CUSTOMS TO RAISE LIQUIDATED DAMAGE AMOUNTS FOR ILLEGAL FOOD IMPORTS
U.S. Customs has amended its rules to raise liquidated damage amounts against importers of illegal food shipments, effective April 27.
When goods with admissibility concerns enter the United States, Customs can conditionally release the goods under bond. If within 30 days Customs decides there are problems with the goods, the agency could demand the return of the goods into its custody.
Importers who fail to meet this requirement are currently subject to liquidated damages of three times the entered value of the merchandise under Customs rules.
Under the new rules, Customs will assess liquidated damages equivalent to either the domestic value or three times the entered value, which ever is greater.
The U.S. government is under pressure to prevent illegal food shipments from entering the country. These are goods that have been either adulterated, mislabeled or manufactured in unsanitary conditions.
In a stinging report in 1998, the General Accounting Office said the current assessment of liquidated damages “did not represent a deterrent to the importation of unsafe products.”
Two years ago, the secretaries of Health and Human Services and Treasury Departments said they would develop a compressive plan to keep illegal food imports out of the country. Importers of food, drugs and cosmetics may face higher bond costs as a result of the new Customs rules.