For international businesses, adhering to trade laws is essential. Every year, U.S. Customs and Border Protection (CBP) seizes millions of dollars worth of goods due to violations.
Here are some of the most common reasons for customs seizures.
1. Intellectual property rights violations
Counterfeit goods infringe on intellectual property rights, making this one of the most common reasons for CBP seizures. Items frequently seized include pharmaceuticals, clothing, and electronics. Businesses must ensure they have proper documentation that validates the authenticity of goods to avoid seizures.
2. Inaccurate paperwork
Customs officers rely on accurate paperwork, such as invoices and product descriptions, to process shipments. Even a simple oversight can result in the blocking of a shipment and the seizure of goods. Inaccurate paperwork often causes weeks of delays for businesses and can result in fines. It’s essential to double-check all paperwork before goods are shipped to minimize risks.
3. Violations of restrictions
Certain countries are currently embargoed by the U.S., and goods from these countries are highly likely to be seized by CBP. In addition, certain hazardous materials and agricultural products may also be subject to strict restrictions. Familiarizing yourself with prohibited goods and countries is crucial.
Steps you can take to minimize problems
There are several steps businesses can take to minimize the risk of customs seizures:
- Get to know the import and export regulations specific to your goods.
- Maintain accurate documentation and records for all shipments.
- Regularly review CBP’s guidelines and updates to stay informed of regulatory changes.
Customs seizures can result in significant delays and unnecessary financial losses. To protect your business interests, taking proactive measures and ensuring compliance with trade laws is vital. You may also want to seek legal guidance.