Our community is filled with people who import goods from around the world into the United States. Buyers are hungry for products but at the same time deadlines for delivery must be met. That is why it can be frustrating when US Customs and Border Protection (Customs) detains a shipment. In almost all cases, goods are required to be entered through Customs and the Customs officers ensure that they are in compliance with all US laws and regulations.
When a detention does occur, the office phones ring off the hook, and there is a real threat of orders lost, profits lost, and customer relations compromised. Customs may release the goods, but too late to fix the order or they may seize the goods indefinitely. These are the procedural processes Customs follows:
Customs has a total of 10 business days to make a decision regarding detention of your goods and if detained, provide notice of the detention. That notice will provide the reason for detention, any tests that Customs is performing on the goods, as well as a request for information relating to goods, that may assist in a quicker release.
The detention can be based on failure to provide necessary documentation for Customs clearance (i.e. admissibility) into the US. For example, failure to indicate the country of origin for the goods. Documentation must be provided within 15 calendar days after the goods landed from a vessel or aircraft.
If a detention notice is not issued by Customs, the goods are treated as excluded by default within 30 days after the merchandise has been presented for Customs examination. The importer may challenge the exclusion via an administrative protest. Customs then has 30 days to make a determinationafter that it is a courts issue.
If the detained goods are seized, the importer will receive a notice of seizure. This document will give a reason for why Customs seized the goods, as well as provide alternatives for remedying the situation. For example, Customs will seize goods if they believe the goods contain an unauthorized trademark.
There are three alternatives provided for in the seizure notice: First, abandon the goods outrightunder most circumstances, abandoning your goods is not recommended. Second, the importer has the right to file a petition for relief and early release of the goods. Generally, there is a requirement to pay 30-50% of the dutiable value, and finally, the importer has the option of having the matter referred to the US attorney to begin judicial forfeiture proceedings. Generally, the importer must file a cost bond of $5,000 or 10% of the forfeiture value of the goods. The importer may also have the matter brought to court if the administrative process was exhausted (was denied relief by Customs).
A minor problem with imported products can result in an array of consequences for the importer. Our government broadly construes the trade laws and is a powerful bureaucracy to face. Thus, an importer may hire a customs attorney to pursue the administrative or court related process to pursue the best outcome with minimal impact to an importers international business.
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This information should not be construed as legal advice.
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Solomon S. Abady is an experienced and industrious attorney who concentrates in the areas of international trade (import/export), Customs, admiralty, and transportation.
