What Every Member of the 

Trade Community Should Know About: 

The ABC’s of 

Prior Disclosure 

AN INFORMED COMPLIANCE PUBLICATION 

APRIL 2004 

19 
ABC’s of Prior Disclosure 

April 2004

NOTICE:

This publication is intended to provide guidance and information to the trade community. 

It reflects the position on or interpretation of the applicable laws or regulations by U.S.

Customs and Border Protection (CBP) as of the date of publication, which is shown on 

the front cover. It does not in any way replace or supersede those laws or regulations.

Only the latest official version of the laws or regulations is authoritative. 

Publication History 

First Published: May 1998 

Revised: April 2004, February 2004, May 2001 

PRINTING NOTE: 

This publication was designed for electronic distribution via the CBP website 

(http://www.cbp.gov) and is being distributed in a variety of formats. It was originally set

up in Microsoft Word97®. Pagination and margins in downloaded versions may vary 

depending upon which word processor or printer you use. If you wish to maintain the 

original settings, you may wish to download the .pdf version, which can then be printed 

using the freely available Adobe Acrobat Reader®. 

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ABC’s of Prior Disclosure 

April 2004 

PREFACE 

On December 8, 1993, Title VI of the North American Free Trade Agreement Implementation 

Act (Pub. L. 103-182, 107 Stat. 2057), also known as the Customs Modernization or “Mod” Act, 

became effective. These provisions amended many sections of the Tariff Act of 1930 and 

related laws. 

Two new concepts that emerge from the Mod Act are “informed compliance” and “shared 

responsibility,” which are premised on the idea that in order to maximize voluntary compliance 

with laws and regulations of U.S. Customs and Border Protection, the trade community needs to 

be clearly and completely informed of its legal obligations. Accordingly, the Mod Act imposes a

greater obligation on CBP to provide the public with improved information concerning the trade

community's rights and responsibilities under customs regulations and related laws. In addition, 

both the trade and U.S. Customs and Border Protection share responsibility for carrying out

these requirements. For example, under Section 484 of the Tariff Act, as amended (19 U.S.C. 

1484), the importer of record is responsible for using reasonable care to enter, classify and

determine the value of imported merchandise and to provide any other information necessary to

enable U.S. Customs and Border Protection to properly assess duties, collect accurate

statistics, and determine whether other applicable legal requirements, if any, have been met.

CBP is then responsible for fixing the final classification and value of the merchandise. An

importer of record’s failure to exercise reasonable care could delay release of the merchandise

and, in some cases, could result in the imposition of penalties. 

The Office of Regulations and Rulings (ORR) has been given a major role in meeting the 

informed compliance responsibilities of U.S. Customs and Border Protection. In order to

provide information to the public, CBP has issued a series of informed compliance publications, 

and videos, on new or revised requirements, regulations or procedures, and a variety of

classification and valuation issues. 

This publication, prepared by the International Trade Compliance Division, ORR, is on the

ABC’s of Prior Disclosure. “The ABC’s of Prior Disclosure” is part of a series of informed 

compliance publications advising the public of Customs regulations and procedures. We 

sincerely hope that this material, together with seminars and increased access to rulings of U.S.

Customs and Border Protection, will help the trade community to improve voluntary compliance

with customs laws and to understand the relevant administrative processes. 

The material in this publication is provided for general information purposes only. Because 

many complicated factors can be involved in customs issues, an importer may wish to obtain a

ruling under Regulations of U.S. Customs and Border Protection, 19 C.F.R. Part 177, or to

obtain advice from an expert who specializes in customs matters, for example, a licensed

customs broker, attorney or consultant. 

Comments and suggestions are welcomed and should be addressed to the Assistant 

Commissioner at the Office of Regulations and Rulings, U.S. Customs and Border Protection,

1300 Pennsylvania Avenue, NW, (Mint Annex), Washington, D.C. 20229. 

Michael T. Schmitz, 

Assistant Commissioner 

Office of Regulations and Rulings 

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ABC’s of Prior Disclosure 

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ABC’s of Prior Disclosure 

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INTRODUCTION..........................................................................................7

WHO MAY SUBMIT A PRIOR DISCLOSURE TO U.S. CUSTOMS AND 

BORDER PROTECTION?...........................................................................7

WHAT IS A PRIOR DISCLOSURE? ...........................................................7

WHY SHOULD I ELECT TO MAKE A PRIOR DISCLOSURE?..................8

WHEN SHOULD I SUBMIT A PRIOR DISCLOSURE TO U.S. CUSTOMS 

AND BORDER PROTECTION?..................................................................9

WHERE DO I SUBMIT A PRIOR DISCLOSURE?......................................9

HOW DOES U.S. CUSTOMS AND BORDER PROTECTION DECIDE IF

THE PRIOR DISCLOSURE I SUBMIT IS VALID?......................................9

FAQ’S (FREQUENTLY ASKED QUESTIONS).........................................10

PRIOR DISCLOSURE CHECKLIST (19 U.S.C. 1592)............................15

CURRENT CBP REGULATIONS ON PRIOR DISCLOSURE...................16

ADDITIONAL INFORMATION...................................................................20

The Internet................................................................................................................ 20

Customs Regulations ................................................................................................. 20

Customs Bulletin ........................................................................................................ 20

Importing Into the United States................................................................................. 21

Informed Compliance Publications............................................................................. 21

Value Publications...................................................................................................... 22

“Your Comments are Important”................................................................................. 23

 

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ABC’s of Prior Disclosure 

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THE “ABC’S” OF PRIOR DISCLOSURE 

Pursuant to 19 U.S.C. 1592 

 (Section 592, Tariff Act of 1930, as amended) 

INTRODUCTION 

The following information is provided by U.S. Customs and Border Protection to help

you understand the “basics” of prior disclosure. Simply put, this provision of law

provides reduced penalties to parties who advise U.S. Customs and Border Protection 

(“CBP”) of noncompliance with import laws and regulations, before CBP, or U.S. 

