Regulatory Audit refers to the broader category of audits conducted by CBP under the authority of 19 U.S.C. § 1509, encompassing all formal audit work performed by CBP's Regulatory Audit and Agency Advisory Services (RAAAS). RAAAS is part of CBP's Office of Trade and is staffed by accountants, auditors, and specialists.
Types of Regulatory Audits:
- Focused Assessment (FA) — Comprehensive multi-year audit of overall compliance
- Quick Response Audit (QRA) — Targeted single-issue audit
- Single Issue Audit (SIA) — Narrower than a QRA, focused on a specific question (e.g., one HTS classification)
- Audit Survey — Preliminary review to determine whether a full FA is warranted
- Statistical Audit — Used to validate compliance rate claims or prior disclosure submissions
- Drawback Audit — Reviews drawback claims for accuracy and supporting documentation
- FTZ Audit — Reviews foreign trade zone operations and inventory controls
Audit authority and scope:
- CBP can require production of any record relating to an import within 5 years of entry (19 U.S.C. § 1508)
- Records must be made available at the place of business or at a place designated by CBP
- Importers must designate a recordkeeper and respond to requests within reasonable time
- Failure to maintain or produce records is itself penalty-bearing under 19 U.S.C. § 1509(g) — up to $100,000 per release
Outcomes:
- Acceptable — No further action; the importer's compliance is satisfactory
- Acceptable with Recommendations — Importer should improve specific procedures
- Unacceptable — Refers to additional audit phases (Phase II of FA), Section 1592 penalty action, or duty recovery
- Referral to FP&F — Civil penalty case opened with Fines, Penalties, and Forfeitures Officer
For importers, treating any RAAAS inquiry as a formal audit — with documented reasonable care, preservation of records, and counsel engagement — is the prudent default.