CUSTOMS AND EXPORT CONTROLS VIOLATIONS

Customs

Many businesses involved in the importation or exportation of goods should be wary of the civil and criminal penalties for violations of the laws enforced by the U.S. Customs and Border Protection (U.S. CBP) and International Customs Enforcement (ICE).  At the border, shipments may be inspected, detained, or in some cases, seized and forfeited. In addition, Customs may issue a pre-penalty notice under certain circumstances when they believe a shipments have been made through negligence or fraud and may thereafter impose a civil monetary penalty. There are processes and procedures for ensuring that goods are properly released to the importer to avoid possible forfeiture and there are processes for mitigating or minimizing the imposition of any civil monetary penalty.

Similarly, in more serious cases, the government may charge an importer, customs broker, or business owner with a criminal violation of the customs laws when the importation or entry of goods is made through false statements or declarations, fraud, or in violation of applicable law.

Export Controls

Businesses exporting commercial supplies or articles may also be subject to export controls imposed by one of three government agencies: Department of Treasury (Office of Foreign Assets Control), Department of Commerce (Export Administration Act), or the Department of State (Arms Export Controls Act). The Department of State enforces the Arms Export Controls Act through the international trade of arms (ITAR) regulations. All persons or entities that engage in the manufacture, export, or brokering of defense articles and services must be registered with the U.S. government. The ITAR establishes the requirements for licenses and other authorizations for specific exports of defense articles and services.

Export controls violations are serious and may result in criminal or civil penalties or the denial of export privileges.

Contact the Feldman Firm if you or your organization have reason to believe that you may be the subject of a government investigation related to customs or export controls violations.