When an FBA first-leg customs detention occurs, the key is to first clarify the reason for the detention with your freight forwarder, logistics provider, or customs broker. Intellectual property and document issues are the two most common types. Targeted first-aid solutions must be developed and implemented quickly to minimize cargo detention costs (such as storage fees and port demurrage) and the impact on store inventory.
- First, clarify the reason for the detention: Initiate “Information Verification” as the first step
After a customs detention, do not proceed blindly. The first step must be to obtain official detention documentation:
Through your first-leg logistics provider or local customs broker, request a “Detention Notice” or “Inspection Notice” from the customs of the importing country. This should clearly state whether the detention is due to “intellectual property infringement” (such as trademark, patent, or copyright issues) or “document discrepancies/missing” (such as incomplete invoices, certificates of origin, or certification documents).
Note: Customs procedures vary by country (for example, the US CBP will issue a “detention notice,” while EU customs will specify a “non-compliance reason code”). Be sure to obtain written documentation to avoid relying solely on the logistics provider’s verbal description.
II. First-Aid Solution for Intellectual Property Issues: Proving “Compliance” or “Reconciliation”
Intellectual property detentions are often caused by goods involving trademark infringement (such as counterfeiting well-known brand logos), patent infringement (such as conflicts between design/utility patents), or copyright infringement (such as unauthorized printed materials or film and television peripherals). The key to resolving these issues is proving “legal use” to customs, or promptly stopping losses if infringement is established.
- If the goods are “accidentally detained”: Submit “Compliance Documents” promptly.
If the goods are legally authorized (e.g., through a brand agent or with a proprietary trademark/patent), the following documents must be submitted within the customs timeframe (usually 3-7 days):
Proof of Rights: For proprietary trademarks, provide a trademark registration certificate (must cover the importing country); for agent products, provide a “Letter of Authorization” issued by the brand (must specify the scope of authorization, validity period, and product model); for patented products, provide the patent certificate for the importing country and receipt of annual fee payment.
Proof of Goods’ Relevance: Provide the product purchase contract, invoice (must indicate brand/patent information), and product images (clearly showing the trademark/design, corresponding to the Proof of Rights) to prove that the goods are consistent with the authorized terms.
Supplementary Explanatory Letter: Prepared with the assistance of the customs broker, this letter explains the compliance of the goods and includes a summary of the Proof of Rights, requesting customs review and release.
For example, if US FBA shipments are detained for suspected trademark infringement, if the US trademark is registered, the applicant must submit a USPTO trademark certificate, a brand authorization letter (if the shipment is operated by an agent), and photos of the product with the trademark. The customs broker will then communicate with CBP for review, and the shipment will typically be released within 3-5 days.
- If Infringement is Confirmed: Stop the Loss Immediately to Avoid Further Penalties
If the shipments do indeed use someone else’s intellectual property without authorization (e.g., the factory concealed the infringement when supplying the goods), take decisive action to avoid customs fines or legal action:
Abandoning the Goods: If the value of the goods is low (less than the demurrage fee plus the fine), apply directly to customs through the customs broker for “abandonment” and sign a “Abandonment Declaration” to avoid high detention fees due to refusal to process the goods.
Negotiating a Settlement: If the value of the goods is high, contact the intellectual property rights holder through the customs broker (customs will usually provide the rights holder’s information), negotiate a settlement payment, and obtain a “Letter of Understanding.” Submit this to customs for release (however, the settlement cost may be high, so consider the cost-effectiveness). Responsibility Tracking: Preserve contracts and communication records with suppliers, and subsequently hold the factory accountable for compensation for detention fees, abandoned goods, and other losses.
Warning: Some countries (such as the EU and Japan) impose strict penalties for intellectual property infringement. Not only will goods be detained, but sellers may also be fined 1-3 times the value of the goods, and even have their future customs clearance eligibility restricted. Avoid the temptation to “muddle through.”
III. First-Aid Solution for Document Issues: “Complete Documents” or “Explain”
Document issues are a frequent cause of customs detention. Essentially, customs cannot verify cargo information (such as value, origin, and safety) through documents. The key to resolving this issue is to complete the documents or provide a reasonable explanation as required by customs. Common document issues and their solutions are as follows:
- Missing/Discordant Basic Documents (Invoice, Packing List, Bill of Lading)
Missing Documents: If you forgot to provide a commercial invoice or omitted the product model/quantity on the packing list, you must immediately re-produce the correct documents.
