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IMPORT PENALTIES IN THE UNITED STATES


Importers or any company in the supply chain, for that matter must be aware of the numerous fines imposed by CBP for importing into the United States. Non-compliance with CBP standards can be costly and perhaps disastrous, according to customs experts. In a nutshell, noncompliance is costly. As a result, we'll go through a number of fines that importers should be aware of so that they can alter their business practices properly.

“Make use of your common sense. Stop and look into a deal if something doesn't feel right. The stakes for making a mistake are exceedingly high.”

What exactly are import penalties?

U.S Customs and Border Protection (CBP) in the United States explains their punishment program as follows: they target and punish lawbreakers through monetary penalties and legal action. Within US supply chains, unfair, dangerous, or illegal commercial practices are not tolerated.

In a nutshell, the penalty program was created to dissuade non-compliant imports, and it was implemented consistently throughout 326 ports of entry and 42 field offices.

How do import penalties work?

The rules governing these sanctions begin with a simple query. Is it true that CBP lost money as a result of the non-compliant import? The non-compliant import will then be classed in one of three ways, based on the amount of revenue lost as a result:


  • Negligent
  • Negligent to a fault
  • Infraction of the law of fraud

“An organization misclassified an item,” . It should have used the 6 percent duty rate classification. It has, however, been employing one with a 0% duty rate due to the misclassification. Customs could prosecute the corporation with gross negligence, which carries a penalty of 2.5 to 4 times the duty rate of 6%. Alternatively, if the infraction is a non-revenue violation, the organization could be fined 25-40% of the value of the goods.”

CBP has made guidelines available to the trade community in order to make compliance and penalty avoidance easier. We propose that people spend some time reading it. Here's how to get there: What Every Trade Community Member Should Be Aware Of: Fines, Penalties, Forfeitures, and Liquidated Damages are all part of the Customs Administrative Enforcement Process. In fact, CBP provides a flowchart that explains the penalty application process in detail. The offender could be any of the parties involved, including the importer of record, workers, consignees, and so on. Furthermore, it should be emphasized that certain forms of sanctions carry personal accountability.

Notices of impending penalties

Prior to imposing penalties, CBP will send a pre-penalty notice to the party, company, or individual, giving them a deadline (usually 30 days) to respond with arguments for why they should not be penalized. CBP may decide not to impose the penalty in particular circumstances, but this is a rare occurrence. Furthermore, even if the firm receives the pre-penalty notification, CBP may punish individuals without issuing a separate pre-penalty notice.

There are probably cases where trade professionals, such as importers, have kept themselves pretty up to speed on the regulatory framework but are nevertheless in violation. It is unquestionably sound practice to assess the trade processes in place on a regular basis.

The majority of importers rely on their various trade partners to stay compliant. But, in order to cooperate with CBP and clear the border swiftly and efficiently, importers must be linked with skilled customs advisors and customs brokers. Right now, you may start a chat with an expert.


If you want to import in the U.S., feel free to contact us ISF-Entry, especially at any U.S port of entry. You can have us for Free Import Consulting.