Trading Thoughts Blog

Permanent link for Where are the Customs Entries? A Guide for Import Compliance on January 16, 2025

As trade advisors and consultants, one of the most common questions we hear from small and mid-sized businesses is: “Do we need to worry about Customs compliance?” The short answer? Yes—absolutely.

Often, the realization of the importance of compliance is triggered by a new hire, an internal audit, or as international trade becomes more integrated into day-to-day operations. No matter how the awareness begins, businesses need to understand that compliance risk is a hidden but significant challenge when working with partners outside the U.S.

Uncovering Compliance Risks: The Role of Customs Entries

When we first walk into a business, we don’t know much about its import activity or the processes they have in place. Some companies have oversight mechanisms; others assume everything is running smoothly simply because shipments arrive on time. The truth is, within the first five minutes, we can usually gauge their level of compliance oversight. How? By asking one simple question: “Where are the customs entries?”

Customs Entries Hold the Key

Customs entries are the foundation of any import operation. They reveal critical details such as:

  • The number of entries filed over a given period.
  • Where the entries are being filed.
  • Who is responsible for filing them?

If a company cannot provide these answers, tracking down customs entry data often uncovers previously unknown trade lanes and hidden risks.

The second question we ask is equally telling: “Where are the records?” Responses often include:

  • “I’ve never seen the customs entries.”
  • “That’s the customs broker’s job.”
  • “I assume someone else handles that.”

In many cases, customs entries are sent to Accounts Payable with the broker’s invoice and then filed away—never to be seen again. This lack of oversight can expose the company to significant compliance risks.

The Importance of Oversight and Recordkeeping

Customs entries are official government filings, akin to transactional tax returns. They rely on accurate import documentation—particularly the commercial invoice. Errors in value, classification, or country of origin can lead to costly penalties. While customs brokers file these entries on your behalf, they act as service agents and are not held liable for errors. The responsibility for compliance rests squarely on the importer, as mandated by Customs under the principle of “Reasonable Care.”

To safeguard against these risks, companies must establish robust internal controls, including:

  • Reviewing customs entries against commercial invoices and an audited Harmonized Tariff Schedule (HTS) classification list.
  • Promptly addressing errors with customs brokers.
  • Maintaining a secure record retention system indexed by entry number, date, supplier name, and related documentation.

By implementing these measures, you’ll be well-prepared to answer the pivotal question: “Where are the customs entries?”

Take the First Step Toward Compliance

Ready to build confidence in your importing practices? Join us for Van Andel Global Trade Center’s “Basics of Importing” training. This workshop will provide the foundational knowledge you need to navigate U.S. Customs regulations, manage compliance risks, and import goods effectively and efficiently.

Visit our Upcoming Events page to register and take the next step toward a more informed and compliant import process.

Categories: Import
Posted on Permanent link for Where are the Customs Entries? A Guide for Import Compliance on January 16, 2025.

View all Trading Thoughts Blog entries


Page last modified January 16, 2025