CUSTOMS PENALTY MITIGATION REQUEST

Petition for Relief Under 19 U.S.C. § 1618

U.S. Customs and Border Protection

SECTION 1: PETITION IDENTIFICATION

Type of Petition:
☐ Response to Pre-Penalty Notice
☐ Petition for Mitigation (Response to Penalty Notice)
☐ Supplemental Petition (following initial decision)

CBP Case Number: [____________________]

Pre-Penalty/Penalty Notice Date: [__/__/____]

Response Deadline: [__/__/____]

Date of This Petition: [__/__/____]

SECTION 2: PETITIONER INFORMATION

A. Petitioner Details

Full Legal Name:
[________________________________]

Type of Entity:
☐ Individual
☐ Corporation
☐ Partnership
☐ Limited Liability Company
☐ Other: [____________________]

Importer of Record Number: [____________________]

Tax ID (EIN/SSN): [____________________]

Business Address:
[________________________________]
[________________________________]

City: [____________________] State: [____] ZIP: [__________]

Telephone: [____________________]

Email: [________________________________]

B. Contact Person

Name: [________________________________]

Title: [________________________________]

Phone: [____________________]

Email: [________________________________]

SECTION 3: ATTORNEY/REPRESENTATIVE INFORMATION

Is petitioner represented by counsel?
☐ Yes ☐ No

If Yes:

Attorney/Representative Name: [________________________________]

Firm Name: [________________________________]

Address:
[________________________________]

Telephone: [____________________]

Email: [________________________________]

Bar Admission Number: [____________________]

☐ Power of Attorney attached

SECTION 4: ENTRY INFORMATION

A. Entry Details

B. Merchandise Information

Description of Merchandise:
[________________________________]
[________________________________]

HTSUS Classification:
CBP Classification: [____________________]
Petitioner's Claimed Classification: [____________________]

Country of Origin: [____________________]

Total Entered Value: $[____________________]

SECTION 5: PENALTY INFORMATION

A. Alleged Violation

Statutory Basis of Penalty:

☐ 19 U.S.C. § 1592(a) - Material false statement or omission
☐ 19 U.S.C. § 1592(d) - Restoration of lawful duties
☐ 19 U.S.C. § 1595a - Merchandise introduced contrary to law
☐ Other: [____________________]

Degree of Culpability Alleged:

☐ Fraud
☐ Gross Negligence
☐ Negligence

B. Description of Alleged Violation

CBP's Allegations:
[________________________________]
[________________________________]
[________________________________]
[________________________________]

C. Penalty Amount

Claimed Penalty Amount: $[____________________]

Breakdown:
| Element | Amount |
|---------|--------|
| Base Penalty | $[__________] |
| Interest | $[__________] |
| Loss of Revenue | $[__________] |
| Other | $[__________] |
| Total | $[__________] |

Maximum Statutory Penalty:
- Fraud: Domestic value of merchandise
- Gross Negligence: Lesser of domestic value or 4x lawful duties
- Negligence: Lesser of domestic value or 2x lawful duties

SECTION 6: RESPONSE TO ALLEGATIONS

A. Petitioner's Position

Does petitioner contest the violation?
☐ Yes - Contest violation entirely
☐ Partial - Contest degree of culpability
☐ No - Acknowledge violation, seek mitigation

B. Statement of Facts

Petitioner's Description of Events:
[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

C. Disputed Facts (if any)

Specifically identify any facts alleged by CBP that are disputed:
[________________________________]
[________________________________]
[________________________________]

D. Legal Arguments

If contesting culpability level, explain why a lower standard applies:
[________________________________]
[________________________________]
[________________________________]

If contesting violation entirely, provide legal basis:
[________________________________]
[________________________________]
[________________________________]

SECTION 7: MITIGATING FACTORS

A. Mitigating Factor Checklist

Check all applicable mitigating factors and provide supporting explanation:

General Mitigating Factors:

☐ Contributory CBP Error
Explain: [________________________________]

