What penalties apply to Customs violations?

 

Criminal Penalties

  • 18 U.S.C. § 1001 - Statements or Entries Generally - Punishable by recovery of duty loss plus a fine of $10,000 per count, imprisonment up to 5 years or both
  • 18 U.S.C. § 1542 - Entry of Goods by Means of False Statements - Punishable by recovery of duty loss plus a fine of $5000 per count, imprisonment up to 2 years, or both
  • 18 U.S.C. § 1545 - Smuggling Goods into the United States - Punishable by recovery of duty loss and seizure of goods plus a fine up to $250,000, imprisonment up to 5 years, or both

Civil Penalties

  • 19 U.S.C. § 1592 -Penalties for Fraud, Gross Negligence, and Negligence

Penalties for non-compliance are as follows based on the level of culpability:

Fraud - For violations resulting in a revenue loss = up to the domestic value of the entry(ies) ; for non-revenue loss violations = up to the domestic value of the merchandise. 

Gross Negligence - For violations resulting in a revenue loss = 4x the loss of duty; for non-revenue loss violations = 40% of the dutiable value of the merchandise.
 

 Negligence - For violations resulting in a revenue loss = 2x the loss of duty;  for non-revenue loss violations = 20% of the dutiable value of the merchandise.