When CBP issues a penalty, liquidated damages claim, or seizure notice, you typically have 30 days to respond. How you respond — and the quality of the legal arguments you make — determines how much you pay, or whether you pay anything at all. Great Lakes Customs Law has been representing importers, exporters, and travelers in CBP penalty proceedings for more than 15 years, at ports nationwide.
Merchandise Detention & Exclusion
Before a penalty is assessed or a seizure is formalized, CBP may detain your merchandise while it conducts an examination or awaits clearance from a partner agency. Under 19 USC 1499, detention status attaches after 5 business days without a release decision, and CBP has a maximum of 30 days to act before the goods are deemed excluded by law. Understanding the detention timeline, your right to CBP’s test results, and when to respond proactively can be the difference between a shipment that clears and one that escalates to seizure.
Petitions for Mitigation or Remission
A petition for mitigation or remission is the primary tool for challenging a CBP penalty or seizure. Filed with the Fines, Penalties & Forfeitures office, a well-prepared petition presents the factual record and legal arguments for reducing or canceling a claim — working through CBP’s internal mitigating and aggravating factors framework to achieve the best possible outcome. We also handle supplemental petitions when an initial petition receives an unfavorable response.
Offer in Compromise
When a penalty has been assessed and the petition process has run its course, an offer in compromise allows the importer to propose a lump-sum settlement to CBP in full satisfaction of the claim. This is a separate and distinct process from the petition, with its own procedural requirements and standards CBP applies when evaluating whether to accept. In the right circumstances, it is an effective final tool for resolving a penalty at a reduced amount.
Customs Fraud & Negligence Penalties (19 USC 1592)
Section 1592 is the broadest and most frequently invoked customs penalty statute. It covers any material false statement, omission, or act in connection with an import entry — including misclassification, undervaluation, incorrect country of origin declarations, and false descriptions of goods. Penalties are tiered by culpability: fraud, gross negligence, and negligence each carry different maximum amounts, calculated against the dutiable value of the merchandise. A prior disclosure filed before CBP has initiated a formal investigation can dramatically reduce exposure.
Penalties for Importing Drug Paraphernalia
CBP enforces the Drug Paraphernalia statute (21 USC 863) at the border, seizing and penalizing importations of items primarily intended for use with controlled substances. What constitutes drug paraphernalia is not always obvious — many common products can be classified as such depending on their marketing, packaging, and context. Importers who receive a seizure or penalty notice for drug paraphernalia have the right to contest the classification and petition for relief.
Export Violation Penalties (EAR)
The Export Administration Regulations govern the export of dual-use goods, technology, and software with potential military or national security applications. Violations — including exporting without a required license, exporting to restricted parties or embargoed countries, and filing false export information — can result in substantial civil penalties administered by the Bureau of Industry and Security (BIS). We represent exporters facing BIS investigations and penalty proceedings.
Liquidated Damages on Customs Bond
Liquidated damages are assessed against an importer’s customs bond when a bond condition has been breached — such as failing to re-export goods under a temporary import bond, missing a redelivery demand, or violating conditions of a warehouse entry. Unlike 1592 penalties, liquidated damages are not based on culpability; they are a pre-set contractual amount. However, CBP has authority to mitigate them, and a petition presenting good cause and a clean compliance history can achieve significant reductions.
Regulated Wood Packaging Material (WPM) Penalties
CBP enforces USDA phytosanitary requirements for wood packaging material — pallets, crates, dunnage, and similar items — used in international shipments. Non-compliant WPM that lacks the required IPPC mark or has not been properly heat-treated or fumigated can result in immediate redelivery demands, holds on future shipments, and monetary penalties. These cases move fast and require a prompt, documented response to avoid escalation.
Importer Security Filing (ISF) Penalty Mitigation
CBP requires importers to file Importer Security Filing data — the “10+2” filing — at least 24 hours before a vessel departs for the United States. Late, inaccurate, or missing ISF filings can trigger liquidated damages of up to $5,000 per violation. With high shipment volumes, these assessments can accumulate quickly. We prepare mitigation petitions that address the cause of the filing failures and present the importer’s overall compliance posture to achieve reductions.
Counterfeit Import Penalties (19 USC 1526)
Importing merchandise that bears a counterfeit trademark — whether knowingly or not — can result in both seizure of the goods and a separate monetary penalty calculated not on what you paid, but on the manufacturer’s suggested retail price of the genuine article. First-offense penalties can equal the full MSRP of the seized goods; second-offense penalties can reach twice that amount. We handle both the seizure petition and the penalty mitigation, and have obtained full cancellation in cases where the legal and factual record supported it.
Not Sure Which Applies to Your Situation?
CBP penalty notices are not always clearly labeled, and the same underlying facts can give rise to multiple types of claims simultaneously. If you have received a notice from CBP — whether it is called a penalty, a liquidated damages claim, a seizure notice, or something else — call us at (734) 855-4999 or contact us online for a free case review. We will identify exactly what you are dealing with and what your options are.