CBP has publicized a violation of 19 USC 1497, a law which requires all arriving travelers to the United States to declare purchases that they made while abroad.

As the story relates, there is an $800 exemption on duty for purchases. Put another way, you can spend up to $800 on items and not pay duties on them. Anything over $800, and you have to pay duties on the merchandise. Thus, some people try to hide the fact that they bought stuff to avoid having to pay the duties.

Bad idea. After giving some bad halloween puns, and explaining the traveler was given “multiple chances” to declare his purchases, then:

During his primary inspection, the traveler declared to a CBP officer that he possessed only $700 in merchandise that he bought on his trip. The primary officer referred the man to a secondary examination where the traveler continued to declare only $700 in merchandise. During a subsequent baggage examination, CBP officers discovered merchandise and receipts totaling $80,932.

The merchandise included an Audemars Piguet Royal Oak Offshore watch, Gucci, Chanel, and Yves St Laurent handbags, a Dan John bomber jacket, and two pairs of Golden Goose Ball Star sneakers.

Travelers who fail to truthfully declare the total amount of their purchases that exceed the duty exemption have the option to pay the appropriate duty for their merchandise along with a steep duty penalty, or they may opt to abandon the merchandise.

No word on whether the goods were seized or if on-site mitigation was afforded, allowing the man to pay a penalty but keep his merchandise.

Has CBP in Philly seized your property or given you a penalty for a failure to declare?

A failure to declare is serious, and can get seriously expensive. To get the best possible outcome, you will need to properly determine the duties owed (which involves classifying the products on the tariff schedule [HTSUS] properly) and also argue all the factors in your favor which warrant mitigation, and explain away any aggravating factors that are present that could lead you to a higher penalty.

If the person fails to pay the penalty, the government may bring a lawsuit against them in federal district court to recover the penalty in the form of a judgment, after which point the government can lien property, garnish bank accounts, and seize property.

Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely. You should contact us today to help you file a petition for mitigation, to get your seized merchandise back and to reduce the penalty for failure to declare to the lowest amount possible. If you’ve already paid duties and penalty, contact us for an evaluation of your case to see if we can get some of your money refunded.