The
U.S. Customs Service assesses civil penalties against importers
for goods that are imported into the United States in violation
of law. Customs may
also assess penalties on exports from the U.S. for false or negligent
drawback claims and false NAFTA certificates of origin.
Civil
penalties range from two to four times the loss of revenue for negligence
or gross negligence cases, and up to the domestic value of the goods
in cases where fraud is alleged.
Penalties for non-revenue loss violations can range from
20 to 40 percent of the value of the merchandise for negligence
or gross negligence cases, and up to the domestic value of the goods
in cases where fraud is alleged.
The
failure to pay an administrative penalty can result in the initiation
of a collection action by the Government in the Court of International
Trade.
Most
import penalties arise because the classification,
valuation,
or country of origin of the imported
goods was improperly determined.
Penalties can also be assessed for the importation for goods
that are not invoiced or declared.
Where
penalties are imposed, the assessments are noted by Customs in its
compliance database. This record reflects the importer's
risk designation, and, thus, the importer may find itself subjected
to more frequent Customs inspections and longer processing times.
Customs
may also assess liquidated damages if the proper import procedures
are not followed, or if the goods are released and subsequently
found to be inadmissible and not redelivered to Customs' custody
within the time allowed.
A substantial
reduction in penalty amounts can often be achieved through Customs
administration mitigation process. We prepare legal arguments
applying case law and pertinent administrative laws and regulations,
and assist companies to navigate through the complex administrative
adjudicative process.
Additional
information on Customs penalties and liquidated damages can be found
by clicking on any of the following topics:
Further Reading:
- Court Expands Liability for Third Parties in Import Transactions
September 22, 2014
- DHL to Pay $9.44 Million to Settle Alleged
Violations of EAR and OFAC Regulations
August 9, 2009
- Court Fines Importer $7.5 Million for Failure to Disclose "Provisional" Invoice Prices To Customs
October 18, 2007
- "CIT Holds That Broker Penalties Can Exceed $30,000 For Misclassification Of Merchandise"
October 17, 2006
- "CBP Taking A Harder Line Regarding Entry Requirements, Reasonable Care And The Enforcement Of Penalties "
June 14, 2006
- "Court Fines Ford Motor Company Over $20,000,000 For Failure To Declare Assists And Supplemental Payments"
August 1, 2005
- "Demands for Redelivery of Imported Goods and Liquidated Damages" March 19, 2003
- Court
of International Trade Grants Importers The Right To Seek Judicial Review
of A Customs Demand For Duties In a Prior Disclosure
January 22, 2003
- "Customs Proposes
Revisions to Guidelines for the Imposition and Mitigation of Penalties
for Violations of 19 U.S.C. 1592 19 CFR PART 171" (November 1997)
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