☐ Cooperation with CBP Investigation
Explain: [________________________________]

☐ Good Faith Effort to Comply
Explain: [________________________________]

☐ Immediate Corrective Action
Explain: [________________________________]

☐ No Prior Violations
Years of compliant importing: [____]
Number of entries without violation: [____]

☐ Isolated Occurrence
Explain why this was not systemic: [________________________________]

☐ Inexperience with Import Regulations
Length of time importing: [____]
Explain: [________________________________]

☐ Reliance on Third-Party Expert
Name of broker/consultant: [________________________________]
Explain reliance: [________________________________]

☐ Complex or Ambiguous Regulations
Cite specific regulations: [________________________________]
Explain ambiguity: [________________________________]

☐ Small Business Considerations
Annual revenue: $[____________________]
Number of employees: [____]

B. Prior Disclosure Considerations

Was a prior disclosure made?
☐ Yes ☐ No

If Yes:

Date of Prior Disclosure: [__/__/____]

Was disclosure made before commencement of formal investigation?
☐ Yes ☐ No

Did disclosure identify all violations?
☐ Yes ☐ No

Note: Valid prior disclosure generally limits penalty to interest on unpaid duties.

C. Compliance Program

Does petitioner have a compliance program?
☐ Yes ☐ No

If Yes, describe:

☐ Written procedures for customs compliance
☐ Internal audits conducted
☐ Training for personnel
☐ Use of licensed customs broker
☐ C-TPAT membership
☐ Trusted Trader status
☐ Other: [____________________]

Steps taken to prevent recurrence:
[________________________________]
[________________________________]
[________________________________]

SECTION 8: ABILITY TO PAY

A. Financial Hardship Claim

Is petitioner claiming inability to pay?
☐ Yes ☐ No

If Yes, provide:

☐ Financial statements (3 years)
☐ Tax returns (3 years)
☐ Bank statements (12 months)
☐ Statement of assets and liabilities
☐ Explanation of financial circumstances

Narrative Explanation:
[________________________________]
[________________________________]
[________________________________]

B. Impact of Penalty

Describe impact of penalty payment:
☐ Would cause business failure
☐ Would result in employee layoffs (number: [____])
☐ Would significantly impair operations
☐ Other: [________________________________]

SECTION 9: PROPOSED RESOLUTION

A. Relief Requested

Petitioner requests:

☐ Complete Remission (penalty cancelled)
Basis: [________________________________]

☐ Mitigation to Specific Amount: $[____________________]
Basis: [________________________________]

☐ Reduction of Culpability Level
From: [____________________] To: [____________________]
Basis: [________________________________]

☐ Payment Plan
Proposed terms: [________________________________]

☐ Other Relief:
[________________________________]

B. Calculation of Mitigated Penalty

Under CBP Mitigation Guidelines (19 CFR Part 171, Appendix B):

Explanation of Calculation:
[________________________________]
[________________________________]

SECTION 10: PRIOR DISCLOSURE ASSERTION (IF APPLICABLE)

Prior Disclosure Under 19 CFR 162.74

I assert that a valid prior disclosure was made:

Date of Disclosure: [__/__/____]

Disclosure Made To: [________________________________]

Method: ☐ Written ☐ Electronic

The disclosure was:
☐ Made before commencement of formal investigation
☐ Made before knowledge of investigation
☐ Complete and accurate
☐ Accompanied by tender of unpaid duties

Supporting Documentation:
☐ Copy of prior disclosure submission attached
☐ Receipt/acknowledgment from CBP attached
☐ Proof of duty payment attached

Applicable Penalty Limitation:
Under valid prior disclosure, penalty limited to:
- Interest on unpaid duties
- No penalty for violation discovered through disclosure

SECTION 11: SUPPORTING DOCUMENTATION

Document Checklist

☐ Copy of Pre-Penalty Notice/Penalty Notice
☐ Entry documentation (Entry Summary, invoice, packing list)
☐ Correspondence with CBP
☐ Prior disclosure submission (if applicable)
☐ Compliance program documentation
☐ Training records
☐ Internal audit reports
☐ Broker correspondence
☐ Financial statements (if claiming inability to pay)
☐ Corporate resolution authorizing petition
☐ Power of Attorney
☐ Prior CBP rulings (if applicable)
☐ Expert reports or opinions
☐ Witness statements
☐ Other: [____________________]

SECTION 12: CERTIFICATION

I, the undersigned, hereby certify that:

☐ I am authorized to submit this petition on behalf of the petitioner.