The commercial invoice must be marked “For Customs Clearance” and include the buyer and seller information, product name (in both Chinese and English), HS code, quantity, unit price, total price, and currency. It must be consistent with the bill of lading and packing list. The packing list must clearly list the product details, weight, and volume of each outer box.
When submitting the document, the customs broker should indicate “Correcting Documents” and explain the reason for the omission to customs (e.g., “Operational error resulted in the invoice not being included with the goods”). This typically takes 1-3 days to resolve.
Discrepancies: If the invoice amount differs significantly from the market price (e.g., understated value to avoid tax), or the consignee information on the bill of lading is inconsistent with the customs clearance documents, corrections must be made based on the reasons:
In cases of understated value, a new, authentic invoice must be provided, along with the purchase contract to prove the reasonableness of the price. If customs raises concerns, additional tax and a fine may be required before release. If the consignee information is incorrect, contact the shipping company to amend the bill of lading (by issuing a “Bill of Lading Amendment Guarantee”) and then submit it to customs for review.
- Missing Special Documents (Certification Documents, Certificate of Origin, Fumigation Certificate)
Some products require special documents for customs clearance. If missing, you must obtain specific replacement documents:
Product Certification Documents: For electronic products (FCC certification is required in the US, CE certification is required in the EU) and children’s products (CPSC certification is required in the US), you must request the corresponding certification from the supplier (it must be valid and cover the product model). If these are unavailable, you can apply for a “temporary exemption” (some countries allow this for small quantities) or simply abandon the product (renewal of certification takes a long time, usually 1-2 weeks, and you may miss the sales window).
Certificate of Origin: For goods exported to the EU to enjoy tariff concessions, a Form A Certificate of Origin is required; for goods exported to ASEAN, a Form E Certificate of Origin is required. If missing, you can contact the local Entry-Exit Inspection and Quarantine Bureau for expedited processing (usually 1-2 business days). After submitting this to customs, customs clearance will proceed normally.
Fumigation Certificate: If wooden packaging (such as wooden boxes or pallets) has not been fumigated, you must report the situation to customs. If the goods have already arrived at the port, you can apply for a fumigation certificate at the designated location at the port. If they have not arrived, you can contact the port of departure to obtain a certificate and mail it to the customs broker.
- Incorrect Declaration Elements (HS Code, Goods Description)
Incorrect HS codes can lead to customs misclassification of goods (e.g., misclassifying “headphones” as “speakers”). Correction is required immediately:
Provide a detailed product description (including materials, functions, and intended use). The customs broker will assist in verifying the correct HS code and issuing a “HS Code Correction Note.” Attach the corresponding customs tariff clause to justify the correction.
If a tax rate difference is caused by an incorrect HS code, the difference must be paid before customs clearance.
IV. General First Aid Precautions: Minimizing Additional Losses
Pay close attention to timeliness and avoid detention fees: After customs detention, demurrage (port storage) and container fees (container occupancy) will incur daily. It is important to monitor the progress of the logistics provider/customs broker daily to avoid doubling costs due to delays (for example, demurrage fees at the Port of Long Beach in the United States can reach $50-100 per container per day).
Prioritize “reputable customs brokers”: If your logistics partner has weak customs clearance capabilities, you can temporarily switch to a qualified local broker (such as A.N. Deringer in the United States or DHL Global Forwarding in the United Kingdom). These brokers have better communication with customs and can shorten processing times.
Synchronize FBA inventory adjustments: If the detention lasts for more than 7 days, immediately initiate an emergency restocking plan (such as airfreighting a small amount of goods) to avoid stockouts. If it is determined that the goods cannot be released, promptly adjust the inventory status on the Amazon backend to prevent overselling.
Review the situation afterward to prevent recurrence: After resolving the detention issue, identify the causes (such as unverified intellectual property rights or omissions in documentation processes) and establish a pre-shipment checklist. Regarding intellectual property rights, require suppliers to provide proof of rights; regarding documentation, have a dedicated person verify invoices, certification documents, and HS codes to mitigate customs clearance risks at the source.
Finally, a reminder: Customs clearance regulations vary across countries (for example, Middle Eastern customs have extremely high requirements for document integrity, while Canada strictly enforces under-declaration of value). Before shipping, be sure to clarify the “documentation and compliance requirements of the importing country” with your logistics provider or customs broker. Preventive measures are far more effective than emergency response.
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