The Court of International Trade recently found that an importer might not have used “reasonable care” in classifying liquid crystal display (“LCD”) panels, even though it used a Customs broker and an attorney, because it did not use its broker to help classify the LCDs, and it did not follow its attorney’s initial classification recommendation. ( United States v. Optrex America, Inc., Slip Op. 06-73 (May 17, 2006)). The Optrex decision shows that importers must exercise great care in classifying their products to avoid additional Customs duties and penalties. Optrex shows that:

• An importer can be found negligent in classifying its products, even if it consults with Customs professionals, if it is found to have ignored or rejected the advice;
• Merely having a Customs broker make an entry on your behalf does not qualify as a consultation for purposes of determining whether an importer exercised reasonable care in meeting Customs’ requirements;
• Keeping an import accrual account to track duties owed if an alternative classification is used for importing merchandise can be evidence of willful undervaluation or misclassification; and,
• If prior Customs rulings lead to confusion over the classification of a particular item, the importer should seek a ruling to clarify the issue.