Port of Entry meaning in ocean freight.

The legal definition in U.S. customs

U.S. customs regulations define a port of entry as a place designated by presidential executive order, by order of the Secretary of the Treasury or by act of Congress where a CBP officer can accept entries of merchandise, collect duties and enforce the customs and navigation laws. The term covers the whole area under a port director, not a single dock. Seaports, airports, land border crossings and inland cities such as Chicago can all be ports of entry.

Three port terms on one import

In-bond moves are why the terms split apart. Federal rules let imported cargo travel under bond from the port where it arrived to another port before it is appraised and before duties are paid, for example under an immediate transportation (IT) entry. The consumption entry is then filed at the destination port, which becomes the port of entry. Without an in-bond move, all three usually name the same place.

• POD: where the bill of lading says the ship unloads
• Port of unlading: the U.S. port where cargo leaves the vessel
• Port of entry: where the importer's entry is filed and processed

Choosing where to enter the cargo

For containers headed inland, importers can often choose. They can enter the cargo at the seaport and move it inland as domestic freight once released, or move it in-bond and enter it at an inland port near its destination. The choice affects which broker office files, where an exam would happen and how the carrier's routing is set up, so settle it with the broker before the vessel arrives.

Example

HLBU2456904 is discharged at Seattle and moves in-bond by rail to Chicago, where the broker files the consumption entry. Seattle is the port of unlading, and Chicago is the port of entry.

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