{"id":2131,"date":"2010-02-12T17:40:37","date_gmt":"2010-02-12T17:40:37","guid":{"rendered":"https:\/\/diaztradelaw.com\/?p=2131"},"modified":"2015-12-28T14:15:11","modified_gmt":"2015-12-28T14:15:11","slug":"customs-brokers-under-investigation-by-u-s-customs","status":"publish","type":"post","link":"https:\/\/diaztradelaw.com\/customs-brokers-under-investigation-by-u-s-customs\/","title":{"rendered":"Customs Brokers Under Investigation by U.S. Customs"},"content":{"rendered":"<p>With all of the complexities involved in the import process,\u00a0even customs brokers can make mistakes such as by providing the wrong tariff classification of the imported item to U.S. Customs and Border Protection .\u00a0 A customs broker who makes such a mistake may become the subject of an investigation by U.S. Customs which ultimately results in a $30,000 penalty against the broker.<\/p>\n<p>Customs brokers are often the best choice\u00a0for importers to take care of all the formalities in clearing imported cargo through U.S. Customs, however, a customs broker who makes a mistake when declaring certain information to U.S. Customs may put\u00a0 the importer at risk of\u00a0being accused\u00a0 of \u00a0fraud by U.S. Customs in violation of <a href=\"http:\/\/frwebgate3.access.gpo.gov\/cgi-bin\/PDFgate.cgi?WAISdocID=15804110758+0+2+0&amp;WAISaction=retrieve\">19 U.S.C. 1592<\/a>.\u00a0 Increasingly often, the customs broker may itself be investigated\u00a0\u00a0by U.S. Customs for failing to exercise responsible supervision and control\u00a0in violation of <a href=\"http:\/\/frwebgate6.access.gpo.gov\/cgi-bin\/TEXTgate.cgi?WAISdocID=156251157121+0+1+0&amp;WAISaction=retrieve\">19 U.S.C. 1641<\/a>.<\/p>\n<p>It is standard practice for U.S. Customs to demand that the broker appear before the Broker Compliance\u00a0Unit of U.S. Customs\u00a0at the local port of entry to answer questions about the mistakes discovered by Customs regarding a particular importer or set of entries.\u00a0 The broker is usually directed to bring with him\/her certain documents for review by U.S. Customs at the meeting.\u00a0 The broker may be accompanied by an attorney during this informal stage of the investigation. The customer of the customs broker, the importer, is generally not made aware by U.S. Customs that its customs broker has been summoned to a meeting with Customs for a counseling session.<\/p>\n<p>If the U.S. Customs personnel are not satisfied with the answers by the broker at the meeting, U.S. Customs will issue a Notice of Pre-Penalty against the broker. The penalty may be up to $30,000. The broker will have 30 days to file a written petition, and request an oral presentation.\u00a0 A lawyer who is an expert in customs law and procedure should be involved to advise and represent the broker to attempt to get the penalty canceled or mitigated.\u00a0 The guidelines of what to say in such a Petition are set forth in an <a href=\"http:\/\/edocket.access.gpo.gov\/cfr_2009\/aprqtr\/19cfr171AppC.htm\">Appendix\u00a0 C to Part 171 of the Customs Regulations<\/a>.\u00a0 U.S. Customs\u00a0personnel must consider a\u00a0certain set of factors before determining that the customs broker failed to exercise reasonable care and &#8220;responsible supervision and control&#8221;.\u00a0 Every customs broker should read, the U.S. Court of International Trade\u00a0decision issued\u00a0on January 28, 2010 in the case of <a href=\"http:\/\/www.cit.uscourts.gov\/slip_op\/Slip_op10\/Slip%20Op%2010-11.pdf\">United States v. UPS Customhouse Brokerage, Inc.<\/a>. for a better understanding of both\u00a0a customs brokers&#8217;\u00a0and U.S. Customs&#8217;\u00a0rights and responsibilities.<\/p>\n<p>&nbsp;<\/p>\n<p><!--more--><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With all of the complexities involved in the import process,\u00a0even customs brokers can make mistakes such as by providing the wrong tariff classification of the imported item to U.S. Customs and Border Protection .\u00a0 A customs broker who makes such a mistake may become the subject of an investigation by U.S. Customs which ultimately results in a $30,000 penalty against the broker. Customs brokers are often the best choice\u00a0for importers to take care of all the formalities in clearing imported cargo through U.S. Customs, however, a customs broker who makes a mistake when declaring certain information to U.S. Customs may put\u00a0 the importer at risk of\u00a0being accused\u00a0 of \u00a0fraud by U.S. Customs in violation of 19 U.S.C. 1592.\u00a0 Increasingly often, the customs broker may itself be investigated\u00a0\u00a0by U.S. Customs for failing to exercise responsible supervision and control\u00a0in violation of 19 U.S.C. 1641. It is standard practice for U.S. Customs to demand that the broker appear before the Broker Compliance\u00a0Unit of U.S. Customs\u00a0at the local port of entry to answer questions about the mistakes discovered by Customs regarding a particular importer or set of entries.\u00a0 The broker is usually directed to bring with him\/her certain documents for review by U.S. Customs at the meeting.