Customs Issuing More CF-28s as Scrutiny of Import Compliance Increases, Trade Attorneys Say
Trade attorneys helping importers comply with duty collection regulations are seeing Customs officials increase their scrutiny of entry filings via a higher rate of CF-28 forms being sent to companies, according to comments made during various webinars this week.
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“We are seeing CF-28s flying all over the place, especially in cases where changes [in regulations] are being made,” trade attorney Olga Torres said during a Sept. 4 webinar sponsored by Sayari. CBP sends out CF-28 forms when it is formally seeking additional information. “We've seen it a lot with cases dealing with Chapter 98 claims that are all of a sudden being claimed. So take it seriously.”
Torres also said her firm is seeing a lot of CF-28 inquiries sent by CBP to her clients, including smaller clients who have been importing for years but are relatively inexperienced in filing entries.
Michael Roll, a trade attorney speaking on a Sept. 3 webinar sponsored by A.N. Deringer, also said he's noticed CBP increasing its issuance of CF-28 forms.
"The point is, you're getting an inquiry. Customs is knocking on your door saying, prove it. You claim USMCA, prove it. You have 30 days to reply. So there's a lot of this kind of activity going on right now," Roll said.
Roll said mitigating supply chain risk may involve educating a company's suppliers and having contractual terms saying the importer will hold the supplier liable for ensuring accurate information.
Tell the supplier, "'If you screw up and we get the penalty, you have to reimburse us.' You can build terms contractually in your purchase orders or your contracts," but that, plus education, are measures that companies can pursue, Roll said.
The trade also is still seeking guidance on transshipment (see 2508280032), especially as this could be an area that CBP could target for fraud, according to Torres.
Torres and her firm have been advising companies that are exposed to high-risk countries, such as Vietnam, Malaysia, Cambodia, Thailand and Indonesia, to understand the manufacturing processes that their suppliers use. They should be vigilant about maintaining records and bills materials, she said.
“In terms of CBP enforcement, I am seeing a lot of businesses and companies that are importers that are struggling to keep up with the tariffs,” Torres said. “So we caution companies, when you’re making changes, when you’re looking at your classifications, when you’re looking at your valuation, be very conservative. Try to get expert opinions and document, document, document. Especially if you’re making changes, if you’ve been importing for the past 10 years, and if you’ve used a specific code, or if you have a methodology supporting your valuation and you’re making switches. We’re seeing Customs all over it.”
While brokers may try to give good advice to their clients, companies must also be careful not to over-rely on them because companies are ultimately the importer of record and responsible for assuming reasonable care, Torres continued.
“Brokers are very, very good, but they have many, many clients. They may not be as familiar with your product, and it is your job to make sure that you're doing the right thing,” Torres said.