FAQs

Do I need to be licensed by Customs?

No. According to the Customs regulations, an importer may file entries, for their own benefit, without a license.

Do I need to have a broker on staff?

A licensed broker on staff is not required by CBP. However, to ensure a successful and highly compliant direct filing program, it is important to have a well-trained, experienced and knowledgeable staff with proper employee over-site.

Are any importers restricted from direct filing?

CBP has few limitations on direct filing. Any importer with recurring entries, in good standing, may file their own entries. Foreign importers of record are restricted from filing their own entries, unless they have a U.S. office with on-site personnel who will file the entries and maintain the records.

How do I get started?

First, a filer code is requested from CBP. Second, a letter requesting participation in ABI is submitted to CBP. Once approved, CBP assigns a filer code and an ABI Client Representation to your account. CustomsNow™ will guide you though the entire start up process by providing forms, instructions and support.

How long does it take to get started?

From start to finish it can take anywhere from 8-10 weeks. It takes approximately 6 weeks to receive a filer code from CBP, during which time the system can be set up and some training conducted. Once the filer code is received, and a Customs’ ABI Client Representative is assigned to your account, allow an additional week or two for entry training and CBP testing to be completed and reviewed. Once the testing has been completed sufficiently, the go-ahead to direct file is given from Customs.

What exactly is a Customs’ ABI Client Representative?

An ABI Client Rep is an employee of Customs under the Office of Information and Technology who specializes in the ABI system and entry processing from a technical aspect. This contact is your main contact for all things ABI: initial testing, set up of the system on CBP’s side and ongoing entry processing questions or issues.

What kind of testing do I need to do with Customs before filing? (ABI & AII)

Since the CustomsNow™ system has been proven and familiar to CBP for years, importers are only required to complete limited testing, based on each ABI Client Rep. The ABI testing can consist of a range of “test entries” related to your import business, usually somewhere between 5-25 test entries. Testing for AII normally consists of the transmission of 5 electronic invoices.

What is remote location filing (RLF)?

RLF is the ability to electronically file entries with CBP from a location within the United States other than the port of arrival or location of examination. Importers use CBP’s Automated Invoice Interface (AII) to transmit and electronic commercial invoice to CBP only when requested.

I already have a filer code for drawback; can I use it to file entries?

Yes, the same filer code for drawback purposes can also be used for filing import entries. If so, only a letter to CBP’s Office of Information Technology, requesting participation in the ABI program and the assignment of a CBP ABI Representative is required. This process usually takes no more than a week.

What type of entries can I direct file?

As an importer of record, you are legally able to file any and all types of entries with U.S. Customs and Border Protection. That includes air, ocean, truck and rail and even hand-carried shipments, however, the specific processes required for the different modes of transportation may vary. Each importer should factor in their unique supply chain business requirements when determining which entries should be direct filed and which are best left with a broker.

What kind of Customs bond is required?

A continuous U.S. Customs bond must be on file with CBP in order to direct file your entries. Single entry bonds are not acceptable (except where the bond is written to cover only one particular entry (shipment) or Importer Security Filing (ISF)). Conveniently, importers may purchase bonds through CustomsNow™.  In addition, CBP provides a helpful FAQ page for all of your bond questions.

Will I need additional resources to file my own entries?

Your current compliance process should be thoroughly reviewed to understand future staffing needs under direct filing. Questions such as “How much time does my staff currently spend on broker oversight, problem resolution and manual audits?” should be answered. We’ve found that most average sized importers have enough resources on staff to implement the initial direct filing process. However, as savings are generated and the program expands further, additional staffing may be necessary.

How do I roll-out a direct filing program?

Each importer should thoroughly assess their import supply chain in order to develop a simple, logical and smooth roll out program. Determining factors can include, for example, the number of paperless entries, the origin of the goods, the relationship with the vendor, and the mode of transportation or shipping terms. Our professional services team can conduct a complete business review and develop a plan that best suits your needs.

Do I have to direct file all my entries?

No. You can direct file as few or as many as you’d like. It’s best to select one import lane segment to begin with and grow from there.

