In today’s complex global trade environment, importers must recognize that hiring a customs broker does not absolve them of responsibility for the accuracy of import entries. The U.S. Customs regime makes clear that the importer of record remains accountable for classification, valuation, and duty payment.
Against the backdrop of increasingly detailed regulatory requirements, new Harmonized Tariff Schedule (HTS) codes, additional data fields, and heightened enforcement of duty- and origin-based controls, it is important now more than ever for importers to audit the entries submitted on their behalf by brokers.
Why importers must audit broker filings
At the heart of the matter is the statutory duty of “reasonable care”. U.S. Customs and Border Protection (CBP) places the obligation on the importer of record to ensure entries are accurate, complete, and properly supported—even when a broker is engaged. As CBP states:
“Remember, even when using a broker … the importer of record is ultimately responsible for the correctness of the entry documentation … and all applicable duties, taxes and fees.” (CBP.gov)
That means that while a broker may prepare and file entries, the importer cannot rely solely on that service. The importer must maintain oversight, verify inputs (HTS classification, value, origin, etc.), and ensure that internal systems support accurate submission.
In effect, auditing broker entries is a business-critical control.
What makes auditing ever more important today is the growing complexity of global trade regulation. CBP’s ACE systems and the operating systems of Customs Brokers have not been able to keep up with the rapid changes and nuances relative to all the additional tariffs, multiple HTS codes and added reporting details on values, weights and content origin. That said, the margin for data entry errors or mis-reporting is greater than usual. Reliance on the broker alone without secondary review can leave risk unmanaged.
Importers are served well reviewing the details on the entry prepared by their broker and understanding the duty calculations. Caught timely, errors can be corrected prior to the payment of duties to Customs, avoiding more formal entry corrections. Errors don’t always result in additional payments due Customs – In many cases there may be opportunities for duty recovery but the overpayment could go undetected if not brought to the attention of the Broker or CBP.
In the event errors are discovered, whether large or small, the quicker they are addressed, the easier resolved. And it is always in the importers’ best interest to disclose errors to Customs before they come to you.
Auditing as a risk-mitigation strategy
To translate these imperatives into practice, importers should adopt a structured audit-and-review protocol for broker-filed entries. Key steps might include:
- Broker performance review – Ensure that your customs broker is acting under a valid Power of Attorney directly with you, the importer, and that the service agreement includes oversight and error-notification provisions.
- Entry reconciliation – For each import, compare the broker-submitted HTS classification, value, origin, duty rate and other key entry fields against internal purchase records, supplier invoices, bill-of-lading data and approved product masters.
- Origin, valuation, and assist verification – Confirm the origin is correctly declared and any supplied assists are accounted for. Ensure the value declared aligns with the purchase price plus any royalties or buy-back obligations.
- Post-entry review and corrections – Monitor whether any entries require a post summary correction (PSC) or liquidated duty adjustments. Because some errors only become evident after liquidation, an audit can detect patterns or recurring issues.
- Periodic internal audits of broker filings – At intervals (e.g., quarterly, annually), perform a deeper audit of a sample of entries, to evaluate the accuracy of classification, value, origin, completeness of documentation, and to detect systematic errors. As one article states: “A thorough internal audit will help identify areas of risk … and lay the foundation for your Customs compliance plan.”
- Documentation and record-keeping – Maintain an audit trail of reviews and corrective actions, as this demonstrates the importer’s exercise of reasonable care. Appropriate documentation can mitigate penalty exposure with CBP.
By embedding these steps into the organization’s trade-compliance program, importers strengthen their control environment, reduce the risk of underpaid or overpaid duties, penalties, and trade-disruption, and align with CBP’s reasonable care expectations.
Why importers cannot delegate the oversight entirely
A common misconception among importers is that once a broker is engaged, the broker “handles it all”. That is not the regulatory reality. The importer remains legally responsible. CBP holds importers responsible – after all, you know your product best.
In an environment where CBP’s tolerance for errors is decreasing and enforcement is intensifying, importers need to proactively audit broker filings.M.E. Dey will work as your partner in helping you understand the regulatory responsibilities, interpret the language and requirements and assist you in making decisions on the proper reporting of your shipments to Customs. In today’s changing trade environment, it’s crucial to stay informed and understand how updated tariff negotiations impact you. We will continue to assist you in providing the education, support and details as they unfold to help keep you current.
M.E. Dey can assist you in developing or refining internal audit procedures to help support your compliance obligations.