In 1993, the Customs Modernization Act went into effect. This law sought to keep the international trade community informed of legal obligations to comply with the regulations of the U.S. Customs and Border Protection (CBP). One goal of the legislation was maximizing voluntary compliance with regulations. This act remains a cornerstone of
customs trade compliance for importers and exporters in the United States.
Importers and CBP Responsibilities
Under the Customs Modernization Act, the CBP and importers share an obligation to adhere to customs regulations. For example, the importer of record has to use "reasonable care" in entering, classifying, and determining monetary value of imports. The importer must also provide any other information needed by CBP to properly calculate duties, collect any necessary statistics, and determine if all applicable legal requirements have been met.
Prior Disclosure and Investigations
Whenever a CBP officer believes that a Customs violation has occurred, he or she records the relevant information in writing, marking the commencement of an investigation. For this reason, it is important that businesses disclose any potential violations as soon as possible after they are suspected. If such a disclosure is made before the CBP believes a violation has occurred the business may be treated with greater leniency than if no disclosure was made.
Licenses, Agreements, and Recordkeeping
Because of the possibility of a CBP investigation, it is absolutely critical that your international business keep employees up to date on the latest regulations that affect them. Many firms work with Customs trade compliance specialists to train employees and to ensure that adequate records are kept. Getting through a CBP investigation is much easier when a company can demonstrate it was taking reasonable care in compliance and has documentation supporting that claim.
The Customs Trade Compliance Specialist and Your Business
CBP is a law enforcement agency, but it wants to help businesses operate lawfully. Your company must demonstrate that it is taking all reasonable steps to ensure compliance. Working with a
customs trade compliance specialist not only helps you spot vulnerabilities early, it also shows the CBP that your company has made a good faith effort to remain compliant.
