Penalties

U.S. Customs is allowed to assess civil penalties for various reasons.

Under the negligence and fraud provisions of 19 U.S.C. section 1592, Customs may assess penalties at multiples of the duty loss (4 times the loss of revenue (LOR) for gross negligence), or, if no LOR is present, at a percentage of the domestic value of the imported goods (40% for gross negligence).  These penalties are even higher where facts may support a culpability of "fraud," in which case, the government might levy civil penalties in an amount equal to the domestic value of the imported goods.  

If however, a Prior Disclosure is timely filed and "perfected" (via payment of the monies owed, plus interest) then the violation can be properly remedied by the importer, and the penalties averted.

Additionally, other statutory penalty statutes exist, such as for example, the provisions in 19 U.S.C. 1595A relating to goods unlawfully entered into the United States.

Congress has delegated authority to U.S. Customs to hear petitions requesting mitigation and/or remission of penalties, and additionally, the federal courts may render independent decisions as to penalties that might be owed.

 Additional Agency Resources:

Customs Administrative Enforcement Process: Fines, Penalties, Forfeitures and Liquidated Damages

Delegations of Authority to Decide Petitions for Relief

Mitigation Guidelines: Fines, Penalties, Forfeitures and Liquidated Damages

Petitions for Relief: Seizures, Penalties and Liquidated Damages