Customs Penalties: 19 USC 1592: Avoiding the Impact of a Claim of Commercial Fraud or Negligence

Why Should You Attend:

According to Customs 19 USC 1592, while importing goods or commodities, if you declare incorrect information regarding quantity, value, or classification you may be subject to penalties and litigation.

The statute recognizes different levels of guilt. Fraudulent, or intentional violations, face the harshest penalties. Followed by gross negligence, and finally, simple negligence.

This webinar discuss the Customs 19 USC 1592, related violations and penalties.

Learning Objectives:

• Penalty avoidance
• Minimizing potential penalty decisions
• Approach when CBP alleges a violation
• Prior disclosure considerations for other possible violation
• Using Customs’ “Guidelines for Mitigation” to aid in penalty reduction
• Remedial actions
• Claims settlement
• Claims litigation

Areas Covered in the Webinar:

• What are the elements of a violation of 19 USC 1592
• Statutory terminology – “material”, “false”, “omission” and other terms
• Statutory exception to a violation
• Conduct during an investigation
• Responding to a CBP Summons
• Procedure if CBP alleges a violation
• Degrees of culpability
• Mitigation procedures and Customs’ response
• Effect of “prior disclosure”
• Settlement of a penalty claim with or without acknowledgment of liability
• Litigation of 19 USC 1592 claims in the Court of International Trade

Who Will Benefit:

• Import/Export compliance professionals
• Logistics and supply chain managers
• In-house counsel
• Customs brokers
• Procurement managers

Instructor Profile:

Raymond F. Sullivan is an attorney with over 30 years of practice in customs law. His practice encompasses customs penalties, seizures audits and enforcement activities, as well as classification and valuation issues – including litigation of these issues. He regularly conducts evaluations of importer compliance systems and processes; and, has developed and implemented import compliance programs for a number of importers. Mr. Sullivan has written numerous articles on customs and international trade law; and, has served on Law 360’s International Trade Editorial Advisory Board.

Mr. Sullivan is a former import specialist and special agent with US Customs. He is a member of the bar in Maryland, New York and the District of Columbia; and, litigates matters before the US Court of International Trade.

Topic Background:

Without regard to whether the United States is or may be deprived of all or a portion of any lawful duty, tax, or fee thereby, no person, by fraud, gross negligence, or negligence

1. may enter, introduce, or attempt to enter or introduce any merchandise into the commerce of the United States by means of—
1. any document or electronically transmitted data or information, written or oral statement, or act which is material and false, or
2. any omission which is material, or
2. may aid or abet any other person to violate subparagraph (A).

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