Client Advisories and Bulletins

Customs Compliance Pendulum to Swing Back to Commercial Enforcement

February 2006

Notwithstanding U.S. Customs and Border Protection’s ("Customs’") post-9/11 concentration on anti-terrorism, including the Customs-Trade Partnership Against Terrorism and other security initiatives, Katten Muchin Rosenman LLP has learned that instructions have been issued by Customs Headquarters to import specialists and other Customs officials at the ports of entry to step up commercial enforcement activities. This mandate from Headquarters includes urging the ports to initiate penalty cases against importers for commercial violations. For example, importers that have misclassified articles now face penalties, not just additional duties, in cases where the misclassification resulted in duty underpayments. In addition, Customs is scrutinizing importers’ entries to determine whether they are subject to antidumping duties and, if so, whether they are being deposited in the correct amount.