If you're importing goods into the United States, this guide is for you. Whether you're bringing in your first shipment or hardening a mature program, Customs compliance isn't optional—it determines whether your supply chain runs or stalls. U.S. Customs and Border Protection (CBP) enforces strict rules on classification, valuation, origin, admissibility, and security filings, plus requirements from other federal agencies. One misstep can trigger delays, penalties, or seizure.
Our international trade lawyers help companies build defensible programs that meet CBP standards and the rules of agencies like FDA, CPSC, EPA, and USDA. Below are the top pitfalls, the levers that actually reduce risk, and a pre-shipment checklist you can use today.
Key takeaways
- One error in classification, valuation, or origin can lead to penalties or seizures.
- CBP expects importers to exercise and document "reasonable care."
- Most costly delays are preventable with pre-shipment checks.
- Systems beat scrambles: written procedures, trained people, reliable brokers, and clean records.
What CBP expects: the standard of "reasonable care"
Under 19 U.S.C. § 1484, CBP holds the importer of record responsible for reasonable care when declaring classification, value, origin, and admissibility. You can use a broker; you cannot delegate responsibility. CBP's Informed Compliance Publications (ICPs) clarify expectations. Best practice: document the rationale for every decision—HTS code selection, valuation method, origin determination, and any partner-agency requirements—and retain the file for five years (see 19 CFR part 163).
The 8 most common import compliance mistakes
Our customs law team has been handling U.S. Customs matters for decades, and the below are the most common import compliance mistakes we see.
1. Valuation errors
Unintentional undervaluation is still a violation. Typical misses: unreported assists/tooling/royalties, mischaracterized buying commissions, and transfer-pricing true-ups not reconciled post-import. Penalty exposure under 19 U.S.C. § 1592: up to two times lawful duties or 20% of dutiable value for negligence; up to the domestic value for fraud.
2. Misclassification under the HTS
The 10-digit HTS code drives duty rate and many regulatory triggers. Sound-alike products can land in very different headings with different obligations.
3. Country-of-origin marking failures
Articles and immediate containers generally must be permanently and legibly marked with origin unless an exception applies. Risks include redelivery demands, a 10% marking duty under 19 U.S.C. § 1304, or seizure.
4. Wood packaging non-compliance
ISPM-15 applies to all WPM—pallets, crates, boxes, dunnage. Stamps must be present and legible. Non-compliance leads to re-export, treatment, or destruction at your cost.
5. Incomplete or inaccurate commercial documentation
Commercial invoices must state precise descriptions, quantities, values, HTS, and origin. Inconsistencies with the packing list or bill of lading invite exams.
6. Missing or late security filings
For ocean freight, the ISF 10+2 must be timely and accurate before lading. Penalties can be $5,000 per violation.
7. Ignoring partner-government agency (PGA) rules
CBP won't release goods that also require agency clearance. Typical tripwires: FDA (food, drugs, devices, cosmetics), CPSC (consumer products, children's items), EPA (pesticides, chemicals, vehicles/engines), USDA/APHIS (plants, animals, seeds).
8. Overlooking emerging enforcement priorities
The Uyghur Forced Labor Prevention Act (UFLPA)
The Uyghur Forced Labor Prevention Act (UFLPA) is a U.S. law that blocks the importation of goods made with forced labor from Xinjiang, China. It creates a rebuttable presumption that any goods with ties to Xinjiang are produced with forced labor. This places the burden on importers to prove otherwise.
In practice, unless importers can provide clear and convincing evidence that their products are free of forced labor, those shipments will be detained and barred from entering the United States. Goods with even indirect Xinjiang links face an almost automatic presumption of forced labor. Without full supply chain mapping and verified documentation, importers should expect detentions.
De Minimis Entry Program (Section 321)
Another area of heightened enforcement is the de minimis entry program, also known as Section 321. This rule allows goods valued at $800 or less to enter the U.S. duty-free and with limited data requirements. Originally designed to simplify low-value personal imports, it has since become a major channel for e-commerce shipments.
That era is about to end. Under President Trump's July 30, 2025 Executive Order, the duty-free de minimis exemption under 19 U.S.C. 1321(a)(2)(C) will be eliminated effective August 29, 2025—with only a narrow, temporary carve-out for international postal shipments until CBP establishes a new entry system.
