Exercising Reasonable Care: U.S. Customs Expectations of Importers

Posted: April 2025 | HelpWithTariffs.com

Navigating U.S. tariffs in 2025 is tough for businesses importing goods. Missteps in classifying products or calculating duties can lead to overpaying thousands or facing CBP penalties. The U.S. Customs Service expects importers to exercise reasonable care—a legal standard to ensure compliance. This post outlines what reasonable care means and how to meet CBP’s expectations to save money and avoid trouble.

What Is Reasonable Care?

Under 19 U.S.C. 1592, reasonable care requires importers to act diligently to classify goods, determine tariffs, and comply with trade laws. CBP expects you to verify product details, use correct Harmonized Tariff Schedule (HTS) codes, and pay accurate duties. Mistakes, like mislabeling a product’s origin, can trigger fines for negligence and reassessed duties or tariffs. Reasonable care protects profits by minimizing errors and penalties.

Key Steps to Show Reasonable Care

CBP’s guidelines (Informed Compliance, 2023) list practical steps to meet the standard.

1. Verify HTS Codes: Use https://hts.usitc.gov/ to find accurate codes. Wrong codes can lead to overpayment, underpayment, or penalty.

2. Confirm Country of Origin: Ensure supplier documentation matches the shipment’s origin (e.g., China vs. Canada) to apply correct tariffs.

3. Calculate Duties Correctly: Understand stacking rules (e.g., China’s 20% IEEPA fentanyl doesn’t stack with 125% Reciprocal). Errors cost thousands.

4. Keep Records: Save invoices, emails, and tariff calculations for 5 years to prove compliance during audits.

5. Consult Experts: Use brokers or CBP’s free resources (https://www.cbp.gov/trade) for complex goods.

6. Document your internal process.

   
   

   Tip: Create and maintain "Desk Instructions" for your import team and share it with you Customs broker.

   
   

These steps prevent costly mistakes and show CBP you’re acting responsibly.

Follow these SMB-friendly steps to meet CBP’s expectations:

1. Use Free Tools: USITC (https://hts.usitc.gov/) and USTR lists (https://ustr.gov) clarify codes and tariffs, avoiding $1,000 audits.

2. Document Everything: Save supplier emails, HTS lookups, Proof of Country of Origin, and duty math for 5 years to pass CBP audits.

3. Ask Brokers Early: A $50 broker email sorts complex tariffs (e.g., USMCA eligibility), cheaper than $200/hr lawyers.

4. Train Staff: Create and maintain Desk Instructions to ensure your team knows the basics and has a documented playbook to refer to.

5. Monitor Updates: E.g., China’s 125% Reciprocal is active; others paused until July 8, 2025 (90 FR 15041). Check CBP notices and sign up for email alerts.

Records and diligence keep penalties at bay.

Tariff Changes to Watch

Tariffs shift with policy changes, executive orders, or trade deals. Rates like China’s 125% Reciprocal or Canada’s USMCA exemptions may evolve. Verify current rules via CBP’s ACE portal (https://www.cbp.gov/trade/ace) or USTR (https://ustr.gov) to stay compliant and avoid errors.

Stay Compliant, Save Money

Reasonable care isn’t just a CBP rule—it’s a way to save $5,000–$50,000 yearly by avoiding overpayments and fines. Master HTS codes, verify origins, and track tariff changes for China, Canada, or beyond. Share your compliance tips below!

Posted by the HelpWithTariffs.com Team