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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city
MY COLOUR

Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref : EIC 111/2

5 December 2006

Dear Sirs,

Commercial Information Circular No. 484/2006

US : New Guidelines for Mitigating Penalties for Removing Goods without
Authorization and/or Examination

The US Customs and Border Protection (CBP) issued on 29 November 2006 new guidelines for mitigation of penalties for merchandise delivered from the US ports without CBP authorization and/or examination. A copy (pdf format) of the new guidelines, which will come into effect on 6 December 2006, is appended for reference.

DETAILS

  1. The US Customs laws stipulate that if merchandise is removed or delivered from the place of unlading, the terminal or the port without CBP authorization and/or examination, a monetary penalty will be assessed in an amount equal to the domestic value of the merchandise in accordance with the relevant provisions. At present, penalties for such violations may be mitigated to an amount between USD2,500 and USD20,000, depending on aggravating or mitigating factors. Many of these penalties have been mitigated to an amount of USD2,500, regardless of whether the violations could have placed the security, health or safety of the US population at risk.
  2. To convey the seriousness of its concerns to the importing community with respect to the recurrence of these violations, CBP announced that with effect from 6 December 2006, if it considers that the removal or delivery of the merchandise from the place of unlading, the terminal or the port without CBP authorization and/or examination places the security, health or safety of the public at risk, the penalties assessed may be mitigated as follows:
  • A first violation may be mitigated upon payment of an amount equal to the lesser of (1) 75% of the domestic value of the merchandise at issue or (2) a flat sum between USD10,000 and USD25,000, as determined at CBP's discretion.
     
  • A second violation may be mitigated upon payment of an amount equal to the lesser of (1) 75% of the domestic value of the merchandise at issue or (2) a flat sum between USD25,001 and USD50,000, as determined at CBP's discretion.
  • Third and subsequent violations may be mitigated upon payment of an amount equal to the lesser of (1) 75% of the domestic value of the merchandise at issue or (2) a flat sum between USD50,001 and USD75,000, as determined at CBP's discretion.

Assessment of separate penalties against multiple parties may arise for a single removal or delivery without authorization, i.e., each party involved in the violation may be subject to a penalty.

ENQUIRIES

  1. For enquiries about the content of this circular, please contact the undersigned at telephone number 2398 5403.


Yours faithfully,
 

 

(Miss WONG Ying)
for Director-General of Trade and Industry



Note : While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.