CBP and Congress have long expressed concern that de minimis has been exploited to evade duties, tariffs, and regulatory requirements. This includes splitting larger shipments into multiple packages to stay under the threshold, undervaluing products, or using de minimis to avoid oversight from agencies like the FDA, CPSC, or EPA.
Importers who have relied heavily on de minimis entries should expect:
- More frequent examinations and holds at the border.
- Requests for documentation to validate declared values.
- Heightened scrutiny for tariff-sensitive goods (e.g., those subject to Section 301 duties on China-origin products).
- Audits targeting companies suspected of structuring shipments to evade duties.
Misuse of de minimis can result in penalties, seizures, and reputational harm, especially for direct-to-consumer e-commerce businesses. With the exemption now effectively dismantled, importers should treat de minimis not as a loophole but as a soon-to-end privilege. Proactive compliance—accurate declarations, proper valuation, and documented supply chain oversight—will be essential to avoid costly enforcement actions.
High-Impact Risk Reducers
Avoiding mistakes is the first step in building a strong compliance program. But Importers who want to reduce risk more effectively need to go beyond basic error-prevention and adopt strategies that signal seriousness to CBP. The following "high-impact risk reducers" not only prevent problems at the border but also create predictability, speed, and defensibility if CBP comes calling.
- Obtain binding rulings from CBP A binding ruling provides legal certainty on classification, origin, or marking determinations. Having CBP's position in advance removes ambiguity and shields importers from costly reclassifications or disputes.
- Use prior disclosure when violations are found If you uncover past errors or violations, a properly filed prior disclosure can dramatically reduce penalties. CBP looks far more favorably on importers who self-report rather than those caught in an audit.
- Join C-TPAT for trusted trader benefits Participation in the Customs Trade Partnership Against Terrorism (C-TPAT) can reduce the number of exams your shipments face, speed clearance, and strengthen your overall supply chain security. Membership signals to CBP that you are a low-risk partner.
- Maintain strict recordkeeping discipline By law, importers must keep invoices, contracts, product specifications, ruling letters, lab reports, PGA filings, and broker communications for at least five years. Organized records not only ensure compliance but also make it easier to respond quickly to CBP inquiries.
- Manage customs brokers actively Brokers act as your agent, but you remain legally responsible for entries. Provide written instructions, review broker submissions regularly, and conduct audits to ensure filings match your compliance policies.
- Monitor activity in the ACE portal The Automated Commercial Environment (ACE) portal allows importers to track entries, duty payments, flags, and liquidations in real time. Active monitoring can help you spot errors before they escalate into enforcement issues.
- Leverage technology tools to minimize human error Modern compliance platforms, HTS classification databases, and automated ISF solutions reduce reliance on manual processes. These tools create an audit trail that strengthens defensibility in the event of an audit or enforcement action.
12-Point Pre-Shipment Compliance Checklist
While high-impact risk reducers set the stage for long-term compliance success, importers must also execute well at the shipment level. The following 12-point pre-shipment checklist covers the operational steps importers should confirm before goods leave port. Together with the risk reducers, it provides both the strategic and tactical foundation for a robust compliance program.
- Verify HTS classification and document the logic Proper tariff classification drives duty rates, PGA requirements, and risk exposure. Always document the rationale for your classification and consider requesting a binding ruling from CBP if there is ambiguity.
- Check for special duties and restrictions Beyond normal customs duties, products may face additional measures such as antidumping and countervailing duties, Section 301 tariffs on China, Section 232 duties on steel and aluminum, quotas, or import licensing. Missing one of these layers can dramatically increase landed cost and trigger penalties.
- Validate valuation Customs value is more than just the invoice price—it must include assists, tooling, royalties, and other dutiable additions. Importers should also plan for year-end transfer pricing adjustments to avoid discrepancies that could draw CBP attention.
- Confirm origin and marking Country of origin rules are complex and vary by product and agreement. Ensure goods are permanently marked with the correct origin and that the determination matches CBP's rules, not just supplier statements.
