Import Compliance Checklist: Essentials for US Importers

Why Import Compliance Matters

US customs law places the ultimate responsibility for compliance on the importer of record — not the customs broker, freight forwarder, or supplier. Under the Customs Modernization Act of 1993 (the Mod Act), importers have a legal obligation to exercise reasonable care in all aspects of their import transactions, including classification, valuation, country of origin determination, and recordkeeping. Failure to meet this standard can result in penalties, liquidated damages, increased scrutiny, and in severe cases, seizure of goods or criminal prosecution.

1. Reasonable Care

Reasonable care is the cornerstone of US import compliance. It means taking the steps a reasonably prudent importer would take to ensure that information provided to CBP is accurate, complete, and timely. CBP has published a series of Informed Compliance Publications (ICPs) that describe what reasonable care looks like for different aspects of importing. In practice, reasonable care includes having written procedures, training your staff, working with qualified service providers, conducting periodic internal reviews, and documenting your decision-making process.

2. Classification Compliance

• Maintain a classification database that maps each product to its HTS code with supporting rationale.
• Review classifications annually or whenever a product changes in material, design, or use.
• Use binding rulings from CBP for high-volume or high-value products where classification is uncertain.
• Document the GRI analysis for any product where more than one heading could apply.
• Train staff on classification fundamentals so they can identify potential errors before filing.

3. Valuation Compliance

The declared customs value must reflect the transaction value of the goods — the price actually paid or payable, plus any adjustments required by law. Common adjustments include assists (tools, molds, or designs provided to the manufacturer), royalties and license fees, packing costs, and proceeds from subsequent resale that accrue to the seller. Importers must also report related-party transactions accurately and be prepared to demonstrate that transfer prices reflect arm's-length values.

4. Recordkeeping Requirements

Under 19 USC 1508, importers must retain all records related to their import transactions for five years from the date of entry. This includes commercial invoices, packing lists, bills of lading, entry summaries, payment records, correspondence with suppliers, classification rationale, FTA certifications of origin, and any other records that CBP might need to verify the accuracy of your entries. Records can be maintained electronically, but they must be retrievable within a reasonable time if CBP requests them.

5. Compliance Program Essentials

• Written import compliance manual outlining procedures for classification, valuation, origin, and recordkeeping.
• Designated compliance officer or team responsible for import operations.
• Annual training for all employees involved in purchasing, logistics, and customs matters.
• Quarterly internal audits comparing a sample of filed entries against source documents.
• Corrective action process for addressing errors — including prior disclosure to CBP when appropriate.
• Documented broker oversight program to ensure your customs broker is filing accurately on your behalf.