Immigration and Customs Enforcement (“ICE”), discovers the possible noncompliance

and notifies the party of the discovery of the possible noncompliance. In some cases, the 

penalty may be reduced to zero! Valid prior disclosures can save you time and money,

but all parties (including CBP) must be aware of prior disclosure rules, and play by the

rules in order to realize the benefits of this provision of law. The official policy of CBP 

is to encourage the submission of valid prior disclosures! 

It is important to remember that this brochure only involves prior disclosures submitted 

pursuant to 19 U.S.C. 1592. 

We’ve followed up the “who, what, why, where, when and how” segments with a list of 

FAQ’S (frequently asked questions) involving prior disclosure. In addition, for those 

parties who have decided to submit a prior disclosure, there is a checklist following the

FAQ’s which may be helpful in completing the submission of the disclosure. Lastly, 

we’ve provided a copy of the CBP Regulations (19 CFR 162.74) governing prior 

disclosure for your information. 

_____________________________________ 

WHO MAY SUBMIT A PRIOR DISCLOSURE TO U.S. CUSTOMS AND 

BORDER PROTECTION?

Answer: ANY party involved in the business of importing into the United States. This 

includes, but is not limited to, importers, accounts, Customs brokers, exporters, shippers,

foreign suppliers/ manufacturers, etc. 

WHAT IS A PRIOR DISCLOSURE?

Answer: A valid prior disclosure reveals the circumstances of a violation of 19 U.S.C. 

1592. This section of law permits U.S. Customs and Border Protection to assess

monetary penalties against parties who make material false statements, acts or omissions 

in connection with their importations. The material false statements, acts or omissions 

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ABC’s of Prior Disclosure 

April 2004 

must result from the parties’ negligence, gross negligence or fraudulent conduct. Some

typical examples of such violations include undervaluation, misdescription of 

merchandise, overvaluation, antidumping/countervailing duty order evasion, improper 

country of origin declarations or markings, or improper claims for preference under a free 

trade agreement or other duty preference program. 

This same section of law (19 U.S.C. 1592) also provides for prior disclosure (19 U.S.C. 

1592(c)(4)). Parties are not required to make a prior disclosure. They ELECT to submit 

the disclosure. If a party elects to make a complete disclosure of such a violation, before 

or without knowledge of a formal Custom investigation of the violation, the party 

receives reduced penalties. The penalty is zero if the importations involve unliquidated 

(i.e., open) Customs entries and no fraud is involved. If the entries are liquidated (i.e., 

closed or finalized) and no fraud is involved, the penalty is the interest on the loss of 

duties. If a fraudulent violation is disclosed, the penalty is reduced from the normal 

assessment of the domestic value of the goods to 1 times the duty loss, or if the violation 

involves no duty loss, the penalty is reduced to 10 per cent of the dutiable value of the 

merchandise. 

Of course, in all cases involving liquidated entries and duty loss violations, you must 

tender this duty loss to CBP (see WHEN below regarding the timing of this tender). 

CBP will notify you later about the validity of your disclosure. 

The specific rules governing the prior disclosure provision are set forth in the Customs 

Regulations at 19 CFR 162.74. These regulatory provisions are provided below for your

information. By following these rules carefully, you can avoid common mistakes if you 

elect to submit a prior disclosure. 

WHY SHOULD I ELECT TO MAKE A PRIOR DISCLOSURE? 

Answer: The obvious reason to submit the prior disclosure is the benefit of reduced

penalties. In some cases, parties have saved millions of dollars in potential penalties by 

submitting valid prior disclosures. However, there are other benefits which often accrue 

to the disclosing party. Conducting periodic self-assessment of your importing activities

and availing yourself of this provision of law may permit you to detect and correct errors, 

as well as ensure future compliance with Customs laws and regulations. Additional time 

and money savings often materialize in the form of reduced legal expenses and/or the 

elimination of lengthy CBP penalty proceedings. Of course, the Government benefits as 

well by eliminating or reducing expenditures of valuable investigative resources and 

manpower. 

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ABC’s of Prior Disclosure 

April 2004 

9

WHEN SHOULD I SUBMIT A PRIOR DISCLOSURE TO U.S. CUSTOMS 

AND BORDER PROTECTION?

Answer: This involves a judgment call which depends on your particular circumstances. 

As a general rule, if you can identify the specific import transactions which violate 19 

USC 1592, and you wish to submit a prior disclosure, you should do so as soon as 

possible. Certain factors may exist which will influence your decision. Obviously, if 

CBP already has contacted you regarding the violation, you may decide to forego 

disclosure (but see FAQ’s below concerning the availability in such cases for additional 

relief!). Another factor which may influence your decision to submit the disclosure could 

be that you have not yet assembled all the correct information involving the transactions 

which are in violation of 19 USC 1592. In this case, the CBP regulations allow you to 

initiate the prior disclosure, while affording you 30 days after you have initiated the 

disclosure to assemble this information. You can ask for extensions of time past the 30 

days to complete the assembly of this information. 

