CBP offers to reduce penalties for C-TPAT members
International transportation companies that voluntarily strengthen their procedures for securing cargo shipments entering the United States are now eligible for a 50 percent reduction in penalties for submitting inadequate shipping information to U.S. Customs and Border Protection.
Ocean, rail, air and motor carriers, as well as NVOCCs that participate in the Customs-Trade Partnership Against Terrorism (C-TPAT) can cut their penalties in half for Trade Act violations involving late or incomplete cargo declarations, said Michael Mullen, CBP’s director of trade relations.
CBP requires carriers to electronically submit their manifests in advance so specialists can analyze the information for potential clues about terrorist smuggling. Ocean carriers must file their manifest 24 hours prior to loading in a foreign port, while airlines file four hours in advance, railroads file two hours before crossing the border and truckers from 30 minutes to one hour ahead of arrival.
Failure to file on time or use of a vague description for the cargo can result in a $5,000 penalty. Under the enhanced benefits for C-TPAT members, a carrier that appealed and received a $1,000 mitigated penalty would only be required to pay $500, Mullen said at a conference on globalization of customs compliance hosted by Chicago-based law firm Gardner Carton & Douglas.
Importers that participate in C-TPAT are supposed to be targeted for fewer inspections and get containers processed faster through ports. CBP officials earlier this year said they were considering penalty mitigation as one of several types of additional benefits to offer shippers and carriers as an incentive to participate in C-TPAT.
CBP offers to reduce penalties for C-TPAT members
