You’re an importer and your shipment is on the water to the final destination. Once it arrives, you
get a notification that your shipment has some holds and cannot be released. For many that is
the last thing you want to see.

Many importers come across exam hold or custom hold closer to the arrival of their shipments.
One of the important things to remember is that these custom holds are not in control of your
assigned freight broker. These holds are controlled by the Custom and Border Protection (CBP)
who authorizes the hold to examine any shipments coming into the United States. The cost of
any custom hold, exam fees, movement to exam site, demurrage, etc are all costs that can
occur and the importer is responsible for those fees.

The reason for these custom holds are not disclosed by the CBP for numerous reasons and
many shipments are placed on hold daily. Many reasons can trigger your shipment to be placed
on hold such as the commodity being imported, incorrect information on BL or markings, country
of origin, the shipper, or the buyer. These examinations are selected randomly and for many first
time importers your shipment may be subject to these holds to build credibility. Often when
customs places your shipment on hold, there is nothing you can do to get out of it.

Two common types of hold are the U.S. Food and Drug Administration (FDA Hold) and U.S.
Customs and Border Protection (CBP). Let’s discuss these a bit more in depth to gain full
understanding.

So, what is a FDA Hold?

The FDA is responsible for overseeing all cargo that imports into the United States containing all
food items, beverages, cosmetics, medicines or supplements, medical devices, and other
similar products. Some of the reasons for FDA hold could be due to lack of approvals required,
mislabelling or false information, safety concerns, or processing and packing violations.

The key types of FDA hold are :

● Detention – This is a temporary hold. For this FDA hold, the FDA may ask for more
documentation to make sure the product is compliant.
● Alert – This is a more serious type of hold often a result of a product or company with a
history of violation. This FDA hold can place future shipments on hold without having to
test and physically examine the product. FDA refers to this as detention without physical
exam, or DWPE.
● Refusal – this a final decision to not allow the product to enter the US due to product
safety or compliant issues. In this case, the product needs to be exported or destroyed.
The importer is responsible for all costs associated with these FDA holds.

Now that you understand FDA, what is a custom hold?

The most common custom hold that importers come across is the U.S Custom and Border
Protection hold (CBP Hold). They monitor everything that comes into the United States. Your
shipments may be placed on custom hold due to missing or incorrect documentation, trade
restrictions, unpaid duties, or just for a security check.

Below are the common hold you will come across when orders are placed on custom hold :

● Manifest Hold – the CBP will want to review documentation and verify the detailed before
cargo is unloaded. This hold is placed when documents are missing information,
incorrect details are provided in the manifest, or Importer Security Filing (ISF)
issues/delays.

● Exam Hold – this is when the shipment is pulled for inspection. There are different types
of inspections such as X-Ray Exam, tailgate exam.

● Intensive Exam Hold – is the most costly and most time consuming. This is when the
container is moved to an Centralized Examination Station (CES), an exam site, where it
will be completely unloaded and examined thoroughly.

Sometimes, you may notice a PGA hold along with your custom hold. Partner Government
Agency, or PGA hold occur when other agencies such as FDA, USDA, CPSC also require
separate review to make sure that the product meets all safety and health regulations.

Final thoughts

Custom holds of any type can seem alarming for many importers. Having the right team to help
guide you along the journey is very important. These holds are placed to ensure safety to us all
in the United States and to impose regulations on the products being imported.

Our team at Terralink Logistics specializes in helping businesses understand the rules and
regulations of products. We work to make sure all holds are resolved, and proper
communication is there to ensure that all parties remain informed throughout the process of ocean freight, Air Freight & FTL shipping.

Our reliable carriers are there to make sure that shipments that are released from FDA hold,
custom hold, or any other holds are picked up quickly to avoid further cost.

Reach out to us today at Terralink Logistics and let us be your trusted partner.