CBP Issues Penalty Mitigation Guidelines for Wood Packaging Material Violations

CBP posted a new guidance on the factors the agency may consider for reducing penalties for violations of wood packaging material regulations. The agency also gave a range of possible mitigation amounts based on the number of violations that have occurred. CBP said in 2017 it would increase the frequency of penalties for WPM violations and no longer limit some penalties to parties with five or more violations (see 1709250038) to motivate better compliance with the rules.

First time violators are able to mitigate penalties down to between one and 10 percent of the penalty amount, CBP said in the guidelines. Two-time violators can still reduce the penalty down between 10 percent and 25 percent of the amount, while those with three or more violations can't mitigate the penalty below 25 percent of the amount, it said. CBP will not provide mitigation in cases of a "continuing documented pattern of WPM violations," it said.

CBP issues claims for liquidated damages over failure to take required action after the Animal and Plant Health Inspection Service sends an Emergency Action Notification. The regulations are meant to keep wood-boring pests from entering the U.S. CBP can penalize "documented importers, carriers, or bonded custodians who attempt to enter violative WPM or who attempt to conceal a WPM violation," it said.

Possible mitigation factors include "documentary evidence of immediate remedial action taken to prevent further WPM violations," inexperience in importing and cooperation with CBP and APHIS, CBP said. Other examples of mitigating factors are if a small percentage of violations within total transactions are involved, a small percentage of a shipment is violative and if a violator is a government or charitable entity, it said. Aggravating factors include a lack of cooperation, false marking or documentation, and efforts conceal violations, it said.