What Is a 1H Customs Hold? Causes, Clearance, and Costs

A 1H customs hold is a manual block that a U.S. Customs and Border Protection officer places on your shipment at the port of discharge, and it stops your cargo from being released until CBP is satisfied with whatever it flagged. It is not a seizure. Most 1H holds clear within a few days to a couple of weeks once you or your broker respond, but storage, demurrage, and exam charges start running immediately, so speed matters more than importers usually expect.

What the 1H Code Means in ACE

Inside CBP’s Automated Commercial Environment, every hold carries a disposition code. The 1H code specifically indicates that a CBP officer manually placed a hold at the port of discharge or port of export. Once posted, the bill status changes to “HELD” and the cargo cannot move until CBP removes the hold.¹ The word “manually” matters. Automated system flags produce different codes; a 1H means a human officer reviewed something and decided your shipment needed a closer look.

CBP draws a distinction between two hold categories in its own rulemaking. A 1H enforcement hold comes from a risk assessment. A 2H documentation hold comes from problems with the data itself, such as vague cargo descriptions or unverifiable information.² Many carrier tracking pages just say “1H” without telling you which category actually applies, so the first job is figuring out which one you are dealing with.

Why CBP Places a 1H Hold

The reasons range from simple paperwork errors to genuine enforcement concerns.

Vague or inaccurate cargo descriptions. CBP cannot assess risk on cargo described as “general merchandise” or “assorted goods,” and non-descriptive or insufficient data is one of the most common triggers.²
Incorrect Harmonized Tariff Schedule classification. Even an honest classification mistake can flag a shipment for review.
Missing or late Importer Security Filing. Ocean shipments to the U.S. require an ISF at least 24 hours before cargo is loaded. A late, incomplete, or inaccurate filing can trigger a hold and a penalty of $5,000 per violation.³
Risk assessment flags. CBP screens for weapons, narcotics, currency, and export-controlled goods. An enforcement hold means CBP wants to inspect or further review the shipment before it moves.²
Value discrepancies. A declared value that looks unusually low for the goods and quantity often prompts a verification hold.
Unpaid duties or bond issues. Commercial imports valued over $2,500 generally require a customs bond, and unpaid duties or a missing bond will keep the shipment locked.
Restricted or prohibited goods. Items that need special permits or licenses, or that are banned outright, will stay held until the issue is resolved or the goods are seized.

How Long a 1H Hold Lasts

The realistic answer depends on the underlying reason. A paperwork correction can clear in two or three business days. A physical exam at a Centralized Examination Station usually takes five to seven days. An enforcement issue can stretch longer.

Federal law does set outer limits. Once your merchandise is presented for customs examination, CBP has five business days to decide whether to release it or formally detain it. If CBP does not act inside that window, the shipment is treated as detained by operation of law. Once detained, CBP must issue a written notice and then has 30 days to release the goods or begin seizure proceedings. If neither happens within those 30 days, the goods are treated as excluded from entry, which gives you a right to file an administrative challenge.⁴

These deadlines matter because they mark when CBP’s silence starts working in your favor. If you are past the five-business-day mark with no communication, your broker should be pressing CBP for a status.

How to Clear a 1H Hold

Find Out What CBP Is Asking For

Start with the carrier’s tracking page. FedEx, UPS, DHL, and freight carriers display hold codes and sometimes additional instructions. If tracking only says “customs hold,” you need someone who can pull the ACE status. For parcel shipments, the carrier’s customer service line is the fastest path. For freight, your customs broker or freight forwarder can see the exact hold code and CBP’s request.

Submit the Requested Documents Fast

CBP’s Manifest Examination Team reviews manifested information and asks for supporting documentation when needed.⁵ What CBP wants depends on the hold’s reason, but common requests include a commercial invoice showing the transaction value, a detailed packing list, proof of purchase, any required import license or permit, and product safety certifications.

Every day cargo sits, storage and demurrage add up. Have your supplier ready to send documents on short notice, ideally before the shipment arrives. Submit through whatever channel the carrier or broker specifies, usually email or an upload portal.

Pay Outstanding Duties or Fees

If the hold ties back to unpaid duties, taxes, or an insufficient bond, nothing moves until the money is settled. Your broker can calculate the amount and process payment through ACE. For unexpected duty assessments, ask for a breakdown before paying. You keep the right to challenge an incorrect classification or valuation later through the protest process.

When to Use a Customs Broker

For commercial imports, a licensed customs broker is almost always worth the fee. Brokers typically charge between $125 and $300 per entry for filing, with complex situations costing more. You are paying for someone who can file or correct entries in ACE and respond to a hold the same day it posts, instead of after three days of trying to reach the right person.

