How is "due diligence" relevant to customs compliance?

Due diligence in customs compliance is fundamentally about ensuring that importers take all necessary precautions to adhere to customs laws and regulations. This involves actively engaging in practices that promote compliance, such as conducting thorough assessments of products being imported, ensuring accurate classification and valuation, and maintaining proper documentation. The concept emphasizes a proactive approach where importers must continually monitor and evaluate their operations and supply chains to identify and mitigate any potential compliance risks.

Through the framework of due diligence, importers demonstrate their commitment to regulatory compliance by establishing and maintaining effective internal controls. This not only helps prevent legal issues related to customs violations but also fosters a positive relationship with customs authorities, which can be beneficial in times of audits or investigations. The focus is on accountability and the obligation to act responsibly in the compliance process.