Meaning
Statutory obligation requiring importers to act with diligence and honesty when providing information to customs authorities governs all aspects of the trade process. The reasonable care standard demands that a firm use all available resources to ensure its declarations of value, classification and origin are correct. This duty cannot be fully delegated to a third-party broker or consultant.
It serves as the baseline for determining if a mistake should lead to a penalty.
Compliance Burden
Organizations must implement internal controls and training programs to meet this expectation. Following the reasonable care standard involves regular audits of shipping documents and the use of expert advice for complex products. A company that ignores obvious errors or fails to stay updated on trade laws violates this duty.
Information Source
Reliable data must be pulled from the actual commercial transaction and verified against the physical goods. Under the reasonable care standard, an importer is expected to ask the manufacturer for specific details about the composition and production of the items. Relying on an old or incomplete description is considered a failure of diligence.
Penalty Defense
Demonstrating a pattern of careful behavior can protect a business from fines if a mistake is eventually found. If the importer can prove they followed the reasonable care standard by showing their procedures and records, the authorities may waive the penalties. This makes the documentation of a compliance program a high priority for any global logistics department.
Acting with care is the best way to maintain a clean record with the state. Every importer is held to this level of performance.
