CUSTOMS COMPLIANCE

When goods are imported into the United States they are subject to a rate of “duty” (tax on imported goods). Tariff classification of goods governs the rate of duty upon their “entry” (formal presentation of all documents to United States Customs and Border Protection) into the United States. Properly classifying a product requires an understanding of the Harmonized Tariff Schedule of the United States (“HTSUS”), which has been adopted by over 120 countries of the world. If you are the “importer of record” (the owner or purchaser of the goods, or when designated by the owner, purchaser, or consignee, a licensed Customs broker) you are responsible to “exercise reasonable care” in all aspects of the importing process, including tariff classification. To attain knowledge of the HTSUS our firm analyzes a variety of legal resources to obtain optimal classification and strategic import planning.

Why Customs Compliance is Important

Customs compliance is important for several reasons. First, non-compliance can lead to substantial financial penalties that can harm your company’s bottom line. Additionally, non-compliance can damage your company’s reputation and lead to a loss of customer trust. Moreover, failing to comply with customs regulations can lead to goods being held at ports, which can cause long delays and increased costs. Finally, non-compliance can lead to legal issues, including criminal charges or fines.

How to Ensure Customs Compliance

Ensuring customs compliance requires a thorough understanding of the regulations governing import and export activities. The easiest way to ensure compliance is to work with experts in the field, such as customs brokers or freight forwarders. These professionals have extensive knowledge of customs regulations and can assist your company in navigating the complexities of customs compliance. Additionally, creating a customs compliance program that includes regular training and audits can help your company stay up-to-date with the latest customs regulations.

Examples of Customs Compliance Requirements

Each country has its own customs compliance regulations that businesses must follow. Some examples of customs compliance requirements include:

• Tariffs and taxes: Businesses must pay all tariffs and taxes required by the importing or exporting country.
• Documentation: Proper documentation must be provided for each shipment. This includes customs declarations, bills of lading, and commercial invoices.
• Licensing requirements: Certain goods require specific licenses or permits to be imported or exported. For example, importing food products may require a food safety or health certificate.
• Country-specific regulations: Each country has its own set of import and export regulations that businesses must adhere to.

The Consequences of Non-Compliance

The consequences of non-compliance can be severe. Customs violations can lead to substantial fines, shipment seizures, and even imprisonment. Furthermore, non-compliance can lead to a loss of customer trust and damage a company’s reputation. It is important for businesses to take customs compliance seriously and invest in the necessary resources and personnel to ensure compliance with all applicable regulations.