CBP officers frequently are asked about the appropriate time to submit duties that are due 

involving the disclosed violation. CBP regulations spell out that you should submit any 

duty loss involving liquidated entries covered by your disclosure at the time you submit 

the disclosure. However, if you are not sure of the duty loss, you may wish to wait until 

CBP notifies you of its calculation. If you choose this latter option, the regulations (see 

19 CFR 162.74 (c) below) provide for payment of the amount stated by CBP within 30 

days of CBP notification. We note that the Regulations do provide for limited CBP 

Headquarters Review of local Customs duty loss calculations, but parties who qualify for 

this limited review still must deposit the loss determined by the local CBP office to 

obtain such review. 

WHERE DO I SUBMIT A PRIOR DISCLOSURE? 

Answer: You may submit a prior disclosure to any CBP officer at the port of entry where 

the disclosed violation occurred. If violations occurred at a number of ports, you should 

list all of the concerned ports in the disclosure and, although not required, it is a good 

idea to submit a copy of the disclosure to CBP officers at each of the concerned ports. 

By doing this, CBP will be able to consolidate handling the multi-port disclosure at a 

single port. 

HOW DOES U.S. CUSTOMS AND BORDER PROTECTION DECIDE IF 

THE PRIOR DISCLOSURE I SUBMIT IS VALID? 

Answer: The first thing CBP does is make sure that you have disclosed the circumstances 

of the violation in accordance with the regulations (see 19 CFR 162.74(b) below). An 
ABC’s of Prior Disclosure 

April 2004 

incomplete disclosure of the circumstances of the violation is the most common error 

associated with prior disclosure, yet is easily avoidable by following the regulation’s 

requirements. Once CBP decides that you have disclosed the circumstances of the 

violation, the agency then checks to see that no open formal Customs investigation of the 

disclosed violation exists, and verifies the accuracy of the information you submitted. If 

no open formal investigation exists, or CBP determines you have no knowledge of an 

open investigation, CBP will notify you that your disclosure is valid, assuming, of course, 

that the information you provided is verified as accurate. If, upon a thorough review of 

the facts relating to the prior disclosure, CBP determines that there was no violation of 19 

U.S.C. 1592, it is CBP policy to refund the duties on liquidated entries tendered with the

prior disclosure. 

FAQ’S (FREQUENTLY ASKED QUESTIONS)

1. Who in CBP decides whether my prior disclosure is valid? 

Answer: The Fines, Penalties and Forfeitures Officer responsible for the port of entry 

where the admitted violation took place will decide whether the prior disclosure is valid

(see 19 CFR 162.74(a)(2)). 

2. I’ve never been contacted by a Customs officer regarding the violation I wish to

disclose. Does that mean I qualify for prior disclosure benefits if I fully disclose the 

circumstances of the violation and tender any duty loss associated with the violation? 

Answer: Ordinarily in such cases where there has been no Customs contact, you will 

receive prior disclosure benefits - but you should realize that CBP or ICE may have 

commenced a formal investigation of what you wish to disclose before you have

submitted the disclosure. In all cases, before submitting the disclosure, you should 

review 19 CFR 162.74 to assure yourself that none of the events listed there has taken 

place. These events can give rise to a presumption that you had knowledge of the 

commencement of a formal Customs investigation. The law is rather specific here. The 

disclosing party has the burden of demonstrating lack of knowledge of a commenced 

formal investigation! 

3. I have reviewed my import transactions and have discovered a mistake on my entry 

documents relating to the value of the merchandise. Although the value I reported was

too low, I haven’t been contacted by CBP or ICE and know that this was not an

intentional error. Should I submit a prior disclosure? 

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ABC’s of Prior Disclosure 

April 2004 

11

Answer: Probably so. You have to decide whether your false statement as to the value 

occurred through negligent, grossly negligent or fraudulent conduct. If you submit the 

disclosure and U.S. Customs and Border Protection determines that no violation took 

place, there are no penalty consequences under 19 USC 1592, and therefore, no record of 

the disclosure is made. On the other hand, if you submit the disclosure and CBP 

determines that a 19 USC 1592 violation did occur, you will be granted disclosure 

treatment for that violation, assuming of course that you fully disclosed the circumstances 

before or without knowledge of the commencement of a formal investigation of what was 

disclosed, and tendered any loss of duties on liquidated entries. 

4. How do I fully disclose the circumstances of a violation? 

Answer: Just follow the requirements set forth below in 19 CFR 162.74(b). These four 

rather straightforward requirements involve the specifics of the import transactions 

involved (e.g., merchandise, violation details, Customs entries involved, etc.) and the 

correct information which should have been provided to CBP. 

5. I’ve discovered certain undeclared importation costs which CBP may consider 

dutiable. Do the prior disclosure rules permit me to obtain a Customs decision or review 

on the dutiability issue before I submit the disclosure or tender any duties which might be 

due? 

