Don't Get CaughtWith Import Fines
Customs violations can result in penalties up to 4 times the duty owed, seizure of goods, and even criminal charges. Learn how to stay compliant.
Level 1
Warning
First-time minor violations
Level 2
Monetary Fine
Repeated minor or single major violations
Level 3
Seizure
Serious violations or prohibited goods
Level 4
Criminal
Fraudulent intent or smuggling
Common Violations & Penalties
Wrong HS Code Classification
Misclassifying products to pay lower duties is a serious offense. Even unintentional errors can result in penalties.
Prevention: Use AI ShipMate to verify classifications and document your reasoning.
Undervalued Goods
Declaring goods at less than their true transaction value to reduce duties is customs fraud.
Prevention: Always declare the actual price paid, including assists and royalties.
Missing Documentation
Shipments without required certificates, permits, or commercial invoices can be held indefinitely.
Prevention: Create a pre-shipment checklist for all required documents.
Country of Origin Misstatement
False origin claims to evade tariffs or obtain preferential rates are heavily penalized.
Prevention: Verify supply chain and maintain records of manufacturing location.
Restricted Items Without License
Importing controlled items without proper licenses can result in criminal prosecution.
Prevention: Check restricted goods lists and obtain necessary permits before shipping.
Compliance Best Practices
Document Everything
Keep records of how you determined HS codes, origin, and value. This protects you in audits.
Use Professional Tools
AI classification tools provide documented reasoning that can support your compliance efforts.
Get Binding Rulings
For high-value or recurring products, request an official classification ruling from customs.
Work With a Broker
For complex products, consult a licensed customs broker who understands the regulations.
Classify With Confidence
AI ShipMate provides documented classifications to support your compliance.
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