Section 232 of the Trade Expansion Act of 1962 grants the president wide authority to impose tariffs in situations where he perceives national security to be an issue.
Over the years, presidents have used this authority many times and, in many situations, creating a rather complicated tapestry of tariff requirements. So it’s not surprising that an importer might struggle to get its compliance correct.
That’s why Bestway routinely conducts monthly 19-point audits of clients’ customs activity to make sure there are no compliance issues.
Not long ago, we found a potentially serious one. Without meaning to, a client had been misreporting duties and taxes under Section 232. That had the potential for serious trouble, because Section 232 has very strict reporting requirements, and in some cases steep penalties for incorrect filings.
If this wasn’t addressed quickly and effectively, our client faced the risk of significant financial penalties along with some real operational disruption.
As soon as we recognized what had happened, we explained to the client that they had the option of filing a Post Summary Correction, which would amend the inaccurate entries. Immediately seeing how important this was, they asked us to take the lead in preparing and filing the PSCs.
As we were working through this process, we double-checked with our client to make sure its team understood the timelines and other requirements – and the risks involved with not getting them right.
Once they had worked through it with us – and they did – these errors have not been repeated.
In the meantime, we worked with U.S. Customs and Border Protection to get the amended documents filed and accepted – such that our client ended up incurring no fines or penalties, and no disruption of operations.
No one meant to do anything wrong here. The requirements are complicated, and it can be challenging to allocate the time and resources to stay on top of compliance.
But the fact remains that the government isn’t interested in excuses.
You’ve got to get it right or they will come down on you.
At the same time, we know from experience that the government is willing to work with importers who have made mistakes and are trying to get it right. That’s why the Post Summary Correction document exists.
When we discovered what had happened, we knew the critical step to take in solving the problem.
This is why we do 19-point entry audits.
There is too much potential for error not to have someone double- and triple-checking the process, and we’re in the best position to do it because we work in this arena all the time. We know what to look for.
In this case, no harm, no foul was the outcome – and our client is 100 percent compliant.
We’re glad we checked. But then, it’s what we do.