Compliance Assessment

What is a compliance assessment?

A compliance assessment is an analysis or audit of a company's customs transactions. It checks whether the company classified, valued, and declared its imported goods correctly and paid the right duties and fees.

Why do compliance assessments matter?

Customs authorities can review past entries and bill importers for unpaid duties, penalties, and interest. An assessment lets an importer find mistakes before an authority does. Common findings include wrong tariff classifications, undervalued goods, missing country of origin information, and misapplied trade program claims.

What does a compliance assessment cover?

A typical review samples a set of entries and compares them against the supporting documents, such as the commercial invoice, packing list, and bill of lading. The reviewer checks tariff codes, declared values, origin, and duty payments, then reports errors and recommends fixes. A customs broker or an in-house trade compliance team often runs the review.

If an assessment turns up an error, the importer can file a prior disclosure to correct it voluntarily, which can reduce penalties. Regular assessments also show that an importer exercises reasonable care, the standard customs authorities expect.

Back to the full glossary.