A penalty notice from U.S. Customs and Border Protection is alarming, and the instinct is often either to panic or to set it aside and deal with it later. Both are mistakes. A CBP penalty is a process with defined stages and deadlines, and what you do in the first weeks — especially whether you respond at all, and how — largely determines whether the penalty is reduced, resolved, or turned over for collection. Here is what the notice means and how to respond to it.
Don’t ignore it, and mind the deadline
Most customs penalties arrive first as a pre-penalty notice, then as a formal penalty claim, each with its own response window. You generally have a defined period to respond with a written argument or a petition for relief. Ignoring the notice does not make it go away — it moves the case toward collection through the U.S. Attorney’s Office. A timely, well-argued response is where penalties get reduced.
Two Notices, Two Stages
Most significant customs penalties — particularly those under 19 U.S.C. 1592 for false statements or omissions on entry — do not arrive in a single letter. CBP is required to perfect the claim through a sequence, and knowing which stage you are at tells you what to do and how long you have.
| Stage | What it is | Typical response window |
|---|---|---|
| Pre-penalty notice | CBP states it believes a violation occurred and proposes a penalty, giving you a chance to argue why none should issue | Usually 30 days |
| Penalty notice | CBP issues the formal penalty claim, after considering any pre-penalty response | Usually 60 days |
| Petition decision | CBP rules on your petition; a supplemental petition is generally available to argue for a better result | Set in the decision |
The pre-penalty stage is an opportunity, not a formality — a strong written response can persuade CBP to lower the culpability level or decline to issue a penalty at all. The exact deadlines and dollar figures depend on the alleged violation and the culpability level (fraud, gross negligence, or negligence), which our page on 19 U.S.C. 1592 penalties explains in full.
Why You Can’t Just Ignore It
An ignored penalty becomes a collection action
If you let the deadlines pass without responding, CBP does not simply drop the matter. The claim can be referred to the U.S. Attorney’s Office for collection in federal court, where your opportunity to argue the merits and seek mitigation is far more limited than it was at the administrative stage. The window to shape the outcome is early — and it closes.
Your Response Options
Once a penalty is issued, you generally have several paths, and the right one depends on the strength of your position and your goals. You can file a petition for remission or mitigation arguing that the penalty should be reduced or cancelled; you can make an offer in compromise to settle for a lesser amount; or, in the right circumstances, you can pay. Where the underlying violation has not yet been discovered by CBP, a prior disclosure can dramatically reduce exposure — but that option closes once CBP starts a formal investigation.
A well-built petition does two things: it contests the alleged violation and culpability level where there is room to, and it marshals the mitigating factors CBP considers — a prior good record, cooperation, remedial action, and inexperience among them. Used properly, the petition and supplemental petition give you two chances to improve the outcome.
What to Do When the Notice Arrives
- Calendar the deadline immediatelyNote whether it is a pre-penalty notice or a penalty claim, and the exact response date. Mail delay eats into your window, so treat the clock as already running.
- Don’t contact CBP with an off-the-cuff explanationInformal statements can become admissions. The response should be a considered written submission, not an improvised phone call.
- Gather the entry recordsThe commercial invoices, entry documents, classification and valuation basis, and anything showing your reasonable care. These are the raw material of the defense.
- Build the response to the right stageA pre-penalty response argues against issuance; a petition argues for remission or mitigation. Matching the argument to the stage is what makes it effective.
Because the amount at stake, the culpability level, and even who is named can all be contested — and because the early deadlines are decisive — a customs penalty is worth handling deliberately. A customs and international trade lawyer can assess the notice, respond at the correct stage, and pursue the largest reduction the facts support. For the broader picture of how penalties are defended and mitigated, see our penalty defense and mitigation practice.
Frequently Asked Questions
What is the difference between a pre-penalty notice and a penalty notice?
A pre-penalty notice states that CBP believes a violation occurred and proposes a penalty, giving you a chance — typically around 30 days — to argue why none should issue. If CBP still proceeds, it issues a formal penalty notice, with a longer window (typically 60 days) to pay, make an offer in compromise, or petition for relief.
What happens if I ignore a CBP penalty notice?
The penalty does not disappear. CBP can refer the claim to the U.S. Attorney’s Office for collection in federal court, where your ability to argue the merits and seek mitigation is much more limited than at the administrative stage. Responding on time preserves your best options.
Can a customs penalty be reduced?
Often, yes. A petition for remission or mitigation can lower or cancel a penalty by contesting the violation or culpability level and presenting mitigating factors such as a prior good record, cooperation, and remedial action. A supplemental petition gives a second opportunity to argue for a better result.
How long do I have to respond to a customs penalty?
It depends on the stage. A pre-penalty notice typically allows about 30 days, and a formal penalty notice typically about 60 days. The exact deadline is stated in the notice and runs from its date, so it should be calendared as soon as it arrives.
Received a customs penalty notice?
The early deadlines decide how much room you have. A customs attorney can respond at the right stage and pursue the largest reduction your facts support.