Ocean Sea Freight Port Operations and Customs Clearance 1 — Questions and Answers
Question 1: What is the '24-Hour Rule' for US ocean freight imports?
- Carriers must submit cargo manifest information to CBP at least 24 hours before loading at the foreign port (Correct answer)
- Importers must file entry documents within 24 hours of vessel arrival
- CBP must respond to ISF filings within 24 hours of submission
- Containers must be picked up within 24 hours of terminal availability
Correct answer: Carriers must submit cargo manifest information to CBP at least 24 hours before loading at the foreign port
The CBP 24-Hour Rule requires ocean carriers to electronically submit manifest data for US-bound cargo no later than 24 hours before goods are loaded at the foreign port, enabling advance security screening.
Question 2: What is a 'Customs Entry' and when must it be filed for US ocean imports?
- The formal import declaration filed with CBP, required before cargo can be released from the port (Correct answer)
- The pre-arrival notification filed 24 hours before vessel arrival
- The documentation submitted to the carrier to arrange container pickup
- The customs stamp applied to the Bill of Lading at port of entry
Correct answer: The formal import declaration filed with CBP, required before cargo can be released from the port
A Customs Entry (formal entry) is the documentation package filed with CBP by the importer or customs broker to declare imported goods, pay applicable duties, and obtain release of cargo from the port.
Question 3: What is 'Customs Examination' (CET) and what happens to the cargo?
- CBP physically inspects or scans the container — it may be held at a CET facility for examination and at the importer's expense (Correct answer)
- The carrier verifies container seals match the B/L before terminal delivery
- The freight forwarder audits customs entry documents for accuracy
- A terminal procedure where gross weight is verified against VGM
Correct answer: CBP physically inspects or scans the container — it may be held at a CET facility for examination and at the importer's expense
A CBP Customs Examination (CET) means a container is selected for physical inspection or scanning — the cargo may be stripped for examination, causing delays and examination fees charged to the importer.
Question 4: What is a 'DO' (Delivery Order) in ocean freight?
- A document issued by the carrier or its agent authorizing the terminal to release cargo to the consignee (Correct answer)
- An order from customs authorizing release of a detained shipment
- A booking confirmation sent to the shipper by the carrier
- An instruction from the importer to their customs broker to file entry
Correct answer: A document issued by the carrier or its agent authorizing the terminal to release cargo to the consignee
A Delivery Order is issued by the carrier or NVOCC after the consignee surrenders the original B/L (or pays freight) — it instructs the terminal to release the cargo to the holder.
Question 5: What is 'Port of Discharge' (POD) vs 'Place of Delivery' in ocean freight?
- POD is where the vessel unloads the container; Place of Delivery is the final inland destination (Correct answer)
- Both terms refer to the same location — the destination port
- POD is the port where the B/L is issued; Place of Delivery is where the cargo is loaded
- POD is for FCL shipments; Place of Delivery is used only for LCL
Correct answer: POD is where the vessel unloads the container; Place of Delivery is the final inland destination
The Port of Discharge is the port where cargo is unloaded from the ocean vessel, while the Place of Delivery (or Final Destination) is the ultimate inland delivery point if the carrier's responsibility extends beyond the port.
Question 6: What is an 'In-Bond' shipment in US customs terminology?
- Cargo that moves through US customs territory under a bond without paying duties, typically in transit to another destination or port (Correct answer)
- A shipment that has had duties prepaid and guaranteed by a surety bond
- Cargo held by customs pending verification of country of origin
- A type of duty-free shipment for diplomatic cargo
Correct answer: Cargo that moves through US customs territory under a bond without paying duties, typically in transit to another destination or port
An In-Bond shipment moves through US customs territory under a CBP bond without formal entry and duty payment — used for transit cargo (IE), transportation to another port (T&E), or foreign trade zones.
Ocean Sea Freight Port Operations and Customs Clearance 1
What is the '24-Hour Rule' for US ocean freight imports?