INTRODUCTION

The power to impose tariffs come from clause 1 (taxing power) and clause 3 (commerce power) of article 1, section 8 of the constitution. Initially tariffs were used to raise revenue but today they are really used to regulate imports. The mission to enforce the customs laws and regulation falls on the U.S. Customs Service, now called Customs and Border Protection. The responsibilities include
- inspection and clearance of carriers, persons and merchandise;
- classification and valuation of imported merchandise;
- assessment and collection of duties on imported merchandise;
- detection and prevention of smuggling; and
- enforcement of import quotas and other restrictions.

The Customs Modernization Act of 1993 (Title VI of NAFTA, PL 103-182)) dramatically changed how CBP treats importers. The Customs Modernization Act placed the legal responsibility on the importer to declare value, assign classifications and determine rate of duty on the goods. The cornerstone of the act is the concept of ‘informed compliance’ which sets a standard of reasonable care for how the importer handles its legal responsibilities. Informed compliance requires the importer to use “reasonable care” in fulfilling CBP requirements. Informed compliance does shift much of the burden to the importer but it can help the importer achieve speedier clearance especially when the importer has a history of voluntary compliance. In addition, after September 11, 2001, the Customs Service merged with Border Protection Service into Customs and Border Protection, security regulations dramatically increased often creating delays. Therefore, the importer is now obliged to follow CBP laws and regulations of face harsh penalties.
Read the rest of this entry »