Focus on Tariffs: A U.S. Customs Compliance Checklist

At a glance

• The main takeaway: U.S. businesses can take steps now to stay on top of shifting customs requirements with a strategic customs compliance checklist.
• Impact on your business: Achieving customs compliance requires a proactive strategy, and creating and following a checklist can benefit your company now and for years to come.
• Next steps: U.S. businesses involved with imports should have a customs compliance checklist in place. Schedule a consultation with Aprio’s Customs and Tariffs advisors to get started today.

The full story:

As tariffs continue to evolve, U.S. businesses that import goods need a reliable and thorough Customs Compliance Checklist now more than ever before. Developing solid internal practices can help you anticipate and maintain compliance. By taking the steps below to evaluate the health of your customs compliance regime, you can help minimize risk, save time and money, and help avoid product seizures or holds in the future.

1. Review Customs Laws: Take time to understand the key import rules enforced by U.S. Customs and Border Protection (CBP), including tariff classification, customs valuation, country of origin marking, and admissibility requirements. Ensure your internal team is up to date on current CBP regulations, enforcement priorities, and documentation standards to avoid delays or compliance risks.
   
2. Update Your Contact Information: CBP will communicate with you based on the name and contact information on Form 5106. To be sure you receive any pertinent messages from CBP, review your contact information on Form 5106 and update as needed. The last thing you want is to miss a Request for Information or Notice of Action from the CBP because of outdated information.
   
3. Evaluate Your Brokers: Take the time to evaluate customs brokers and clearly define their roles. For example:
   • Understand which brokers have Power of attorney (POA) privileges and any expiration dates on all POAs
   • Keep track of brokers you’ve employed through the Automated Commercial Environment portal 
   • Update your brokers regularly by providing clear instructions that address your preferences around related party verification, partner government agencies, free trade agreements (FTAs), and antidumping/countervailing duties.
     
4. Verify Shipping Documents: Ensure commercial invoices clearly describe the parties involved, Incoterms, product descriptions (not just part numbers), quantities, and declared values. Accurate and complete documentation is critical for U.S. customs clearance. If claiming benefits under an FTA, confirm that you have the most current Certificate of Origin (CO). COs play a key role in verifying the production origin of goods and supporting preferential duty treatment.
   
5. Check Your Product Details: Understand (or ensure your broker understands) product categorization, accurate Harmonized System (HS) codes, and how to determine country of origin, among other details. Misclassifying goods carries significant risks, including overpaying duties, facing delays, and even incurring fines or legal action. Working with an experienced customs and tariffs partner can help ensure your business navigates classification with ease. Also, ensure that goods and packages shipped are properly “marked” with the country of origin.
   
6. Assess Your Transfer Pricing Policies: Regularly assess whether your transfer pricing methods align with the arm’s length standard and maintain contemporaneous documentation to support your pricing decisions. Be prepared to justify pricing decisions during both tax and customs audits. Engage regularly with a transfer pricing expert who can help: 1) plan and optimize transfer pricing arrangements to adapt to the evolving customs environment; and 2) mitigate risk and ensure annual tax and transfer pricing compliance.
   
7. Maintain Detailed Records: Track invoices, packing lists, shipping documentation, customs declarations, audit reports, and any historic remedial actions, among other pertinent documents. If you encounter challenges with compliance, having meticulous records will make getting back into compliance a smoother process.
   
8. Perform Internal Audits: A regular review of your internal policies can help identify potential problems. Consider separating tasks, implementing checks and balances, and documenting compliance procedures to ensure accountability. Regular audits can also help uncover discrepancies early, allowing your company to address issues before they lead to penalties or shipment delays.

The bottom line

As customs rules and policies evolve, having a customs compliance checklist can help your business achieve and maintain compliance and avoid costly errors. While creating a checklist is a great start, having trusted advisors to assist with customs policies is critical.

Aprio can help. Our Customs and Tariffs team and Transfer Pricing advisors are up-to-date with the latest news and have deep industry experience to help guide and inform your customs and tariffs strategies going forward.

Related Resources/Assets/Aprio.com articles/pages

• Focus on Tariffs: 5 Steps to Help Reduce Impact
• Trade with Canada Amidst Changing Economic and Political Landscape
• President Trump Announces Tariffs on Imports from Canada, Mexico, and China