When should I use Free of Duty (7523) as Shipment Type?

When should I use Free of Duty (7523) as Shipment Type?

A Free of Duty Shipment, known for its corresponding form, CBP Form 7523, is a U.S. Shipment Type for goods to clear through US Customs and Border Protection. It is a type of Informal Entry that allows for the release at the border of shipments consisting of merchandise that is unconditionally or conditionally duty free and not exceeding 2500 USD in value.

To qualify as a Free of Duty Shipment, the goods must not exceed 2500 USD in value and must be either unconditionally duty free and not subject to any quota or internal revenue tax, or conditionally duty free with all conditions met at the time of entry. Because the carrier would not normally be in a position to make these determinations it is important that the carrier rely on the importer or their customs broker to advise if Free of Duty should be the shipment type.