CBP Posts FAST U.S./Mexico Highway Carrier Penalty and Mitigation Guidelines for Drug-Related Violations

CBP's penalty and mitigation guidelines for U.S./Mexico highway carriers under FAST are as follows:

First Violation: "Automatic" Preliminary Mitigation/Expedited Treatment of Request for Further Mitigation

In the case of the first drug-related violation of 19 USC 1584, which occurs subsequent to the effective date of a Customs-Trade Partnership Against Terrorism Agreement to Voluntarily Participate (C-TPAT Agreement), and pending no evidence of knowledge or complicity on the part of the Carrier, a preliminary mitigated penalty of no more than 50% of the statutory penalty will be assessed.

Further, CBP agrees to issue a decision on a submitted petition requesting further mitigation within 120 days of its receipt by CBP, unless additional investigative procedures or further requests for information are required. CBP states that in order to obtain this expedited treatment, the Carrier must note clearly on both the petition and envelope that a standard C-TPAT Agreement is in effect.

Second Violation: Full Penalty/Expedited Treatment of Request for Mitigation

In the case of a second drug-related violation of 19 USC 1584, which occurs subsequent to the effective date of a C-TPAT Agreement, the full statutory penalty will be assessed.

However, CBP agrees to issue a decision on a submitted petition requesting mitigation within 120 days of its receipt by CBP, unless additional investigative procedures or further requests for information are required. In order to obtain this expedited treatment, the carrier must note clearly on both the petition and envelope that a standard C-TPAT Agreement is in effect.

Third or Subsequent Violation: Full Penalty/No Expedited Treatment of Request for Mitigation

In the case of a third or subsequent drug-related violation of 19 USC 1584 which occurs subsequent to the effective date of the C-TPAT Agreement, the full statutory penalty will be assessed, and a petition requesting mitigation will be considered as the ordinary course of business.

Procedure after Two-Year Violation-Free Period

If, at any time subsequent to the effective date of the C-TPAT Agreement, there has been no drug-related violation of 19 USC 1584 for a 2-year period, the next drug-related violation will be treated as a first drug-related violation in the manner noted above.

U.S./Mexico Highway Carrier Penalty and Mitigation Guidelines available at http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/fast/us_mexico/mexico_highway/us_mex_mitigation_guidelines.xml.

BP Notes

CBP sources indicate that CBP will still, as it deems appropriate, suspend companies from receiving C-TPAT benefits during the pendency of an investigation involving narcotics or other contraband found in the members' shipment(s) (e.g., contraband found on trucks along the Mexican border), and that these U.S./Mexico Highway Carrier Penalty and Mitigation Guidelines do not replace such suspension action.

(A recent article in the July 2005 American Shipper discusses CBP's suspension of C-TPAT privileges for companies found to have misidentified cargo, found to have illegal contraband not related to terrorism slipped into their shipments, or found to have other security gaps. The article adds that in the past few months, several motor carriers found to have security gaps have temporarily lost their FAST privileges, potentially jeopardizing their business from C-TPAT importers who want to minimize border wait times for their low risk cargo. www.americanshipper.com )