Prior disclosure under 19 USC § 1592(c)(4) provides specific penalty caps for importers disclosing violations before discovery. Penalty capped at: 1x interest on duty owed (negligence), or 1x duty owed (gross negligence/fraud). Substantially less than the maximum 4x or 8x multipliers.
This guide covers Prior Disclosure Benefits. Importer education spans setup, ongoing operations, and compliance program design.
Practical implementation depends on company size, sector, and operational structure.
Statutory framework
19 USC § 1592(c)(4). Specific penalty caps for prior disclosure.
Filing requirements
Written disclosure to CBP regulatory audit before formal investigation begins. Identification of violations, period, calculations.
Penalty caps
Negligence: 1x interest on duty owed. Gross negligence/fraud: 1x duty owed. Vs. 4x or 8x without disclosure.
When to use
Self-identified systemic violations. Compliance program maturation. Pre-acquisition due diligence findings.
Frequently asked questions
When does this apply?
Most relevant for SMB importers facing the named situation or considering the named strategy.
What documentation is needed?
Standard CBP forms plus topic-specific records.
What is the timeline?
Initial assessment 2-4 weeks; complex implementation 8-16 weeks.
What does this cost?
Project work typically $5,000-$25,000. Ongoing retainer for active operations.
How do I begin?
Book a 15-minute scoping call. We confirm fit before any engagement.
Get started
Engage on importer setup or compliance program design.