The U.S. Customs and Border Protection (CBP) ruling under 19 C.F.R. Part 111 increases the responsibility of a U.S. customs broker to ensure that they are operating within the U.S. territory. A recent example of this heightened enforcement was a ruling where CBP prohibited Heizwerthy Customs and Freight Solutions from hiring an unlicensed offshore company to review shipment documents in preparation to key in data on entry filings. CBP ruled that doing so would be in violation of 19 U.S.C. § 1641(b)(1) and 19 C.F.R. § 111.37., as an unlicensed party would be performing customs business.
What is Customs Business?
Customs business comprises those activities involving transactions with CBP concerning the entry and admissibility of merchandise, its classification, and valuation, the payment of duties, taxes, or other charges assessed or collected by CBP on merchandise because of its importation, and the refund, rebate, or drawback of those duties, taxes, or other charges. It also includes the preparation, and activities relating to the preparation, of documents in any format and the electronic transmission of documents, regardless of whether signed or filed by the preparer.
What is Not Customs Business?
“Customs business” does not include the mere electronic transmission of data received for transmission to CBP and does not include a corporate compliance activity. In this new technological age of artificial intelligence (AI), importers should be careful to ensure the new ruling—on sourcing and resourcing a company’s use of AI—is followed.
How is your Customs Broker doing Business?
Mohawk Global, conducts all of its customs business in the U.S. We rely on the expertise of our people in the U.S. and use automation to improve accuracy and efficiency. Our priority is to assist importers in managing their compliance risk. If you have any questions on the ruling, reach out to us.
By Clarissa Chiclana