Audits are increasing in 2025, there’s no two ways about it - US Customs and Border Protection (CBP) is on the lookout for gaps and anomalies in import declarations across the board. In March alone, CBP completed 71 audits and identified $310 million in lapsed duties and fees owed to the US Government. They also found an additional $49 million from previous fiscal years. 

To put that in perspective, according to CBP's own posted statistics, last year, the amount collected exclusively due to importer audits was $117.67 million, following 417 audits. As of this moment in April 2025, they have completed around 200 audits and have already reached $134 million. That is a record pace for CBP, and most importantly to importers, it indicates a significant trend with a clear directive: now is the time to get your house in order because 2025 is not the time to test CBP’s patience or the sharpness of its eye.

CBP’s Most Wanted 

What is CBP looking for when it detects anomalies or issues with imports? In broad strokes, there are three key areas that seem to be the most likely to fall short of regulatory compliance: valuation, classification, and origin. 

• For valuation, it often comes down to importers attempting to adjust or manage their imports to achieve a more palatable number. Whether it’s dropping base prices or cherry-picking and using a supplier's value when determining the value of the goods, there is a correct way to value goods, and attempting to manipulate that number is just going to get you in trouble. 

• For classification, we’re seeing many businesses incorrectly classify goods as an item that is similar, but incorrect. In the past, the difference between a flotation device and a life jacket has been litigated in a court of law, so the stakes for properly identifying what you are importing and what you are not are very high. 

The HS Tariff book is as thick as the dictionary and is filled with corner cases and precedent, so this is a common place for importers to fall down. Which is, in what will be a recurring theme, one of the fundamental reasons that working with a skilled broker is so important when making these declarations. Don’t just guess or try and figure it out on your own. Perhaps more than any other declaration, trust the experts to do this correctly.

• Determining the origin of a good can be tricky. Whether it’s seeking a preferential duty or qualifying for a free trade agreement, or what is required for a good to be considered originating in a particular country varies. Knowing exactly what you need in terms of certification is vital, along with a professional understanding of how to achieve what you are setting out to achieve. Getting this wrong and having it discovered during an audit can be a significant problem, and one that could potentially have financial consequences.

Avoiding a Customs audit in 2025 is not necessarily possible, but working towards full compliance will help you survive a potential audit penalty-free, while also building a reputation for compliance is often worth the effort as well. A business that shows they have made efforts to comply and build a compliance program is more likely to have a successful outcome in an audit. It’s a worthy status to strive for, and knowing the places where you could make a mistake is half the battle. 

CBP is on the Forefront

Over the last decade, CBP has become significantly more effective at identifying non-compliance, with several key examples illustrating the level of sophistication and aggressive enforcement it is implementing to locate offenders and recover lost revenue. 

For starters, the tools at Customs' disposal have come into their own in a significant way over the last five years, and in that time, CBP has seemingly made it its mission to become as effective as possible at detecting non-compliance quickly and effectively. Add in this new high-duty environment, and this sentiment has only intensified in the US. 

From new Revenue Modernization initiatives to advancements in Non-Intrusive Inspection (NII) Systems, the Department of Homeland Security has proceeded over the past few years with a campaign of investments in technology that is beginning to bear real financial fruit. Which is to say nothing of the incredible rise of AI integration into day-to-day operations.

It is also important to remember that importers are required to maintain records related to their import activities for a period of up to five years, and even longer if their goods are subject to antidumping and countervailing duties (CV/AVD). This is because the CBP is authorized to audit any imports within that timeframe, and goods subject to CV/AVD can take a significantly longer time to resolve. So, even if an importer were fortunate enough to avoid having an anomaly detected as they cross, there is a real chance that they will still be audited in the future and end up having to pay the missing duties, while suffering damage to their reputation and likely facing additional penalties. 

As we discussed above, the cost of non-compliance is currently and has historically been incredibly high. Right now, the CBP has never been better equipped to detect anomalies, fraud, and mistakes, with every tool and import regulation poised to ensure that it recovers the money it is owed, even years after the goods have crossed.

Let’s Talk About Audits

It’s worth discussing what exactly an ‘audit’ is, along with what triggers a Customs audit, and the Customs audit procedure. Knowing what goes into an audit, and perhaps more importantly, what comes out of it when non-compliance is discovered, is a crucial part of understanding how mistakes can be detected even years after the fact. 

There are, in general terms, three to four types of audits that the CBP can administer, and they each have a different use case. We are only going to discuss Customs and Border Protection’s audit process for each in brief here, but we will likely go into more detail in a future post. It’s a complex enough process to warrant it, but for now, a brief overview of what you can expect if your goods are audited could be invaluable. 

