U.S. Customs and Border Protection has announced the opening of the Laredo field office of CBP’s Trade Regulatory Audit Directorate, highlighting the agency’s increasing scrutiny of import compliance.
TRA field offices conduct audits, including focused assessments, to assess compliance with trade laws and regulations and support civil and criminal investigations of trade violations. TRA audits generally have targeted objectives and are compliance-driven, and depending on the objective may or may not include an assessment of the importer’s internal customs compliance controls.
TRA offices also perform a number of non-audit services, such as risk analysis and survey assessments. RASAs are intended to allow CBP to quickly obtain information about a company’s import activities relative to a specific trade area or issue, and CBP’s perception of risk appears to be a determinative factor in whether an audit or RASA is performed. While RASAs can therefore be an opportunity to avoid a more intensive review, they can also turn into audits or other enforcement actions if they are not taken seriously. And, CBP intentions aside, RASAs are often not quick and feel like a full-blown audit, regardless of the result.
Importers can take proactive steps to maximize compliance while preparing for potential audits. Daryl Moore, customs audits and partnership programs leader with Sandler, Travis & Rosenberg, states that knowing your import data and characteristics and conducting regular internal reviews and risk assessments are important foundational measures because they can help companies identify problem areas and determine how to respond before the government gets involved. If these processes do reveal actual or potential violations the importer has the opportunity to submit a prior disclosure, which can help reduce any penalties that may ultimately be assessed.
There are also things importers can do during an audit/RASA to make the process go more smoothly, Moore states. These include taking the initial contact seriously and engaging experts early to determine what CBP is after, recommend how best to respond, and represent the importer’s interests in dealings with the agency. Perhaps most importantly, Moore adds, importers should have qualified service providers review any information before it is submitted to CBP. This step alone can significantly reduce the time and expense of an audit.
For more information on CBP audits/non-audit services and how to increase your import compliance, please contact Daryl Moore at (202) 730-4976 or via email.
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