Six things to know as Customs gets faster, smarter, and more complex

US Customs is on the verge of major changes. A newly appointed commissioner and advancing technology will bring downstream impacts to how companies comply and operate. 

These changes may surpass the impacts of recent tariff volatility, which is also likely to broaden and increase in complexity as policies and trade agreements evolve under current administration.

It’s time to actively prepare your company, strategizing for advantage and adapting processes. Efforts will require cross-functional collaboration between trade, technology, and operational teams, including shifts in how you classify items, structure data, implement tools, and allocate resources.

Following is an overview of what company leaders need to consider to align with US Customs in the near future.

1. Classification and tariffs keep getting more complicated

We’ve seen a jump in how many details importers report to Customs. This is because the agency is developing drivers incentives for stronger traceability, especially related to steel and aluminum. 

These materials are used across product categories, potentially multiplying the amount of data you need to trace, structure, and provide.

For example, if you import reusable drink mugs, you may shift from declaring the final product to more nuanced reporting that accounts for differences between style variants. 

You’re not currently required to report the steel in the mugs, but if you know the steel’s value, there may be scenarios where you could reduce your tariff obligations.

The catch? These cost-mitigation strategies may not apply at many companies yet. The level of traceability required to benefit is rare for many importers—your supplier may not know the origin of certain materials, either. 

And because tariff imposition follows classification, the amount you owe based on how you declare products and components could change significantly and repeatedly. 

It can all feel a little mind-boggling, but approaches exist to capture advantages. 

Get clear on how your products may stand up against various classification and tariff scenarios. It may make sense for some companies to discontinue items, adjust product introductions, and source more strategically. 

The best thing you can do right now is start your scenario analysis. 

2. Quick government decisions may create unintended consequences

As policies and advantages shift dramatically, company leaders may have to strategize through some unintended consequences. This is a natural result of government moving more quickly than usual. We don’t always know how things will play out until they’re in motion. 

Product decisions may have several downstream impacts you need to accommodate. 

Consider what could happen if you change the materials in a basic apparel line. Shifting from manmade fabrics to cotton could lead to a lower duty rate, but most cotton comes from China. You’d have to contend with higher traceability demands to prove your supply chain doesn’t use forced labor.

Think you can sidestep scrutiny by using recycled cotton? Not necessarily. Cotton is a plant, so it has DNA. Customs can test that DNA to discover if the plant came from the wrong region. 

There are dozens of details like this to note for every product you sell. Building an agile supply chain now can prepare your company to maintain compliance and find advantages as we await new regulations and policies.

3. CPB enforcement has increased and it’s only the beginning

With the rise of new and higher tariffs, we’re already seeing increased enforcement activities, including higher volumes of requests for information and notices of action.

Under the new appointment of Commissioner of U.S. Customs and Border Protection (CBP) Rodney Scott, we can expect to see these activities continue or multiply. Commissioner Scott has served Border Patrol for more than three decades, including service as Chief of the U.S. Border Patrol. His background and previous policy actions suggest an emphasis on strict law enforcement. 

This will include higher scrutiny of shipment data, increased inspections of goods, a higher likelihood to penalize rather than warn non-compliant importers, and an imposition of penalty cost hikes. 

Technological advances mean Customs will soon have more sophisticated methods of identifying risk and non-compliance, too. 

Companies that don’t enhance their compliance programs may experience longer clearance times and higher landed costs. In a more stringent enforcement environment, it’s crucial to invest in precise classification processes and experienced teams. 

4. AI could flip the pacing gap between Customs and private market

The pace of upcoming changes may catch some companies off guard. Government is no longer trailing the private sector by years. As we’ve seen with tariff edicts, new rules and processes may take force quickly. Companies that haven’t prepared could fall behind just as suddenly.

Technology is central to managing classification and compliance. You need robust systems to structure, manage, and share data between companies, brokers, and Customs in real time. Properly structured data can streamline change management, allowing you to filter, analyze, and apply updates more efficiently.

Currently, CBP is seeking partners to provide artificial intelligence tools for highly complex, time-consuming tasks like tariff classification. 

This isn’t a theoretical ask. This month, tech innovator Gaia Dynamics’ AI-powered product classification tool scored 100% on the product classification section of the April 2025 U.S. Customs Broker License Exam (CBLE). The exam is considered one of the hardest federal licensure exams to pass with human pass rates ranging from 1.5% to 30%. 

When technology outpaces human capabilities like this, you can expect business cycles to accelerate. It could mean things like shorter lead times for shipment arrivals—but it could also mean companies that embed this technology into their supply chains outpace those that don’t. 

5. Brokers will leave clerical work behind to become trusted advisors 

With AI revolutionizing classification, the role of the broker will evolve in ways that companies can leverage for broad advantages and strategic tactical plays. 

Traditionally, customs brokers have focused on clerical tasks like data entry and document filing, but artificial intelligence tools will free them from routine work. As you implement  these tools, you can upskill brokers into more strategic roles that optimize your supply chain.

Looking for ways you can prepare your workforce? Empower brokers to move into trusted advisory roles. Train people on AI tools and task your teams with learning more about tariff engineering and risk management. 

Company leaders can start working with team leads now to develop cost efficiencies ahead of AI implementation and workforce shifts. This magnitude of change may require extensive reallocation of resources. 

6. Cost efficiencies will collapse then improve

While you're likely to experience disruption to your cost structures, you can take steps to emerge with potentially stronger positions than before. The key is running scenarios now and developing multiple strategies you can deploy when specific changes take effect.

Strong companies don't react to policy shifts—they anticipate them. Start by analyzing how different tariff scenarios, classification changes, and enforcement patterns could impact your product lines. Then develop corresponding strategies for sourcing, classification, and compliance processes.

The companies that invest time now in relationships, research, scenario analysis, and data systems will avoid last-minute compliance scrambles and maintain competitive advantages while others struggle to adapt.