What should an importer do when CBP issues a demand for payment for liquidated damages?

When an importer receives a demand for payment for liquidated damages from U.S. Customs and Border Protection (CBP), the appropriate course of action is to either pay the amount due within the specified timeframe or to file a formal petition for relief. This approach allows importers to address the issue effectively while adhering to CBP's regulations.

Paying within 60 days provides a definitive resolution to the demand but may not always be necessary if the importer believes there are valid grounds for contesting the charges. Filing a formal petition for relief offers a structured way to seek a reconsideration of the assessment, outlining any justifications or evidence the importer may have for disputing the demand. This option can potentially mitigate damages or provide an opportunity for negotiation.

The other options, such as making an immediate payment or filing an informal protest, do not align with the standard procedures set forth by CBP for handling such demands. Immediate payment could prevent the importer from exploring their rights and potential defenses, while informal protests are not the appropriate mechanism for contesting formal demands for liquidated damages. Contacting a customs broker, while potentially helpful for gaining guidance or assistance, does not directly address the legal obligations imposed by the demand.