Customs broker or carrier mess up

Y

youngtea

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Apr 23, 2015
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Customer provided me with 8 pages of customs paperwork. I forwarded this to the carrier. The customs paperwork had two separate customs invoices, but the carrier only placed one PAPS on the paperwork. Driver got to the border and was rejected. The carrier has advised us there is a fine of $5000 CPB fine and also waiting time.

Has anyone dealt with a similar situation? Is this the fault of the customs broker or the carrier? All 8 pages were sent to the customs broker but only one PAPS was sent. Customs broker cleared the one PAPS, but did not advise a second PAPS was required.

Thanks.
 
Looks like the customs broker messed up and entered only one of the two invoices.

Do we charge the customs broker for this mistake?
 
youngtea said:
Looks like the customs broker messed up and entered only one of the two invoices.

Do we charge the customs broker for this mistake?
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Not sure why this would be a fine ... happened to us

Paperload - two BOLs' / two CCI - one shipper / one receiver
I sent in the paperwork to the custaoms broker with one PAPS - followed up with a phonecall and they said that only one PAPS was required

Called the border and they told me the same - asked for the officer's name....

Once at the border my driver was questioned and told he needed two PAPS - he gave them the officer's name and we were cleraed

There must be more to this ... any other details?
 
I would start with the custom broker and see if they will admit to their mistake. The fine seems a bit steep - I would verify....
Perhaps the broker can assist with correcting and give insight on the fine. Ultimately the custom broker made the error but good luck having them pay up. It will fall on the customer IMHO.
 
tasuinam said:
wouldn't this be an MDR???
Click to expand...
tasuinam said:
Not sure why this would be a fine ... happened to us

Paperload - two BOLs' / two CCI - one shipper / one receiver
I sent in the paperwork to the custaoms broker with one PAPS - followed up with a phonecall and they said that only one PAPS was required

Called the border and they told me the same - asked for the officer's name....

Once at the border my driver was questioned and told he needed two PAPS - he gave them the officer's name and we were cleraed

There must be more to this ... any other details?
Click to expand...
There were two customs invoices. Customs broker only cleared one.

Driver arrived at the border and was told 5 pieces are not cleared and gave a CBP fine of $5000.

I am the freight broker so I am dealing with this. I was provided the letter given to the driver and the fine can be petitioned.

The violation is 19 USC 1436.
 
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We've had those fines before. Carrier will get a letter demanding payment or an explanation as to why they should not be fined. All they have to do is reply explaining the situation, provide all the relevant details in the letter, and they should be cleared of any penalty owing.
i.e. ... sent in both invoices to customs broker <insert name here>, received an entry number, proceeded to cross border. In formed by agent all the load was not cleared. Reached out to customs broker <insert name here>, verified second invoice was not cleared, and had the situation remedied. Proceeded to cross border successfully.
 
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There has to be something more involved in this situation. The fine that was received and noted as 19USC1436 is for a failure to declare goods on the ACE manifest. It sounds to me that the Carrier only declared the one invoice amount and not the combined invoice amount. You should ask for the ACE manifest that goes with the CBP fine. If that is the case then let the carrier fend for themselves.

If there is one shipper and one consignee you only need one formal entry ie one PAPS. You can have 1000 invoices it doesn't matter and that is the responsibility of the customs broker to add up all the values on the invoices. The important part is to ensure that the correct number of LEP pieces (Lowest External Packaging) are manifested. If it is incorrect, you will get that fine.

Most likely the carrier's manifest received a shortage or overage error message which means that on the manifest you put a different value than on the formal entry, example 24 skids as opposed to 1200 boxes. The CBP officer then needs to identify if the overage or shortage makes sense. If it makes sense, the officer may let it proceed but may send you for secondary to have it checked out. If you go to secondary, they will make you resend the ACE in LEP pieces and then charge you accordingly even if it does make sense.
 
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As everyone has said, there is more to this story.

The border doesn't hand out 5k fines for fun. Especially if its as simple as a broker/carrier forgetting to declare an invoice. That happens all the time, it's a simple fix if everything is on up and up.

I immediately thought that this truck might have had additional product on it.
 
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Something is missing. Many years ago when i was doing pars/paps for asset company i would make many mistakes with 1 or 2 digits on the ccn or make manifest mistake and the border officer usually would call my cellphone and help push driver through by fixing the mistake on their end. Never had a bad experience even though i made a huge mistake. Company was never fined
 
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NotForHire said:
Something is missing. Many years ago when i was doing pars/paps for asset company i would make many mistakes with 1 or 2 digits on the ccn or make manifest mistake and the border officer usually would call my cellphone and help push driver through by fixing the mistake on their end. Never had a bad experience even though i made a huge mistake. Company was never fined
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Just depends on which port of entry you are dealing with, we talk frequently with our local CBP agents and they always help us out and let us know if there is a mistake, but never a fine. Just depends on who you deal with and if the carrier is making mistakes frequently.
 
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