Reasonable care means you took informed, proactive steps to get the entry right: you classified the goods, checked the value, and kept records that prove it. CBP does not expect perfection, but it does expect evidence that you tried.
The importer of record owns the entry, broker or not
Under 19 USC 1484, the importer of record is responsible for the entry, full stop. Your broker can file it, your forwarder can hand it over, and your supplier can swear the classification is right, but when CBP finds an error, the letter comes to you. A lot of small importers learn this the expensive way, when a broker error turns into their penalty.
This does not mean you have to do the broker's job. It means you cannot outsource the responsibility. Hiring a competent broker is part of reasonable care. Handing the broker a commercial invoice and never looking at the entry summary is not.
What CBP's own checklist actually asks for
CBP publishes an Informed Compliance document called Reasonable Care, A Checklist for Compliance, and it reads less like a legal standard and more like a to-do list. Did you check the classification against the tariff schedule? Did you verify the value, including assists and royalties? Did you confirm the country of origin marking? Did you ask questions when something on the invoice looked off?
The standard is informed and proactive, not perfect. CBP knows importers make mistakes. What it wants to see is a process: somebody looked, somebody checked, somebody asked. An importer with a thin process and one honest error gets a very different reception from an importer with no process at all.
Five years of records, kept where you can find them
Under 19 CFR part 163, import records must be kept for five years. That covers the entry summary, the commercial invoice, the packing list, the classification work papers, and the correspondence with your broker and supplier. Five years is a long time, and the importers who get hurt are the ones who kept everything in a former employee's inbox.
The practical rule is simple: if you cannot produce the record within a few days of CBP asking, you do not really have it. Cloud storage with a folder per entry costs almost nothing. Reconstructing a classification decision from memory three years later costs a great deal more.
What a mistake costs under 19 USC 1592
Penalties under 19 USC 1592 scale with culpability. A negligent entry can cost up to twice the lawful duties, or 20 percent of the dutiable value. Gross negligence and fraud go higher, much higher. The gap between negligence and gross negligence is often just the absence of a process: the importer who can show the checklist and the records gets the lower end.
Entry summaries, CBP Form 7501, are due within 10 working days after entry. That deadline is part of the same picture. Reasonable care is not a single act, it is a habit, and the habit is cheapest to build before the first penalty letter arrives.
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Frequently asked questions
Is my broker responsible if an entry is wrong?
No. Under 19 USC 1484 the importer of record owns the entry, even when a broker files it. Hiring a good broker is part of reasonable care, but it does not transfer the liability.
What does reasonable care actually require me to do?
Informed, proactive steps: verify the classification, check the value, confirm origin marking, and ask questions when the paperwork looks wrong. CBP's own checklist publication lays out the steps. Perfection is not required, evidence of trying is.
How long must I keep import records?
Five years under 19 CFR part 163. Keep the entry summary, invoice, packing list, classification work papers, and broker correspondence, stored where you can produce them within days of a request.
What is the penalty for a negligent entry?
Under 19 USC 1592, negligence can cost up to twice the lawful duties or 20 percent of the dutiable value. Gross negligence and fraud carry higher penalties, and showing a real compliance process is what keeps you at the lower end.