Reasonable Care

Definition

When the Customs Modernization Act was implemented, it established the concepts of informed compliance and shared responsibility. Reasonable Care is the specific requirement placed on the importer within this framework. It dictates that the importer must proactively and diligently ensure all necessary information is provided to CBP to properly decide on the release, classification, and duty assessment of imported merchandise.

Failure to exercise Reasonable Care can result in significant financial penalties assessed by CBP following an audit, depending on the level of non-compliance found.

Core Function

Reasonable Care works alongside the customs broker’s duty of responsible supervision and control. This shared responsibility model ensures that the trade community (importer and broker) uses the information and guidance provided by CBP to achieve full regulatory compliance.

The focus of the importer’s Reasonable Care obligation is delivering the correct details needed for proper entry processing, including:

• Accurate Valuation

• Correct HTS Classification

• Proper Country of Origin determination

• Necessary PGA declarations (Partner Government Agencies)

• Adherence to specific Free Trade Agreement rules

Compliance Requirements

There is no single checklist that satisfies Reasonable Care for all importers, as the rules are highly variable across different products and industries. Achieving compliance requires the importer to understand the regulations specific to their commodity, industry, and supply chain.

Expert Advice

Given the complexity of modern trade laws, the best path to satisfying the Reasonable Care requirement is constant communication and internal diligence. Importers must proactively engage their customs broker or logistics consultant to review specific commodity requirements and verify that the data being submitted to CBP is correct and up-to-date.

Consulting experts ensures that your internal compliance procedures are documented, reviewed annually, and robust enough to meet the heavy burden of proof required by CBP during an audit.