The U.S. Customs and Border Protection (CBP) has an eye for detail. Whether you are importing into Florida or clearing customs at any other entry point in the U.S., they keep a sharp eye on every shipment. If they spot even one mistake in the details you have provided, it can result in costly penalties and seizure of goods. Here is what you need to know to avoid some of the common compliance mistakes that even an experienced business may make.
1. Misclassifying goods under the wrong HTS code
Every imported product must be assigned a Harmonized Tariff Schedule (HTS) code. It is a 10-digit number that classifies imported products and determines the applicable duty rate for each of them. Using an outdated HTS code or a wrong one can lead to penalties and cargo seizures. You can reduce the likelihood of making such errors by double-checking the classifications.
2. Incorrectly marking country of origin
CBP requires importers to clearly mark imported goods with their country of origin. Incorrect, missing or misleading origin markings can trigger penalties and CBP may refuse entry to the merchandise. Importers especially face this issue when they assemble goods using components from multiple countries.
You can avoid penalties and costly shipping delays by consulting a licensed customs broker or trade attorney to verify the exact “substantial transformation” rules for multi-country goods.
3. Failing to maintain adequate import records
Many small and medium businesses engaged in international trade fail to maintain a proper import record. Meanwhile, the CBP requires them to retain import records that go back to at least five years. This usually lands them in trouble with CBP, leading to penalties.
The cost of getting it wrong
CBP is not the only federal agency with authority over imported goods. The FDA, USDA, EPA and others also regulate specific product categories. Failing to meet those requirements can result in import holds, detentions or refusals of entry to imported goods. With the help of a legal guide experienced in trade laws and compliances, you may be able to run a smooth business.