Key Takeaways
- GO status holds uncleared imports in bonded warehouses.
- Storage fees and penalties accrue daily to importers.
- Unclaimed goods auctioned after six months by CBP.
What is General Order (GO)?
General Order (GO) is a status assigned by U.S. Customs and Border Protection (CBP) to imported cargo that remains uncleared due to missing documentation or delayed customs entry. This cargo is stored in a bonded facility known as a General Order warehouse at the importer’s expense until cleared or disposed of.
The GO process helps CBP manage unclaimed goods and prevent port congestion while ensuring regulatory compliance under 19 CFR Part 127.
Key Characteristics
General Order status has distinct features important for importers to understand:
- Trigger: GO applies when merchandise isn’t cleared within the free storage period, often 5-15 days depending on the transport mode.
- Storage: Goods are moved to a CBP-approved bonded warehouse where storage fees accrue daily to the importer.
- Duration: Items can remain in GO status for up to six months before being auctioned or disposed of.
- Costs: Importers bear transportation, storage, and demurrage fees, which can escalate quickly.
- Legal Framework: Regulated under 19 CFR Part 127 to protect customs revenue and control abandoned goods.
How It Works
When imported goods arrive without proper customs entry or documentation, CBP places them under General Order status. Initially, cargo stays at the port or with carriers for a limited free period before transfer to a GO warehouse.
The importer is then responsible for filing the necessary paperwork, paying duties, and covering storage fees. Failure to clear goods within six months results in an auction or disposal, with proceeds offsetting outstanding charges.
Examples and Use Cases
Understanding how General Order status affects various industries can provide practical insights:
- Airlines: Delta and American Airlines occasionally encounter GO cargo due to incomplete customs entries, impacting their logistics and storage costs.
- Retail Importers: Apparel or electronics importers may face GO status if documentation like invoices or Harmonized Tariff Schedule codes are missing, delaying product availability.
- Supply Chain Management: Using customs brokers and coordinating with freight forwarders helps avoid GO status by ensuring timely filing and payment.
Important Considerations
Proactively managing documentation and customs entries is critical to avoiding costly GO storage fees and potential auction losses. Monitoring shipment status through CBP portals or customs brokers can alert you to issues early.
Implementing robust supply chain controls and pre-validating documents reduces the risk of delays. Additionally, understanding related financial concepts like backorder situations helps anticipate inventory disruptions tied to GO delays.
Final Words
General Order status can lead to costly storage fees and potential loss of your goods if clearance is delayed beyond six months. Review your import documentation and customs filing processes promptly to avoid GO designation and its financial impact.
Frequently Asked Questions
General Order (GO) is a status applied by U.S. Customs and Border Protection to imported cargo that remains uncleared due to missing documentation or delayed customs entry, resulting in storage at a bonded GO warehouse at the importer's expense.
GO status occurs when merchandise arrives at a U.S. port but lacks proper customs entry within the free period, often due to incomplete paperwork, failure to file entry or pay duties, or delays among importers and brokers.
Goods can be held in a GO warehouse for up to 6 months from the importation date, during which storage fees accrue daily. After this period, uncleared goods are considered abandoned and subject to auction or disposal.
Importers are responsible for transportation and storage fees, which can be high and escalate over time, along with potential penalties and demurrage charges. These costs can amount to thousands of dollars if the cargo remains uncleared for months.
Importers can monitor GO status through the CBP Automated Commercial Environment (ACE) portal or by contacting their customs broker to receive GO notices and updates.
To resolve GO shipments, importers should promptly file customs entry forms like CBP Form 3461, submit missing documentation, and pay any duties or fees to clear the cargo and avoid further storage charges.
Cargo uncleared after 6 months is deemed abandoned and is auctioned by CBP through online platforms or local sales, with proceeds covering fees; perishable or prohibited items may be destroyed or donated.
