Penalties and Fines for Incorrect U.S. Import Declarations

The most important issues begin with documentation mistakes. Some of those mistakes lead to delays. Others lead to penalties. U.S. Customs and Border Protection (CBP) expects import declarations to be accurate, complete, and consistent. When information turns out to be incorrect, the consequences can go beyond a simple correction. CBP may assess civil penalties for materially false statements, omissions, or acts of negligence in import declarations.

This post explains what happens when a U.S. import declaration contains errors and when penalties or fines may apply, based on patterns that repeatedly surface in real import situations.

What Counts as an Incorrect Declaration

An incorrect declaration can involve:

• Misclassified goods
• Understated value
• Inaccurate product descriptions
• Incorrect quantity
• Wrong country of origin
• Missing or inconsistent documentation
• Failure to disclose assists, royalties, or related-party pricing arrangements
• Certifying goods as eligible for free trade when the criteria is not truly met 

Even small inconsistencies can trigger a review. U.S. Customs relies on the declaration to calculate duties and determine admissibility. When the declaration does not match the shipment, customs takes action. Material inaccuracies that affect duty liability create the highest enforcement risk.

How U.S. Customs Detects Errors

U.S. Customs reviews documentation closely. Issues often surface during:

• Routine document review
• Cargo examination
• Follow up on information requests
• Classification review
• Post entry audits
• Focused Assessments or Regulatory Audits

When customs finds discrepancies between the goods and the declaration, it investigates further. CBP may compare entry data across multiple shipments to identify patterns of non-compliance.

What Happens After Customs Finds a Problem

When U.S. Customs identifies an incorrect declaration, it may:

• Reassess duties
• Request additional documentation via customs for 28
• Issue a notice of action via customs for 29
• Place the shipment on hold
• Demand redelivery of the cargo for up to 30 days after the conditional release is issued
• Open a compliance review
• Issue a pre-penalty notice
• Assess interest on unpaid duties

The outcome depends on the severity of the error and the response provided. Failure to respond appropriately can escalate the matter from correction to formal penalty action.

When Penalties and Fines Come Into Play

Penalties usually arise when errors involve:

• Material misstatements
• Negligence in classification
• Undervalued goods
• Repeated inaccuracies
• Failure to correct known errors
• Failure to respond to a request for information
• Failure to respond to a notice of action 
• Failure to show reasonable care from the importer of record 

U.S. Customs distinguishes between minor clerical mistakes and serious compliance issues. Repeated or significant errors increase the risk of fines. CBP evaluates violations under three standards: negligence, gross negligence, and fraud. Penalty amounts increase substantially depending on the level of culpability.

Why Classification Errors Create Risk

Classification determines duty rates. When the HTS classification does not match the product, customs may conclude that the declaration understated duties. That situation often leads to reassessment and potential penalties.

If the incorrect classification results in unpaid duties, penalties may be calculated as a percentage of the lawful duties owed or as a percentage of the value of the merchandise, including interest.

Accurate classification protects against unexpected cost exposure.

Why Value Errors Trigger Enforcement

Declared value directly affects duties owed. If customs determines that the value does not reflect the actual transaction, it may:

• Adjust the declared amount
• Collect additional duties
• Assess penalties
• Assess interest from the date of entry

Incomplete invoices or unclear pricing often lead to a deeper review. Related-party transactions are subject to additional scrutiny under U.S. valuation rules.

Importer Responsibility Matters

The importer of record (IOR) holds responsibility for the declaration. Even when a customs broker submits paperwork, the importer remains accountable for accuracy. Customs expects the responsible party to exercise “reasonable care” when preparing declarations.

Delegating filing to a broker does not transfer legal liability.

How to Reduce Penalty Risk

Imports face fewer compliance problems when:

• Product descriptions stay specific
• HTS classification matches the goods
• Values are supported by clear documentation
• Corrections happen quickly when errors surface
• Documentation stays consistent across forms
• Internal compliance reviews are conducted periodically
• Prior disclosures are filed promptly if significant errors are discovered

Preparation and review reduce enforcement exposure. A timely prior disclosure can significantly reduce potential penalties under CBP rules.

The Most Important Takeaway

Incorrect U.S. import declarations can lead to more than delays. U.S. Customs may reassess duties and impose penalties when errors affect duty calculation, admissibility, or compliance. Accuracy in classification, valuation, and documentation protects both the timeline and the cost.

Under U.S. customs law, importers are expected to exercise reasonable care in every declaration.

Want to Estimate Duties Before Filing a Declaration?

Accurate classification reduces both cost surprises and compliance risk.

Use the BorderBuddy duty and tax calculator to get a quote. It helps you estimate expected import duties, taxes and fees, potential tariff-related charges, and total landed cost before shipping.

BorderBuddy’s calculator also uses AI to help classify goods with the correct HTS classification, which determines duty rates on U.S. imports. Accurate classification strengthens compliance and reduces enforcement exposure.

What to Read Next

People reviewing compliance risks often ask next:

• Common documentation mistakes in U.S. imports.
• What happens if something is wrong with a U.S. import?
• What happens during a U.S. customs hold?
• How long does U.S. customs clearance usually take? (coming soon)

Still Need Help With Your Import?

If you still haven't found what you're looking for, BorderBuddy is here to help.

• Call us at 1 (877) 409-8163
• Or email us anytime at service@borderbuddy.com

Our team can help you get clear answers and avoid delays at the border. For U.S. imports, accuracy is your strongest protection against penalties.

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