☐ All information provided is true, accurate, and complete to the best of my knowledge and belief.

☐ I understand that providing false information may result in additional penalties.

☐ I have attached all relevant documentation in support of this petition.

☐ I request an opportunity to be heard or present additional information if necessary.

☐ I understand that this petition must be filed within the response deadline.

Signature: ________________________________

Printed Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

SECTION 13: FILING INSTRUCTIONS

A. Response Deadlines

Pre-Penalty Notice: 30 days from date of notice to respond

Penalty Notice: 60 days from date of notice to file petition

Supplemental Petition: 60 days from denial of initial petition

B. Where to File

For penalties under $200,000:
Fines, Penalties, and Forfeitures Officer
At the issuing CBP port

For penalties $200,000 and above:
Chief, Penalties Branch
Regulations and Rulings
Office of Trade
U.S. Customs and Border Protection
Washington, DC 20229

C. Electronic Filing

Check with issuing office for electronic submission options.

SECTION 14: MITIGATION GUIDELINES SUMMARY

Negligence Cases

Baseline: 2x loss of revenue (or 2x the difference between actual and correct duties)

Mitigating Factors May Reduce To:
- First offense with no aggravating factors: May reduce to 1x loss of revenue
- Prior good record: May reduce penalty
- Contributory CBP error: May reduce penalty
- Good faith compliance efforts: May reduce penalty

Gross Negligence Cases

Baseline: 4x loss of revenue

Mitigating Factors: Similar considerations but higher threshold for reduction

Fraud Cases

Baseline: Domestic value of merchandise

Mitigating Factors: Limited; fraud cases rarely receive significant mitigation

SECTION 15: POST-PETITION PROCESS

A. CBP Review Timeline

• Fines, Penalties, and Forfeitures Officer reviews petition
• Decision typically within 60-180 days (varies by complexity)
• Written decision issued

B. Possible Outcomes

☐ Petition Granted (penalty remitted or mitigated)
☐ Petition Partially Granted
☐ Petition Denied

C. Further Appeals

If petition denied:
- May file Supplemental Petition within 60 days
- May seek administrative review at Headquarters
- May seek judicial review in Court of International Trade (within 180 days of final decision)

SOURCES AND REFERENCES

• 19 U.S.C. § 1592: https://www.law.cornell.edu/uscode/text/19/1592
• 19 U.S.C. § 1618: https://www.law.cornell.edu/uscode/text/19/1618
• 19 CFR Part 171: https://www.ecfr.gov/current/title-19/chapter-I/part-171
• Mitigation Guidelines (Appendix B): https://www.ecfr.gov/current/title-19/chapter-I/part-171/appendix-Appendix%20B%20to%20Part%20171
• CBP Mitigation Guidelines ICP: https://www.cbp.gov/trade/publications/informed-compliance-publication-mitigation-guidelines-fines-penalties-forfeitures-and
• Prior Disclosure: 19 CFR 162.74

PENALTY MAXIMUMS REFERENCE

LEGAL NOTICES

Deadline Warning: Failure to respond to a Pre-Penalty Notice or file a timely petition may result in assessment of the maximum penalty and waiver of rights.

Criminal Referral: Fraud cases may be referred for criminal prosecution.

Statute of Limitations: CBP generally has 5 years from date of violation to issue penalty notice.

This template is provided for educational and informational purposes only. Customs penalty cases are complex and have strict deadlines. Consult with a qualified customs attorney before responding to any penalty notice.