CBP Issues New Penalty Mitigation Guidelines for Merchandise Delivered Without Authorization if Public Safety at Risk
In the November 29, 2006 issue of the U.S. Customs and Border Protection Bulletin, CBP issued a notice which provides new guidelines, effective December 6, 2006, for the mitigation of penalties for merchandise delivered from the port without CBP authorization or examination, or both, if CBP considers such removal or delivery to place public safety at risk.
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(CBP explains that in instances in which merchandise is removed or delivered from the place of unlading, the terminal, or the port without CBP authorization or examination, or both, a monetary penalty is assessed in an amount equal to the domestic value of the merchandise under the provisions of 19 USC 1595a(b), for a violation of the provisions of 19 USC 1448 (delivery from the place of unlading without authorization), or 19 USC 1499 (delivery without CBP examination).)
New, Less Generous Mitigation Guidelines if Public Safety at Risk
According to CBP, under the new guidelines, if CBP considers the removal or delivery of the merchandise from the place of unlading, the terminal, or the port without CBP authorization or examination, or both, to place the security, health, or safety of the public at risk, the penalties assessed shall be mitigated as follows:
A first violation may be mitigated upon payment of an amount equal to the lesser of: (1) 75% of the domestic value of the merchandise removed or delivered without authorization and/or examination, or (2) a flat sum between $10,000 and $25,000, as determined at CBP's sole discretion.
A second violation may be mitigated upon payment of an amount equal to the lesser of: (1) 75% of the domestic value of the merchandise removed or delivered without authorization and/or examination, or (2) a flat sum between $25,001 and $50,000, as determined at CBP's sole discretion.
Third and subsequent violations may be mitigated upon payment of an amount equal to the lesser of: (1) 75% of the domestic value of the merchandise removed or delivered without authorization and/or examination, or (2) a flat sum between $50,001 and $75,000, as determined at CBP's sole discretion.
In addition, CBP states that under the new guidelines, assessment of separate penalties against multiple parties may arise for a single removal or delivery without authorization. (In other words, each party involved in the violation may be subject to a penalty.)
T.D. 99-29 Mitigation Guidelines to be Used if No Issue of Public Safety
CBP states that any violation involving removal and/or delivery without authorization, or examination, or both, that is deemed to fall outside these new guidelines may be mitigated in accordance with the guidelines for penalties assessed under 19 USC 1595a(b) for violations of 19 USC 1448, or 19 USC 1499, which appear in T.D. 99-29, as amended.
CBP adds that under the 1999 guidelines, violations for the removal or delivery of merchandise without authorization or delivered without examination are mitigated to an amount between $2,500 and $20,000, depending on aggravating or mitigating factors.
In the past, CBP adds that many of these penalties had been mitigated to an amount of $2,500.
CBP contact - Benjamin Bornstein (202) 572-8750
CBP notice (CBP Dec. 06-34) available in 11/29/06 CBP Bulletin (Vol. 40, No. 49) at http://www.cbp.gov/linkhandler/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_11292006_no49/40genno49.ctt/40genno49.pdf