Answer: First, it’s important to remember that the importer is responsible for the truth 

and accuracy of the information submitted to CBP, including all dutiable elements of the 

transaction. If you have determined that required costs have not been reported to CBP, 

we recommend that you consider submitting the prior disclosure. You will be notified by 

CBP whether any duty tender you submitted was insufficient, and given an opportunity to 

increase your tender to the amount requested by CBP. In cases where CBP determines 

the duty loss exceeds $100,000, you may be eligible for CBP Headquarters review of the 

duty calculation prior to the decision on the validity of the disclosure, but such appeals 

require the deposit of the disputed amount, are limited in scope, and the Headquarters 

decision is final. In all other cases, if CBP denies the validity of the disclosure because 

you failed to tender the correct loss of duties (i.e., failed to acknowledge the dutiability of 

certain costs), you will be able to challenge such determinations if a subsequent penalty 

proceeding occurs. 

6. Must I submit my disclosure in writing? 

Answer: No, but it certainly is recommended that you do so. By submitting the 

disclosure in writing, you avoid some obvious problems. The scope and details of the 

disclosure are on paper and the credibility of conversations does not become an issue. 

Also, although you may make an oral disclosure, it must be followed up in writing within 
ABC’s of Prior Disclosure 

April 2004 

12

10 days of your oral communication to a CBP or ICE officer. The problems associated 

with oral disclosures become glaring in those cases involving hundreds of import 

transactions, particularly where different types of merchandise are involved! 

7. How far back in time should I go in reviewing my transactions and deciding the scope 

of my prior disclosure? 

 

Answer: This is a very common problem with disclosures. First and foremost, it is 

essential to remember that you determine the scope of the disclosure. For example, if 

you make a valid disclosure of 2004 violations and CBP, during its disclosure verification 

proceedings discovers violations in 2003, you only get disclosure treatment for the 2004 

violations. A good rule of thumb to follow in defining the scope of your disclosure is to 

cover those violations not barred by the statute of limitations, i.e., five years from the 

date of discovery for fraud, and five years from the date of occurrence for those 

violations involving gross negligence or negligence violations. It should also be 

remembered that the scope issue affects CBP as well. For example, if CBP or ICE has an 

open investigation involving alleged false country of origin covering only your 2004 

widget imports, you may be able to obtain disclosure treatment for violations you 

disclose which occurred before 2004! 

8. What is a formal investigation and how does it affect prior disclosure? 

Answer: The law provides that when any Customs officer has reason to believe that a 

possibility of a violation of 19 U.S.C. 1592 has taken place, and the Customs officer 

records such belief in writing, a formal investigation has commenced (see 19 CFR 

162.74(g) below for complete definition). If you submit a clearly labeled prior disclosure 

and CBP later denies disclosure treatment on the basis that CBP or ICE had commenced 

a formal investigation of what you disclosed, CBP is required to provide you with notice 

of the written commencement in a subsequent penalty proceeding. Remember however, 

that if you can demonstrate that you had no knowledge of the commencement at the time 

of your disclosure, you may still be afforded disclosure benefits (see 19 CFR 162.74(i) 

below). 

9. I know that CBP or ICE has commenced a formal investigation of my 2004 imports 

involving undeclared royalties I paid my supplier. May I get disclosure benefits if I 

disclose merchandise misdescription involving the same shipments? 

Answer: Yes, provided the Customs investigation only related to the royalty violations, 

and you fully disclose the circumstances of the violations involving misdescription 

(including tendering any loss of duties). Put another way, you may obtain disclosure 

benefits for additional violations not covered by the scope of Customs investigation. 
ABC’s of Prior Disclosure 

April 2004 

13

10. If I submit a valid prior disclosure of a violation of 19 U.S.C. 1592, can I be 

criminally prosecuted based on the information I disclose? 

Answer: If you submit a disclosure containing information which gives CBP reason to 

believe that a criminal violation has occurred, CBP and ICE legally are obligated to refer 

that information to the appropriate U.S. Attorney’s office. The U.S. Attorney’s office 

then is responsible for making a decision whether to prosecute the alleged criminal 

violation. Generally speaking, in CBP experience, a validly disclosed, non-fraudulent 

violation rarely is prosecuted. It should be reiterated however, that the U.S. Attorney’s 

Office makes the decision on prosecution. 

11. I have been notified that the Office of Regulatory Audit will be conducting a focused 

assessment of my 2004 widget importations in 2 months. What should I do before the 

team arrives? 

Answer: It is recommended that you utilize this 2 month period to conduct a selfassessment of your importations. By doing so, if you discover potential violations of 19 

U.S.C. 1592, you may obtain prior disclosure benefits if you fully disclose the 

circumstances of the violations before the audit team arrives. 

12. Doesn’t the fact that CBP or ICE may commence a formal investigation of a 

potential violation, and possibly preclude prior disclosure, chill or inhibit a free and frank 

exchange of information between importers and Customs officials? 

Answer: There is no simple answer to this question. On the one hand, CBP and ICE are 

law enforcement agencies and are required to follow the law when they have reason to 

believe that a violation has occurred. On the other hand, CBP encourages facilitation of 

lawful international commerce. Striking a balance between these objectives requires both 

CBP and the trade to exercise shared responsibilities (one of the principal tenets of the 

Customs Modernization Act). For example, an importer is responsible for using 

reasonable care with respect to its importations. 

If you’re an importer and have used reasonable care with regard to your imports, you 

shouldn’t feel constrained to discuss your importations with CBP. The importer who 

uses reasonable care is not culpable, and therefore does not violate 19 U.S.C. 1592. Such 

is often the case where, for example, a CBP import specialist, inspector or auditor merely 

asks you details about your merchandise. The questions alone do not constitute a 

commenced investigation. 

