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Free of Duty (CBP Shipment Type)

Last updated 20 July 2026

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This article is part of the Shipment Release Types Guide
A CBP Form 7523, used for a Free of Duty shipment.

A Free of Duty shipment, also known by its corresponding form, CBP Form 7523, is a U.S. Shipment Type used in U.S. Customs and Border Protection (CBP) and ACE Manifest reporting for qualifying merchandise that may be entered free of duty. CBP lists CBP Form 7523 as the Entry and Manifest of Merchandise Free of Duty, Carrier's Certificate and Release, and states that the form remains valid for use.[1]

CBP Form 7523 is used for certain informal entries of merchandise free of duty. Under 19 CFR 143.23, shipments not exceeding $2,500 in value may be released on CBP Form 7523 when they are either unconditionally free of duty and not subject to quota or internal revenue tax, or conditionally free of duty and all conditions for free entry are met at the time of entry.[2]

Because the carrier usually cannot determine tariff treatment, duty-free eligibility, quota status, internal revenue tax, or whether all conditions for free entry are met, the carrier should rely on the importer, owner, purchaser, consignee, or their designated customs broker to confirm whether Free of Duty is the correct shipment type.

Video Tutorial

How to create a Free of Duty shipment in ACE using BorderConnect

When to Use

Use Free of Duty when the importer, broker, or CBP has confirmed that the shipment qualifies for CBP Form 7523 handling. This is generally for qualifying informal entries of merchandise that are free of duty and meet the applicable value and eligibility requirements.

Free of Duty is not the same as a standard PAPS shipment. PAPS is the normal broker-entry process for many commercial imports, while Free of Duty is tied to a specific CBP form and duty-free informal entry conditions.

Do not choose Free of Duty simply because the shipment is low value. The shipment must meet CBP Form 7523 requirements, and the importer or customs broker should confirm that Free of Duty is the correct process.

Declaring in BorderConnect

To report a Free of Duty shipment in BorderConnect, create an ACE Shipment with the Shipment Type Free of Duty. Depending on the software screen or CBP documentation, this may also be called CBP Form 7523.

Entering a Free of Duty shipment in BorderConnect.

Although a Free of Duty shipment is different from a PAPS shipment, the carrier still needs to provide a unique Shipment Control Number. The ACE shipment should also include the other information normally required for an ACE shipment, including shipper, consignee, commodity description, quantity, and weight.

CBP's truck manifest implementation guidance includes CBP Form 7523 as a truck manifest shipment release type and notes that the paper CBP Form 7523 must be presented.[3] Carriers should follow current CBP, broker, importer, and port instructions for whether and how the shipment is transmitted in ACE.

BorderConnect Workflow

In BorderConnect, the Free of Duty shipment type is selected when creating or editing the ACE shipment. The carrier should complete the shipment details, attach the shipment to the ACE Manifest trip, and then sync or transmit the manifest to CBP.

A typical workflow is:

  1. Start or open the ACE Manifest.
  2. Create a new ACE shipment.
  3. Select Free of Duty as the shipment type.
  4. Enter a unique Shipment Control Number.
  5. Add the shipper, consignee, and commodity details.
  6. Save the shipment.
  7. Attach the shipment to the ACE trip.
  8. Sync the ACE Manifest with CBP.
  9. Confirm that the manifest is accepted before the driver arrives.

The driver should still carry the completed CBP Form 7523 and any supporting documents required by CBP. The ACE Manifest transmission does not replace the need to present paperwork when CBP or the port requires it.

At the Border

At the border, the driver should be prepared to present the barcoded ACE lead sheet or other ACE trip documentation. The driver should also have a completed CBP Form 7523 in duplicate and any supporting evidence requested by CBP to show the right to make free entry.

CBP regulations allow CBP Form 7523 to be filed in duplicate, supported by evidence of the right to make entry, for qualifying shipments.[2] CBP regulations also allow CBP Form 7523 to be used as the inward foreign manifest in certain special cases for merchandise free of duty arriving from Canada or Mexico.[4]

Who May File

For informal entries, CBP regulations allow entry by the owner or purchaser of the shipment, or by a customs broker when properly designated by the owner, purchaser, or consignee.[5] Carriers should not assume that a broker is prohibited from being involved.

The carrier's role is usually to report the shipment correctly on the ACE Manifest and ensure the driver has the required paperwork. The importer or broker should confirm duty-free eligibility and prepare or approve the entry documentation.

Common Mistakes

  • Using Free of Duty for a shipment that should be filed as PAPS.
  • Selecting Free of Duty without confirmation from the importer or broker.
  • Forgetting to provide a unique Shipment Control Number.
  • Sending the driver without the completed CBP Form 7523.
  • Assuming low value automatically means Free of Duty.
  • Failing to include complete shipper, consignee, and commodity details.
  • Not confirming port-specific instructions before the driver arrives.

References

  1. ↑ CBP Form 7523: Entry and Manifest of Merchandise Free of Duty, Carrier's Certificate and Release
  2. ↑ 2.0 2.1 19 CFR 143.23: Form of entry
  3. ↑ ACE ANSI X12 Truck 309 Manifest Message Implementation Guide
  4. ↑ 19 CFR 123.4: Inward foreign manifest forms to be used
  5. ↑ 19 CFR 143.26: Party who may make informal entry of merchandise
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