Trade Alert: Late petitions to result in sharply higher claim payments as CBP issues amended guidelines for the acceptance of untimely petitions and mitigation of claims.


CBP has announced effective January 9, 2013 it will be amending the guidelines for the acceptance of untimely petitions and mitigation of claims replacing the previous guidelines.  After a liquidated damage claim is issued, an importer may file a petition for relief within 60 days to request the claim be lower based on mitigating circumstances affecting the claim.  CBP has indicated there has been a significant uptick in the number of petitions for relief filed untimely and has determined the current formula for mitigation of late filed petitions is outdated and does not provide sufficient monetary assessments to discourage or deter principals and other petitioners from routinely filing untimely petitions.  Under the previous guidelines, CBP would accept late petitions; however, since the petition was untimely, CBP would require an additional assessment of 0.1% of the base mitigated amount multiplied by the number of days the petition was late, but no less than $400.00.  Many late petitions were generally settled for an additional payment of $400.00 on top of the original mitigation. The new guidelines substantially raise, in most cases, the additional amounts acceptable on untimely filed petitions.

Given the potential for a dramatic increase in the amounts bond principals will be paying for untimely filed petitions, we have included links at the bottom of the e-mail with a summary of the new guidelines, a copy CBP Decision 13-1 and FAQ for you and to pass along to your clients.