Objectives of the Presentation
Why Should you Attend
- Objective evaluation of customs errors and mistakes
- Identifying if a violation has occurred
- Pros and cons of disclosing to customs
- Consequences of disclosure or non-disclosure
- Remedial measures
Importers frequently discover that they have entered merchandise through customs that have errors. Sometimes these errors have a revenue consequence and some do not. Customs brokerage companies are commonly asked to prepare and submit prior disclosures on entries they have submitted to CBP. Before you rush into this process make sure you are aware of what exactly you are submitting. Avoid giving additional information, which may trigger a fine or penalty.
The proper timing of a prior disclosure to customs of violations of 19 USC 1592 can help reduce or even eliminate penalties. For a prior disclosure to be valid, a person must first make it without knowing that Customs has begun a formal investigation into the potential violation. (A prior disclosure can still have some benefit after a investigation has begun)
This webinar will help you analyze:
- Do you want this on your company's record?
- Do you want to invite an audit or investigation?
- What are the alternatives; and, what needs to be evaluated?
Who will Benefit
- How to file a disclosure
- Validity of the disclosure
- Evaluation of how the error was discovered
- Evaluation of how extensive the error is; and, the resulting loss of duty to customs
- Evaluation of how the error occurred
- Taking corrective action going forward
- Admission of a violation of customs' laws and its benefits and consequences
- Effects of corrective actions without a disclosure
- Impact on your overall import operations and compliance objectives
- Import Compliance Professionals
- Export Compliance Professionals
- Logistics Managers
- Supply Chain Managers
- Contract Managers
- Legal & Administrators
- In-House Counsel
- Customs Brokers
- International Procurement Personnel
- Shipping Personnel
- Freight Forwarders
Prior Disclosure is a "safe harbor" by which importers and drawback filers may report to Customs errors in classification or valuation, and other incorrect information associated with the filing of import or drawback entry.
When properly prepared and timely filed, a prior disclosure protects the importer or drawback filer, and can significantly reduce the amount of penalties that would have been imposed had Customs initiated an administrative penalty action. In a case involving negligence or gross negligence, Customs is limited to collecting interest on the liquidated amount found owing.
To be valid, a prior disclosure must advise Customs of the circumstances of the violation, including:
- The nature of the errors or incorrect information submitted;
- The identity of the entries or period to which the disclosure relates;
- Provide Customs with the correct information that should have been given
Timing is often critical in prior disclosure cases, as a prior disclosure is valid only if it is filed before Customs initiates a formal investigation of the wrongdoing, or the prior disclosure is filed by the disclosing party before knowledge of the initiation of the formal investigation. While a properly prepared prior disclosure can shield an importer or drawback filer from significant penalties, an improperly prepared disclosure will result in the loss of that protection, while notifying Customs of the existence of the problem.