Reasonable Care & CBP Audits for Thai Imports (2026)
When you import from Thailand into the USA, you are the importer of record. Your customs broker files the entry, but the legal duty to exercise "reasonable care" under 19 U.S.C. 1484 sits with you. This guide covers what that means day to day, what CBP inquiry letters look like, and how to prepare for an audit before one arrives.
What "reasonable care" actually requires
| Area | What CBP expects | Practical evidence |
|---|---|---|
| Classification | A defensible HTS code with reasoning | Classification worksheet, spec sheet, any binding ruling |
| Valuation | Correct transaction value, all assists declared | PO, invoice, payment proof, tooling/mould agreements |
| Origin | Substantial transformation documented in Thailand | BOM, production flow, Thai factory declaration |
| Marking | Country of origin marked per 19 CFR 134 | Product photos, artwork approvals |
| Recordkeeping | 5 years from entry date | Indexed digital archive per entry number |
CF-28 vs CF-29
- CF-28 (Request for Information) — CBP wants documents or an explanation. You normally have 30 days. Answer narrowly, factually, and on time.
- CF-29 (Notice of Action) — CBP proposes or takes action, usually a rate advance or reclassification. If it is "proposed", you have 20 days to rebut with evidence.
Ignoring a CF-28 is the single most common way a routine question becomes a penalty case.
Assists: the mistake Thai-sourced programs make most
If you paid for moulds, tooling, dies, artwork or engineering used by the Thai factory and that cost is not in the invoice price, it is an assist and must be added to customs value. Amortise it over the expected production run and declare it. Undeclared tooling is a frequent audit finding.
Focused Assessment: what to have ready
- Written import compliance manual (even 10 pages beats nothing).
- Entry summary reconciliation — ACE data vs your own purchase records.
- Classification database keyed by SKU with review dates.
- Supplier declarations from each Thai factory covering origin and forced-labour due diligence.
- Post-entry correction log: PSCs and protests filed, with outcomes.
Prior disclosure: fixing your own errors
If you find an underpayment, a prior disclosure under 19 U.S.C. 1592(c)(4) filed before CBP starts an investigation typically limits your exposure to the duty owed plus interest, rather than penalties that can reach the domestic value of the goods. Speed matters — file as soon as the scope is known, then supplement.
A workable compliance rhythm for a mid-size importer
- Monthly — spot-check 5 entries against invoices and packing lists.
- Quarterly — review the top 20 SKUs by duty paid for classification drift.
- Annually — refresh Thai supplier declarations and re-read your broker's power of attorney and standard terms.
Related reading: HTS classification and binding rulings, customs valuation and First Sale, and country of origin marking.
FAQ
Who is legally responsible if my broker files the wrong HTS code?
The importer of record. Broker error may be a commercial claim against the broker, but CBP pursues you for duties and penalties.
How long must I keep import records for Thai shipments?
Five years from the date of entry, in a form you can retrieve on request. Digital copies are acceptable.
How long do I have to respond to a CF-28?
Normally 30 days from the date on the letter. Request an extension in writing if you need one — CBP usually grants a reasonable first request.
Do I need to declare moulds I paid the Thai factory to build?
Yes, if the tooling is used to produce your imported goods and its cost is not already in the price. It is a dutiable assist.
Does a binding ruling protect me in an audit?
For the exact product and facts described, yes. It does not cover materially different products, so keep rulings tied to specific SKUs.
Is prior disclosure worth filing for a small underpayment?
Usually yes. The cost is the duty plus interest, and it removes a finding that would otherwise expand the scope of an audit.