In a bid to tighten import controls and safeguard U.S. borders, the Department of Justice (DOJ) and Customs and Border Protection (CBP) have ramped up customs compliance enforcement. Importers now face heightened scrutiny, steeper penalties, and more frequent audits. Here’s what businesses must know to stay ahead.
DOJ & CBP’s New Enforcement Focus
Recent actions underline a shift toward more aggressive oversight:
- Data-driven investigations: CBP’s Automated Targeting System flags high-risk shipments for deeper review.
- Criminal referrals: DOJ is partnering with CBP to pursue fraud and smuggling cases.
- Expanded audit campaigns: More frequent and specialized audits targeting valuation, classification, and anti-dumping compliance.
- Stiffer penalties: Civil fines and forfeitures have risen, with willful violations triggering criminal charges.
Implications for Importers
Failing to meet compliance requirements can lead to costly disruptions:
- Seizure or detention of goods
- Substantial financial penalties
- Reputational damage and loss of customs privileges
- Potential criminal liability for executives
Key Compliance Challenges
- Correct tariff classification and valuation
- Accurate country-of-origin marking
- Adherence to antidumping and countervailing duty orders
- Proper recordkeeping and documentation retention
Best Practices for Staying Ahead
To mitigate risks, importers should consider the following steps:
- Conduct internal audits: Regularly review imports for classification, valuation, and licensing compliance.
- Enhance due diligence: Vet suppliers and maintain a robust supplier qualification program.
- Invest in training: Ensure staff understand changing regulations and data-entry protocols.
- Leverage technology: Implement compliance software to automate checks and flag discrepancies.
- Engage outside counsel: Seek specialized legal advice for high-risk shipments or potential disputes.
By proactively strengthening internal controls and staying informed of enforcement trends, importers can reduce exposure to penalties and ensure a smoother supply chain.
