The Dynamics of General Orders in Imports: Definition, Risks, and Auction Examples
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Summary:
Explore the intricate details of general orders (GOs) in the realm of imports. Uncover why goods end up under general order, the consequences they face, and the auction process orchestrated by U.S. Customs and Border Protection. This comprehensive guide navigates through the procedures, risks, and real-world examples, shedding light on the significance of complying with customs regulations.
What is a general order (GO)?
A general order (GO) is a status assigned to imported goods lacking proper documentation or experiencing delays in customs clearance. This designation is given when duties, fees, or interest remain unpaid, customs paperwork is incomplete, or invoicing is incorrect or illegal. Goods may be held under general order if they remain uncleared for more than 15 days.
Understanding general orders (GOs)
After 15 days, general order merchandise is moved to a Class 11 bonded warehouse under the authority outlined in Title 19, United States Code (U.S.C.), section 1555. The owner remains responsible for the risk of transportation and storage of the goods.
Confiscation or auction
If goods stay under general order for more than six months, the government may confiscate them or auction them off. Auctions are conducted by the U.S. Customs and Border Protection (CBP) agency, occurring monthly online nationwide or locally at public spaces near ports. Bidders, excluding CBP employees and their families, must place a $5,000 deposit, and purchases are nonrefundable.
Risks and consequences
The risks associated with general orders include potential financial loss for unclaimed merchandise and the complexity of the auction process. Bidders should carefully consider the deposit requirements and understand that purchases are nonrefundable.
Reporting to U.S. Customs
The port of entry or receiving company must inform U.S. Customs within 20 days of the arrival of unclaimed or incorrectly documented items. Failure to report may result in fines of up to $1,000.
Real-world example of a general order
On February 16-17, 2017, CBP conducted a nationwide online auction for general order merchandise abandoned at ports and moved to bonded warehouses. After six months, the merchandise became eligible for auction and included items like a 2011 Mercedes Benz ML350, 2011 Ford Fusion, clothing, quilts, mirrors, toy cars, and more.
Frequently asked questions
Why are goods placed under general order?
Goods are placed under general order when they lack proper documentation, face delays in customs clearance, or remain uncleared for more than 15 days.
Can anyone participate in U.S. Customs auctions?
Yes, auctions are open to anyone except CBP employees and their immediate family members. Participants must place a $5,000 deposit, and purchases are nonrefundable.
What happens if the port of entry fails to report unclaimed items to U.S. Customs within 20 days?
If the port of entry fails to report unclaimed or incorrectly documented items within 20 days, they may be subject to fines of up to $1,000.
Are there any restrictions on the types of items that can be auctioned by U.S. Customs?
U.S. Customs auctions include a wide range of abandoned merchandise, but certain hazardous or illegal items may be excluded. It’s crucial to check specific guidelines and restrictions provided by U.S. Customs and Border Protection.
What are the responsibilities of the owner once goods are under general order?
Once goods are under general order, the owner is responsible for the risk of transportation and storage. It’s essential to adhere to customs regulations, complete necessary paperwork, and ensure timely clearance to avoid additional complications.
Key takeaways
- Goods unclaimed within 15 days are classified as general order (GO).
- After 15 days, they move to a Class 11 bonded warehouse.
- Goods under general order for over six months may face confiscation or auction.
- U.S. Customs auctions include a wide range of abandoned merchandise.
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