Export Penalty

Customs Administrative Enforcement Process: Fines, Penalties, Forfeitures and Liquidated Damages

Diaz Trade Law is enthusiastic to announce Bloomberg Law published another one of our articles! Below is the article reproduced, you can also read here.

All imports and exports are regulated by US Customs and Border Protection (CBP or US Customs; formerly the US Customs Service), which is the largest federal law enforcement agency of the Department of Homeland Security (DHS). The history of CBP and the fines, penalties, and forfeitures (FP&F) process goes back to July 4, 1789. The second Act of the First Congress of the United States was to establish a system of tariffs on imported goods to fund the new federal government. Shortly thereafter, Congress established the U.S. Customs Service and subjected merchandise to fines, penalties, and forfeitures for breaches of the law.

The authority to initiate seizures and impose fines was initially vested in Customs field personnel and all fines, penalties, and forfeitures required judicial enforcement. There was no provision allowing the granting of equitable relief. In 1797, the authority to grant equitable relief was vested in the Secretary of Treasury. Over time, as the Secretary’s responsibilities increased, the authority to remit or mitigate penalties was delegated to subordinate officials in the Department and the Customs Service.

In 2003, the US Customs Service was transitioned to CBP, the nation’s first comprehensive border security agency with a focus on maintaining the integrity of the nation’s boundaries and ports of entry. Today, CBP has full authority—pursuant to delegation of authority—to assess penalties and seize merchandise for violations of customs laws. […]

By |2023-11-07T17:44:02-05:00November 6, 2023|Bloomberg, Bloomberg Import|0 Comments

Chinese Telecom Giant, ZTE, Faced with Largest Penalty Ever Levied

zte_logo_reuters_1486215309260In our previous post, we discussed ZTE’s record penalty for selling technology with US-origin chips to North Korea and Iran, in violation of US trade laws. The company initially received a $1.19 billion in penalties and was ordered to reprimand the executives responsible for the malfeasance’s as a condition to re-enter the United States (US) market after a three-year suspension. Despite telling the US government that the guilty executives had been properly punished, it became clear that they were instead rewarded with bonuses. This violation triggered an automatic ban of ZTE from the US market for seven (7) years. As the 4th largest seller of cell phones to the US, the ban on ZTE serves as a means of protecting American production.

After the announcement, the ensuing backlash from Beijing, as well as trade talks in China, President Trump stated that he and Chinese president Xi Jiping are working together to bring ZTE “back into business”.

Now, the Trump administration threw a metaphorical lifeline to this tech giant, seemingly easing tensions with Beijing. Secretary Ross announced a $1.4 Billion dollar settlement with ZTE.

ZTE has agreed to severe additional penalties and compliance measures to replace the U.S. Commerce Department’s Bureau of Industry and Security (BIS) denial order imposed as a result of ZTE’s violations of its March 2017 settlement agreement.  Under the new agreement, ZTE must pay $1 billion and place an additional $400 million in suspended penalty money in escrow before BIS will remove ZTE from […]

Title

Go to Top