The Importer of Record: A Guide to Reasonable Care and Compliance

When importing goods into the United States, the importer of record (IOR) plays a critical role in ensuring compliance with U.S. Customs and Border Protection (CBP) regulations. Under the Customs Modernization Act (Mod Act) taking effect in 1993, the concept of “reasonable care” became a legal obligation for importers. This post outlines what it means to be an importer of record, how to fulfill the duty of reasonable care.

Who Is the Importer of Record?

The importer of record is responsible for using reasonable care to enter, classify and determine the value of imported merchandise and to provide required information for CBP to properly assess duties, collect accurate statistics, and determine whether other applicable legal requirements have been met.

Only the importer of record (owner, purchaser, or Customs broker) may execute the declaration on an entry or entry summary.

An importer of record’s failure to exercise reasonable care could delay release of the merchandise and, in some cases, could result in the imposition of penalties or even criminal enforcement.

How Importers Can Exercise Reasonable Care

“Reasonable care” means developing importer’s own unique compliance measurement plans, reliable procedures and reasonable programs to ensure that importations meet U.S. legal and regulatory requirements.

To meet the reasonable care standard, importers should:

• Consult CBP regulations and publications,

• Keep current on rulings and legal updates,

• Maintain full, complete and accurate documentation,

• Check merchandise handled at different ports or within the same Center of Excellence and Expertise,

• Work with knowledgeable experts (a licensed customs brokers can help facilitate the process).

Although "reasonable care" may sound simple, it is not easy to define. Each import transaction is different, depending on the importer’s experience and the type of goods being brought in. Consequently, neither CBP nor the importing community can develop a foolproof reasonable care checklist which would cover every import transaction.

Therefore, going through topics below may prompt or suggest a program, or framework which importers may find useful in avoiding compliance problems and meeting reasonable care responsibilities.

1.     Merchandise Description & Tariff Classification

• What your product is, what it is made of, and how it is used?

• The correct Harmonized Tariff Schedule (HTSUS) classification

• A CBP binding ruling or a laboratory analysis

• Advice from a licensed customs broker

  
  

2.     Valuation

• The price actually paid or payable for your merchandise

• The terms of sale (FOB, CIF, EXW, ECT...)

• Documents such as purchase orders, invoices, sales agreements, shipping documents, and proof of payment

• Determine method of appraisement (deductive value, computed value)

3.     Country of Origin/Marking/Quota

• How goods are made, from raw materials to finished goods, by whom and where?

• Ensure the merchandise is properly marked, labeled

• Determine if goods are subject to import quotas or permits

4.     Intellectual Property Rights

• Are your goods using a trademark, copyright, or patent?

• Unauthorized use can result in seizure

• Grey-market or remanufactured goods must meet specific rules

5.     Forced Labor

• CBP blocks imports suspected of being made with forced labor (e.g. child labor)

• CBP maintains a list of high-risk goods and countries

• Include anti-forced labor clauses in contracts with suppliers

  
  

6.     Miscellaneous Actions

• Some products require permits, licenses, or certifications from agencies such as FDA, EPA/DOT, CPSC, FTC, etc.

• Goods are subject to antidumping or countervailing duty

• Type of CBP entry (e.g., TIB, T&E, consumption entry, antidumping duty entry, mail entry, etc.)

Importing into the United States is not just a logistics task—it is a legal responsibility.

As an importer of record, you are the first line of compliance with U.S. Customs laws.

How We Help You Comply

As a licensed customs broker, we:

✅ Review your documents for accuracy

✅ Classify goods under the correct tariff codes

✅ Guide you through valuation and origin rules

✅ Monitor CBP updates and trade enforcement actions

✅ Help you request advance rulings or corrections if needed

But remember: to ensure faster clearance and avoid penalties, only you can provide the complete, truthful information CBP requires.

Let’s Work Together

Compliance is a shared responsibility. By partnering closely with your customs broker and understanding your obligations as an importer of record, you can ensure faster clearance, avoid penalties, and build a stronger import operation. Contact us anytime if you have questions before your next shipment.

Contact Spirit CHB Inc – A Trusted U.S. Customs Brokerage with 20+ Years of Experience

📧 Import@spiritchbinc.com📞 714-383-9973

📌 Disclaimer & Contact Information

This blog post is intended to provide general information. It does not constitute legal advice or a comprehensive compliance guide. For specific questions or assistance with your import transactions, please consult official U.S. Customs and Border Protection resources or reach out to a licensed customs broker.

For more information, visit the official CBP website: https://www.cbp.gov

Or contact Spirit CHB, Inc. – A Trusted Customs Brokerage📞 Phone: (714) 383-9973