Customs Broker Compliance – customs broker audit

ACS INPUT

CBP 7501 Example – Provide employee with copy of CBP 7501

Use as record/reference to input correct information into ACS

 Encourage Clients to develop Compliance Manuals

COMPLIANCE MANUAL SUPPORT

Factors to consider in a strong compliance system.

  1. Whether the company has performed a meaningful risk analysis. perform this
  2. The existence of a formal written compliance program.  have one
  3. Whether appropriate senior organizational officials are responsible for overseeing the export (applies to Import also) compliance program.  assess oversight by officer, document meetings
  4. Whether adequate training is provided to employees.  provide training and document
  5. Whether the company adequately screens its customers and transactions.
  6. Whether the company meets recordkeeping requirements.  check against requirement of Customs Regulations 111 and 163
  7. The existence and operation of an internal system for reporting import/export violations.    where have occurred document corrective actions
  8. The existence and result of internal/external reviews or audits.   document your record of audits
  9. Whether remedial activity has been taken in response to import/export violations. employee wrongful actions – document corrective actions taken

Focus on Training (Internal and External) 

                 Audit       (Internal and External)

Goal of Broker is to offer filing services “Customs Business” and also services promoting compliance in classification, valuation, admissibility and security (C-TPAT). *

*note CBP Audit has observed that Brokers should address this area (compliance and advice)

contact Clement Key, Gerald Maready, Retired FNISs, LCHB 704 664 1932

http://exportimportcompliance.com/index.php

Customs Broker Audit insight

From 31 broker penalty cases

Clustered results

incidents of accounting and financial deficiencies (more than one type) 39+

not properly maintaining employee list     17+

powers of attorney 14+

responsible supervision and control 8+

failed recordkeeping general 6+

lots of other issues not listed at this time = Above indicates where brokers should focus attention and of course follow Customs Regulations especially Part 111

 

need manual, focus on training and internal reviews – exercise responsible supervision

Import Compliance Manuals, Export Compliance Manuals

Import Compliance Manuals, Export Compliance Manuals
9 Factors for Import or Export Compliance Part 2

2. The existence of a formal written compliance program.
http://www.ussc.gov/guidelines-manual/2011/2011-8b21

From sentencing guidelines insight on effective import export manual standard
8B2.1. Effective Compliance and Ethics Program
(a) To have an effective compliance and ethics program, for purposes of subsection (f) of §8C2.5 (Culpability Score) and subsection (c)(1) of §8D1.4 (Recommended Conditions of Probation – Organizations), an organization shall—
(1) exercise due diligence to prevent and detect criminal conduct; and
(2) otherwise promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law.
Such compliance and ethics program shall be reasonably designed, implemented, and enforced so that the program is generally effective in preventing and detecting criminal conduct. The failure to prevent or detect the instant offense does not necessarily mean that the program is not generally effective in preventing and detecting criminal conduct.
(b) Due diligence and the promotion of an organizational culture that encourages ethical conduct and a commitment to compliance with the law within the meaning of subsection (a) minimally require the following:
(1) The organization shall establish standards and procedures to prevent and detect criminal conduct.
(2) (A) The organization’s governing authority shall be knowledgeable about the content and operation of the compliance and ethics program and shall exercise reasonable oversight with respect to the implementation and effectiveness of the compliance and ethics program.
4/17/15