Customs Law Violation

These offenses are prosecuted under federal statutes, such as the Tariff Act, and carry significant legal exposure for importers and exporters.

• Undervaluation: Intentionally declaring a value lower than the actual transaction value for imported goods to minimize duties owed.
• Misclassification of Goods: Assigning an incorrect tariff code to merchandise, often to benefit from a lower duty rate or bypass restrictions.
• Smuggling: Illegally moving prohibited or restricted goods across the U.S. border without proper declaration or payment of required duties.
• Failure to Report Currency: Violating federal law by transporting cash or monetary instruments exceeding the threshold without filing a required report.
• Export Control Evasion: Shipping items requiring specific export licenses without obtaining the necessary government authorization.

Enforcement involves a collaborative network of federal departments, each playing a distinct role in identifying and investigating breaches of customs regulations.

• U.S. Customs and Border Protection (CBP): Handles frontline enforcement, managing the flow of goods and conducting initial screenings and detentions at ports of entry.
• Homeland Security Investigations (HSI): Conducts complex, long-term criminal investigations into large-scale trade fraud, illicit finance, and international smuggling operations.
• The U.S. Attorney’s Office (DC): Responsible for evaluating investigative findings and prosecuting all federal criminal customs violation cases within the District of Columbia.

The government differentiates penalties based on the level of culpability proven during the investigation. Civil penalties are typically imposed for administrative errors, negligence, or gross negligence, usually resulting in monetary fines. Criminal penalties are reserved for cases where willful intent, fraud, or serious criminal schemes are proven, leading to arrest, indictment, trial in U.S. District Court, and potential imprisonment.

Penalties can involve significant financial liability and the loss of personal liberty, especially in cases of fraud.

Federal judges must consider several mandated factors in the U.S. District Court when determining a final sentence for criminal customs violations.

• The Value of Merchandise: The financial scale of the fraud is the primary driver for determining the base offense level under federal guidelines.
• Defendant's Role: Assessing whether the individual was an organizer, leader, or minor participant in the criminal activity impacts sentencing severity.
• Sophistication of the Scheme: Schemes involving complex falsification, money laundering, or international organization are viewed as highly aggravated.
• Criminal History: Prior convictions, particularly for financial or fraud-related crimes, will result in a significantly harsher sentence.

A robust defense hinges on a meticulous legal review of all procedural actions taken by the government and the presentation of clear documentary evidence.

• Challenging Intent: Arguing the alleged violation was the result of reasonable care failure (negligence) or error, not willful intent (fraud).
• Proving Administrative Errors: Demonstrating that the violation was caused by systemic clerical mistakes, technical misinterpretations, or documentation lapses.
• Filing Prior Disclosures: For companies, voluntarily reporting discovered violations to CBP before detection can substantially reduce or eliminate civil penalties.
• Pursuing Mitigation: Utilizing the administrative petition process to formally request that CBP reduce fines, return seized property, or cancel assessed penalties.

Retaining experienced counsel immediately protects the accused's constitutional rights, prevents self-incrimination during questioning by federal agents, and ensures proper response to administrative notices. In Washington D.C. federal court, a specialized customs attorney can leverage knowledge of both administrative petition procedures and criminal defense strategies to achieve the best possible outcome, preventing the forfeiture of assets and protecting against a federal criminal record.