- Identify PGA requirements and pre-clear where applicable Many products fall under the jurisdiction of Partner Government Agencies such as the FDA, CPSC, EPA, or USDA. Determining these requirements before shipping allows for pre-clearance and prevents delays at the port.
- Align all commercial documents Invoices, packing lists, purchase orders, and bills of lading must tell the same story. Generic descriptions like "parts" or "samples" are red flags; detailed and consistent information reduces the risk of detention.
- Ensure ISPM-15 compliance for all wood packaging material Pallets, crates, and dunnage must be heat-treated or fumigated and stamped with the ISPM-15 mark. Missing or illegible markings can result in costly re-export, fumigation, or destruction of the shipment.
- File security data accurately and on time The Importer Security Filing (ISF 10+2) must be submitted no later than 24 hours before goods are loaded onto the vessel. Late, incomplete, or inaccurate filings can trigger liquidated damages and CBP scrutiny.
- Instruct the customs broker in writing Do not rely on assumptions. Provide your broker with written instructions on classification, valuation, origin, PGA requirements, and any preferential trade agreement claims to ensure consistent compliance.
- Assemble the entry file before departure A well-prepared file should include your HTS classification memo, valuation support, PGA compliance evidence, photos of country-of-origin marking, and supplier contact details. Having this ready in advance speeds resolution if CBP questions arise.
- Plan for shipment holds Detentions and exams happen even to compliant importers. Decide in advance who is authorized to approve exams, storage, and sampling, and establish clear communication lines so delays don't spiral into disruptions.
- Maintain and update your compliance program Compliance is not a one-time exercise. Conduct regular training, perform internal audits, and make timely corrections or disclosures to CBP when errors are found. A strong program reduces penalties and demonstrates good faith in the event of an inquiry.
Not sure your shipments would pass this checklist? Our international trade lawyers can review your program and flag risks before CBP does.
Core U.S. Customs FAQs
1. What does "reasonable care" mean for importers?
Take proactive steps to ensure accurate classification, valuation, origin, and admissibility, and document your decisions. A broker can help, but CBP holds you responsible.
2. How much are CBP penalties for mistakes?
Negligence can reach up to two times lawful duties or 20% of dutiable value; fraud can reach the goods' domestic value. ISF penalties can be $5,000 per violation.
3. Can I get advance certainty on HTS classification?
Yes. Request a binding ruling on classification, origin, or marking; it's public and controlling for like merchandise.
4. Do I have to mark every product with country of origin?
Generally yes, including the immediate container, unless a specific exception applies. Improper marking risks a 10% marking duty or seizure.
5. What is ISPM-15 and why does it matter?
It's the global WPM standard requiring treatment and a proper stamp for pallets, crates, and dunnage. Non-compliance can force re-export or destruction.
6. What is ISF 10+2?
An advance ocean security filing due before lading. Late or inaccurate filings can be penalized and subject you to more exams.
7. How do other agencies affect clearance?
CBP enforces agency rules. If FDA, CPSC, EPA, or USDA requirements apply and aren't satisfied, CBP won't release your goods.
8. How long must I keep import records?
Five years from entry. Keep invoices, contracts, HTS/valuation memos, PGA filings, ruling letters, and broker communications.
9. What is a prior disclosure?
A voluntary self-report of past violations that, when properly done, can significantly reduce penalties.
10. Is C-TPAT worth it?
Typically yes. Benefits include fewer inspections and faster processing; it also strengthens security and operational discipline.
11. Do I need a customs bond?
Most commercial imports over $2,500—or any regulated goods regardless of value—require a bond. Choose single-entry or continuous depending on volume.
12. What should I do if CBP seizes my goods?
Act quickly. Deadlines are short. Consult an experienced customs lawyer to evaluate petitions, mitigation, or other remedies.
Note: We'll publish a comprehensive, extended FAQ tomorrow covering brokers, duty drawback, free-trade agreements, audits, and more.
Build a customs compliance system
Noncompliance costs far more than a fee—think storage charges, missed sales, and reputational damage. Importers who avoid that pain don't wing it; they run systems. When issues arise, they correct fast and on their terms.
Need to stress-test your compliance program? Our international trade lawyers can map your exposure, design practical controls, and keep freight moving.
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