Finally, the marking must be legible, that is to say the ultimate consumer must be able to find the marking easily and read the marking without strain. The marking cannot be in small size type and cannot be hidden in such a manner as to make it difficult to locate. It is quite important to comply with the Customs marking requirements because penalties can be significant. It can issue a notice of redelivery requiring the importer to recover and mark or recover and redeliver, improperly marked merchandise which has already been released to the importer. If goods are not redelivered, liquidated damages can be assessed.
Customs can also impose a civil penalty.
The amount of the penalty will vary, depending upon the degree of culpability, but can be as large as the domestic value of the merchandise in a case of fraud. Generally, a civil penalty will not arise unless the goods are mismarked. In accordance with the Uruguay Round Agreement Act, the rules for determining the origin for textile products will change effective July 1, 1996. There are also specific rules for determining origin under the North America Free Trade Agreement. While enforcement in this area has not been great in recent years, the FTC has the authority to issue cease and desist orders.