Penalties · Liquidated damages · 19 CFR Parts 171 and 172
CBP sent a penalty or liquidated damages notice
A notice of penalty or liquidated damages is a demand for payment. Within 60 days, you can file a petition that asks CBP to cancel the claim or reduce it.
The basics
What is a penalty petition?
A petition asks the Fines, Penalties and Forfeitures (FP&F) Officer named in the notice to cancel a claim or reduce it. CBP's authority to grant relief is in 19 U.S.C. 1618 and 1623. There is no required form, but the petition must give the date and place of the violation and the facts that justify relief.
Penalties under 19 U.S.C. 1592 are for material false statements or omissions on entries, by fraud, gross negligence or negligence. Before the penalty notice, CBP sends a prepenalty notice when the claim is over $1,000 on a commercial importation (19 CFR 162.77). Under 19 U.S.C. 1595a, CBP can seize goods introduced contrary to law. A person who directs or assists the unlawful importation can owe a penalty equal to their value.
Liquidated damages are claims against a customs bond when a bond condition is not met (19 CFR Part 172). Common examples are a failure to redeliver goods to CBP and a late entry summary. Another is goods under a temporary importation bond that were not exported in time.
CBP decides the amount under its published mitigation guidelines. A customs broker can sign a petition for the importer (19 CFR 171.1(b) and 172.2(b)).
The surety gets its own notice. Your clock is not the surety's clock.
For a bond claim, CBP notifies the principal and the sureties (19 CFR 172.1). The 60 days run from the date that CBP mails the notice to the bond principal (19 CFR 172.3(b)). Do not wait for the surety or its agent to forward a copy.
Deadline
What are the deadlines for a penalty or a bond claim?
| Event | Time limit | Rule |
|---|---|---|
| Prepenalty notice under 19 U.S.C. 1592 | 30 days from mailing to make a written and oral presentation, unless the notice sets a shorter time | 19 CFR 162.78(a) |
| Notice of penalty | Petition within 60 days of mailing | 19 CFR 171.2(b)(2) |
| Notice of seizure | Petition within 30 days of mailing | 19 CFR 171.2(b)(1) |
| Notice of claim for liquidated damages | Petition within 60 days of mailing to the bond principal | 19 CFR 172.3(b) |
| Decision on the petition | Pay the mitigated amount within 60 days of the decision, unless it sets another period | 19 CFR 171.22; 19 CFR 172.21 |
| Supplemental petition | Within 60 days of the decision on the first petition | 19 CFR 171.61; 19 CFR 172.41 |
The FP&F Officer can extend the time to file a petition when the circumstances warrant (19 CFR 171.2(c) and 172.3(c)). Ask in writing before the deadline. If fewer than 180 days remain before the statute of limitations, the notice can set a shorter time, but not less than 7 working days.
Risk
What happens if I do nothing?
The full amount on the notice stays due. CBP collects a bond claim from the principal or the surety. If the claim is not paid, CBP can refer the case to the Department of Justice (19 CFR 171.22 and 172.21).
An unpaid claim can also be the basis for a CBP sanction action (19 CFR 172.21).
A mitigation decision is not protestable (19 CFR 172.22). The petition and the supplemental petition are the administrative ways to get relief.
Checklist
What do we need from you?
The notice
All pages, with the case number, the notice date and the FP&F office address.
The entry or bond documents
Entry summary, invoice, bill of lading and bond details for the case.
Proof of what happened
For example proof of export or destruction, the agency release, the redelivery record, or the date that the entry summary was filed.
Emails and letters with CBP or the other agency
They show the dates and who asked for what.
Your compliance record
Earlier cases, or the absence of any, and the steps that you took to stop a repeat.
A power of attorney for Allied CHB
If we did not file the entry. Sign it online at alliedchb.com/poa.
Process
How do we handle it?
- YouDay 1
Send us the notice
Send the notice as soon as you receive it, even if the surety or the carrier also has a copy.
- Allied
We compute every deadline
We read the notice date, the statute cited and the claim amount, and we count the petition deadline.
- Allied
We rebuild the facts
We collect the entry, bond and agency records and put them in a date-by-date chronology.
- Allied
We apply the mitigation guidelines
We find the section of CBP's mitigation guidelines that fits the case and the relief that it allows.
- You
You review and approve
You read the draft petition and confirm the facts. A false statement in a petition can lead to prosecution (18 U.S.C. 1001).
- Allied
We file and follow up
We file the petition through CBP's ePetition platform or with the FP&F office on the notice. We track the decision and any supplemental petition deadline.
Price
What does it cost?
$200 flat fee per filing. The $200 flat fee covers one petition for one case on one entry. A large penalty, a case with many entries, or a 19 U.S.C. 1592 fraud or gross negligence case is quoted before we start.
For many entries or a large penalty, we quote the fee before we start. Duty, interest, fees and penalties owed to CBP are separate and are not part of our fee.
We confirm the fee and the scope in writing before we start.
Questions
What else should I know?
What is CBP Form 5955A?
CBP Form 5955A is the Notice of Penalty or Liquidated Damages Incurred and Demand for Payment. It gives the case number, the claim amount, the law that CBP says was violated, and the FP&F office that decides the petition.
Can I file a petition late?
Ask for an extension before the deadline if you can. The FP&F Officer can grant extensions when the circumstances warrant (19 CFR 171.2(c) and 172.3(c)). CBP also publishes guidance on late petitions. After the deadline, relief depends on the reason for the delay.
What is a supplemental petition?
If you disagree with the decision on the first petition, file a supplemental petition within 60 days of the decision (19 CFR 171.61 and 172.41). It goes first to the FP&F Officer who decided the first petition. You can file it whether or not you paid the mitigated amount.
Should I pay the mitigated amount?
Payment of the mitigated amount settles the claim (19 CFR 172.22), and it does not stop you from filing a supplemental petition. If you neither pay in time nor file a supplemental petition, the full claim applies again (19 CFR 172.21).
Can a petition get the claim cancelled with no payment?
Yes, in some cases. The FP&F Officer can always cancel a claim if the act or omission did not occur (19 CFR 171.11(b) and 172.11(b)). The mitigation guidelines also allow cancellation without payment in some situations.
Do I need a lawyer for a penalty case?
A customs broker can prepare and sign a petition for a bond claim or a commercial violation (19 CFR 171.1(b) and 172.2(b)). If CBP alleges fraud, or if the case goes to court, speak to a customs attorney. Allied is a customs broker, not a law firm.
Why does CBP sometimes ask me to waive the statute of limitations?
If less than one year remains before the statute of limitations, CBP can require a waiver before it accepts a supplemental petition (19 CFR 171.64). This gives CBP time to decide. We explain the effect before you sign.
Request: Penalty or liquidated damages petition
$200 flat fee
Another CBP notice or problem? See all post-entry problems and their deadlines.
Send us the notice. We check the deadline first.
Call (908) 291-8001 or email info@alliedchb.com
Last reviewed September 26, 2026. This page explains customs rules in general terms. It is not legal advice. Duty rates and CBP procedures change often, and we confirm the figures for your shipment in writing before you commit.