Prior Disclosures in an Era of Heightened Enforcement, “Gotcha Audits” and Whistleblowers
Webinar Credits: 1.5 CCS
The self-reporting of entry errors, such as the misclassification or undervaluation of entered merchandise, can be an effective tool in protecting a company, and sometimes its officers, directors and employees, from harsh customs penalties. With recent increases in the number of customs inspectors, agents and auditors, as well as use of the False Claims Act to reward whistleblowers, every company import manager, internal auditor, in-house counsel and compliance officer needs to understand the options for self-audit and self-reporting errors.
- What should a company do when it discovers a potential error?
- What should a company do when it receives a CF 28 or CF 29?
- What are the benefits of submitting a prior disclosure?
- When is a prior disclosure “valid?”
- How should a company define the scope of a prior disclosure?
- Should all errors be reported to Customs?
- Are there any specific strategies relating to the filing of a prior disclosure?
- Can a disclosure be filed during or prior to a focused assessment (“FA”) or quick response audit (“QRA”)?
- Can a CEO really be penalized by Customs for an entry error made by his or her company?
- How can a company reduce the likelihood that an employee or insider will “blow the whistle”?
Larry Ordet is a member of Sandler, Travis & Rosenberg, P.A., resident in the Miami office, and serves on the Firm’s Operating Committee. Mr. Ordet concentrates his practice on general customs compliance matters, with particular emphasis on tariff classification, NAFTA duty deferral and preference program qualification issues. He has worked extensively on WCO tariff classification issues involving the modification of the Harmonized System and related Explanatory Notes.