The Impact of the Customs Modernization Act on Commerce
What were the key changes brought about by the Customs Modernization Act?
The implementation of the Customs Modernization Act by CBP introduced significant changes in commerce, primarily focusing on "informed compliance" and "shared accountability."
What is the role of CBP, the trade community, importers, and brokers in achieving compliance?
- CBP, the trade community, importers, and brokers must collaborate to achieve compliance.
- The broker is responsible for exercising responsible supervision and control.
- Importers are accountable for using reasonable care.
How is providing accurate information to CBP related to using reasonable care?
Providing accurate information to CBP is a crucial aspect of demonstrating reasonable care in deciding whether a product should be released from CBP custody.
What are the potential consequences of non-compliance?
Depending on the severity of non-compliance, importers may face significant fines if CBP audits them and determines that reasonable care was not taken.
What are the criteria for providing reasonable care, and do they vary?
- The criteria for reasonable care vary depending on the type of product or business.
- There is no universal checklist for all products.
- However, there are general compliance requirements that all importers must adhere to, including Valuation, HTS, Origin, PGA declarations, FTA rules, etc.
How can importers ensure they are following the rules and providing CBP with the necessary information?
Importers should consult their broker to confirm that they are complying with the rules and supplying CBP with the required information for their specific commodity.