However, if the auditor, import specialist, or inspector has reason to believe you may 

have committed a violation, creates a writing memorializing this concern, and asks you 

specific questions regarding the suspected violation, a formal investigation may be 
ABC’s of Prior Disclosure 

April 2004 

14

deemed to have commenced, and, depending on the questions the Customs officer has 

asked you, you may be charged with having knowledge that a formal investigation has 

commenced. If you then try to make a prior disclosure, it may be denied. 

Of course, it is also true that if you provide information to the Customs officer which 

would cause that officer to believe you have committed a violation of 19 U.S.C. 1592 

(i.e., that you did not act with reasonable care) the officer may, in fact commence a 

formal investigation, and your subsequent attempt to make a prior disclosure may be 

denied. 

An important point to remember about prior disclosure is that it is rooted in fairness , to 

both the Government and the trade community. For example, if a party submits a valid 

prior disclosure, the party receives the significantly reduced penalty benefits the law 

provides. On the other hand, where there is no prior disclosure and CBP or ICE 

discovers the violation (and the violator has knowledge of a commenced investigation) 

disclosure treatment is not afforded the violator. This is another reason why U.S. 

Customs and Border Protection has adopted a policy which encourages the submission of 

valid prior disclosures. 

13. How am I notified by U.S. Customs and Border Protection that my prior disclosure is 

valid? 

Answer: CBP will notify you by means of a 19 U.S.C. 1592 prepenalty notice and set 

forth the reduced penalty treatment in its notice. The notice will provide instructions 

regarding payment of any reduced penalty, and also serves as the CBP record of the 

disclosed violation. 

14. Should I make a prior disclosure of my Customs violations if I know that such 

violations are under formal Customs investigation? 

Answer: Again, this is a judgment call which you must make based on your particular 

circumstances. Some parties choose to disclose circumstances of the violations in cases 

where they have knowledge of the commencement of a formal investigation of such 

violations in order to obtain additional mitigation in subsequent Customs 19 U.S.C. 1592 

penalty proceedings. In such cases, by providing the details of the violation to U.S. 

Customs and Border Protection and by exhibiting extraordinary cooperation, the party 

may obtain mitigation in the form of significantly reduced penalties, even though they do 

not qualify for prior disclosure treatment! In some cases, the mitigation may be close to 

the amount afforded a party who makes a valid prior disclosure. Further details regarding 

such extraordinary relief may be found in Appendix B to Part 171 of the Customs 

Regulations. 

 
ABC’s of Prior Disclosure 

April 2004 

15

PRIOR DISCLOSURE CHECKLIST (19 U.S.C. 1592)

The following checklist may prove helpful to you if you have made the decision to 

submit a prior disclosure to U.S. Customs and Border Protection. Answering all of the 

questions below may assist you in completing your prior disclosure submission. 

1. Is your prior disclosure addressed to the Commissioner of U.S. Customs and Border 

Protection and does your submission indicate your name, address and telephone number? 

(Note: Although addressed to the Commissioner, the submission must list all of the 

concerned ports of entry.) 

2. Have you identified the class or kind of merchandise involved in the disclosed 

violation? 

3. Have you identified the importation included in the disclosure by Customs entry 

number, or by indicating each concerned Customs port of entry and the approximate 

dates of entry? (Reminder: The disclosing party defines the scope of the prior disclosure.) 

4. Have you provided the specific material false statements, omissions or acts involved 

in the disclosed violation and how and when they occurred? 

5. Have you provided the true and accurate information or data which should have been 

provided in the entry? (NOTE: In this regard, remember to specify that you will provide 

any unknown information or data within 30 days of your initial disclosure if it is not 

available at the time of your initial disclosure - you can also ask the concerned Fines, 

Penalties and Forfeitures Officer for extensions of this 30 day period.) 

6. Have you calculated any loss of duty involving liquidated entries covered by the prior 

disclosure? (NOTE: This amount includes all duties, taxes and user fees.) And, if so, 

have you prepared a check in the amount of the duty loss made payable to U.S. Customs 

and Border Protection to submit along with your prior disclosure? 

7. Have you identified all of the Customs ports where the disclosed violations occurred? 

(Remember that the submission must list all the concerned ports of entry.) 

8. If you are mailing the prior disclosure, have you considered sending it registered or 

return receipt requested so that the time of disclosure is the date of mailing? (Reminder: 

Failure to mail the disclosure in this manner will mean that the time of the disclosure will 

be considered the date of receipt by U.S. Customs and Border Protection.) 
ABC’s of Prior Disclosure 

April 2004 

16

 CURRENT CBP REGULATIONS ON PRIOR DISCLOSURE 

19 CFR 162.74 

162.74 Prior Disclosure

(a) In general. -- (1) A prior disclosure is made if the person concerned discloses the 

circumstances of a violation (as defined in paragraph (b) of this section) of 19 U.S.C. 

1592 or 19 U.S.C. 1593a, either orally or in writing to a Customs officer before, or 

without knowledge of, the commencement of a formal investigation of that violation, and 

makes a tender of any actual loss of duties, taxes and fees or actual loss of revenue in 

accordance with paragraph (c) of this section. A Customs officer who receives such a 

tender in connection with a prior disclosure shall ensure that the tender is deposited 

with the concerned local Customs entry officer. 

