Customs Modernization Act of 1993
Customs Modernization Act of 1993, known as the Mod Act, is Title VI of the NAFTA Implementation Act that shifted US import compliance to shared responsibility, with importers using reasonable care and Customs providing informed compliance guidance.
What it requires
Importers of record must use reasonable care to classify, value and declare the origin of goods, and keep entry records for five years under 19 U.S.C. 1508 and 1509. The act authorized electronic filing, remote location filing and reconciliation entries. Failures are penalized under 19 U.S.C. 1592: up to the domestic value of the goods for fraud, up to four times the lost revenue for gross negligence and up to two times for negligence. A valid prior disclosure reduces penalties.
Why it matters
The Mod Act is why responsibility for a wrong customs entry rests with the importer, not the broker or 3PL that handled the freight. When a brand asks its fulfillment provider to act as importer of record, the provider inherits the reasonable care duty and the five-year recordkeeping obligation. For example, a 3PL that files entries for a client's apparel must be able to produce fiber content and origin documents during a CBP audit. Clear contracts on who is importer of record, who supplies data and who pays penalties prevent disputes.
Related laws
Sources
Not legal advice.