A consumption entry is the formal customs declaration used to import goods into a country for use or sale within that country. It’s the most common type of import entry, triggering the payment of duties and taxes and releasing goods into commerce.
What Consumption Entry Means
Definition
- Goods entering for domestic consumption
- Will be used, sold, or processed locally
- Not for re-export or temporary use
- Full duties and taxes apply
vs. Other Entry Types
| Entry Type |
Purpose |
| Consumption |
Domestic use/sale |
| Warehouse |
Duty-deferred storage |
| Foreign Trade Zone |
Special zone processing |
| Temporary Import |
Will be re-exported |
| Transportation |
In-bond transit |
Consumption Entry Process
Step-by-Step (US)
- Goods Arrive - At US port
- Entry Filed - Within 15 days of arrival
- Duties Estimated - Calculated and deposited
- Cargo Released - After exam (if any)
- Entry Summary - Filed within 10 working days
- Liquidation - CBP finalizes duties
- Settlement - Duty over/under resolved
Timeline
Day 0: Vessel arrives
Day 1-5: Entry filed, cargo released
Day 10: Entry summary due
Day 300: Typical liquidation
Day 314: Protest deadline (if issues)
Filing Requirements
Documentation Needed
- Commercial invoice
- Packing list
- Bill of lading/airway bill
- Entry manifest
- Bond (continuous or single)
- Other (permits, licenses as needed)
Entry Summary (CBP Form 7501)
Required information:
- Importer of record
- Entry number
- Port of entry
- Merchandise description
- HS tariff classification
- Country of origin
- Value
- Duties and fees calculated
Duty Payment
Estimated Duties
- Paid with entry or entry summary
- Based on declared value and classification
- May be adjusted at liquidation
Payment Methods
- ACH (Automated Clearing House)
- Electronic funds transfer
- Daily/periodic statements
- Deferred payment programs
Payment Timeline
Standard: Pay with entry summary (Day 10)
Periodic Monthly: Pay monthly (PMS)
Statement: Aggregate payments
Customs Bond Requirement
Why Bonds Are Needed
- Guarantee duty payment
- Cover potential penalties
- Required for consumption entries
- Protect government revenue
Bond Types
| Type |
Use |
| Single Transaction |
One-time import |
| Continuous |
Ongoing imports (12 months) |
Bond Amounts
- Single: Value of shipment + duties
- Continuous: Usually 10% of annual duties (minimum $50,000)
Entry Types Within Consumption
Informal Entry
- Value under $2,500
- Simplified process
- Less documentation
- Consumer imports typically
Formal Entry
- Value $2,500 or higher
- Full documentation
- Bond required
- Commercial imports
Customs Examination
Exam Types
| Type |
Description |
| Document review |
Paperwork only |
| Tailgate |
Quick physical check |
| Intensive |
Detailed inspection |
| X-ray/NII |
Non-intrusive imaging |
If Selected
- Hold at port
- Exam scheduled
- Unloading if needed
- CBP inspection
- Release or further action
Post-Entry Process
Liquidation
- CBP finalizes entry
- Reviews classification and value
- Assesses final duties
- Usually within 314 days
Possible Outcomes
- Liquidated as entered (duties correct)
- Increased duties (you owe more)
- Decreased duties (refund due)
- Rate advance (higher classification)
Post-Entry Amendments
- Correct errors after filing
- Prior Disclosure if violations
- PSC (Post Summary Correction)
- PEA (Post Entry Amendment)
Consumption Entry Costs
Typical Fees
| Fee |
Range |
| Merchandise Processing Fee |
0.3464% (min $27.75, max $528.33) |
| Harbor Maintenance Fee |
0.125% (if by vessel) |
| Customs broker fee |
$100-$300 |
| Bond (continuous annual) |
$300-$500 |
| Exam fees (if examined) |
$200-$1,000+ |
Working with Customs Brokers
Why Use a Broker
- Expertise in classification
- Proper documentation
- Compliance management
- Faster clearance
- Reduced errors
Broker Responsibilities
- Prepare entry documents
- Calculate duties
- File with CBP
- Communicate status
- Maintain records