INTERNATIONAL TRADE LAW
How to Build an Import Compliance Program
An import compliance program is a written set of policies, controls, and records that shows your company exercises “reasonable care” on every customs entry. That phrase is not marketing language — it is the legal standard CBP holds importers to, and a documented program is your best evidence that you met it. This guide explains the standard and the elements a credible program needs.
Why “Reasonable Care” Is the Whole Point
The Customs Modernization Act of 1993 rebuilt the import system around a bargain: CBP publishes clear guidance (“informed compliance”), and the importer uses reasonable care to declare goods accurately. Under 19 U.S.C. § 1484, the importer of record is responsible for using reasonable care to enter, classify, and value imported goods and to provide the information CBP needs to assess duties and confirm the goods comply with the law.
Reasonable care is not a fixed checklist — it is a flexible standard that turns on the facts. The point of a compliance program is to make your care demonstrable. If an error slips through but you can show a defensible process, CBP can still collect the unpaid duties but will often decline to impose negligence penalties under 19 U.S.C. § 1592. Without that record, the same mistake looks like negligence.
The Core Elements of an Import Compliance Program
A workable program covers the entire entry process and assigns clear responsibility. The essentials:
| Element | What it does |
|---|---|
| Written policies and procedures | Document how the company classifies, values, and files entries |
| A responsible person | Name someone accountable for import compliance with authority to act |
| Classification and valuation controls | Set a repeatable method, supported by rulings and notes |
| Recordkeeping | Retain entry records for 5 years from the date of entry |
| Training | Keep staff current on the rules and their role |
| Periodic audits | Test the program and fix gaps before CBP finds them |
| Broker and supplier oversight | Verify the parties you rely on are also compliant |
Write it down — and assign ownership
Start with a written manual covering documentation, classification, valuation, origin, and recordkeeping, and name a compliance officer with real authority. Vague, unwritten “we’re careful” practices are exactly what fail under scrutiny.
Keep records for five years
Under 19 U.S.C. § 1508, importers must keep the records that support each entry, and under § 1509 CBP can demand them. The retention period is five years from the date of entry. Organize invoices, entry summaries, classification worksheets, and agency certificates so you can produce them quickly during a CBP request or audit.
Use the tools that prove care
Reasonable care has recognized building blocks: consulting CBP’s Informed Compliance Publications, requesting a binding ruling when a classification is genuinely uncertain, and engaging qualified experts — a customs broker or trade attorney. Using these tools, and documenting that you did, is strong evidence of care.
Audit, and fix what you find
Schedule periodic internal reviews of a sample of entries. If you discover an error, a prior disclosure to CBP before the agency finds it can sharply reduce penalty exposure under § 1592. A program that catches and corrects its own mistakes is the opposite of negligent.
How the Program Connects to the Rest of the Process
A compliance program is the umbrella over the day-to-day work: correctly classifying goods in the HTS, confirming country of origin, clearing the right agency licensing, and filing a clean entry during customs clearance. The program is what makes those steps consistent instead of ad hoc.
Frequently Asked Questions
Is an import compliance program legally required? No statute orders you to have a written program, but the law requires reasonable care on every entry. A documented program is the practical way to meet — and prove — that obligation.
How long do I have to keep import records? Five years from the date of entry, under 19 U.S.C. § 1508. CBP can request those records under § 1509.
Does hiring a customs broker satisfy reasonable care? Using a competent broker supports a reasonable-care defense, but it does not transfer the legal responsibility. The importer of record remains accountable for accuracy.
What happens if my program catches an error? You can correct it, and a prior disclosure to CBP before the agency discovers the error can substantially reduce penalties under 19 U.S.C. § 1592.
Want a compliance program that holds up? Reidel Law Firm builds and reviews import compliance programs and prepares flat-fee import/export compliance memos with direct attorney access. Get an import compliance memo →
