A general order (GO) is a U.S. Customs and Border Protection (CBP) status for imported merchandise that cannot be cleared at the time of arrival because required paperwork, duties/fees, or other legal requirements are missing or incomplete. Goods placed under general order are held in a bonded facility until the importer resolves the problems. If uncleared for an extended period, they may be seized and either forfeited to the government or sold at public auction.
Key takeaways
– A GO is applied when imported goods are not properly documented, duties/fees/interest are unpaid, or other clearance requirements are unmet.
– Merchandise may be held under GO after 15 days at the port of arrival; it is then moved to a Class 11 bonded warehouse under 19 U.S.C. §1555.
– The importer (owner) remains financially responsible for transportation, storage, and risk while goods are in GO status.
– If goods remain uncleared for six months, CBP may seize them or make them eligible for auction.
– Ports/initial receivers must notify CBP within 20 days of arrival that items are unclaimed or incorrectly documented (failure to do so can bring penalties).
Legal framework and sources
– 19 CFR §123.10 — General Order Merchandise (regulates how merchandise is treated while under GO).
– 19 CFR §19.9 — General Order, Abandoned, and Seized Merchandise (procedures for abandonment, seizure, and disposition).
– 19 U.S.C. §1555 — Bonded Warehouses (authorizes moving GOs to bonded warehouses).
– CBP and third-party auction managers (e.g., CWS Asset Management & Sales) administer disposition and auction of eligible GO merchandise.
(References: 19 CFR §123.10; 19 CFR §19.9; 19 U.S.C. §1555; CWS Asset Management & Sales documentation; Investopedia summary.)
When and why merchandise becomes GO
Common triggers for GO status:
– Missing or incorrect customs paperwork (entry documentation, invoices, certificates).
– Duties, fees, or interest unpaid at time of entry.
– Incorrect or illegal invoicing (e.g., undervaluation, missing country of origin).
– Noncompliance with import regulations (restricted items, missing permits).
– No one claims or acts to clear the goods within the port’s timeframe.
Timeline and consequences
– Up to 15 days after arrival: CBP expects clearance; after 15 days uncleared goods may be deemed GO and moved to bonded storage.
– After 15 days: merchandise typically moved to a Class 11 bonded warehouse under 19 U.S.C. §1555.
– Six months: if still uncleared, the goods are subject to seizure and forfeiture or become eligible for auction.
– Port notification duty: the port of entry or first receiver must inform CBP within 20 days of arrival that items are unclaimed/incorrectly documented; failure can result in fines (historically up to $1,000).
Practical steps for importers to avoid GO status
1. Prepare complete documentation before shipment
• Commercial invoice with correct values and country of origin.
• Bill of lading/air waybill, packing lists, and any required permits/certificates (FDA, USDA, EPA, etc.).
2. Classify and value goods accurately
• Use the correct Harmonized Tariff Schedule (HTS) classification and declared value to calculate duties correctly.
3. Use an experienced customs broker or agent
• Grant power of attorney where appropriate so the broker can file entries and pay duties quickly.
4. Monitor shipments and arrival notifications
• Track ETA and respond promptly to customs or carrier requests.
5. Arrange timely payment of duties, fees, and taxes
• Ensure funds are available or use a broker’s continuous bond for multiple entries.
6. Know special rules for regulated goods
• Verify permits and compliance with agencies beyond CBP (e.g., FDA, Fish and Wildlife Service).
Practical steps if your goods have been placed under General Order
1. Identify the GO status and location
• Contact the port of entry or your customs broker to confirm GO status and the bonded warehouse housing the goods.
2. Obtain a copy of the CBP entry and list any deficiencies
• Determine why documentation was rejected or duties unpaid.
3. Cure the deficiencies quickly
• File missing entry paperwork, provide correct invoices/certificates, pay duties, penalties, storage, and interest.
4. Pay transportation, storage, and related charges
• The owner remains responsible for fees while goods are in bonded storage.
5. Work with CBP and the bonded warehouse
• Coordinate inspections, release processing, and pick-up logistics.
6. If you cannot or will not reclaim the goods
• Consider legally abandoning the shipment to CBP (follow 19 CFR §19.9 procedures) to avoid ongoing fees; abandoned goods may be auctioned by CBP.
If goods remain uncleared: auctions and forfeiture
– After six months, goods left uncleared are subject to seizure/forfeiture or made available for public auction.
– CBP auctions occur online nationwide and at local venues; auctions are open to the public except CBP employees and immediate families.
– Auction participants typically must register and often provide a deposit (historically some auctions have required a $5,000 deposit—details vary by auctioneer/lot).
– Purchases are usually nonrefundable; buyers are responsible for pickup, removal, and any further customs obligations.
– Check the auction manager’s terms (e.g., CWS Asset Management & Sales) for registration, deposit, and pickup rules.
Practical steps for buyers interested in GO auctions
1. Sign up with the designated auction platform and review auction rules.
2. Inspect available lists/images of merchandise (many auctions publish lot lists online).
3. Arrange required deposit and understand refundable vs. nonrefundable terms.
4. If you win, plan for removal and transport from the bonded warehouse (timelines and fees apply).
5. Be prepared to pay any applicable duties, taxes, or compliance costs if goods must be exported or reimported.
Liability and risk
– Risk of loss or damage while goods are in GO status remains with the importer/owner.
– Storage and handling fees accrue to the owner until the merchandise is cleared, legally abandoned, seized, or sold.
– Ports or initial receivers that fail to notify CBP as required may face administrative penalties.
Real-world example (illustrative)
CBP periodically runs nationwide online auctions of GO merchandise that has been moved to bonded warehouses after six months. For example, in February 2017 CBP held an online auction of abandoned GO merchandise. Auction lists can include a wide array of goods; bids require registration and deposits, and buyers are responsible for removal and all costs.
Resources and references
– 19 C.F.R. §123.10 — General Order Merchandise. (Code of Federal Regulations)
– 19 C.F.R. §19.9 — General Order, Abandoned, and Seized Merchandise. (Code of Federal Regulations)
– 19 U.S.C. §1555 — Bonded Warehouses. (United States Code)
– CWS Asset Management & Sales — FAQs and Bid Results for U.S. Customs GO Merchandise (example auction manager; check current auctioneer for up-to-date terms).
– Investopedia — “General Order (GO)” overview (summary and practical notes).
Note and disclaimer
This article is an informational overview and not legal advice. Importers with GO issues should consult a licensed customs broker, a trade attorney, or contact the CBP port of entry for guidance specific to their shipment and current regulations.