Focused Assessments, Audits, and Importer Self-Assessments

Focused Assessments

US Customs and Border Protection (CBP) audits importers. The audits are called Focused Assessments.

Focused Assessments are intrusive, prolonged, and expensive. Focused Assessments can also result in your company paying huge fines and penalties. Focused Assessments provide a step approach to audits that allows the importer to obtain a passing grade and, when the importer fails, audit measures become even more intrusive and penalties become more likely.

If your company is notified of a Focused Assessment, it is imperative to move quickly. You must prepare for the audit and you must also consider options, including possibly converting your Focused Assessment into a Importer Self-Assessment (ISA) program audit.

We help flush out and correct the major problems that are likely to be found in a Focused Assessment: Manufacturing Assists, Additions to Price Actually Paid or Payable, Nondutiable Costs, Merchandise Classification, Special Trade Programs, HTSUS Chapters 9801 and 9802, Related Party Transactions, Buying Commissions, and Record Keeping.

Importer Self Assessments

The Importer Self-Assessment (ISA) Program is unique.

U.S. Customs and Border Protection offers importers a carrot. In essence, the promise is “If you can establish a record and an audit trail under ISA benchmarks for complying with our nation’s customs laws, and if you certify that you will provide annual updates to us (CBP), we will take you out of the pool of companies that are targeted for a Focused Assessment.” In other words, the CBP allows importers to audit themselves.

There are other benefits, including those related to prior disclosures.

Outside of an ISA, an importer is allowed to file a prior disclosure to inform CBP of any violations. A prior disclosure can mitigate (i.e., reduce) penalties. However, the prior disclosure must be filed before CBP initiates an investigation.

In the ISA Program, CBP can discover certain violations even before the importer. CBP will then inform the importer about the violations and give the importer thirty days to file a prior disclosure.

GRVR’s experienced customs attorneys are able to instruct you of the risks and costs as well of joining the ISA program.