Import Record-Keeping Requirements

By Margaret M. Gatti, Esquire
June 1999
All Rights reserved

Import record-keeping requirements are prescribed in Customs' regulations 19 C.F.R. Part 163. These regulations were recently revised. Revised regulations require the following persons to maintain import records and to make them available for examination by the Customs Service on Customs' demand: an importer, consignee, entry filer or other person who: (a) imports merchandise into the customs territory of the U.S.; or (b) files a drawback claim.

The specific import records that must be retained are the records outlined in a list referred to as the "(a)(1)(A) list", the compilation and publication of which is mandated under 19 U.S.C. 1509(a)(1)(A). This list defines import records as "any information required by law or regulation for the entry of merchandise", including statements, declarations, documents, correspondence and financial accounting data. The record keeper must maintain the import records in their original form, whether paper or electronic.

Any record required to be kept and rendered for examination or inspection under

19 C.F.R. Part 163 must be kept for a period of 5 years from the date of entry, if the record relates to an entry, or 5 years from the date of the activity which required creation of the record.

If a record keeper fails to produce an import record upon lawful demand by Customs, the consequences can be severe. If the failure is the result of:

a willful failure to maintain, store or retrieve a demanded record, Customs may assess an administrative penalty for each release of merchandise, not to exceed $100,000, or an amount equal to 75% of the appraised value of the merchandise, whichever is less;

a negligent failure to maintain, store or retrieve a demanded record, Customs may assess an administrative penalty for each release of merchandise, not to exceed $10,000, or an amount equal to 40% of the appraised value of the merchandise, whichever is less.

In addition, if the demanded record relates to eligibility for an HTSUS column 1 special rate of duty, the entry: (a) if unliquidated, shall be liquidated at the HTSUS column 1 general rate (or column 2 rate, if applicable); or (b) if liquidated within the 2-year period preceding the date of demand, shall be reliquidated at the HTSUS column 1 general rate (or column 2 rate, if applicable) notwithstanding the time limits in 19 U.S.C. Section 1514 or Section 1520.

Are you in compliance with Customs' import record-keeping requirements?