Understanding U.S. Customs Statute of Limitations Waivers: What Importers Need to Know
When U.S. Customs and Border Protection (CBP) seeks to collect unpaid duties, taxes, or penalties, it generally must act within a defined window of time. But that window can be extended — and often is. Understanding how CBP statute of limitations (SOL) waivers work is essential for any importer navigating a customs audit or penalty proceeding.
The Basic Rule: A Five-Year Limitation Period
Under 19 U.S.C. § 1621, CBP has five years from the date of a violation to bring an action to recover unpaid duties or assess a penalty. This limitation period is designed to provide finality and protect importers from indefinite exposure. Once the period lapses, CBP’s ability to collect is generally barred.
What Is a Statute of Limitations Waiver?
A statute of limitations waiver is a written agreement by which an importer voluntarily extends CBP’s window to assess duties or penalties beyond the standard five-year period. CBP routinely requests these waivers during the course of audits, prior disclosures, and penalty proceedings, particularly when the matter is complex, ongoing, or near the limitations deadline. Standard SOL waivers generally provide CBP with two-year extensions of the SOL. During this time, the importer agrees not to exercise a statute of limitations defense for entries covered by the SOL waiver.
Waivers are not automatic — they require the importer’s consent. However, in practice, refusing to sign is often not consequence-free. Refusing to sign forces CBP to expedite their […]
