When Customs determined the declared origin was incorrect it instituted penalty action against the importer. The importer testified that it believed and relied on the origin information provided by the shipper, and acknowledged it had not attempted to verify it. The CIT agreed with Customs that reliance on the exporter and the customs broker does not remove the importer's obligation to exercise reasonable care and competence to ensure that the statements made on entry documents are correct. The Mod Act made importers responsible for using reasonable care when entering goods with Customs. The court said the failure to undertake an effort to verify the information left the importer liable for monetary penalties when the false information was filed with U.S. Customs.
Many importers rely on their foreign suppliers to provide accurate documentation for imports.
Information concerning the origin, selling price and description of imported goods is routinely provided on invoices and related shipping documents. Importers, through their customs brokers, regularly prepare their customs entries based on the information provided. The recent CIT decision puts importers on notice that when entry information is found to be false, they will be liable for monetary penalties unless they can show steps were taken to verify the accuracy of the information filed. This site is protected by copyright and trademark laws under U.S. and International law. Review our privacy policy .