via the carrier or customs broker. Official notifications include the reason for the hold along with suggestions on the next steps to take.
Once a shipment is officially being held for additional inspection, it gets transferred to a CES. These locations are privately owned, but supervised by CBP. It’s considered extra storage time, so you will be paying for the privilege.
An in-depth examination at the CES is done to verify content, quality, or safety of a shipment. CBP uses advanced vehicle and cargo inspection systems to detect illegal or prohibited items. These systems can include large-scale X-ray machines, gamma-ray imaging systems, and even radiation detection devices.
There are three possible outcomes to customs hold and exam.
When CBP seizes an entire shipment, they’ll follow up with the shipper through a notice of seizure. At this stage, there may still be a chance to salvage your shipments. During a forfeiture proceeding, a PGA may present other options that allow a shipment to be salvaged or allowed entry.
Whether these make sense from a financial point of view depends on your current business plans. Sometimes, even when a shipment can be saved, the final cost to do so is more than the potential profit the products could generate.
When the financial future of a business might be hanging in the balance, importers may feel helpless.
However, there are steps that importers, and any customs brokers they are working with, can take to help the process along.
To help the process go faster, follow these tips:
If necessary, getting legal representation to defend your shipments can also be a good idea. Even with these tips, realize that the hold-process takes time. If you really want to expedite the situation, the best way is to avoid it from the start.
Working with a customs broker, or at least consulting with one, is one of the best ways to do so.
Our Licensed Customs Brokers are ready to help and can be reached at (866) 753-6859
A Licensed Customs Broker coordinates filings, corrections, in-bond moves, and agency communications. Hiring one after a hold can speed up document remediation and the release of your goods.
If you’ve been working with a broker and customs clearance service from the start, chances are you’ve managed to avoid a hold in the first place. Contracting one after a hold is issued at least gives you access to an expert.
At USA Customs Clearance, we have a team of experienced customs brokers who can assist you through the entire import process. They can help you navigate through customs holds and even guide you on best practices to avoid them in the future.
When it comes to dealing with customs holds, knowledge is power. Understanding the different types of holds and their potential impact on your shipments can make a big difference in how smoothly your import process goes.
Whether you're a new importer or have years of experience, we're here to make your import journey smoother and more efficient. Call us today at (855) 912-0406 or complete a risk-free form to see how our customs brokers can help you today.
FAQ
What does a customs hold mean?
A customs hold is when an importer decides to hold or suspend your imports from entering the country.
Why is my shipment on hold in Customs?
Your goods could be on hold for reasons like missing/incorrect paperwork, unpaid duties and taxies, problems with the contents of your import, or your goods aren’t compliant with PGA regulations
Does US Customs open held shipments?
Yes, CBP has the authority to open and inspect imports entering the country. This includes opening containers and packages.
What are customs hold codes?
Customs hold codes are sent to ACE and they communicate the status of held cargo. There are three different types: 1H, 2H, and 7H.
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Hi, will shipping lines charge detention of containers which are on hold by Agriculture Department? Does FMC allow this?