An Importer’s Requirement to Retain Records

Sure, you know that it is important to keep business records, but did you know that it is against the law not to?

Importers are mandated under the law, and specifically under 19 U.S.C. 1509(a)(1)(A) and 19 CFR Part 163, to keep records for 5 years from the date of entry, and to make them readily available in the event Customs requests to review a transaction.

A primary issue as it relates to Customs and Recordkeeping is the ability to locate those records tracing backwards from the Customs Transaction.

 Luckily, most of the records that are required to be kept for Customs purposes are the same as those normally kept for business and tax purposes. 

Those that need to be kept include the

-        - Commercial Invoice

-        - Packing List

-        - Bill of Lading or Waybill (e.g., Air, Rail)

-        - Entry Summary

      As good practice, proofs of payment not only for the merchandise itself, but for the freight and customs broker fees, along with their invoices, together with any other declarations filed, such as a US Dept. of Fish and Wildlife Declaration form, a Statement of Non-Reimbursement form for an anti-dumping duty, or an Interim Footwear Invoice.

Every effort should be made to maintain records on-site going back at least 1 year, or such longer period as storage will permit.  In addition, when records are sent off-site for storage, a log should be kept identifying the records, where they are archived, and how to retrieve them.

Remember, the proper preparation and maintenance of complete and accurate transaction documentation is essential to both good commercial operations as well as Customs compliance.

Questions/comments?  Post below or email me at clark.deanna@gmail.com