Trade rules
Regulated trade: the rules your records carry
Importers, exporters, brokers and CPA firms work under federal rules on what they declare, keep and share. NexQloud Drawback works inside them.
About 3 minutes on a sample file. Your email and name open it. We never ask for your ACE login or bank details.
- Filed by a licensed broker†
- Sealed on AMD SEV-SNP
Who is regulated
Who answers to whom?
| Party | Main rules | The core duty, in the rule's words |
|---|---|---|
| Importer of record | CBP, under 19 U.S.C. 1484 | Make entry "using reasonable care"[1] |
| Exporter | Census, 15 CFR Part 30; BIS (EAR) and the State Department (ITAR) for controlled items | File export information through the AES; keep export records five years[2][3] |
| Licensed customs broker | CBP, 19 U.S.C. 1641 and 19 CFR Part 111 | "exercise responsible supervision and control over the customs business that it conducts"; keep client records confidential; report breaches within 72 hours; complete 36 education credits every three years[4][5][6][7] |
| CPA firm that prepares taxes | FTC Safeguards Rule (16 CFR Part 314); AICPA Code; state boards | Oversee service providers by contract; protect client information[8] |
| Refund firm or claim preparer | CBP, 19 U.S.C. 1641 and 19 CFR 111.1 | "No person may conduct customs business (other than solely on behalf of that person) unless that person holds a valid customs broker's license." Drawback is customs business, and so is preparing documents to be filed with CBP[4][9] |
Each party's duty stays with that party. A broker can't hand its confidentiality duty to a vendor, and a CPA firm can't hand off its oversight duty.
What we mean by regulated trade
Regulated trade, as we use it: the movement of goods into and out of the United States by importers and exporters subject to Title 19 and the Census export rules, together with the licensed and professional firms that act for them. Some products add another layer of rules, such as export controls, FDA admissibility or TSCA certification.
Records
What must be kept, and for how long?
| Rule | What it requires | Source |
|---|---|---|
| General recordkeeping | Records kept 5 years from the date of entry, or from the activity | [10][11] |
| Drawback records | Kept until 3 years after the claim liquidates (one regulation counts from payment; keep to the later date) | [10][11][12] |
| Export records | EEI and shipping records kept 5 years from export | [3] |
| CBP's right to examine | CBP may examine "upon reasonable notice, any record" relevant to an inquiry | [13] |
| Failing to produce | Up to $100,000 per release, or 75% of the merchandise's appraised value if less, when willful; up to $10,000, or 40%, when negligent | [13] |
Penalties
What happens when it goes wrong?
Drawback penalties are figured on each claim.[14] Accuracy and a line-by-line audit trail protect you.
See the penalties, law by law
The customs rows apply to every importer and drawback claimant. The export-control rows apply only where those rules do.
| Law | Conduct | Maximum | Source |
|---|---|---|---|
| 19 U.S.C. 1593a | A drawback claim made by fraud or negligence | Fraud: up to 3 times the actual or potential loss of revenue. Negligence: 20% on a first violation, 50% on a second, 100% after that | [14] |
| 19 U.S.C. 1592 | Entry by fraud, gross negligence or negligence | Up to the domestic value of the goods for fraud; up to 4 times the lost duties for gross negligence; up to 2 times for negligence | [15] |
| 19 U.S.C. 1641 | Intentionally conducting customs business without a license | Up to $10,000 for each transaction | [4] |
| 15 CFR 30.71 | False or missing export filings | Civil penalties up to $17,412 per violation (2025 adjustment); criminal penalties too | [16] |
| 22 CFR 127.10 | ITAR violations | The greater of $1,271,078 or twice the value of the transaction | [17] |
| False Claims Act | Customs and tariff evasion | DOJ launched a Trade Fraud Task Force on August 29, 2025. In December 2025, Ceratizit USA agreed to pay $54.4 million to settle allegations that it evaded Section 301 duties; the settlement involved no finding of liability | [18] |
Whistleblower suits under the False Claims Act hit a record in fiscal year 2025.[19] A drawback compliance program can also help: certified participants who generally follow it get a written notice instead of a penalty, unless there is fraud or a repeated violation.[14]
Confidentiality
Which rules already treat your trade data as confidential?
