Sick without Symptoms: How Multi-Million Dollar Customs Issues are Ailing U.S. Companies Without Warning

Is your company in a high-risk zone? Does it have the following risk characteristics?

 Your company imports more than $10 million of goods.
 You are mid-market: between $50 million and $2 billion in annual turnover.
 Your company has experienced higher than average growth in revenues, personnel, or imports over the past 2 – 10 years.

If your company fits this profile, you may be at an elevated risk of customs violations. Many companies in this high-risk zone have outgrown their customs compliance function. Without knowing it, they may be creating violations and, since the statute of limitations is five years, they may not know about the violations until the government comes knocking on their door years after the fact.

Customs Is Looking

Several current developments are adding to the risk:

The result is that CBP is identifying entries that raise red flags. One early warning sign is receipt of a CBP Request for Information (Form CF-28) or Notice of Action (CF-29).

Copyright © 2024, Sheppard Mullin Richter & Hampton LLP.
National Law Review, Volumess X, Number 127