U.S. Customs and Border Protection (CBP) has been sending letters to importers about “informed compliance,” and information that is intended to assist importers meet future compliance requirements.
The letters note that under current statutory provisions (19 U.S.C. § 1592(c)(4)) importers may elect to submit a disclosure, and if a complete disclosure is presented before a CBP investigation is initiated (or before there is knowledge that CBP will begin a formal investigation), there can be reduced penalties.
In providing these letters, CPB is reminding importers that any future violations could result in seizures and forfeitures of imported merchandise, as well as the imposition of monetary penalties. CBP is requesting that recipients of the letters sign and return a copy of the letter to CBP.
The CBP letters include a list of informed compliance publications available on the CBP website (and are accompanied by a DVD). According to a sample of the letters, CBP is encouraging importers “to proactively monitor” transactional data in the ACE secure data portal and to evaluate whether there are “significant errors/discrepancies that should be voluntarily reported to CBP.”
Importers receiving this type of CBP letter need to carefully consider and recognize that this may be a precursor to a full CBP “focused assessment” or other type of audit. Accordingly, companies that receive this CBP letter would want to consider the following steps:
KPMG Trade & Customs professionals have extensive experience in addressing similar CBP reviews and assessments.
For more information about possible next steps to take if your company receives a similar letter from CBP, contact a professional with KPMG’s Trade & Customs practice:
Douglas Zuvich | +1 (312) 665-1022 | email@example.com
Andrew Siciliano | +1 (631) 425-6057 | firstname.lastname@example.org
Todd Smith | +1 (949) 885-5617 | email@example.com
Luis Abad | +1 (212) 954-3094 | firstname.lastname@example.org
John McLoughlin | +1 (267) 256-2614 | email@example.com
George Zaharatos | +1 (404) 222-3292 | firstname.lastname@example.org
© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.