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Claims Corner: Failure to Redeliver Merchandise

April 30, 2024 Avalon

U.S. Customs (CBP) issued a redelivery notice to an importer for failure to redeliver merchandise because it was refused admission by the FDA. Since there was no response, CBP then issued a liquidated damages claim to the surety in the amount of $50,000. Through its investigation, the surety was able to determine that the merchandise was, in fact, timely exported. The surety filed a petition that included documentation to prove that the merchandise was exported in the presence of an FDA officer.

The surety’s petition also included several mitigating factors based on CBP’s Guidelines for Cancellation of Claims for Liquidated Damages. These mitigation factors included: Offender takes immediate remedial action and Offender’s lack of importing experience.

CBP reviewed the surety’s petition and issued full cancellation of the case. Make sure you are working with a surety who knows Customs’ rules and regulations and can assist when claims arise.

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The Quest Newsletter is designed to provide critical information in the transportation industry. Avalon Risk Management is not responsible for the accuracy or reliability of information contained in articles. The reader/user assumes all risk in the use of such information.