Your export filings.
By law, export declarations are "exempt from public disclosure"[20]. Proof of export for drawback is one of their official uses.[21]
Your broker's files.
A licensed broker may not disclose your records, "except... when authorized in writing by the client"[5].
Your vessel manifests.
Manifests are open to the press, but you can ask CBP to keep your name off them for two years at a time.[22]
The rules already treat these records as sensitive. Your vendors should too.
Get started
Prove it on every claim.
Run the demo in Sealed mode. About three minutes.
-
01
Choose Sealed.
Pick Sealed mode when you upload your records.
WhoYou
-
02
The agent works inside the enclave.
Your records are read inside AMD SEV-SNP hardware.
WhoThe agent
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03
You get a signed receipt.
The working copy is erased. Anyone you share the receipt with can verify it.
WhoYou
Your email and name open the demo. We never ask for your ACE login or bank details.
Ready now? Start a claimIndustry rules
Which industries carry extra rules?
Some industries add a second layer for their goods or data. This is not a list of who can claim.
| Industry | The extra layer | Drawback in 2026 |
|---|---|---|
| Aerospace and defense suppliers | ITAR and EAR export controls; DFARS 252.204-7012 and CMMC for defense contracts | Section 301 duties are drawback-eligible; commercial aircraft carry no Section 232 tariff |
| Industrial machinery | EAR for dual-use items | Section 232 drawback depends on the program; some metal articles from trade-agreement partners allow manufacturing drawback since April 6, 2026 |
| Electronics and contract manufacturing | EAR for dual-use items | No drawback on Section 232 semiconductor duties; Section 301 duties qualify |
| Chemicals and plastics | TSCA import certification at entry | Section 232 polysilicon duties, from December 4, 2026, allow manufacturing drawback only |
| Pharmaceuticals and medical devices | FDA admissibility for drugs and devices | "Drawback shall be available" on Section 232 pharmaceutical duties |
Drawback status by program is kept current on /tariffs/. Sources: [24] [25] [26] [27] and [28].
Every other industry is served too. Drawback works in any industry that imports and then exports, returns or destroys goods.
Inside the rules
How does NexQloud Drawback follow these rules?
A licensed broker decides.
The agent drafts each claim line with its evidence. CBP has said a software tool "does not constitute a 'person'" for this work.[9]
Filed by a licensed U.S. customs broker: yours, or one we name before you sign.
Power of attorney stays direct.
Your broker gets it from you, not through us.[9]
Every line names its source.
Entry, line, export and document, so you can answer CBP's questions years later.
The broker's supervision is recorded.
Approvals, reviewers and timing are logged, mapped to the factors CBP uses to judge supervision.[29]
Consent comes first.
Your broker shares your records only with your written consent.[5]
Two modes, same broker.
Same checks, same licensed broker.
SealedPrivate by default. Provable on request.
StandardMay use outside AI. Staff access logged.
Export-controlled data.
Leave export-controlled technical data out of the file, in either mode; drawback doesn't need it. For the rest of the file, choose Sealed: no one sees your documents without your consent, and you can prove it.
Never your ACE login.
Or your bank details. CBP warns about anyone who asks.[30]
Our limits
Where do we draw the line?
- No CUI. Leave out files marked CUI; the aerospace and defense page explains why. Drawback needs part numbers, quantities and values, not drawings or specifications. Sealed processing is not an export authorization.
- No compliance certification claims. Sealed is not CMMC, FedRAMP or ITAR authorization.
- No legal advice. We explain the rules; your broker and counsel apply them.
- No CAPE filing. CAPE is filed by the importer of record or its filing broker. No entry goes into a drawback claim package while its CAPE question is open.
- Not a government agency. We are a private company.