CBLE Dispute Resolution Procedures 3 — Questions and Answers
Question 1: Which of the following decisions is NOT protestable under 19 U.S.C. § 1514?
- A CBP seizure of merchandise for forfeiture (Correct answer)
- The rate and amount of duties assessed
- The classification of imported merchandise
- Denial of a drawback claim
Correct answer: A CBP seizure of merchandise for forfeiture
Seizures for forfeiture are handled under the administrative forfeiture process, not through the protest mechanism of 19 U.S.C. § 1514.
Question 2: An importer files a protest that CBP deems untimely. What is the most likely outcome?
- CBP will reject the protest without reviewing the merits (Correct answer)
- CBP will automatically grant further review
- CBP will liquidate the entry as entered
- CBP will issue a penalty for improper filing
Correct answer: CBP will reject the protest without reviewing the merits
A protest filed outside the 180-day window is untimely and CBP will reject it without consideration of the underlying claim.
Question 3: The Customs Modernization Act (Mod Act) introduced 'informed compliance,' which affects dispute resolution by:
- Placing shared responsibility on importers and shifting some burden to CBP to provide guidance (Correct answer)
- Eliminating the need for protests on classification issues
- Requiring all disputes to go directly to the CIT
- Giving CBP authority to impose penalties without prior notice
Correct answer: Placing shared responsibility on importers and shifting some burden to CBP to provide guidance
The Mod Act established a shared responsibility model where CBP must clearly communicate requirements and importers must exercise reasonable care, which is relevant when assessing culpability in disputes.
Question 4: In a penalty mitigation petition, which factor would most likely result in a REDUCTION of the penalty amount?
- The importer's prior good record of compliance with no previous violations (Correct answer)
- The merchandise was commercially sensitive
- The entry was filed by a licensed customs broker
- The importer was unaware of the customs regulations
Correct answer: The importer's prior good record of compliance with no previous violations
A clean prior compliance history is a recognized mitigating factor that CBP considers when deciding whether to reduce a penalty.
Question 5: Which CBP program allows importers to voluntarily disclose a violation BEFORE CBP has initiated a formal inquiry, typically resulting in reduced penalties?
- Prior Disclosure (Correct answer)
- Accelerated Entry
- Importer Self-Assessment
- Trusted Trader Program
Correct answer: Prior Disclosure
A Prior Disclosure under 19 U.S.C. § 1592(c)(4) significantly limits penalties when an importer voluntarily discloses a violation before CBP has commenced a formal investigation.
Question 6: If CBP issues a Notice of Action (CF-29) changing the classification of an entry after liquidation, the importer must file a protest within:
- 180 days of the CF-29 issuance date (as a notice of liquidation) (Correct answer)
- 90 days of the CF-29 issuance date
- 30 days of the CF-29 issuance date
- One year of the original entry date
Correct answer: 180 days of the CF-29 issuance date (as a notice of liquidation)
A CF-29 that constitutes a notice of liquidation starts the 180-day protest clock under 19 U.S.C. § 1514.
Question 7: An importer's protest is denied by the port director. What is the importer's next administrative step before going to court?
- There is no further administrative step; the importer may proceed directly to the CIT (Correct answer)
- File a further administrative appeal with CBP headquarters
- Request arbitration with the International Trade Commission
- File a request for reconsideration with the port director
Correct answer: There is no further administrative step; the importer may proceed directly to the CIT
Once a protest is denied, there is no mandatory further administrative appeal; the importer may file suit directly in the U.S. Court of International Trade.
CBLE Dispute Resolution Procedures 3
Which of the following decisions is NOT protestable under 19 U.S.C. § 1514?