Liquidated Damages are predetermined civil penalties assessed against importers who have breached the terms of Customs bond. These liquidated damages claims arise when an importer fails to adhere to the Customs regulations and/or requests made by Customs on behalf of other government agencies (e.g. FDA). Specifically, a majority of the claims for liquidated damages stem from issues related to failure to redeliver goods, or improper classification, valuation, or marking.
Petitions for relief from liquidated damages must be filed within sixty (60) days from the date of mailing to the bond principal, the notice of claim for liquidated damages, or penalty secured by a bond. The degree at which Customs will grant mitigation is dependent on Customs mitigation guidelines and the facts and circumstances of the case.
As always when faced with a liquidated damages claim it is best to consult with a customs attorney about your options when preparing a petition to file with Customs.
For more information about this blog post, please contact Abady Law Firm, P.C. and speak with our customs attorney at (800) 549-5099. Also visit www.customsesq.com to chat with an import export attorney — who has insight into liquidated damages claims — about your company’s import or export situation and to schedule a consultation. To chat with us, click the bottom right corner tab of our homepage.
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