A broker matters most when a 1H hold involves a risk-based enforcement referral. The data transmitter, which can be your broker, is responsible for responding, and all transmitters must cooperate fully when contacted by CBP about a hold.² For a one-off personal import you may not need a broker, but even a single consultation can save you days of waiting and hundreds of dollars in accumulated fees.

What a Hold Costs You While Cargo Sits

The hold itself carries no fee, but the clock starts on several charges the moment cargo stops moving.

Demurrage

Demurrage is what ocean terminals charge when a container sits past its free-time allowance, usually a few days after vessel discharge. Rates vary by port and carrier. As one benchmark, a major ocean carrier’s 2026 U.S. tariff charges between $285 and $770 per container per day depending on the port, container type, and how long the container has been sitting.⁶ Rates escalate in tiers, so the longer cargo sits, the higher the daily rate climbs. A two-week hold at a busy port can produce several thousand dollars in demurrage alone.

Exam and Handling Fees

If CBP orders a physical exam, your container moves to a Centralized Examination Station where workers unload and reload it. You pay for that handling, not CBP. Exam fees for a full-size container commonly run between roughly $1,000 and $1,400, with more for refrigerated containers or floor-loaded freight. Facility fees, chassis fees, and minimums for smaller shipments add to the total. Fees vary by CES location.

General Order Warehouse

If cargo stays unentered, meaning no one files the proper paperwork or pays the required duties, CBP can transfer it to a general order warehouse at the consignee’s expense. This happens when entry has not been made within the time allowed by law, when estimated duties are not paid, or when proper documents are not available.⁷ Goods in general order accumulate storage at the warehouse’s standard rates, and you must clear those charges before you can retrieve the merchandise. If the goods stay unclaimed for six months, CBP can sell them at auction.

Penalties When the Hold Uncovers a Real Problem

A 1H hold that turns up nothing more than a typo will not generate penalties. Federal law specifically exempts clerical errors and honest mistakes from the penalty framework, as long as they are not part of a pattern of carelessness.⁸ When the problem is more substantial, civil penalties scale with the level of fault.

Negligence. The maximum is the lesser of the domestic value of the merchandise or two times the duties that should have been paid. If the error did not affect duties, the cap drops to 20 percent of the dutiable value.⁸
Gross negligence. The maximum is the lesser of the domestic value or four times the unpaid duties. Where duties were not affected, the cap is 40 percent of the dutiable value.⁸
Fraud. The penalty can reach the full domestic value of the merchandise.⁸

On top of any penalty, you owe the lawful duties and taxes that should have been paid in the first place. The gap between negligence and gross negligence often turns on whether you had reasonable internal controls, so a documented compliance process can keep a mistake in the lower tier.

If Your Goods Are Seized

Seizure is uncommon for a standard 1H hold and generally happens only when CBP finds prohibited items, fraudulent entries, or goods that violate intellectual property rights. Two paths exist to fight back.

Federal law allows anyone with an interest in seized property to file a petition asking CBP to return the goods or reduce the penalty. The petition must be filed before the seized property is sold.⁹ CBP can grant relief if the violation happened without willful negligence or intent to defraud, or when other circumstances justify leniency. The petition does not need a specific form, but it must describe the seized property, give the date and place of seizure, state the facts that justify relief, and prove your legitimate interest in the goods.¹⁰ Address it to the Fines, Penalties, and Forfeitures Officer named in the notice of claim.

You can also file a formal protest on CBP Form 19 when you disagree with a CBP decision such as an incorrect classification, an excessive duty assessment, or the exclusion of your goods. For entries made on or after December 18, 2004, you have 180 days from the date of the decision to file.¹¹ Protests can be filed electronically through ACE or on paper at the port of entry. The protest process lets you pay duties under protest, get your goods released, and challenge the classification or valuation afterward. Waiting for a perfect resolution before paying can mean weeks of added storage, so paying, protesting, and seeking a refund later is often the cheaper move.

1
U.S. Customs and Border Protection. ACE Appendix D Disposition Codes – March 2025
2
Federal Register. Automated Commercial Environment (ACE) Electronic Export Manifest for Rail Cargo
3
U.S. Customs and Border Protection. Import Security Filing (ISF) – When to Submit to CBP
4
Office of the Law Revision Counsel. 19 U.S. Code 1499 – Examination of Merchandise
5
U.S. Customs and Border Protection. What Is a Manifest Hold
6
Ocean Network Express. Notice of Demurrage Update
7
eCFR. 19 CFR Part 127 – General Order, Unclaimed, and Abandoned Merchandise
8
Office of the Law Revision Counsel. 19 U.S. Code 1592 – Penalties for Fraud, Gross Negligence, and Negligence
9
Office of the Law Revision Counsel. 19 U.S. Code 1618 – Remission or Mitigation of Penalties
10
eCFR. 19 CFR 171.1 – Petition for Relief
11
eCFR. 19 CFR Part 174, Subpart B – Protests