Compliance after entry
Prior Disclosure
A prior disclosure is a voluntary report to CBP of a customs violation, made before CBP starts a formal investigation. It lowers the maximum penalty.
What does Prior Disclosure mean?
A prior disclosure tells CBP the circumstances of a violation of 19 U.S.C. 1592 or 1593a (19 CFR 162.74). It must come before a formal investigation starts, or without knowledge of one. The disclosure can be oral or written.
The person must tender the actual loss of duties, taxes and fees. It can pay at the time of the disclosure or within 30 days after CBP sends its calculation of the loss.
With a valid prior disclosure, the maximum penalty for negligence or gross negligence is the interest on the loss of duties. For fraud it is one times the loss, or 10 percent of the dutiable value if there is no loss (19 CFR 162.73).
A formal investigation starts on the date that CBP records in writing as the date when it found facts that suggested a possible violation. A disclosure made with knowledge of the investigation does not qualify.
What does it mean for your shipment?
If you find a repeated error on past entries, talk to your broker and a customs attorney before CBP contacts you. We help you collect the entry data and calculate the loss of duties.
Allied CHB, licensed customs broker, CBP filer code 9AJ.
Where does this come from?
All glossary terms · General information, not legal advice.