Importers push back on stricter supply chain data rules
US Customs and Border Protection’s (CBP) plan to require stricter supply chain disclosures is facing opposition from importers. The agency issued an Advance Notice of Proposed Rulemaking earlier this month, aiming to improve cargo security through heightened data reporting. While some carriers see a path forward, importers warn that current foreign systems cannot support the proposed mandates.
Technology versus paper trails
Shipping giant Hapag-Lloyd supports using technology to meet security goals. The company stated that its deployment of roughly two million “Internet of Things” (IoT)-enabled dry containers provides objective, verified telemetry. This equipment tracking can detect illicit transshipment and routing anomalies without the burden of traditional paper declarations. Hapag-Lloyd urged CBP to leverage these existing industry investments rather than requiring entirely new infrastructure.
However, importers argue that the proposed rules are not feasible. Family-owned importer TOV Furniture told CBP that it supports efforts to stop bad actors from gaining an advantage through illegal transshipments. Yet, the company noted that a US importer cannot guarantee the accuracy, completeness, format, or timing of a filing prepared by a foreign exporter or freight forwarder. The company argued that importers should not be held strictly liable for documents controlled by third parties.
This operational reality creates significant friction for the supply chain. Semiconductor manufacturer Nanoverse Technologies noted that foreign export filings remain outside importer control. Director of global supply chain Nick Mauro explained that an importer generally cannot determine whether a foreign filing is accurate, complete, or compliant with foreign laws. The group urged CBP to adopt targeted, risk-based alternatives that focus on transactions with actual customs risk indicators.
Legal analysis submitted to CBP by the Kelly Legacy Institute advised maintaining a “reasonable care” standard for the importer record. The founder, Delonte Kelly, stated that this standard should not become an absolute guarantee of third-party accuracy. The analysis argued that an importer may reasonably investigate facial inconsistencies or missing records, but lacks authoritative means to guarantee the truthfulness of statements made by an independent foreign actor.
Data gaps on the ground
Importer concerns align with ground-level findings from China. Supplymo, a supply chain analytics platform based in Yiwu, evaluated the public API of 1688.com, a wholesale marketplace owned by Alibaba Group. The analysis of 120 top-ranked product listings revealed that 72 listings, or 60%, declared no invoice capability whatsoever. The remainder split between general invoices and general plus special VAT invoices.
