INTERNATIONAL TRADE LAW
Import and Export Regulations: A Compliance Guide
U.S. import and export regulations come down to two questions: on the way in, can this product enter and what do I owe; on the way out, am I allowed to ship this, to this customer, in this country. Both sides are enforced by federal agencies with the power to detain shipments, impose penalties, and, on the export side, pursue criminal charges. This guide walks through the practical rules on each side and the agencies that run them.
It is the operational companion to our overview of the basics of international trade law — that piece explains the framework; this one explains the day-to-day compliance.
The Import Side: Getting Goods Through CBP
U.S. Customs and Border Protection (CBP) controls what enters the country and collects the duties. The importer of record — usually the U.S. buyer — is legally responsible for getting the entry right, and CBP expects “reasonable care,” not perfection-after-the-fact. Four obligations carry most of the weight.
Classification. Every imported good is classified under the Harmonized Tariff Schedule of the United States (HTSUS). The 10-digit code drives the duty rate and flags any special requirements, so an incorrect code can mean underpaid duties and penalties. Our guide on the Harmonized System for classification explains how the codes are built.
Valuation. Importers must declare the correct customs value, generally the “transaction value” — the price actually paid or payable for the goods, with specific additions. Undervaluation is one of CBP’s most common enforcement targets.
Country of origin. Goods must be marked with their country of origin, and origin also determines eligibility for preferential treatment under agreements like USMCA. Origin is a legal determination, not just the “made in” label printed on the box.
Partner agency requirements. Many products answer to more than CBP. The FDA (food, drugs, devices, cosmetics), USDA (agricultural goods), EPA (chemicals, vehicles, engines), and CPSC (consumer products) impose their own import requirements, and CBP enforces them at entry. A product can be perfectly classified and still be refused for failing an FDA or USDA rule.
The Export Side: Controls on the Way Out
Exporting is not just shipping abroad — it is a regulated act, and three agencies share the work.
| Regime | Agency | What it controls |
|---|---|---|
| Export Administration Regulations (EAR) | Bureau of Industry and Security (Commerce) | Commercial and “dual-use” items on the Commerce Control List |
| ITAR / U.S. Munitions List | Directorate of Defense Trade Controls (State) | Defense articles, defense services, and related technical data |
| Economic sanctions | Office of Foreign Assets Control (Treasury) | Transactions with sanctioned countries, entities, and individuals |
The core export questions follow from that table. What is it? Most commercial goods fall under the EAR; you determine the item’s Export Control Classification Number (ECCN) on the Commerce Control List, which — combined with the destination — tells you whether a license is required. Defense-related items move to the State Department’s ITAR regime instead. Where is it going, and to whom? Even an unlicensed, low-tech product cannot lawfully go to a sanctioned destination or a blocked party, so screening the customer and end user against OFAC and denied-party lists is mandatory. Have you filed the data? Most exports require Electronic Export Information filed through the Automated Export System, generally when the value of goods under a single Schedule B number exceeds $2,500 or a license is required.
Penalties and Why Reasonable Care Matters
The consequences differ by side. On imports, CBP can assess duties owed plus penalties, and penalties scale with culpability — negligence, gross negligence, or fraud. On exports, the stakes are higher: civil penalties are substantial, and willful violations of export controls or sanctions can bring criminal prosecution. Because liability often does not require bad intent, a documented compliance process — classification records, screening logs, and a written procedure — is the best protection a business has.
Frequently Asked Questions
Who is legally responsible for an import being correct? The importer of record, normally the U.S. buyer. Using a customs broker does not transfer that legal responsibility — the importer must still exercise reasonable care.
Do I need a license to export? It depends on the item and destination. You classify the item (an ECCN under the EAR, or the U.S. Munitions List for defense articles) and check it against the destination and end user. Many low-tech goods need no license — but screening is still required.
What is the most common import compliance mistake? Incorrect HTS classification and undervaluation. Both lead to underpaid duties and are frequent CBP enforcement targets.
Are export penalties really criminal? They can be. Willful violations of the EAR, ITAR, or sanctions can lead to criminal charges, which is why export compliance is treated more seriously than a paperwork formality.
For related reading, see the relationship between import and export classification and non-tariff barriers.
Importing or exporting and unsure where the lines are? Reidel Law Firm gives businesses a clear, written compliance roadmap before a shipment moves. Our flat-fee import/export compliance memo covers classification, licensing, sanctions exposure, and origin for your products. Get an import/export compliance memo →
