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CBP Publishes Guidelines For the Imposition and Mitigation of Export Penalties

Posted on: 2009-01-12

On January 2, CBP published guidelines for the imposition and mitigation of penalties for failure to comply with the Foreign Trade Regulations in 15 CFR Part 30. This regulation requires the mandatory filing of data through the AES. The imposition of civil penalties is in effect for any violations occurring on or after February 1. The penalties may be assessed against any culpable party with respect to the export transaction. These parties include the U.S. Principal Party in Interest (USPPI), the Foreign Principal Party in Interest (FPPI), freight forwarders, authorized agents (which may include brokers and other parties to the export transaction), and carriers. Penalties may be assessed against more than one culpable party, however only one penalty may be assessed against each party per AES transaction. The civil penalties under this 15 CFR Part 30 are not to exceed $10,000 per violation, however CBP may issue penalties for other violations that may exist with respect to an export violation. The mitigation guidelines outline that CBP may take alternative actions (such as education, informative outreach, or a warning letter) for first violations, however CBP is not precluded from issuing penalties if previous outreach has occurred. For mitigation of a current penalty, CBP will consider prior violations to include only those violations that have occurred in the prior three years. These guidelines provide for separate mitigation schemes for penalties assessed for each of the following as noted. Consideration of both mitigating and aggravating factors are outlined in the original notice and impact the level of penalty assessment: Failure to file the export information in AES - The penalty will be issued for $10,000 with mitigation issued according to the table below: First Recorded Offense - $750 to $2,500 Second Recorded Offense - $1,000 to $3,500 Third Recorded Offense - $1,500 to $5,000 Fourth and Subsequent Recorded Offenses - $2,000 to $10,000 Late filing of the export information in AES - The notice of penalty will be issued in an amount that reflects $1,100 per each late day, up to a maximum of $10,000. First Recorded Offense - $250 per day to $1,500 Second Recorded Offense - $500 per day to $2,5000 Third Recorded Offense - $750 per day to $3,500 Fourth and Subsequent Recorded Offenses - $1,100 per day up to a maximum of $10,000 Failure to file all the necessary information in AES, the filing of incorrect information in AES, or the failure to comply with some other requirement of the FTR - The penalty will be issued for $10,000 with mitigation issued according to the table below: First Recorded Offense - $500 to $2,500 Second Recorded Offense - $750 to $3,500 Third Recorded Offense - $1,000 to $5,000 Fourth and Subsequent Recorded Offenses - $2,000 to $10,000 Failure of the exporting carrier to provide certain documents or certain information to CBP - The penalty will be issued for $10,000 with mitigation issued according to the table below: First Recorded Offense - $500 to $2,500 Second Recorded Offense - $750 to $3,500 Third Recorded Offense - $1,000 to $5,000 Fourth and Subsequent Recorded Offenses - $2,000 to $10,000