Any company that imports into the United States must comply with the Customs Modernization Act (1993). Also known as the “Mod Act,” this law forever altered the relationship between importers and exporters and the U.S. Customs and Border Protection (CBP) Agency. Before the act, importers relied upon the actions of Customs to declare value, classify and assess duties on imported merchandise. But after it, importers were made legally responsible for valuation, classification and rate of duty applied to entered merchandise.
What was the effect?
Like many new laws, the language in the Mod Act was ambiguous, perhaps deliberately so. It speaks of companies using “reasonable care” with regard to the merchandise they import. When importers do not abide by this “reasonable care” guideline, their transactions are often delayed due to incorrect, inaccurate, or missing documentation.
But dilatory tactics are not the only weapon the CBP has at its disposal. They can also assess fines and penalties at their discretion. In some cases, the imported merchandise is forfeited and sent back to the exporter. What are importers to do?
For huge, multinational corporations, the answer is easy. They simply hire a licensed customs broker of trade compliance consultant, or a team of them, and keep them on staff. But for small companies it is not that easy. Few of them can afford to hire a full-time broker trade compliance consultant.
Smaller firms can avail themselves of the services of an import trade compliance consultant, who will assess their current level of compliance and recommend the most effective and affordable practices that will ensure their compliance with the CBP. What are the benefits?
Import compliance consulting can help any firm reduce the cost of imported items, eliminate holds or delays on imported merchandise, and minimize fines and penalties associated with noncompliance on imports and exports.
James M. Anzalone is the president of a firm that provides global trade compliance solutions to businesses of all sizes. Compliance Assurance LLC focuses on import compliance consulting in the United States. With over 17 years of experience, Mr. Anzalone has personally developed a number of programs that have made attaining comprehensive compliance much easier and more affordable for his clients.
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