CBP Audit Response: What to Do When Customs Questions Your Classification
CBP recovered $192.77M through audits in the first 9 months of FY2025. If you've received a CF-28 or CF-29, here's what it means and how to respond.
What did you receive?
CF-28: Request for Information
This is an inquiry, not an accusation.
CBP wants more information about your entry — product details, why you chose that HTS code, supporting documentation. Common triggers:
- Unusual classification for the declared value
- Code flagged by automated targeting
- Random selection for review
- New importer profile
Deadline: 30 days to respond.
CF-29: Notice of Action
CBP has already changed your entry.
This means CBP disagrees with your classification and has reclassified your goods. May include:
- Increased duty assessment
- Penalty notice
- Rate advance (different duty rate applied)
Deadline: 180 days to file a protest.
Consider hiring a customs broker or trade attorney.
How to respond to a CF-28
- Don't panic. A CF-28 is routine. Thousands are issued every month. It's a question, not a penalty.
- Gather your documentation:
- Original commercial invoice with product description
- Product specifications, tech sheets, or material certificates
- Photographs of the actual product
- Material composition breakdown (critical for textiles, chemicals)
- Marketing materials or product catalog pages
- Find supporting CBP rulings. This is your strongest evidence. If CBP classified a product similar to yours under the same HTS code, cite that ruling.
- Draft your response:
- Clear, detailed product description
- Why your HTS code is correct — cite GRI rules
- List supporting ruling numbers with brief descriptions
- Attach all documentation
- Submit before the 30-day deadline. Extensions are sometimes possible but not guaranteed.
Find supporting rulings for your defense
A ruling for a substantially similar product is the single most powerful piece of evidence you can include in a CF-28 response. It shows CBP's own experts agreed with your classification approach. Learn more about using rulings as evidence.
How to respond to a CF-29
A CF-29 is more serious — CBP has already made a decision. Your options:
- Accept the change. Pay the additional duties. This is appropriate when CBP is clearly correct or the amount is small.
- File a protest (CBP Form 19). You have 180 days. You'll need to build a case with ruling evidence, GRI analysis, and supporting documentation. The protest is reviewed by a different CBP officer.
- Request further review. After a protest denial, you can request review by CBP Headquarters or appeal to the Court of International Trade.
Penalty structure
Penalties under 19 U.S.C. §1592 depend on the level of culpability:
| Level | Penalty | What it means |
|---|---|---|
| Clerical error | No penalty | Honest mistake, no pattern. Typo in HTS code, wrong digit. |
| Negligence | 2x lost revenue | Should have known better. No reasonable care taken. |
| Gross negligence | 4x lost revenue | Reckless disregard for accuracy. Systematic misclassification. |
| Fraud | Full value of goods | Intentional misclassification. Criminal referral possible. |
Ford paid $365 million in 2024 for classifying Transit Connect vans as passenger vehicles instead of cargo vehicles. Misclassification penalties are real and can be catastrophic.
Prior disclosure: reduce your penalties
If you discover you've been using the wrong HTS code, the prior disclosure program lets you come forward voluntarily before CBP finds the issue. Benefits:
- Penalties reduced by 50-75%
- Negligence penalties often capped at interest on lost duties
- Demonstrates good faith and "reasonable care"
- Prevents the issue from being classified as fraud
Prior disclosure must be made before CBP initiates a formal investigation. Timing matters — if CBP contacts you first, the window may have closed.
When to handle it yourself vs hire help
| Handle yourself | Hire a customs broker | Hire a trade attorney |
|---|---|---|
|
|
|
Preventing future audits
- Keep classification evidence on file. For every HTS code you use, have a supporting CBP ruling, material spec, or classification rationale documented. If CBP asks, you can respond in hours instead of weeks.
- Review classifications annually. The HTS schedule changes. Products change. What was correct last year may not be correct now.
- Don't copy codes from suppliers or competitors. Classify your own products based on your own product specifications.
- Use consistent methodology. Document your classification process. "Reasonable care" under the law means you took reasonable steps to get it right.