A Welcome Back to Trade Compliance Professionals!
As COVID-19 slowly recedes and we all get back to our “new normal,” it's likely that Customs and Border Protection (CBP) will more aggressively turn its attention to the nuts and bolts of its enforcement efforts with a renewed focus on trade compliance. What does this mean to the trade? We would expect that CBP’s flexibility that we have sometimes seen over the past year will fade in 2023, with certainly a renewed focus on accurate tariff classification and a ramp-up in the validation of free trade claims to “protect the revenue.” We also suspect we will see more comprehensive audits that involve an assessment of an importer's internal controls over its import activities to determine if the importer poses an acceptable risk for complying with CBP laws and regulations. Yes, more Focused Assessments.
Additionally, CBP has ramped up the use of “big data” in very meaningful ways. It is much more difficult to mask systemic compliance errors in the mass of import entry data. Uncovering errors before CBP finds them is important, but equally important is that the importer has a written code of ethics for trade compliance, policies to monitor compliance processes, and identified parties that are responsible for the monitoring and correcting of any errors or deficiencies. As we get back to business post-COVID, it is surely time to take a fresh look at your compliance posture and review your Compliance Procedures Manuals. I expect to hear much more from CBP in 2023.
If you have any questions about CBP or trade compliance, please reach out to us. We’re here to help.
Tradewin is an international trade consulting firm that provides creative and effective solutions and guidance in matters regarding regulatory affairs, logistics, and trade data management. Our services include consulting in the areas of Import and Export Compliance, Classification, Trade Preference Programs, Duty Mitigation, and Supply Chain Security.