Quick Response or Single-Issue Audits

As the name suggests, these risk-based audits typically focus on a single issue that has come to the attention of CBP. Most frequently, it addresses duties, taxes, and fees owed, but it very easily could tackle other anomalies that we have discussed above, including valuation, FTAs, classification, or even things like intellectual property rights. 

These audits originate based on referrals from CBP and Homeland Security and include interviews and reviews of selected entries. At the conclusion of the audit, CBP outlines its discoveries in a written report along with its determination. 

Risk Analysis and Survey Assessments (RASAs)

Technically, these are not audits in the traditional sense, but they serve a similar purpose, so it’s worth having a look. RASAs might best be described as a casual curiosity on the part of CBP. It often involves collaboration with other agencies, such as Homeland Security or a Partner Government Agency, but provides a friendlier, faster, and less formal review of what an importer might be up to without requiring a full investigation. The process is markedly similar to an actual audit in that it employs similar techniques, such as interviews and walkthroughs of selected entries. However, unlike an audit, the survey does not result in a formal report, nor is there a determination of ‘acceptable’ or ‘unacceptable.’

Focused Assessment

A Focused Assessment (FA) is the CBP’s formal and comprehensive audit. It seeks to learn about a company’s internal controls, import activities, and its risks. The FA moves through three phases, beginning with the ‘Pre-Assessment Survey.’ 

The Pre-Assessment Survey

The Pre-Assessment Survey assesses a business’s internal compliance practices and serves as the first indicator to CBP regarding how that business manages its imports. It covers details related to processes, chains of command, and the procedures the business has in place to ensure compliance. 

If this survey is insufficient to answer the questions that CBP has about the business’s importing practices, they proceed to the next step - Assessment Compliance Testing. 

Assessment Compliance Testing

In this phase, the auditor looks at the section of a business’s import records that is at the most significant risk for non-compliance from the previous step. 

In all likelihood, it is the import that flagged an audit in the first place. Over time, the auditor works to identify relevant transactions, conduct compliance testing, and scrutinize the processes used to determine valuation, classification, and origin, all in the service of detecting anomalies in import practices.

Additionally, during this process, the auditor may calculate the loss of revenue accumulated due to non-compliance, and that is where things can start to get expensive for importers. Once this is done, a business may be required to engage in a Follow-Up Audit.

Follow-Up Audit

The last step is simply to verify the outcomes of the compliance testing, examine new areas of concern that may have arisen, or double-check results if self-testing had been permitted in the previous steps.

CF28 and CF29

While technically also not audits, it is also worth discussing briefly the CF 28 Request for Information and its less polite cousin, the CF 29. The CF 28 is a formal request for additional information from an importer. Notably, this request only comes when the CBP has a material concern about one of your imports. When asking how to respond to a CF 28 from CBP, the answer is - seriously and often with professional assistance, as it is not something that is sent without cause, but instead, is likely the first salvo in a larger investigation. 

The CF 29, on the other hand, is a notice of action. Most often, this is an indication that the CBP did not get what it was looking for in the CF 28, and now it is taking action based on what you have provided. There are several things this could mean, and we are being intentionally vague about the details for that reason. However, if you are receiving one of these, know that it is potentially a good time to get a broker or trade lawyer involved. 

Experience is Key

Mistakes and anomalies when moving goods across the border have never been more complex, and the age of DIY importing may be behind us forever. Whether it’s significantly heightened scrutiny and the surge of technology or the steep consequences for non-compliance, it has never been more clear that now is the time to get a trade advisor you can trust. 

The process of getting audited is complex, time-consuming, and costly. Any business considering saving money by going it alone would be better advised to invest in an expert now to help establish your processes and build a reputation as a compliant importer with CBP. It is the only way to effectively keep importing without complication. 

Throughout, we’ve recommended that you seek expert opinions, and there are none better than our own Trade Advisory team, which includes both our Personalized Instruction, Compliance Manual, and Post-Audit services, all of which can help you be prepared for this unprecedented uptick in CBP audits. Regardless of the challenges you face in the world of international trade, having an expert on your side can be a significant difference maker in the outcome. 

Additionally, if you are concerned about being audited in the future, our team can help with that as well. Providing support and information about the process, including reviews of your systems and processes to ensure you are in good standing if CBP decides to have a closer look. 

Get in touch with our team today, and we’ll be happy to help give you the peace of mind you need when you import!