Definition
Customs Business is defined by 19 CFR 111.1 as those activities involving transactions with US Customs and Border Protection (CBP) concerning imported merchandise, specifically covering its legal entry and financial assessment.
Key activities defined under Customs Business include:
• The entry and admissibility of merchandise.
• Its classification and valuation.
• The payment or assessment of duties, taxes, or other charges collected by CBP.
• The refund, rebate, or drawback of those duties, taxes, or other charges.
• Preparation and electronic transmission of documents intended to be filed with CBP in furtherance of these activities, whether or not the preparer is the filer.
Exclusions:
The definition specifically excludes the mere electronic transmission of data received for CBP transmission and internal corporate compliance activities.
Core Process
Customs Business establishes the formal legal relationship between the importer and CBP regarding the movement and legal status of goods. When a licensed Customs Broker is engaged to manage these processes, they must secure a formal Power of Attorney (POA) from the importer to act as their authorized agent.
This process relies on shared regulatory accountability:
• Broker's Duty: Brokers must exercise responsible supervision and control over any Customs Business performed, ensuring accurate and timely data is transmitted to CBP to the best of their knowledge and ability.
• Importer's Duty: Importers must exercise reasonable care in providing complete, accurate, and timely information to the Broker to ensure compliant filing.
Expert Advice
Importers must treat the Power of Attorney as a critical delegation of responsibility, not merely a formality. While the Broker handles the physical filing, the Importer of Record remains ultimately liable for compliance failures, duties, and penalties. Implementing strong internal review procedures to audit the data provided to the Broker—especially regarding classification (HTS) and valuation—is essential for mitigating risk and meeting the standards of Reasonable Care.
Key Takeaways
• Customs Business covers nearly all entry-related transactions with CBP, per 19 CFR 111.1.
• A Power of Attorney is mandatory for Customs Brokers conducting Customs Business on an importer's behalf.
• Both the Importer (Reasonable Care) and the Broker (Responsible Supervision) share accountability for accurate data submission.
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