(2) A person shall be accorded the full benefits of prior disclosure treatment if 

that person provides information orally or in writing to Customs with respect to a 

violation of 19 U.S.C. 1592 or 19 U.S.C. 1593a if the concerned Fines, Penalties and 

Forfeitures Officer is satisfied the information was provided before, or without 

knowledge of, the commencement of a formal investigation, and the information 

provided includes substantially the information specified in paragraph (b) of this section. 

In the case of an oral disclosure, the disclosing party shall confirm the oral disclosure by 

providing a written record of the information conveyed to Customs in the oral disclosure 

to the concerned Fines, Penalties and Forfeitures Officer within 10 days of the date of 

the oral disclosure. The concerned Fines Penalties and Forfeiture Officer may, upon 

request of the disclosing party which establishes a showing of good cause, waive the 

oral disclosure written confirmation requirement. Failure to provide the written 

confirmation of the oral disclosure or obtain a waiver of the requirement may result in 

denial of the oral prior disclosure. 

(b) Disclosure of the circumstances of a violation. The term "discloses the 

circumstances of a violation" means the act of providing to Customs a statement orally 

or in writing that: 

(1) Identifies the class or kind of merchandise involved in the violation; 

(2) Identifies the importation or drawback claim included in the disclosure by 

entry number, drawback claim number, or by indicating each concerned Customs port 

of entry and the approximate dates of entry or dates of drawback claims; 

(3) Specifies the material false statements, omissions or acts including an 

explanation as to how and when they occurred; and 

(4) Sets forth, to the best of the disclosing party’s knowledge, the true and 

accurate information or data that should have been provided in the entry or drawback 

claim documents, and states that the disclosing party will provide any information or 

data unknown at the time of disclosure within 30 days of the initial disclosure date. 

Extensions of the 30-day period may be requested by the disclosing party from the 

concerned Fines, Penalties and Forfeitures Officer to enable the party to obtain the 

information or data. 
ABC’s of Prior Disclosure 

April 2004

(c) Tender of actual loss of duties, taxes and fees or actual loss of revenue. A person 

who discloses the circumstances of the violation shall tender any actual loss of duties,

taxes and fees or actual loss of revenue. The disclosing party may choose to make the 

tender either at the time of the claimed prior disclosure, or within 30 days after Customs

notifies the person in writing of Customs calculation of the actual loss of duties, taxes

and fees or actual loss of revenue. The Fines, Penalties and Forfeitures Officer may 

extend the 30-day period if there is good cause to do so. The disclosing party may 

request that the basis for determining Customs asserted actual loss of duties, taxes or 

fees be reviewed by Headquarters, provided that the actual loss of duties, taxes or fees

determined by Customs exceeds $100,000, and is deposited with Customs, more than 

one year remains under the statute of limitations involving the shipments covered by the 

claimed disclosure, and the disclosing party has complied with all other prior disclosure 

regulatory provisions. A grant of review is within the discretion of Customs

Headquarters in consultation with the appropriate field office, and such Headquarters

review shall be limited to determining issues of correct tariff classification, correct rate of 

duty, elements of dutiable value, and correct application of any special rules (GSP, CBI, 

HTS 9802, etc.). The concerned Fines, Penalties and Forfeitures Officer shall forward 

appropriate review requests to the Chief, Penalties Branch, Customs Headquarters, 

Office of Regulations and Rulings. After Headquarters renders its decision, the 

concerned Fines, Penalties and Forfeitures Officer will be notified and the concerned 

Customs port will recalculate the loss, if necessary, and notify the disclosing party of 

any actual loss of duties, taxes or fees increases. Any increases must be deposited 

within 30 days, unless the local Customs office authorizes a longer period. Any 

reductions of the Customs calculated actual loss of duties, or and fees shall be refunded 

to the disclosing party. Such Headquarters review decisions are final and not subject to 

appeal. Further, disclosing parties requesting and obtaining such a review waive their 

right to contest either administratively or judicially the actual loss of duties, taxes and 

fees or actual loss of revenue finally calculated by Customs under this procedure.

Failure to tender the actual loss of duties, taxes and fees or actual loss of revenue 

finally calculated by Customs shall result in denial of the prior disclosure. 

(d) Effective time and date of prior disclosure. -- (1) If the documents that provide the 

disclosing information are sent by registered or certified mail, return-receipt requested,

and are received by Customs, the disclosure shall be deemed to have been made at the 

time of mailing. 

(2) If the documents are sent by other methods, including in-person delivery, the 

disclosure shall be deemed to have been made at the time of receipt by Customs. If the 

documents are delivered in person, the person delivering the documents will, upon

request, be furnished a receipt from Customs, stating the time and date of receipt. 

(3) The provision of information that is not in writing but that qualifies for prior disclosure 

treatment pursuant to paragraph (a)(2) of this section shall be deemed to have occurred 

at the time that Customs was provided with information that substantially complies with

the requirements set forth in paragraph (b) of this section. 

(e) Addressing and filing prior disclosure. -- (1) A written prior disclosure should be 

addressed to the Commissioner of Customs, have conspicuously printed on the face of

the envelope the words “prior disclosure”, and be presented to a Customs officer at the 

Customs port of entry of the disclosed violation. 

