When importing goods into the United States, holds issued by U.S. Customs and Border Protection (CBP) can significantly disrupt your supply chain. While many of these delays are resolved within a few days, some can extend much longer, leading to mounting demurrage charges, examination fees, and even the risk of spoilage for perishable goods. Understanding the reasons behind customs holds and inspections is essential for navigating the clearance process smoothly and avoiding costly setbacks.
Whether you’re shipping via Less Than Container Load (LCL) or Full Container Load (FCL), the U.S. Customs and Border Protection (CBP) may select your cargo for further examination. This can occur either randomly or due to specific red flags associated with your shipment. Being aware of these possibilities—and knowing how to prepare—can help reduce delays, manage expenses, and keep your supply chain running efficiently.
What is a Cargo Examination?
This is a standard procedure used by U.S. Customs and Border Protection (CBP) to identify potential violations of U.S. customs laws. These violations can range from minor issues, such as incomplete or incorrect documentation, to more serious concerns, including the suspicion of prohibited or illegal goods.
CBP’s primary goal is to safeguard the country by monitoring what enters through its borders. Given the sheer volume of shipments, it’s not feasible to inspect every container. Instead, CBP relies on specific risk factors—such as origin, consignee history, or shipment anomalies—to determine which cargo warrants closer inspection.
If your shipment is selected for examination, it doesn’t necessarily indicate a problem. However, it does mean your cargo will be temporarily held at the port, typically for several days, which can delay pickup and add to your logistics timeline.
Key Factors Leading to Customs Exams
1. Importer History and Compliance
CBP closely reviews an importer’s compliance track record. New importers are more likely to face scrutiny due to a lack of historical data. At the same time, those with a clean history of accurate declarations and regulatory compliance are generally examined less frequently. Participation in programs like C-TPAT can help reduce the risk of cargo theft.
2. Country of Origin and Export
The origin of the goods plays a significant role in risk assessment. Shipments from regions associated with geopolitical tensions, trade irregularities, or known security concerns are more likely to be flagged for inspection.
3. Commodity Type
Some goods naturally draw more attention due to their risk level. Regulated products—such as food, chemicals, pharmaceuticals, and electronics—often require approvals from agencies like the FDA or EPA. Items prone to counterfeiting, IPR infringement, or commonly associated with illegal activity are also high on CBP’s watch list.
4. Documentation Accuracy
Errors or omissions in shipping documents are the primary triggers for customs exams. Inconsistencies in commercial invoices, packing lists, bills of lading, or Importer Security Filing (ISF) forms can result in immediate holds. Even small clerical mistakes or unexpected variances in declared value or weight may raise red flags.
5. Shipper and Supply Chain Risk
CBP evaluates the history and reputation of all parties involved in the shipment. If a shipper, freight forwarder, or consolidator has a record of non-compliance, it increases the chances of a hold. For LCL shipments, a single questionable package can cause the entire container to be examined.
6. Intelligence and Alerts
CBP also acts on intelligence reports or specific alerts related to certain shipments, commodities, or trade routes. If your cargo matches a known risk profile, it may be targeted regardless of your compliance history.
While it’s impossible to entirely avoid customs exams, addressing these factors proactively through meticulous documentation, robust compliance programs, and working with experienced and reputable logistics partners can significantly reduce the likelihood and impact of customs holds and examinations.
Types Of Customs Holds
CBP can place various types of customs holds on your shipment. Here’s an overview of the most common ones:
Manifest Hold
This is one of the most common types of holds. It’s usually triggered by missing or incorrect information on the cargo manifest or Importer Security Filing (ISF). Common issues include wrong bill of lading numbers, mismatched consignee details, or missing product descriptions. CBP uses this hold to ensure all declared data matches the physical shipment and complies with regulations.
Commercial Enforcement Hold
This hold is placed when CBP suspects a violation of trade laws. That could mean undervalued goods, incorrect classifications, potential counterfeit items, or goods subject to anti-dumping duties. It often leads to a deeper review of both the cargo and supporting documents.
Statistical Validation Hold
CBP uses data analysis to identify anomalies. If your shipment’s declared value, weight, or quantity is far off from what’s typical for similar goods, it may trigger this hold. It’s designed to catch misreporting, valuation errors, or attempts to avoid duties.
CET Hold
This security-related hold comes from CBP’s Contraband Enforcement Team. It targets shipments suspected of containing illegal or dangerous items—like drugs, weapons, or goods linked to terrorist activity. These holds are often based on specific intelligence and may involve thorough inspections.
PGA Hold
Agencies beyond CBP regulate many products. For example, the FDA oversees food and medicine, the USDA handles agricultural items, and the EPA monitors certain chemicals. If your cargo falls under one of these agencies, it may be held until the proper approvals, permits, or inspections are completed.
Types Of Customs Exams
Once a hold is placed, CBP may proceed with various types of examinations to resolve the issues or verify compliance. These exams range in intensity and can impact the duration of the hold and associated costs:
1. X-Ray Exam (NII or VACIS Exam)
This is the most common and least invasive customs exam. The container is scanned using a large X-ray machine—similar to airport scanners but on a larger scale—to detect anomalies or mismatches with the manifest. Since the cargo isn’t opened or unloaded, this process is relatively quick (a few hours) and low in cost. However, the container must be transported to the scanning facility, which may cause minor delays.
2. Tailgate Exam
In this moderate-level exam, CBP opens the container doors to visually inspect the cargo without unloading it. Officers check for labeling, packaging, and whether the shipment generally matches its documentation. While less invasive than a full inspection, it still requires moving the container and can add one to two days to the process. Costs are moderate, with no full devanning involved.
3. Intensive Exam (CET Hold Exam)
This is the most thorough and time-consuming type of inspection. The container is fully unloaded, and every item is physically examined—sometimes even opened. Typically triggered by suspicious findings or specific red flags, this exam can delay clearance by several days or even weeks. It’s also the most expensive, as importers bear the cost of transport, labor, reloading, and potential storage or demurrage fees.
How to Prepare for a Customs Inspection
While you can’t prevent your shipment from being selected for a customs exam, there are proactive steps you can take before it leaves the country of origin to minimize risk and reduce potential impact.
First, consider purchasing cargo insurance—especially for high-value or fragile goods. Intensive inspections can sometimes result in accidental damage, and having insurance can help protect you financially in the event of a loss.
Second, partnering with a licensed customs broker is a smart move. An experienced broker can help ensure that your documentation is complete and accurate, thereby reducing the likelihood of your shipment being flagged for inspection. If an exam does occur, they can serve as your liaison with CBP, keep you informed throughout the process, and help expedite resolution.
