Every shipment entering the United States must clear US Customs and Border Protection (CBP) — a process that involves documentation, duty calculation, security screening, and, for many products, additional agency reviews. Done correctly, customs clearance is routine and fast. Done incorrectly, it results in shipment holds, costly exams, penalty assessments, and in serious cases, seizure of your goods. This guide gives US importers a complete picture of the customs process — and explains exactly how a licensed customs broker protects your business.
What Happens at US Customs
When a shipment arrives at a US port of entry — whether by air at O’Hare, JFK, or LAX, or by ocean at the Port of Los Angeles, New York, or Savannah — CBP officers review the entry documentation to verify that the goods are correctly described and valued, that the appropriate duties and taxes are paid, and that the shipment does not contain prohibited or restricted items.
CBP processes over 25 million formal entries per year. The vast majority clear in hours. The ones that don’t share a common set of characteristics: incomplete or inaccurate documentation, undervalued goods, incorrect HTS classification, missing certificates or licenses, and shipments from countries or suppliers on watch lists.
The Role of a Licensed US Customs Broker
A licensed customs broker is a private individual or company licensed by CBP to act as an authorized agent for importers. A broker’s primary role is to prepare and submit the import entry on your behalf — ensuring it is accurate, complete, and compliant with all applicable regulations — while navigating the complex web of CBP requirements, partner government agency (PGA) requirements, and trade agreement rules.
Licensed customs brokers must pass a rigorous CBP examination and meet ongoing continuing education requirements. They maintain direct electronic access to CBP’s Automated Customs Environment (ACE) system — the portal through which all import entries are filed in the United States.
Key Customs Concepts Every Importer Must Know
Harmonized Tariff Schedule (HTS) Classification
Every product imported into the United States must be assigned a 10-digit HTS code, which determines the applicable duty rate, any trade agreement benefits (such as USMCA or GSP), and whether the product requires additional agency review by the FDA, USDA, FCC, or EPA.
Customs Value and Dutiable Value
CBP uses the transaction value method as the primary basis for customs valuation — meaning the price actually paid or payable for the goods, including assists, royalties, and proceeds of resale. Undervaluing goods to reduce duties is customs fraud and carries severe penalties, including seizure and criminal prosecution.
Importer Security Filing (ISF 10+2)
For all ocean shipments arriving in the US, importers are required to file an Importer Security Filing (ISF) with CBP no later than 24 hours before the vessel departs the foreign port. Late, inaccurate, or missing ISF filings are subject to liquidated damages of up to $10,000 per violation. Smart Delivery files ISF as a standard part of our import service, well ahead of the 24-hour deadline.
Anti-Dumping and Countervailing Duties (AD/CVD)
Certain products imported from specific countries are subject to additional anti-dumping or countervailing duties, which can be substantial — sometimes exceeding 200% of the product value. These apply to many categories of Chinese-origin goods including steel, aluminum, solar panels, furniture, and tires. Failing to account for AD/CVD at the time of purchase can make an otherwise profitable import entirely uneconomical.
C-TPAT and Trade Facilitation Programs
The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary public-private partnership program administered by CBP that recognizes importers, carriers, brokers, and other supply chain participants who demonstrate security best practices. C-TPAT-certified supply chain partners receive significant benefits: fewer CBP exams, expedited release of shipments, and preferential treatment during periods of elevated security.
Smart Delivery Logistics is C-TPAT certified and maintains documented supply chain security standards across our carrier network and warehouse operations. Importers who work with C-TPAT-certified freight forwarders and brokers benefit from our certification status in the CBP risk assessment model.
Final Thoughts
US customs compliance is not optional, and the cost of getting it wrong — delays, exams, penalties, and damaged supplier relationships — far exceeds the cost of doing it right. Partnering with a licensed, experienced customs broker is one of the highest-return investments an importer can make. Smart Delivery’s customs team is available to review your import program, identify risk areas, and build a compliance framework that keeps your goods moving.
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