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 or with the incorrect value. 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: undervaluation, misdescription of
