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Pro-active measures importers can take
September 28, 2007

Yesterday I was part of a teleconference with several high ranking Customs & Border Protection people and attorneys. The topic was: Customs-A New Era of Enforcement. One of the issues we spoke of was pro-active measures importers can take to limit potential liabilities and demonstrate exercising reasonable care. I would like to share them with you:

1)Conduct an annual review of your import compliance program
2)Utilize the ITRAC data (entry data) via the Freedom of Information Act. This is where Customs obtains their information for audits, Focused Assessment reviews, etc.
3)Issue broker management guidelines
4)Design and utilize a pre-entry check list covering such items as invoice description, classification, valuation, origin, special trade programs, etc. Obtain binding rulings.
5)Perform periodic post entry audits & reviews
6)Periodically check your general ledger and/or chart of accounts for assists, royalties, commissions which should be declared on the entry
7)Establish a harmonized tariff database containing sufficient and complete descriptions of your items
8)Establish an import compliance program with an import compliance manager. Draft a compliance manual.
9)Do not assume that “duty free” means there are no compliance issues.
10)Visit the Customs web site frequently


Additional comments offered were:
Consider filing a prior disclosure if/when errors are found. Be sure to reply to all CF28’s (Requests for Information) and to choose Customs experts carefully. Get correspondence between you and your expert in writing.

Charles Spoto
Compliance Officer