Prior Disclosure
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A prior disclosure in import trade refers to a voluntarily reported violation(s) that occurred before an official investigation was initiated.
Many prior disclosures involve agreeing to forfeit obligations related to the infractions.
The importer should review each error that occurred over the prior five years.
The amount of time CBP has to review older entries is critical for compliance.
Common past disclosures include wrongly disclosed free trade agreements, undervaluation, incorrect country of origin, and misclassification.
It's recommended to have an expert evaluate the submission to ensure there are no hidden infractions that CBP might discover.
Submitting a prior disclosure without checking for additional probable violations can expose you to fines that lack the same protections as a prior disclosure.
Submitting a prior disclosure demonstrates to customs that you are taking reasonable care and may help lower potential penalties if CBP discovers the mistakes independently during an audit.
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