My broker has a relationship with Customs at the local ports and I don’t. I don’t want to lose that connection.

Although your broker has a relationship within the ports, it important that you, as the importer of record, establish one as well, if you haven’t done so already. Direct contact with the respective agencies can ensure understanding that your company takes the responsibility of compliance very seriously and that you are experienced and in control of your process. When issues arise, you know who to call directly to get answers or to resolve problems. Only positive things can happen when direct relationships are built.

How many days before arrival into the U.S. can I file my entries?

Ocean shipments can be transmitted and cleared 5 days prior to arrival at the U.S. port of entry. An entry can actually be transmitted anytime before arrival but CBP will only respond 5 days before the estimated arrival date.

What if my shipment does not clear “paperless”?

On most entries types (formal, informal), an electronic invoice can be sent via ABI and AII (CBP’s Automated Invoice Interface). The invoice is automatically formatted in the ABI system when the entry is created, so the user simply transmits it directly to CBP, in any port, for processing and eventual release. Some special entry types require that physical documents be submitted to the port of entry.

Who takes care of the additional steps when a Customs or other exam is required?

You are responsible to arrange for the movement of the container and/or the devanning of the cargo. Therefore it is important to establish a relationship with a trucking company and Customs Exam Station (CES) within the port of entry.

How do I pay the collect freight charges and/or submit an original bill of lading (OBL) to the carrier?

The payment and/or OBL can be submitted directly to the carrier or freight forwarder in the U.S. any time prior to the release of the freight.

Who arranges the delivery of the shipment after clearance?

Delivery can be arranged by either the forwarder, carrier or by the importer. In the CustomsNow™ system, a delivery order is auto-populated as the entry is created making it very simple to print, fax or email to the delivering carrier.

How does the duty payment process work?

The importer must be set up with CBP to pay their duties via the ABI system through ACH (Automated Clearing House). This requires submission of a simple application form to CBP’s finance department, which takes about 10 days to process.

Our company pays their duties on PMS; can I do this with direct file?

Both daily and monthly duty statements can be processed in the system for payment via ACH.

Who should the shipping documents be sent to?

The overseas consolidator / carrier will collect the vendor documents, create the bills of lading and send the packets directly to you. Make sure that your company name is listed on the documents as the notify party.

Will I have access to entry / liquidation status of my entries?

With 24/7 Customs access via ABI you’ll be able to not only query the entry and liquidation status of entries direct filed, but on any of your entries regardless of by whom they were filed. The only thing needed is the complete entry number. The query returns details such as current status, scheduled liquidation date, duties and taxes.

How can I track and trace my entries?

The CustomsNow™ system has a detailed search function that allows you to find entries based on a variety of factors: PO number, Invoice number, Item/Part number, tariff number or even shipment information such as bill of lading or container number.

What if I find an error on my entry?

When filing your own entry, the chances of making an error are greatly reduced. Even so, if an entry error is found prior to duty payment, the correction can be made and the entry summary retransmitted. Since you’re able to perform an audit much sooner after clearance most entries can be corrected though this easy, immediate process. If the error is found after the duties have been paid, the normal post-entry correction process must be followed.

If I have repetitive entries is there a way to copy previous entries to help speed the entry process?

Yes. The system included a copy entry function which will reduce the data entry on similar, repetitive entries.

What kind of reporting is available?

The system has both standard and customizable reporting functions which include all elements of the entry or ISF submission, including PO number, invoice number, part number, tariff, B/L, container number and more. All reports can be saved into an excel format for easy distribution as well as audit purposes.

What are the recordkeeping requirements for direct filers?

CBP’s recordkeeping requirements for importers are the same whether the entries are direct filed or filed by a broker. The importer is required to keep copies of all entries and related documents according to the regulations. With CustomsNow™ you’ll be able to print or save to soft copy (with CBP approval) all documents, plus the documents are accessible for reprint at anytime in the future.

What if I decide I don’t want to direct file anymore?

There is no requirement from either CustomsNow™ or CBP to direct file once you’re set up. The filer code issued by CBP is yours whether it is used or not.