Should I File A Customs Prior Disclosure?

Many importers have experienced at one time or another that horrible, stomach-turning feeling that comes with the realization that merchandise they have been importing has been entered under the wrong HTS code, with the incorrect value, or with the incorrect country of origin. These and similar errors constitute violations of 19 U.S.C. § 1592, and upon such discovery, the importer must ask, "Should I submit a Prior Disclosure to U.S. Customs and Border Protection ("CBP")?" The answer to that question will depend on a variety of factors, which will be discussed in this article.

Any party, including importers, custom brokers, shippers, and foreign suppliers/manufacturers, involved in the business of importing into the U.S. can file a prior disclosure with CBP. A valid prior disclosure discloses the circumstances of §1592 violations to CBP before, or without knowledge of, the commencement of a formal investigation. Common examples of a §1592 violation include