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What is a U.S. Customs Compliance Audit?

By admin on February 23, 2011 in Customs Brokerage, Importing to U.S., Logistics Consulting
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What is a U.S. Customs compliance audit?
The United States Customs Modernization Act (Mod Act) and the Canadian Customs Act shifted the legal responsibility for Customs compliance activities to importers. It is the responsibility of importers to declare value, classification, duty rate and other information for every item imported into the US or Canada.

The CBP and the CCRA use audits to test an importer’s ability to fulfill these responsibilities.

What are the possible results of a customs audit?

If Customs determines that an importer is fulfilling its legal responsibilities and that it has adequate systems to ensure future compliance:

The audit process ends efficiently and positively.
The company will likely receive minimal inspections in the future.
If Customs determines that a company is not in compliance or that it does not have adequate systems to ensure future compliance:

The importer will be required to develop a Compliance Improvement Plan.
The importer will receive followup audits to re-measure compliance and re-evaluate systems and processes.
Future inspections will occur at a higher than average rate.
Penalties may be issued.

How can WCS help you prepare for a compliance audit?

Review recordkeeping, classifications, valuations, special duty programs and all other aspects of a company’s compliance activities relative to current requirements
Recommend improvements and redesign processes and procedures
Assist you in ensuring that a compliance evaluation results in better, more compliant, operations
A high-quality, comprehensive compliance evaluation should result in faster and more satisfactory customs audits, including:

Fewer future inspections
Less post-entry activity
Lower risk of penalties

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