Not knowing how to reply to a CF 28 will likely get an importer into a lot of trouble. A Request for Information by the U.S. Customs Service, commonly referred to by its form number, Customs Form 28, is one of the most frequently used means by which Customs collects information about an import shipment into the United States, yet is one of the most misunderstood. A Customs Form 28, (hereinafter "CF 28") is typically issued by Customs soon after all entry documents are filed with Customs at the port of entry. At the time of entry, the importer submits infor-mation to Customs, including a description of the merchandise, its origin, value, classification in the Customs tariff schedule and, how much duties are to be paid to U.S. Customs.

The CF 28 is typically issued by Customs at the port of entry soon after all entry forms are filed and duties paid to Customs, but before liquidation, which is generally when Customs finally computes the duties owing on a particular entry of merchandise into the United States. The CF 28 is always issued by a Customs Import Specialist, a Customs employee who has particular knowledge of the merchandise that is being imported. The CF 28 is issued to the importer, and typically a copy is provided to the importer's customs broker, if any. The importer has 30 days to respond in writing to Customs. Typically, a sample of the imported merchandise must also be submitted to Customs.

CF 28's are critical to Customs' correctly determining that the importer accurately reported to Customs such vital information as classification, valuation, and origin of the imported merchandise. Importers obviously are self-interested in declaring the lowest value to Customs in order to pay the minimum amount of duties, or to classify merchandise to a tariff item number for which there is a lower ad valorem duty rate, or to declare the origin of a product from a country not on the U.S. embargo list, such as Cuba or North Korea, or to a country such as Mexico which entitles the imported product to a lower or duty free rate, such as under NAFTA.

All too often, importers return a completed CF 28 to Customs which raises more questions to Customs, or simply is unsatisfactory for one reason or another. A inadequately drafted CF 28 response from an importer may result in Customs unilaterally deciding to raise the value, changing the tariff classification, or changing the origin of the imported merchandise – all to the financial disadvantage of the importer.

The only way to challenge the unilateral Customs decision would be to file a protest with Customs within 90 days of the date of liquidation. The Protest, filed on Customs Form 19, is an administrative request to Customs to reconsider its decision. If a Protest is denied, the importer then has 180 days from the date of the denial letter to file a summons and/or complaint in the U.S. Court of International Trade. All of the time, effort, and expense of attempting to right a wrong by going through the bureaucratic administrative process within Customs and the legal process at Court could have been avoided with a carefully thoughtout response by an importer to a CF 28.

An inadequate CF 28 response may result in more than just paying more duties to Customs. A response to a CF 28 to Customs may result in Customs issuing a penalty, pursuant to 19 U.S.C. 1592, for commercial fraud if it suspects that the information supplied by the importer on the original entry documents was the result of more than a clerical error. If fraud, the penalty imposed by Customs will equal the value of the imported merchandise. Finally, Import Specialists are increasingly referring suspicious CF 28 responses from importers to Customs Special Agents for criminal investigation. To attempt to avoid any negative consequence when responding to a CF 28, importers must be careful to understand the significance of a CF 28, and to respond to it accordingly. Making knowingly false statements in responding to a CF 28 is itself a criminal act.

Sometimes, when an importer receives a CF 28 from Customs, the importer realizes that the information submitted to Customs on the entry forms was incorrect, and that the consequential classification and payment of Customs duties was also incorrect. The importer may then choose to file a "prior disclosure" with Customs, pursuant to 19 CFR 162.74, to avoid being severely penalized by fully disclosing the circumstances of the violation. Common customs-related violations include making material false statements regarding the improper country of origin declarations or markings of clothing to evade antidumping duties or textile absolute quotas. Be aware, however, that it is Customs policy to refer all prior disclosures to a Customs Special Agent for action, including investigation and possible referral to the U.S. Attorney's Office for criminal prosecution.

Based on the above summary of a CF 28, utilizing the services of a knowledgeable and experienced attorney who is very familiar with the customs laws and regulations, as well as the current Customs administrative policies, practices, and procedures, is a prudent way to proceed. Customs has even defined in its regulations that exercising "reasonable care" includes utilizing the services of such an attorney, other agent or consultant.