AI & Legal Policy

1. Not a Licensed Customs Broker

USTradeStack is NOT a licensed customs broker and does NOT provide customs brokerage services.

Under 19 U.S.C. §1641 and CBP regulations at 19 CFR Part 111, only licensed customs brokers may provide customs brokerage services to importers or exporters, including:

• Tariff classification and HTS code assignments for import purposes
• Duty calculation and entry preparation on behalf of an importer
• Customs compliance advice as an agent for an importer or exporter
• Filing of CBP entries, ISF filings, or other official customs documents

USTradeStack does not hold a customs broker license issued by U.S. Customs and Border Protection. No person associated with USTradeStack is acting as a customs broker on your behalf. Using USTradeStack does not satisfy any legal or regulatory requirement that your customs transactions be handled by a licensed broker.

2. Educational Reference Only

All output produced by USTradeStack — including HTS classifications, duty estimates, landed cost calculations, compliance information, and any other analysis — is EDUCATIONAL REFERENCE MATERIAL ONLY.

This means:

• Classifications are not CBP-binding determinations
• Duty figures are estimates, not official assessed amounts
• Compliance information is informational, not legal or regulatory advice
• Results are not authoritative tariff classifications under any statute or regulation
• Content is not a substitute for advice from a licensed customs broker or qualified trade attorney

USTradeStack is intended to help importers and trade professionals research tariff schedules, understand duty structures, and identify questions to ask their customs broker — not to replace licensed professional judgment.

3. Verification Required Before Importing

You must verify any HTS classification or duty calculation provided by USTradeStack before importing goods into the United States. There are two accepted methods:

Option A — Licensed Customs Broker Review

Engage a customs broker licensed under 19 U.S.C. §1641 to review and confirm the classification. The broker takes professional responsibility for entries filed on your behalf.

Option B — CBP Binding Ruling

Request a binding tariff classification ruling from CBP Headquarters under 19 CFR §177.1. A binding ruling is legally binding on CBP and provides certainty as to the applicable classification and duty rate before goods are imported.

Binding ruling requests are filed via CBP's CROSS system at rulings.cbp.gov. CBP Form 28 (Request for Information) may also be used.

4. Penalties for Incorrect Classification

Incorrect tariff classification of imported goods can result in serious legal and financial consequences under U.S. law:

Civil Penalties (19 U.S.C. §1592)

CBP may assess civil penalties for negligent, grossly negligent, or fraudulent misclassification:

• Negligence: Up to 20% of the dutiable value of the merchandise (for cases involving unpaid duties)
• Gross negligence: Up to 40% of the dutiable value
• Fraud: Up to the full domestic value of the merchandise

Criminal Penalties (19 U.S.C. §1593)

Fraudulent misclassification may also result in criminal prosecution, including fines and imprisonment.

Additional Consequences

• Seizure and forfeiture of imported goods
• Importer-of-record liability for unpaid duties plus interest
• CBP audit exposure and increased scrutiny of future imports
• Anti-dumping and countervailing duty liability if goods are incorrectly classified to avoid AD/CVD orders

USTradeStack accepts no liability for penalties, duties, interest, forfeitures, or other consequences arising from reliance on AI-generated classifications. See Section 9 (Limitation of Liability).

5. No Reliance for Compliance Obligations

You are not relying on USTradeStack to satisfy your customs compliance obligations as an importer of record, exporter, or trade professional.

As importer of record, you are legally responsible for:

• The accuracy of HTS classifications on CBP entry documents
• Payment of all applicable duties, taxes, and fees
• Compliance with all applicable partner government agency requirements (FDA, USDA, EPA, CPSC, FCC, etc.)
• Maintaining records of import transactions for five years
• Exercise of "reasonable care" in connection with all import activities (19 U.S.C. §1484)

Using USTradeStack does not constitute "reasonable care" under 19 U.S.C. §1484(a)(1)(B) or any CBP regulatory standard. Reasonable care requires engagement with licensed professionals and verification of classifications through CBP-recognized channels.

6. AI System Limitations

USTradeStack uses large language models (AI) to suggest HTS classifications and analyze trade compliance information. AI systems have inherent limitations that make them unsuitable as the sole basis for import decisions:

• Training data cutoffs: The AI may not reflect the most recent tariff schedule amendments, Section 301/232 modifications, antidumping orders, or CBP administrative rulings.
• Hallucination risk: AI models can produce plausible-sounding but incorrect outputs. Classifications must be independently verified.
• Context limitations: Accurate HTS classification often requires physical examination of goods, review of technical specifications, and professional judgment — inputs the AI cannot fully replicate.
• No audit trail: AI-generated classifications do not constitute a documented classification decision that satisfies CBP's reasonable care standard.
• Duty calculation accuracy: Estimates depend on user-provided inputs and published tariff schedules. They may not reflect all applicable surcharges, merchandise processing fees, harbor maintenance fees, AD/CVD deposits, or value-based adjustments.

For critical import decisions, always supplement AI research with licensed customs broker review.

7. OFAC and Sanctions Screening

USTradeStack does NOT perform Office of Foreign Assets Control (OFAC) sanctions screening and cannot confirm that any supplier, counterparty, or transaction is compliant with U.S. sanctions law.

For OFAC screening, you must consult the official OFAC Specially Designated Nationals (SDN) List at:

sanctionssearch.ofac.treas.gov

Sanctions compliance is the responsibility of the importer, exporter, and all parties to the transaction. Violations of U.S. sanctions laws can result in severe civil and criminal penalties. USTradeStack's compliance dashboard provides informational reference only — it is not a sanctions screening tool.

8. CBP Final Authority

U.S. Customs and Border Protection has final determination authority on tariff classification, dutiable value, country of origin, and all other matters related to the entry of merchandise into the United States.

No classification, calculation, or compliance determination produced by USTradeStack is binding on CBP or any other government agency. CBP may classify goods differently than suggested by USTradeStack, and its determination controls.

If you believe a CBP classification is incorrect, you may:

• File a protest under 19 U.S.C. §1514 within 180 days of the date of liquidation
• Request a ruling from CBP's National Commodity Specialist Division
• Seek Court of International Trade review of a final CBP ruling

9. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, USTRADESTACK AND ITS AFFILIATES, OFFICERS, EMPLOYEES, AND AGENTS DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, ACCURACY, OR NON-INFRINGEMENT.

USTRADESTACK SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES ARISING OUT OF OR RELATED TO YOUR USE OF THE PLATFORM, INCLUDING BUT NOT LIMITED TO:

• CBP penalties, duties, interest, or forfeitures
• Incorrect customs entries based on AI-generated classifications
• Regulatory violations or compliance failures
• Lost profits, business interruption, or reputational harm

YOUR USE OF USTRADESTACK IS AT YOUR OWN RISK. THIS LIMITATION APPLIES EVEN IF USTRADESTACK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

10. Contact

Questions about this policy or USTradeStack's AI capabilities may be directed to:

USTradeStack
Email: legal@ustradestack.ai

For urgent customs compliance questions, please consult a licensed customs broker or qualified trade attorney. USTradeStack cannot provide legal advice.