CBP Customs Trade Fraud Allegations

U.S. Customs and Border Protection (CBP) processes tens of thousands of cargo containers carrying billions of dollars in imported goods every single day. Because CBP relies heavily on self-reporting by importers of record, customs brokers, and logistics companies, the agency aggressively uses administrative enforcement actions, cargo seizures, and civil monetary penalties whenever it suspects a violation of federal customs laws.

When CBP initiates an enforcement action, an importer faces not only the loss of critical inventory, but also crippling financial penalties and potential referral to federal prosecutors.

If CBP has seized your commercial shipments at a port of entry, issued a notice of liquidated damages, or initiated a penalty proceeding, taking immediate administrative and legal action is vital to protecting your merchandise and corporate assets.

Attorneys for CBP Customs Seizure & Penalty Defense

Navigating CBP administrative enforcement requires an aggressive, procedurally sound defense. A poorly drafted administrative petition or an unadvised statement to a CBP import specialist or Homeland Security Investigations (HSI) agent can compromise your case and invite parallel criminal scrutiny.

The attorneys at Sammis Law Firm represents importers, logistics companies, domestic distributors, and business owners in customs enforcement matters, including:

• Challenging CBP cargo detentions and redelivery demands;
• Drafting and filing Petitions for Remission or Mitigation under 19 U.S.C. § 1618;
• Defending against civil penalty notices issued under 19 U.S.C. § 1592;
• Negotiating claims for liquidated damages and customs bond disputes under 19 C.F.R. Part 172; and
• Challenging federal civil asset forfeiture actions in U.S. District Court.

If U.S. Customs and Border Protection has seized your cargo, issued a Notice of Seizure, or assessed civil penalties against your company, contact Sammis Law Firm at our Tampa office at (813) 250-0500 to schedule a confidential legal consultation.

Direct CBP Enforcement Forfeiture Actions

CBP possesses broad administrative and civil authority under Title 19 of the United States Code to enforce trade laws, intellectual property rights, and import compliance:

1. Seizure and Administrative Forfeiture (19 U.S.C. § 1595a)
   • Under 19 U.S.C. § 1595a, CBP has the statutory authority to seize and forfeit any merchandise introduced or attempted to be introduced into the United States contrary to law. This includes:
   • Merchandise Entered Contrary to Law (§ 1595a(c)): Failure to comply with statutory licensing requirements, lack of required permits, or attempting to import merchandise in violation of federal agency regulations (e.g., FDA, USDA, EPA).
   • Aiding and Abetting Unlawful Imports (§ 1595a(a)): Seizure of vessels, vehicles, aircraft, or commercial containers used to facilitate the importation of unlawful goods.
   • Intellectual Property Seizures: Counterfeit marks or registered copyright infringements seized under 19 U.S.C. § 1526.
2. CBP seizures of vehicles, farming equipment, or engines for violating the EPA’s Laws and Regulations regarding vehicles and non-confirming engines
3. Commercial Fraud and Negligence Penalties (19 U.S.C. § 1592)
   • Section 1592 is CBP’s primary civil enforcement weapon against importers. It prohibits entering or introducing merchandise into U.S. commerce by means of any document, written or oral statement, or act that is materially false, or by any material omission.
   • Section 1592 establishes three tiers of culpability, each carrying distinct financial penalties:
     • Fraud: Intentional, knowing acts or omissions. Penalties can reach the domestic value of the merchandise.
     • Gross Negligence: Acts or omissions committed with reckless disregard of reasonable care. Penalties can reach the lesser of the domestic value of the merchandise or four times the lawful duties, taxes, and fees.
     • Negligence: Failure to exercise reasonable care under the circumstances. Penalties can reach the lesser of the domestic value or two times the lawful duties, taxes, and fees.
4. Claims for Liquidated Damages (19 U.S.C. § 1623 & 19 C.F.R. Part 172)
   • When an importer violates the terms of its continuous import bond—such as failing to redeliver merchandise to CBP custody, failing to timely file entry summary documentation (Form 7501), or missing reconciliation deadlines—CBP issues a formal Demand for Liquidated Damages (CBP Form 5955A).
5. CBP’s seizures of vehicles for non-CAFRA forfeiture

Read more about finding an attorney to challenge Non-CAFRA Imported Forfeitures.

Primary Triggers of CBP Customs Investigations

CBP enforcement actions typically originate from targeted audits, automated screening flags, or regulatory non-compliance:

• Valuation Disputes & Double Invoicing:
  • CBP scrutinizes transaction values to ensure that assists, royalties, packing costs, and indirect payments are properly declared under 19 U.S.C. § 1401a.
• Harmonized Tariff Schedule (HTS) Classification Discrepancies:
  • Importers are required to exercise “reasonable care” in classifying merchandise.
  • Misclassifying goods into lower-tariff headings or attempting to bypass Antidumping and Countervailing Duties (AD/CVD) triggers immediate CBP detentions and penalty notices.
• Country of Origin & Transshipment Issues:
  • Incomplete or inaccurate country-of-origin marking under 19 U.S.C. § 1304 triggers mandatory 10% marking duties.
  • CBP actively targets goods shipped through third countries without substantial transformation to bypass Section 301 tariffs or AD/CVD orders.
• Forced Labor WROs (Withhold Release Orders):
  • CBP rigorously enforces the Uyghur Forced Labor Prevention Act (UFLPA) and 19 U.S.C. § 1307 by detaining goods suspected of being produced in whole or in part with forced labor.

Challenging CBP Seizures and Penalty Notices: The Administrative Process

When CBP detains or seizes goods, it issues a formal Notice of Seizure and Intent to Forfeit (or a Pre-Penalty Notice under Section 1592). Importers have strict statutory deadlines to respond:

1. Filing a Petition for Remission or Mitigation (19 U.S.C. § 1618)
   • Under Section 1618 and 19 C.F.R. Part 171, an importer, broker, or interested party has 30 days from the date of the seizure notice to file a formal administrative Petition for Remission or Mitigation.
   • The petition must:
     • Demonstrate that the violation was committed without willful intent or gross negligence;
     • Document an established compliance program showing the exercise of “reasonable care”;
     • Identify mitigating factors recognized in the CBP Mitigation Guidelines (such as inexperience in importing, cooperation with agency inquiries, or immediate corrective action); and
     • Seek the release of the seized merchandise upon payment of a reduced, nominal mitigation amount.
2. Prior Disclosures Under 19 U.S.C. § 1592(c)(4)
   • If an importer uncovers errors in historical duty calculations or HTS classifications before CBP initiates a formal investigation, filing a formal Prior Disclosure caps exposure. A valid prior disclosure eliminates fraud penalties and drastically caps negligence penalties to interest on the unpaid duties.
3. Judicial Forfeiture & Referral to District Court
   • If administrative petitions are denied, or if the value of the seized merchandise exceeds administrative limits, the government must proceed via a civil in rem judicial forfeiture complaint in federal district court under Supplemental Rule G of the Federal Rules of Civil Procedure.

This article was last updated on Friday, September 18, 2026.