In order to adapt to the complex, and ever changing environment of international trade, Customs continuously evaluates its programs and procedures. The Focused Assessment Program was developed based on the knowledge gained from auditing over 537 companies that import more than 30 percent of the $1.2 trillion in goods that enter the United States. The Focused Assessment Program replaces the CAT Kit and provides the audit steps, technical guides, and policies that Regulatory Audit uses to assess a company's importing systems.

A Focused Assessment is a risk based approach where the basic concept is to limit the scope of the audit so Customs and company resources can be used most effectively. We know from experience that companies with good internal Customs systems are much more likely to be compliant and that companies without sufficient system controls pose a higher risk to Customs. Focused Assessments therefore, begin by evaluating a company's importing system. This allows Customs to identify weaknesses that indicate a potential risk of non-compliance. If system controls are adequate, the review ends there. If however, controls are inadequate, Customs will conduct sufficient tests of transactions to quantify the risk.

The Focused Assessment Program provides new and better technical guidance for importers. It includes a broad array of tools that companies can use to evaluate their own internal Customs systems. The Focused Assessment Program includes step by step technical guides that list importer best practices and potential problems or "red flags." The Program also includes Customs policies and guidance for evaluating internal controls and assessing Customs risk. We are committed to keeping the importing public informed about its compliance requirements. Making the Focused Assessment Program available on the web helps fulfill that commitment. We hope this program will be useful to you and provide the necessary tools to develop an effective Customs internal control system.

For more Information contact Howard Spencer at (770) 994-4143

Sincerely,

Cynthia A. Covell Director Regulatory Audit Division