CBP LA Issues Reminder on "Zero Tolerance Policy" Regarding Gateouts
U.S. Customs and Border Protection's Port of Los Angeles office issued reminders to the trade about CBP's Zero Tolerance Policy regarding "gateouts." (A "gateout" is defined as a container/cargo that has been targeted by CBP for terrorism or enforcement inspection that is released without authorization from CBP.)
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Some Cargo Being Released Prior to Authorization Despite Zero Tolerance Policy
According to the LA Public Bulletin, CBP continues to experience instances in which cargo targeted for terrorism or enforcement inspection has been released without CBP authorization or examination despite the implementation of CBP's Zero Tolerance Program regarding "gateouts."
CBP LA is reminding vessel carriers, non-vessel operating common carriers (NVOCCs), and marine terminals that positive control must be ensured for all containers selected for CBP inspection.
"Gate Out" Incidents to Incur Civil Monetary Penalties
According to the LA Public Bulletin, civil monetary penalties are being assessed for each "gate out" incident against all culpable parties and mitigated on strengthened guidelines, as defined in CBP Decision 06-34, "New Guidelines for Mitigation of Penalties for Merchandise Delivered from the Port without CBP Authorization or Examination; Public Safety."
Violations Could Trigger CBP Enforcement Actions
In addition to penalty actions, the LA Public Bulletin said enforcement activities may be conducted against the violator, including stationing CBP officers at terminal exit ports to ensure compliance with CBP policy.
The Cleveland Area Port Pipeline adds that violations will incur civil monetary penalties, which are subject to severe mitigation guidelines, in addition to possible enforcement actions.
(See ITT's Online Archives 07061905, for summary of CBP announcing vessel Automated Manifest System (AMS) changes to mitigate "gateout" issues. See ITT's Online Archives 07081005, for summary of additional information on vessel AMS changes that mitigate "gateout" issues.)
LA Public Bulletin (LA12-014, dated 06/08/12) available via email by sending a request to documents@brokerpower.com
CBP Dec. 06-34 provides guidelines for the mitigation of penalties for merchandise delivered from the port without CBP authorization or examination, or both, if CBP considers that such removal or delivery places public safety at risk.
According to these 2006 guidelines, if CBP considers that the removal or delivery of the merchandise places the security, health, or safety of the public at risk, the penalties assessed may be mitigated to an amount equal to the lesser of: (1) 75% of the domestic value of the merchandise removed or delivered without authorization and/or examination, or (2) a flat sum that escalates from $10,000 to $75,000 (depending on whether it's the first, second, etc. violation).
If CBP does not consider that the removal or delivery of the merchandise places the security, health, or safety of the public at risk, penalties may be mitigated to between $2,500 and $20,000 in accordance with the guidelines which appear in T.D. 99-29, as amended. In the past, such penalties were often mitigated to $2,500.
(See ITT's Online Archives 06120605, for summary of CBP Decision Dec. 06-34.)