ARTICLE
26 July 2022

Prior Disclosure

BG
Braumiller Law Group, PLLC

Contributor

Braumiller Law Group, PLLC, is a highly respected boutique law firm based in Dallas, Texas with offices in the US and Mexico. The firm is focused on international trade compliance and proven strategies to optimize global trade business practices. The attorneys and trade advisors of Braumiller Law Group, and Braumiller Consulting Group, know exactly how to navigate the intricate maze of global trade regulations, and have a successful track record for helping clients save millions of dollars in compliance penalties.
Prior Disclosure is a "safe harbor" by which importers and drawback filers may report to Customs errors in classification or valuation, and other incorrect information associated with the filing of import or drawback entry.
United States International Trade Law & Customs
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Prior Disclosure is a "safe harbor" by which importers and drawback filers may report to Customs errors in classification or valuation, and other incorrect information associated with the filing of import or drawback entry.

When properly prepared and timely filed, a prior disclosure protects the importer or drawback filer, and can significantly reduce the amount of penalties that would have been imposed had Customs initiated an administrative penalty action. In a case involving negligence or gross negligence, Customs is limited to collecting interest on the liquidated amount found owing.

To be valid, a prior disclosure must advise Customs of the circumstances of the violation, including: the nature of the errors or incorrect information submitted; the identity of the entries or period to which the disclosure relates; and provide Customs with the correct information that should have been given. If the errors or incorrect information result in a loss of revenue, the importer is required to tender the additional amount owing. In the case of a drawback filer, it is required to tender any overpayments that may have occurred as a result of the errors.

Timing is often critical in prior disclosure cases, as a prior disclosure is valid only if it is filed before Customs initiates a formal investigation of the wrongdoing, or the prior disclosure is filed by the disclosing party before knowledge of the initiation of the formal investigation. While a properly prepared prior disclosure can shield an importer or drawback filer from significant penalties, an improperly prepared disclosure will result in the loss of that protection, while notifying Customs of the existence of the problem.

The attorneys at Braumiller Law Group provide experienced guidance to importers and drawback filers throughout the prior disclosure process, including investigation of the circumstances of the violation, evaluation of the nature and extent of errors, preparation of initial disclosure report and calculation and tender of any loss of revenue, and case closure.

Take Note
This document is not intended to create an attorney-client relationship. You should not act or rely on any information in this document without first seeking legal advice. This material is intended for general information purposes only and does not constitute legal advice. If you have any specific questions on any legal matter, you should consult a professional legal services provider.
ARTICLE
26 July 2022

Prior Disclosure

United States International Trade Law & Customs

Contributor

Braumiller Law Group, PLLC, is a highly respected boutique law firm based in Dallas, Texas with offices in the US and Mexico. The firm is focused on international trade compliance and proven strategies to optimize global trade business practices. The attorneys and trade advisors of Braumiller Law Group, and Braumiller Consulting Group, know exactly how to navigate the intricate maze of global trade regulations, and have a successful track record for helping clients save millions of dollars in compliance penalties.

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