CBP Enforcement: CF 28s and 29s, Audits, Detentions and Seizures, Fines, Penalties and Forfeitures, Liquidated Damages, Prior Disclosures, CBP Protests, CIT and CAFC Litigation

CBP actively enforces Customs laws and regulations through the use of penalties, liquidated damages, litigation, and other actions. OFW’s attorneys have deep experience in this area and consistently obtain significant relief for our clients, including substantial mitigation or complete remission of enforcement actions.
OFW’s attorneys handle:

• CF 28s (CBP Requests for Information) and CF 29s (CBP Notices of Action). Importers must handle responses to these CBP notices carefully, as they are often the gateway to CBP enforcement actions such as tariff rate advances, penalties, etc. Our deep experience in CBP issues allows us to submit responses satisfactory to CBP while avoiding hidden pitfalls.
• CBP Protests. Importers may contest adverse CBP decisions such as liquidation or reliquidation of entries at a different classification/higher duty rate than declared by the importer, changes in valuation, etc. by filing an administrative protest with CBP. OFW attorneys are highly skilled at crafting arguments persuasive to CBP, and have recovered millions of dollars in duty refunds for our clients via the protest route.
• CIT and CAFC Litigation. Importers have the right to contest CBP protest denials by filing suit in the Court of International Trade (“CIT”) and to appeal any adverse CIT decision to the U.S. Court of Appeals for the Federal Circuit (“CAFC”). Our attorneys have successfully contested CBP tariff classification decisions and obtained substantial duty refunds for our clients through litigation at both the CIT and CAFC. We have also successfully obtained the reversal of adverse Department of Commerce scope rulings on antidumping and countervailing duty issues through CIT litigation, as well as defending clients in CIT proceedings to recover CBP penalties.
• Detentions and Seizures. CBP may detain goods at entry to determine whether they are admissible to the United States or should be excluded as violative of laws such as those protecting intellectual property rights, the prohibition on entry of goods made in whole or in part with the use of forced labor, the UFLPA, or laws governing entry of merchandise which CBP enforces for multiple partner government agencies such as FDA, the USDA, and the U.S. Fish and Wildlife Service. CBP may also seize goods which it determines to be restricted or prohibited from entry to the United States. Utilizing our strong relationship with CBP and our specialized knowledge in this area, our team has obtained numerous releases of detained and seized goods.
• Fines, Penalties and Forfeitures. U.S. law gives CBP the power to directly assess civil penalties for violations of Customs law, and CBP frequently exercises this power. Where in importer has entered goods via a material false statement or a material omission and has acted with negligence, gross negligence, or fraud, in addition to recovering 5 years of lost revenue (back duties, fees and interest), CBP may assess Section 592 civil penalties of up to 2 times the loss of revenue for negligence, up to 4 times the loss of revenue for gross negligence, and up to 8 times the loss of revenue or the entire domestic value of the merchandise for fraud. In addition, if merchandise has been introduced or attempted to have been introduced into the U.S. contrary to law, CBP may assess Section 595a civil penalties equal to the value of these goods upon every person who directs, assists financially or otherwise, or is in any way concerned in any such unlawful activity. Our attorneys have repeatedly obtained substantial mitigation or remission of these other penalties.
• Prior Disclosures. The prior disclosure process can provide substantial protection from civil penalty exposure. If an importer discloses the circumstances of certain violations to CBP before or without knowledge of the commencement of a formal investigation of that violation by CBP and tenders the loss of revenue associated with that violation to CBP, the importer’s liability for penalties for most violations is reduced to the interest due on that lost revenue. Our team has deep familiarity with this process and has successfully filed and perfected numerous prior disclosures.
• Liquidated Damages. Where entered goods are initially released by CBP, CBP retains the power to direct the importer to redeliver them (return them to CBP’s custody), so long as the notice of redelivery is timely issued (generally, within the 30 day conditional release period). Where the importer does not or cannot fully comply (for example, the importer has already distributed the goods at issue to its customers and cannot fully recover them), CBP will issue a claim for liquidated damages against the importer’s customs bond. OFW attorneys have petitioned for and successfully obtained very significant reduction of the liquidated damages amounts in hundreds of instances.
• Audits. CBP regularly audits importers to ensure both general compliance with CBP laws and regulations and with more targeted issues such as forced labor, including an assessment as to an importer’s internal controls and due diligence procedures. Depending upon what the audit reveals, audits can result in the issuance of penalties and other CBP enforcement actions. Our team is well-versed in guiding importers through this process, including pre-audit self-assessments and filing of prior disclosures as appropriate.