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A re-entry permit is a document issued to lawful permanent residents. It extends the validity of their green cards for use as an entry document from one year to two years. Ordinarily, if an LPR goes abroad, he or she may use their "green card" as a valid re-entry document for absences of less than 365 consecutive days. A re-entry permit extends this validity period to two years.
More importantly, by applying for a re-entry permit, a green card holder can explain in advance why his or her absence from the US is going to be temporary. This is important in that it helps preserve the green card holder's claim of non-abandonment.
Often an LPR with a re-entry permit who has been away from the U.S. for an extended period of time need do nothing more than present the re-entry permit upon arrival in order to be admitted without further questions. The same LPR, without a re-entry permit, typically will have to answer an extended series of questions and may even be sent to secondary inspection for further questioning.