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April 2004 

(2) In the case of a prior disclosure involving violations at multiple ports of entry, the 

disclosing party may orally disclose or provide copies of the disclosure to all concerned 

Fines, Penalties and Forfeitures Officers. In accordance with internal Customs 

procedures, the officers will then seek consolidation of the disposition and handling of 

the disclosure. In the event that the claimed multi-port disclosure is made to a Customs 

officer other than the concerned Fines, Penalties and Forfeitures Officer, the disclosing 

party must identify all ports involved to enable the concerned Customs officer to refer 

the disclosure to the concerned Fines, Penalties and Forfeitures Officer for

consolidation of the proceedings. 

(f) Verification of disclosure. Upon receipt of a prior disclosure, the Customs officer 

shall notify Customs Office of Investigations of the disclosure. In the event the claimed 

prior disclosure is made to a Customs officer other than the concerned Fines, Penalties

and Forfeitures Officer, it is incumbent upon the Customs officer to provide a copy of the 

disclosure to the concerned Fines Penalties and Forfeitures Officer. The disclosing 

party may request, in the oral or written prior disclosure, that the concerned Fines, 

Penalties and Forfeitures Officer request that the Office of Investigations withhold the 

initiation of disclosure verification proceedings until after the party has provided the 

information or data within the time limits specified in paragraph (b)(4) of this section. It

is within the discretion of the concerned Fines, Penalties and Forfeitures Officer to grant 

or deny such requests. 

(g) Commencement of a formal investigation. A formal investigation of a violation is 

considered to be commenced with regard to the disclosing party on the date recorded in 

writing by the Customs Service as the date on which facts and circumstances were

discovered or information was received that caused the Customs Service to believe that 

a possibility of a violation existed. In the event that a party affirmatively asserts a prior

disclosure (i.e., identified or labeled as a prior disclosure) and is denied prior disclosure 

treatment on the basis that Customs had commenced a formal investigation of the 

disclosed violation, and Customs initiates a penalty action against the disclosing party 

involving the disclosed violation, a copy of a "writing" evidencing the commencement of 

a formal investigation of the disclosed violation shall be attached to any required

prepenalty notice issued to the disclosing party pursuant to 19 U.S.C. 1592 or 19 U.S.C.

1593a. 

(h) Scope of the disclosure and expansion of a formal investigation. A formal 

investigation is deemed to have commenced as to additional violations not included or 

specified by the disclosing party in the party's original prior disclosure on the date 

recorded in writing by the Customs Service as the date on which facts and 

circumstances were discovered or information was received that caused the Customs 

Service to believe that a possibility of such additional violations existed. Additional 

violations not disclosed or covered within the scope of the party's prior disclosure that

are discovered by Customs as a result of an investigation and/or verification of the prior 

disclosure shall not be entitled to treatment under the prior disclosure provisions. 

(i) Knowledge of the commencement of a formal investigation. -- (1) A disclosing party 

who claims lack of knowledge of the commencement of a formal investigation has the

burden to prove that lack of knowledge. A person shall be presumed to have had 

knowledge of the commencement of a formal investigation of a violation if before the 

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The ABC’s of Prior Disclosure 

April 2004 

claimed prior disclosure of the violation a formal investigation has been commenced 

and: 

(i) Customs, having reasonable cause to believe that there has been a violation 

of 19 U.S.C. 1592 or 19 U.S.C. 1593a, so informed the person of the type of or

circumstances of the disclosed violation; or 

(ii) A Customs Special Agent, having properly identified himself or herself and the 

nature of his or her inquiry, had, either orally or in writing, made an inquiry of the person 

concerning the type of or circumstances of the disclosed violation; or 

(iii) A Customs Special Agent, having properly identified himself or herself and

the nature of his or her inquiry, requested specific books and/or records of the person 

relating to the disclosed violation; or 

(iv) Customs issues a prepenalty or penalty notice to the disclosing party

pursuant to 19 U.S.C. 1592 or 19 U.S.C. 1593a relating to the type of or circumstances 

of the disclosed violation; or 

(v) The merchandise that is the subject of the disclosure was seized; or 

(vi) In the case of violations involving merchandise accompanying persons 

entering the United States or commercial merchandise inspected in connection with 

entry, the person has received oral or written notification of Customs finding of a 

violation. 

(2) The presumption of knowledge may be rebutted by evidence that, notwithstanding 

the foregoing notice, inquiry or request, the person did not have knowledge that an 

investigation had commenced with respect to the disclosed information. 

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The ABC’s of Prior Disclosure 

April 2004 

ADDITIONAL INFORMATION 

The Internet 

The home page of U.S. Customs and Border Protection on the Internet’s World Wide 

Web, provides the trade community with current, relevant information regarding CBP 

operations and items of special interest. The site posts information -- which includes 

proposed regulations, news releases, publications and notices, etc. -- that can be 

searched, read on-line, printed or downloaded to your personal computer. The web site 

was established as a trade-friendly mechanism to assist the importing and exporting

community. The web site also links to the home pages of many other agencies whose 

importing or exporting regulations that U.S. Customs and Border Protection helps to 

enforce. The web site also contains a wealth of information of interest to a broader 

public than the trade community. For instance, on June 20, 2001, CBP launched the 

“Know Before You Go” publication and traveler awareness campaign designed to help 

educate international travelers. 