\u00a0 The broker may be accompanied by an attorney during this informal stage of the investigation. The customer of the customs broker, the importer, is generally not made aware by U.S. Customs that its customs broker has been summoned to a meeting with Customs for a counseling session. [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[33],"tags":[],"class_list":["post-2131","post","type-post","status-publish","format-standard","hentry","category-customs-broker"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Customs Brokers Under Investigation by U.S. Customs - Customs &amp; International Trade Law Firm<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/diaztradelaw.com\/customs-brokers-under-investigation-by-u-s-customs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Customs Brokers Under Investigation by U.S. Customs - Customs &amp; International Trade Law Firm\" \/>\n<meta property=\"og:description\" content=\"With all of the complexities involved in the import process,\u00a0even customs brokers can make mistakes such as by providing the wrong tariff classification of the imported item to U.S. Customs and Border Protection .\u00a0 A customs broker who makes such a mistake may become the subject of an investigation by U.S. Customs which ultimately results in a $30,000 penalty against the broker. Customs brokers are often the best choice\u00a0for importers to take care of all the formalities in clearing imported cargo through U.S. Customs, however, a customs broker who makes a mistake when declaring certain information to U.S. Customs may put\u00a0 the importer at risk of\u00a0being accused\u00a0 of \u00a0fraud by U.S. Customs in violation of 19 U.S.C. 1592.\u00a0 Increasingly often, the customs broker may itself be investigated\u00a0\u00a0by U.S. Customs for failing to exercise responsible supervision and control\u00a0in violation of 19 U.S.C. 1641. It is standard practice for U.S. Customs to demand that the broker appear before the Broker Compliance\u00a0Unit of U.S. Customs\u00a0at the local port of entry to answer questions about the mistakes discovered by Customs regarding a particular importer or set of entries.\u00a0 The broker is usually directed to bring with him\/her certain documents for review by U.S. Customs at the meeting.\u00a0 The broker may be accompanied by an attorney during this informal stage of the investigation. The customer of the customs broker, the importer, is generally not made aware by U.S. Customs that its customs broker has been summoned to a meeting with Customs for a counseling session. [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/diaztradelaw.com\/customs-brokers-under-investigation-by-u-s-customs\/\" \/>\n<meta property=\"og:site_name\" content=\"Customs &amp; International Trade Law Firm\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/facebook.com\/diaztradelaw\" \/>\n<meta property=\"article:published_time\" content=\"2010-02-12T17:40:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-12-28T14:15:11+00:00\" \/>\n<meta name=\"author\" content=\"Jennifer Diaz\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@diaztradelaw\" \/>\n<meta name=\"twitter:site\" content=\"@diaztradelaw\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jennifer Diaz\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/diaztradelaw.com\/customs-brokers-under-investigation-by-u-s-customs\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/diaztradelaw.com\/customs-brokers-under-investigation-by-u-s-customs\/\"},\"author\":{\"name\":\"Jennifer Diaz\",\"@id\":\"https:\/\/diaztradelaw.com\/#\/schema\/person\/e4358517dcb10b6d836c8962295b4d96\"},\"headline\":\"Customs Brokers Under Investigation by U.S. Customs\",\"datePublished\":\"2010-02-12T17:40:37+00:00\",\"dateModified\":\"2015-12-28T14:15:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/diaztradelaw.com\/customs-brokers-under-investigation-by-u-s-customs\/\"},\"wordCount\":450,\"commentCount\":0,\"articleSection\":[\"Customs Broker\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/diaztradelaw.com\/customs-brokers-under-investigation-by-u-s-customs\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/diaztradelaw.com\/customs-brokers-under-investigation-by-u-s-customs\/\",\"url\":\"https:\/\/diaztradelaw.com\/customs-brokers-under-investigation-by-u-s-customs\/\",\"name\":\"Customs Brokers Under Investigation by U.S. Customs - Customs &amp; 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It is standard practice for U.S. Customs to demand that the broker appear before the Broker Compliance\u00a0Unit of U.S. Customs\u00a0at the local port of entry to answer questions about the mistakes discovered by Customs regarding a particular importer or set of entries.\u00a0 The broker is usually directed to bring with him\/her certain documents for review by U.S. Customs at the meeting.\u00a0 The broker may be accompanied by an attorney during this informal stage of the investigation. The customer of the customs broker, the importer, is generally not made aware by U.S. Customs that its customs broker has been summoned to a meeting with Customs for a counseling session. 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