What are the greatest consequences of the Mod Act for me?
The Mod Act fundamentally altered the relationship between importers and the U.S. Customs Service. The Act shifted the legal responsibility for declaring the value, classification and rate of duty applicable to entered merchandise to the importer and requires importers to use reasonable care to assure Customs is provided accurate and timely data. Customs retains the ultimate responsibility to “fix” the value, classification and rate of duty. Informed compliance is based on the premise that, in order to meet their responsibilities, importers need to be clearly and completely informed of their legal obligations. Under the Mod Act, Customs will spend more time and use more effective methods to inform the public with the goal to maximize voluntary compliance and reduce the number of instances where enforced compliance is necessary.
