Global Trade Expertise provides counseling and management concerning all types of Customs audits, as well as representation before Customs and legal advice to clients involved in Customs audits. Our Firm focuses on developing compliance systems that are capable of meeting U.S. Customs laws and procedures.  Our team will assist you in the event you have been notified that U.S. Customs auditors selected your company for a compliance audit including focused assessments and quick response audits.

We can work with you during the actual Customs audit, or by conducting a prior internal assessment of your company's customs operations. Such an assessment will identify any potential compliance issues, which can be promptly remedied. GTE’s attorneys can help you identify serious problems and determine whether to make a prior disclosure of those problems to Customs, thus limiting your company’s exposure to excessive penalties.  The advantage of using an attorney instead of a non-attorney expert to assist your company with an internal audit is the availability of attorney-client privilege, which prevents an attorney from disclosing its communications with its clients to outside persons (including the government), unless the company permits the disclosure.

A prior disclosure is the most effective method of minimizing a company’s exposure to Customs penalties in connection with a violation of U.S. Customs laws and regulations -- such as, aparticular error in classification or valuation, or other material error associated with the filing of import or drawback entries. When an importer finds an error, a properly designed prior disclosure letter can protect an importer from potentially significant penalty exposure. GTE regularly counsels importers on internal reviews to find errors and strategies for prior disclosures to drastically reduce potential penalty liability. 

Timing is critical in prior disclosure cases. A prior disclosure is valid only if it is filed before Customs initiates a formal investigation, or the prior disclosure is filed by the disclosing party before knowledge of the initiation of the formal investigation.  Our attorneys will provide qualified assistance throughout the prior disclosure process; including investigation of the circumstances of the violation, evaluation of the nature and extent of errors, preparation of the disclosure report and calculation and tender of any loss of revenue.

Where a prior disclosure has not been filed and Customs claims a penalty, GTE will prepare a petition to mitigate those penalties to the maximum extent permitted by the Customs Regulations.

The U.S. Customs and Border Protection (“CBP”) assesses civil penalties against importers for goods that are imported into the United States in violation of law.  CBP may also assess penalties on exports from the U.S. for false or negligent drawback claims and false NAFTA certificates of origin. 

Most import penalties arise because the classification, valuation or country of origin of the imported goods was incorrectly determined.  Where penalties are imposed, the assessments are noted by Customs in its compliance database.  This record reflects the importer's risk designation, and, thus, the importer may find itself subjected to more frequent Customs inspections and longer processing times. 

Customs may also assess liquidated damages if the proper import procedures are not followed, or if the goods are released and subsequently found to be inadmissible and not redelivered to Customs' custody within the time allowed.

A substantial reduction in penalty amounts can often be achieved through Customs administration mitigation process.  The attorneys at GTE can help companies navigate through this complex administrative process by preparing the legal arguments that apply relevant case law to pertinent administrative laws and regulations.

It is the responsibility of the importer to exercise “reasonable care” in complying with Customs laws and regulations by considering the applicable laws and regulations, Customs’ administrative precedent and case law, and the specific facts and circumstances presented. However, in some instances, even after consulting these sources, the proper course of action to take with regard to specific customs compliance matters may still remain unclear. In other cases, an importer may have a strong commercial interest in having certainty and confirmation before importing certain merchandise. Obtaining a binding ruling from the CBP ensures certainty to an importer with regard to the proper tariff classification, customs valuation, country of origin, marking, and applicability of special trade programs to an importer’s merchandise.

Global Trade Expertise has drafted numerous successful ruling requests and Requests for Internal Advice covering all types of merchandise and a broad range of issues on behalf of our clients. We work with our clients to get a thorough understanding of the commercial objectives sought and prepare Customs ruling requests that advocate for the desired outcome based on applicable Customs laws and regulations.

U.S. exporters may ask the Department of Commerce’s Bureau of Industry and Security (“BIS”) for advice on whether an export license is required, or is likely to be granted for a particular end-use, end-user, and/or destination. This type of request, along with requests for guidance regarding other interpretations of the EAR, are commonly referred to as "Advisory Opinions".

Global Trade Expertise can help U.S. exporters draft Advisory Opinion request to BIS in a manner that will be persuasive to the agency of our client's desired outcome.

Global Trade Expertise provides litigation services on behalf of our clients to protect their international trade interests. For example, when administrative remedies have been exhausted, GTE can file suit on an importers behalf at the U.S. Court of International Trade seeking the reversal of an action by U.S. Customs and Border Protection (CBP).

In addition, GTE defends companies in customs and export enforcement proceedings and court cases, including import/export seizures and penalty actions, and provide representation before CBP, BIS, DDTC, the U.S. Court of International Trade, and the U.S. Court of Appeals for the Federal Circuit. If an importer or exporter independently discovers an error in its import/export transactions, we can advise and assist in evaluating the matter and in preparing voluntary (prior) disclosures to the appropriate governmental agency. A properly filed prior/voluntary disclosure can mitigate, eliminate, or greatly reduce monetary penalties for violations.

Global Trade Expertise has obtained substantial recoveries for its clients and has helped them avoid excessive penalties through successful litigation or settlement of cases.