Trade Compliance Blog

The Wizard over at Boskage Trade News recently did a great job of answering a question about trade compliance tools:

Question:
Are U.S. importers required by Customs law to have a desktop copy of the U.S. Customs explanatory notes? If not, in a case of a customs audit will customs look to see if you have a copy for the purpose of reasonable care?

The Wizard Says:

“The CBP Regulations (19 CFR) do not require importers to maintain copies of the Explanatory Notes or other government publications; however, it is important for importers to have access to tools that will help them fulfill their responsibilities and demonstrate reasonable care.

Additionally, a CBP audit requires importers to answer questions that indicate what resources are used and how they are used. Ask yourself this question. If CBP asked you to demonstrate how classification of a specific product was determined, how would you explain the process and what documentation would you provide?”

The types of tools importers maintain depend on the complexity and volume of transactions…

Don’t forget the other tools that are available:

• Code of Federal Regulations Title 19 (19 CFR)
• Harmonized Tariff Schedule of the U.S (HTSUS)
• Dictionaries and Reference Books
• Internet Access
• Procedures
• Customs Rulings”
  

This got me to thinking, so here is a list of a few more resources that are also quite useful to have when the above items don’t give you a clear answer:

• The ICPA / Ask the Membership: These people are amazing. As a member you can email the membership to ask pretty much anything (and remain anonymous if needed.) Within a few days you’ll receive an email with the members answers. It’s also broadcast to the membership so they can learn from your question.
• Phone number to a good trade lawyer. If you don’t have an ICPA membership, this is the next best thing. And if you’re lawyer is high-tech you can find him/her on Twitter to get instant answers- like @ProTradeLiberal @CyndeeLaw & @TradeLawyer
• Trade Compliance software: if you have the resources, invest in some software to ensure compliance, access trade information instantaneously, and automatically maintain an audit trail. But remember the old computer adage: Garbage In, Garbage Out – you still have to know the basics of trade laws and classification to be compliant!
• Informative blogs: Yes, this is technically part of ‘internet access’ but there are quite a few helpful blogs out there (in addition to my own.) For example, I recently discovered “International Trade for Everyday People” which translates the legalese of trade into easy to process nuggets – a big help when you realize how verbose some lawblogs are.
• Time Machine would be nice… Go back, fix the errors, avoid an audit. Perfect!

Filed under:
customs compliance, trade compliance by Caroline