New Supplier Customs Checklist: Questions to Ask Before You Buy

Key Points

• The time to surface customs risk is before the purchase order is signed, not when goods arrive at the port.
• Country of origin determines which duty columns, Section 301 tariffs, antidumping and countervailing duties, and trade-preference programs apply, so origin documentation must be collected upfront.
• U.S. law creates a rebuttable presumption that goods produced wholly or in part with forced labor are prohibited from entry; the burden of proof falls on the importer.
• Antidumping and countervailing duty (AD/CVD) orders carry retroactive cash-deposit adjustments at final review, meaning exposure can grow long after the shipment clears customs.
• The Incoterms rule chosen in the purchase contract directly affects the dutiable value declared to CBP and which party controls the logistics choices that drive compliance.

On this page

1. Why compliance starts in procurement, not at the port
2. Origin evidence: what to collect and why it matters
3. Forced-labor screening
4. Antidumping and countervailing duty exposure
5. Valuation structure and Incoterms
6. Making the checklist part of your supplier onboarding process
7. What importers should do
8. Key references

Every customs risk attached to a new supplier, whether a misdeclared origin, an AD/CVD order, or a forced-labor finding, becomes the importer of record's legal and financial problem the moment goods arrive in the United States. Running a structured customs checklist before the first purchase order eliminates the most common surprises and gives procurement teams the information they need to negotiate terms that keep compliance in the importer's hands.

The links in this article go to the primary documents: the proclamations, Federal Register notices, and official tariff schedule pages themselves. Read the source.

Why compliance starts in procurement, not at the port

Importers often treat customs as a logistics step that happens after the deal is done. That sequence is backwards. By the time a shipment is moving, the price is fixed, the supplier is locked in, and the Incoterms rule is buried in a signed contract. Changing any of those elements after the fact is expensive and sometimes impossible.

A pre-onboarding customs review costs little in time and nothing in duties. It surfaces three categories of risk that are far cheaper to address before goods are ordered:

• Classification and rate risk: Does the product attract Section 232 or Section 301 additional duties, and is the importer prepared to pay them or pursue an exclusion?
• Admissibility risk: Could the goods be detained or seized at the border for forced-labor, safety, or other admissibility reasons?
• Valuation risk: Is the transaction structured so that the price paid reflects all dutiable elements, or will CBP find assists, royalties, or related-party adjustments that change the declared value?

Origin evidence: what to collect and why it matters

Country of origin is the single most consequential fact attached to an imported product. It determines the applicable duty column in the Harmonized Tariff Schedule of the United States, eligibility for free-trade agreement treatment, applicability of Section 301 or Section 232 additional duties, and whether an AD/CVD order applies.

Documents to request before the first shipment

• Manufacturer's affidavit or declaration of origin: A written statement from the factory identifying where substantial transformation or tariff-shift rules are satisfied.
• Bill of materials with component origins: For manufactured goods, the origin of the finished article often depends on where key inputs come from. A BOM with supplier countries lets you apply the correct origin rule.
• Free-trade agreement certificates or certifications of origin: If the supplier claims USMCA, KORUS, or another preference program, collect the certification before the entry is filed, not after a CF-28 arrives.
• Production records or process description: For goods where origin is contested, CBP may require evidence of the operations performed in the claimed country.

Transshipment red flags

A supplier located in Country A that sources finished goods from Country B and re-exports them is a transshipment scenario. CBP investigates transshipment aggressively, particularly for goods subject to high AD/CVD orders or Section 301 tariffs. Ask the supplier directly: where is the product manufactured, and where are the components sourced? Inconsistencies between the answer and the shipping documents are a signal to investigate further before ordering.

Forced-labor screening

Section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) prohibits the importation of merchandise produced wholly or in part with forced labor, including convict labor. The statute creates a rebuttable presumption that certain goods are prohibited, and the burden of rebuttal sits with the importer.

CBP publishes a list of Withhold Release Orders (WROs) and findings identifying specific entities and commodity groups where forced-labor concerns have been formally identified. Before onboarding any supplier, check that list against the supplier name, its known subcontractors, and the raw material inputs.

Beyond the WRO list, screen the supplier and its supply chain against CBP's forced-labor resources page and any country-specific advisories issued by the U.S. government. Goods from regions with documented state-sponsored forced-labor programs carry elevated risk regardless of whether a WRO exists for the specific factory.

Forced-labor exposure is not limited to traditional manufacturing countries. Recent Section 301 forced-labor tariff provisions cover a range of countries. See our country-specific guides for Mexico (9903.05.55), Malaysia (9903.05.54), and Indonesia (9903.05.45) for product-specific rate detail.

Antidumping and countervailing duty exposure

AD/CVD orders are product- and country-specific measures administered by the U.S. Department of Commerce and enforced by CBP. They require importers to pay cash deposits at entry based on the applicable rate for the exporter or producer. Those cash deposit rates are subject to administrative review and can be adjusted, sometimes significantly, after the merchandise has already entered.

