Free of Duty (CBP Shipment Type)
Last updated 27 June 2026
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| This article is part of the Shipment Release Types Guide |
A Free of Duty shipment, also known by its corresponding form, CBP Form 7523, is a U.S. Shipment Type for goods to clear through U.S. Customs and Border Protection and ACE Manifest.
Training video: How to create a Free of Duty shipment in ACE using BorderConnect.
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.[1]
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.
Declaring a Free of Duty Shipment in ACE Manifest
To report a Free of Duty shipment in BorderConnect, create an ACE Shipment with the Shipment Type Free of Duty. Depending on the software or CBP documentation, this may also be called CBP Form 7523.
Although a Free of Duty shipment is different from a PAPS shipment, the carrier still needs to provide a unique Shipment Control Number, as well as the other information normally required for an ACE Shipment, including shipper, consignee, and commodity information.
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.[2] Carriers should follow current CBP, broker, importer, and port instructions for whether and how the shipment is transmitted in ACE.
At the Border
At the border, the driver should be prepared to present:
- the barcoded ACE lead sheet or other ACE trip documentation;
- a completed CBP Form 7523 in duplicate; and
- any supporting evidence requested by CBP to show the right to make free entry.
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.[3]
Who May Make the Informal Entry
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.[4] Carriers should not assume that a broker is prohibited from being involved.