 

The web address of U.S. Customs and Border Protection is http://www.cbp.gov

Customs Regulations 

The current edition of Customs Regulations of the United States is a loose-leaf, 

subscription publication available from the Superintendent of Documents, U.S. 

Government Printing Office, Washington, DC 20402; telephone (202) 512-1800. A 

bound, 2003 edition of Title 19, Code of Federal Regulations, which incorporates all 

changes to the Regulations as of April 1, 2003, is also available for sale from the same 

address. All proposed and final regulations are published in the Federal Register, which 

is published daily by the Office of the Federal Register, National Archives and Records 

Administration, and distributed by the Superintendent of Documents. Information about

on-line access to the Federal Register may be obtained by calling (202) 512-1530 

between 7 a.m. and 5 p.m. Eastern time. These notices are also published in the 

weekly Customs Bulletin described below. 

Customs Bulletin 

The Customs Bulletin and Decisions (“Customs Bulletin”) is a weekly publication that 

contains decisions, rulings, regulatory proposals, notices and other information of 

interest to the trade community. It also contains decisions issued by the U.S. Court of 

International Trade, as well as customs-related decisions of the U.S. Court of Appeals

for the Federal Circuit. Each year, the Government Printing Office publishes bound 

volumes of the Customs Bulletin. Subscriptions may be purchased from the 

Superintendent of Documents at the address and phone number listed above. 

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The ABC’s of Prior Disclosure 

April 2004 

Importing Into the United States 

This publication provides an overview of the importing process and contains general 

information about import requirements. The February 2002 edition of Importing Into the 

United States contains much new and revised material brought about pursuant to the 

Customs Modernization Act (“Mod Act”). The Mod Act has fundamentally altered the 

relationship between importers and U.S. Customs and Border Protection by shifting to 

the importer the legal responsibility for declaring the value, classification, and rate of 

duty applicable to entered merchandise. 

The February 2002 edition contains a section entitled "Informed Compliance." A key 

component of informed compliance is the shared responsibility between U.S. Customs 

and Border Protection and the import community, wherein CBP communicates its 

requirements to the importer, and the importer, in turn, uses reasonable care to assure 

that CBP is provided accurate and timely data pertaining to his or her importation. 

Single copies may be obtained from local offices of U.S. Customs and Border

Protection, or from the Office of Public Affairs, U.S. Customs and Border Protection, 

1300 Pennsylvania Avenue NW, Washington, DC 20229. An on-line version is 

available at the CBP web site. Importing Into the United States is also available for 

sale, in single copies or bulk orders, from the Superintendent of Documents by calling 

(202) 512-1800, or by mail from the Superintendent of Documents, Government Printing

Office, P.O. Box 371954, Pittsburgh, PA 15250-7054. 

Informed Compliance Publications 

U.S. Customs and Border Protection has prepared a number of Informed Compliance 

publications in the “What Every Member of the Trade Community Should Know 

About:...” series. Check the Internet web site http://www.cbp.gov for current 

publications. 

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The ABC’s of Prior Disclosure 

April 2004 

Value Publications 

Customs Valuation under the Trade Agreements Act of 1979 is a 96-page book 

containing a detailed narrative description of the customs valuation system, the customs 

valuation title of the Trade Agreements Act (§402 of the Tariff Act of 1930, as amended 

by the Trade Agreements Act of 1979 (19 U.S.C. §1401a)), the Statement of 

Administrative Action which was sent to the U.S. Congress in conjunction with the TAA,

regulations (19 C.F.R. §§152.000-152.108) implementing the valuation system (a few 

sections of the regulations have been amended subsequent to the publication of the 

book) and questions and answers concerning the valuation system. A copy may be 

obtained from U.S. Customs and Border Protection, Office of Regulations and Rulings, 

Value Branch, 1300 Pennsylvania Avenue, NW, (Mint Annex), Washington, D.C. 20229. 

Customs Valuation Encyclopedia (with updates) is comprised of relevant statutory

provisions, CBP Regulations implementing the statute, portions of the Customs 

Valuation Code, judicial precedent, and administrative rulings involving application of 

valuation law. A copy may be purchased for a nominal charge from the Superintendent

of Documents, Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-

7054. This publication is also available on the Internet web site of U.S. Customs and 

Border Protection. 

The information provided in this publication is for general information 

purposes only. Recognizing that many complicated factors may be 

involved in customs issues, an importer may wish to obtain a ruling under

CBP Regulations, 19 C.F.R. Part 177, or obtain advice from an expert

(such as a licensed Customs Broker, attorney or consultant) who 

specializes in customs matters. Reliance solely on the general 

information in this pamphlet may not be considered reasonable care.

Additional information may also be obtained from U.S. Customs and Border Protection 

ports of entry. Please consult your telephone directory for an office near you. The 

listing will be found under U.S. Government, Department of Homeland Security. 

22
The ABC’s of Prior Disclosure 

April 2004 

23

“Your Comments are Important” 

The Small Business and Regulatory Enforcement Ombudsman and 10 regional 

Fairness Boards were established to receive comments from small businesses about

Federal agency enforcement activities and rate each agency’s responsiveness to small 

business. If you wish to comment on the enforcement actions of U.S. Customs and

Border Protection, call 1-888-REG-FAIR (1-888-734-3247). 

REPORT SMUGGLING 1-800-BE-ALERT OR 1-800-NO-DROGA 

Visit our Internet web site: http://www.cbp.gov