How to check for an active order

The CBP AD/CVD page and Commerce's AD/CVD orders download list all active orders by product and country. Search by the product's HTS heading and the supplier's country of origin before any purchase commitment.

Questions for the supplier

• Has your company or any affiliated entity ever been the subject of an AD/CVD investigation or review?
• What is your company's entity-specific cash deposit rate, if one has been assigned?
• Are any of the components in this product sourced from countries with active orders on those components?

A supplier that cannot answer these questions, or deflects them, is itself a red flag. AD/CVD liability falls on the importer of record, not the foreign seller, so the importer needs these answers before the first entry is filed.

Valuation structure and Incoterms

U.S. customs value is generally based on transaction value: the price actually paid or payable for the merchandise, plus certain additions required by statute. Those additions can include packing costs, selling commissions, assists (tools, dies, molds, or materials supplied free or at reduced cost to the supplier), royalties, and proceeds of resale that accrue to the seller.

Valuation questions to ask the supplier

• Will the importer provide any tooling, molds, artwork, or other production inputs to the supplier? If so, those assists must be declared and may increase dutiable value.
• Are there royalty or license agreements tied to the product that require payment as a condition of sale? Royalties paid to the seller or a related party are often dutiable.
• Is the supplier related to the importer under CBP's definition? Related-party transactions require additional analysis to confirm that the declared price is acceptable for customs purposes.

Incoterms and dutiable value

The Incoterms rule in the purchase contract affects more than logistics responsibility. Under transaction value, the price paid or payable is assessed at the point of exportation. A contract priced on a delivered-duty-paid (DDP) basis embeds foreign inland freight, origin charges, and sometimes foreign taxes in the invoice price, elements that may or may not be dutiable depending on how they are itemized. A contract priced on an FOB or FCA basis is generally easier to reconcile to the dutiable value standard.

Equally important: DDP terms place the import compliance decisions in the hands of the foreign seller. The seller arranges the customs broker, files the entry, and pays the duties, but the importer of record remains legally responsible for the accuracy of the entry under U.S. law. If you choose DDP, establish in the contract exactly who acts as importer of record and what documentation the seller must provide.

Making the checklist part of your supplier onboarding process

The most effective compliance programs embed these questions into the standard procurement workflow so that no supplier is approved for purchasing without customs sign-off.

Minimum supplier questionnaire elements

• Legal name, physical address, and tax identification number of the manufacturing facility
• Country and region of manufacture for the finished article
• Countries of origin for primary raw material inputs
• Any known WROs, forced-labor findings, or AD/CVD orders affecting the supplier or its inputs
• Willingness to provide origin certifications, factory audit reports, and production records on request
• Identification of related-party relationships with the importer
• Royalty or license agreements tied to the product

Contractual provisions worth including

• A representations and warranties clause in which the supplier confirms the accuracy of origin and valuation information
• A right-to-audit clause allowing the importer or its designee to verify production records
• An indemnification clause allocating the cost of customs penalties or additional duties to the responsible party if the supplier's misrepresentation caused the underpayment
• A compliance-with-law clause requiring the supplier to notify the importer of any government investigations, WROs, or AD/CVD orders affecting its products

For a broader look at how this supplier review fits into your ongoing compliance calendar, see our Import Compliance Checklist: The Annual Self-Audit Routine.

What importers should do

• Build a one-page supplier customs questionnaire covering origin, forced-labor exposure, AD/CVD status, assists, and royalties, and make completion a condition of supplier approval before any purchase order is issued.
• Run every new supplier name and country of origin against CBP's Withhold Release Orders list and the Commerce AD/CVD orders database before the first shipment is released.
• Review the Incoterms rule in every new supplier contract and confirm in writing which party will act as importer of record and maintain the entry documentation.
• Retain origin certifications, supplier questionnaires, and valuation documentation for at least five years from the date of entry, consistent with CBP record-keeping requirements.

Key references

• Harmonized Tariff Schedule of the United States (USITC) - Official HTS, updated continuously; use to confirm duty rates, special program eligibility, and additional duty applicability by HTS number.
• 19 U.S.C. 1307 (Cornell LII) - The forced-labor import prohibition statute.
• CBP Withhold Release Orders and Findings - Current list of entities and commodities subject to forced-labor detention at the U.S. border.
• CBP Forced Labor Resources - CBP's central page for forced-labor enforcement guidance, resources, and uyghur forced labor prevention act information.
• CBP Antidumping and Countervailing Duties - Enforcement guidance, bond requirements, and links to active AD/CVD order lists.
• Commerce AD/CVD Orders Download (ITA) - Downloadable list of all active antidumping and countervailing duty orders by product and country.
• 19 CFR Part 152 (eCFR) - CBP regulations governing the appraisement and classification of merchandise, including transaction value rules.