What does an “Audit” by CBP entail?

An "Audit" by Customs and Border Protection (CBP) primarily involves a thorough examination of records and compliance practices of a customs broker or importer. This process is essential to ensure that all customs-related transactions comply with applicable laws and regulations. During an audit, CBP officials will review documentation such as invoices, shipping records, and classification of goods to verify that the appropriate duties and taxes have been assessed and paid correctly.

The purpose of the audit is to assess both the accuracy of the information provided to customs and the overall compliance practices of the broker or importer, thereby identifying any discrepancies or areas for improvement in their adherence to customs regulations. Such audits help maintain the integrity of the trade system and ensure that all parties are operating within the legal framework established by CBP.

In contrast, the other options do not align with the broader regulatory and compliance-focused nature of a CBP audit. For example, reviewing shipping labels for accuracy or negotiating freight rates pertains to operational aspects of shipping and logistics rather than compliance scrutiny. Similarly, evaluating customer service does not fall under the jurisdiction of CBP's auditing authority or focus, which is centered on financial and procedural compliance rather than the quality of service provided by a customs broker.