Understanding General Orders (GOs)
A General Order (GO) refers to the status assigned to imported goods that have not been cleared through customs typically due to missing documentation or non-payment of duties and fees. If goods are not claimed or cleared within 15 days of arrival, they are moved to a Class 11 bonded warehouse, as mandated by U.S. Customs regulations. The GO status can lead to various outcomes, including auction, seizure, or donation if the items continue to remain unclaimed after six months.
Key Details of General Order
- Initial Period: Goods are held if not cleared within 15 days.
- Storage: They are stored in a Class 11 bonded warehouse.
- Long-term Fate: After six months, possibilities include government seizure or public auction.
The Auction Process
The U.S. Customs and Border Protection (CBP) manages and conducts auctions for GO merchandise which may include anything from luxury cars to household goods. These auctions, held monthly, are open to the public except for CBP employees and their families. A notable feature of these auctions is the compulsory $5,000 deposit required to participate, emphasizing the serious nature of these transactions.
Implications for Businesses and Individuals
Understanding the rules governing General Orders is crucial for importers and exporters to avoid unnecessary delays and additional costs. Proper documentation and timely action can prevent goods from falling into the cumbersome GO process.
Real-World Example: From Luxury Cars to Quilts
In a notable auction during February 2016, a wide array of items including luxury vehicles like a 2011 Mercedes Benz ML350 and everyday items like quilts and lamps were auctioned off after spending over six months in a General Order status. This demonstrates the variety and unpredictability of goods that can end up under General Order.
Related Terms
- Bonded Warehouse: A secure space where imported goods are stored, awaiting customs clearance.
- Customs Duties: Taxes imposed on imports and exports requiring payment before goods clearance.
- Import Documentation: Necessary paperwork that must accompany imported goods, specifying nature, quantity, and destination.
Further Reading
For those intrigued by the nuances of international trade and customs procedures, consider delving into:
- “International Trade: An Essential Guide to the Principles and Practice of Export” by Jonathan Reuvid.
- “Customs & Customs Brokerage” by Robert R. Bowker, which explores the intricacies of U.S. customs regulations.
In this complex ballet of bureaucracy, General Orders play a crucial role, ensuring compliance and proper entry of goods into the economic orchestra of nations. Whether you are an importer caught in the GO limbo or an auction enthusiast looking for a deal on a luxury sedan, understanding this process is vital. Keep your paperwork in order and perhaps keep an eye on the next public auction — you never know when a six-month-old Mercedes might just roll on the auction block!
