Prior disclosure · 19 CFR 162.74
You found an error on past entries: prior disclosure
If you tell CBP about an error before CBP starts a formal investigation, and you pay the lost duty, the maximum penalty drops sharply. For negligence it is only the interest.
The basics
What is a prior disclosure?
A prior disclosure is a statement to CBP that describes a violation of 19 U.S.C. 1592: a material false statement, act or omission on your entries. Examples are a wrong classification, an undervalued invoice, a wrong country of origin, or a trade agreement claim that did not qualify.
To count, the disclosure must come before, or without knowledge of, the start of a formal investigation of that violation. You must also tender the actual loss of duties, taxes and fees (19 CFR 162.74(a)).
Importers, customs brokers, exporters and foreign suppliers can all file one. A disclosure protects only the violations that it names (19 CFR 162.74(h)). You decide the scope.
What does "commencement of a formal investigation" mean?
A formal investigation starts on the date that CBP records in writing as the day it found facts of a possible violation (19 CFR 162.74(g)). The law presumes that you know about it in some cases (19 CFR 162.74(i)). Examples: CBP told you the type of violation, or a special agent asked about it or asked for your records. A prepenalty or penalty notice, or a seizure of the goods, also counts.
CBP's prior disclosure guide says that a request for samples or product literature alone does not start a formal investigation. But a letter, a CBP Form 29, or an email that states the facts of a possible violation can be that notice.
Deadline
What is the deadline for a prior disclosure?
| Event | Time limit | Rule |
|---|---|---|
| The disclosure itself | Before, or without knowledge of, a formal investigation of the violation | 19 CFR 162.74(a) |
| Oral disclosure | Confirm it in writing within 10 days | 19 CFR 162.74(a)(2) |
| Data that you did not have at the time | Within 30 days of the disclosure; CBP can extend | 19 CFR 162.74(b)(4) |
| Tender of the lost duty | With the disclosure, or within 30 days after CBP sends its calculation | 19 CFR 162.74(c) |
| How far back to look | 5 years from the date of the violation; for fraud, 5 years from discovery | 19 U.S.C. 1621 |
A disclosure sent by registered or certified mail, return receipt requested, counts from the time of mailing. Other methods count from the time that CBP receives it (19 CFR 162.74(d)).
Risk
What happens if I do nothing?
If CBP finds the error first, the maximum penalty without a disclosure is much higher (19 CFR 162.73). For negligence it is the lesser of the domestic value of the goods or 2 times the loss of duty. For gross negligence it is the lesser of the domestic value or 4 times the loss. For fraud it is the domestic value.
With a valid disclosure, the maximum for negligence or gross negligence is the interest on the loss of duty from the date of liquidation. CBP's guide says that the penalty is zero for unliquidated entries when there is no fraud. For fraud, the maximum is 1 times the loss.
In both cases, CBP collects the lost duty itself. A disclosure does not remove the duty. It reduces the penalty.
Checklist
What do we need from you?
What you found
A short note: the product, the error, and when you found it.
The list of affected entries
Entry numbers, dates and ports. We can pull the entry data if we filed the entries.
Entry summaries, invoices and payment records
For each entry in the scope of the disclosure.
The correct data
The correct classification, value, origin or other data, with the proof.
How it happened and what you changed
Who made the error, why, and the steps that you took to stop it.
Any CBP contact on the issue
CF-28s, CF-29s, emails or visits. They decide if a disclosure is still possible.
A power of attorney for Allied CHB
If we did not file the entries. Sign it online at alliedchb.com/poa.
Process
How do we handle it?
- YouAt once
Tell us what you found
Call or email before you contact CBP. Tell us about any CBP contact on the issue.
- Allied
We pull the entry data
We list every entry of the product in the last 5 years, with the date, the port and the liquidation status.
- Allied
We calculate the loss of duty
For each entry, we compare the duty paid with the correct duty, and we separate liquidated from unliquidated entries.
- You
You decide the scope
You decide which violations to disclose. If fraud is possible, you speak to a customs attorney first.
- Allied
We draft the disclosure
The letter covers the goods, the entries, the error, the correct data and the corrective steps (19 CFR 162.74(b)). You sign it.
- Allied
We file it and follow it
We address it to the Commissioner of CBP, mark it "prior disclosure", and file it at the port of the violation by certified mail. We track CBP's calculation and the tender deadline.
Price
What does it cost?
$200 flat fee per filing. The $200 flat fee covers a prior disclosure for one entry: the loss of duty calculation, the letter and the filing. Most disclosures cover many entries, so we quote those 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?
Do I have to make a prior disclosure?
No. A prior disclosure is a choice. But the filer must correct errors that it finds on entries. For past liquidated entries, a disclosure gives the lowest maximum penalty.
Can I disclose an error on an entry that has not liquidated?
Yes. For an unliquidated entry, a post-summary correction may also fix it if the correction window is open. CBP's guide says that the penalty on a disclosure of unliquidated entries is zero when there is no fraud.
Can I make a prior disclosure after a CF-28?
Usually yes. A CF-28 is a request for information. CBP's guide says that a request for samples or product literature alone does not start a formal investigation. A CF-29, a letter or an email that states the facts of a possible violation is different. Call us as soon as you get either form.
How do I pay the lost duty?
You tender it with the disclosure, or within 30 days after CBP sends you its calculation of the loss (19 CFR 162.74(c)). If you do not pay the final amount, CBP denies the disclosure.
Is a clerical error a violation?
Not if it is due only to a clerical error or a mistake of fact (19 CFR 162.73(c)). The exception does not apply if the error is part of a pattern of negligent conduct. An error that repeats on many entries can be part of such a pattern.
Can a prior disclosure lead to a criminal case?
CBP's guide says that if a disclosure gives CBP reason to believe that a crime occurred, CBP must refer it to the U.S. Attorney. If intent is a question, speak to a customs attorney before you file. Allied is a customs broker, not a law firm.
Request: Prior disclosure
$200 flat fee
Another CBP notice or problem? See all post-entry problems and their deadlines.
Found an error on past entries? Call us before CBP does.
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.