CUSTOMS ENFORCEMENT | 2026-09-27

California Customs Penalty Defense: CF-28, CF-29, and 19 U.S.C. § 1592

What a CBP Form 28 or Form 29 really means, how a § 1592 penalty escalates, and the deadlines and prior-disclosure options that can save an importer six or seven figures.

When U.S. Customs and Border Protection (CBP) starts questioning your imports, it usually arrives on paper in a predictable order: a CF-28 Request for Information, then a CF-29 Notice of Action, and — if CBP believes there was a material false statement or omission — a penalty case under 19 U.S.C. § 1592.

When CBP begins scrutinizing your imports, the notices usually arrive in a predictable sequence, and each one is an opportunity to resolve the matter before it becomes a penalty.

The Escalation Ladder: CF-28 → CF-29 → § 1592

CBP rarely issues a penalty out of nowhere. The typical sequence is:

CF-28 (Request for Information) — CBP asks you to explain or document an entry.
CF-29 (Notice of Action) — CBP tells you it is changing (or proposing to change) something about the entry, such as the classification, value, or rate.
19 U.S.C. § 1592 penalty — if CBP concludes the entry involved a material false statement or omission, it opens a penalty case.

Handling the CF-28 and CF-29 well often prevents the matter from ever becoming a § 1592 penalty.

CF-28 (Request for Information): What It Is and How to Respond

A CF-28 is CBP’s formal request for additional information about an entry — commonly to verify tariff classification, customs value, country of origin, or eligibility for a trade preference. It is an inquiry, not a penalty, but it is not optional and it is not to be ignored. A complete, well-organized, and accurate response — with the supporting documents CBP is actually asking for — is the best way to close the inquiry without escalation. A weak or late response often invites a CF-29 or worse. Because the answers you give become part of the record, importers frequently have counsel review a CF-28 response before it is submitted.

CF-29 (Notice of Action): Proposed vs. Taken

A CF-29 tells you CBP is changing something about your entry. There are two flavors, and the difference is critical:

“Proposed” action. CBP is giving you notice and an opportunity to respond before it acts. This is your window to submit evidence and legal argument to prevent the change.
“Taken” action. CBP has already made the change (for example, a rate advance or reclassification), which will be reflected at liquidation.

A CF-29 rate advance increases the duties owed and, if the underlying issue suggests a false statement, can be the bridge to a § 1592 penalty. Responding to a proposed CF-29 promptly and persuasively is one of the highest-value steps in the entire process.

19 U.S.C. § 1592: The Customs Penalty Statute

Section 1592 prohibits entering, introducing, or attempting to enter merchandise into the United States by means of any material and false statement, document, or act, or a material omission. Critically, § 1592 penalizes the false statement itself even when no duties were lost — materiality, not revenue loss, is the trigger.

Three Levels of Culpability — and Three Very Different Penalty Caps

Section 1592(c) sets maximum penalties that depend on the importer’s level of fault:

Fraud — § 1592(c)(1). Maximum penalty up to the domestic value of the merchandise.
Gross negligence — § 1592(c)(2). The lesser of the domestic value or four times the lawful duties, taxes, and fees of which the United States was deprived; if the violation did not affect revenue, up to 40% of the dutiable value.
Negligence — § 1592(c)(3). The lesser of the domestic value or two times the lawful duties, taxes, and fees of which the United States was deprived; if the violation did not affect revenue, up to 20% of the dutiable value.

The government bears the burden of establishing the level of culpability, and moving CBP down from gross negligence to negligence — or defeating culpability entirely — can change the exposure dramatically.

The § 1592 Penalty Process

Pre-Penalty Notice — § 1592(b)(1). Before issuing a penalty above a threshold amount, CBP must send a written pre-penalty notice describing the merchandise, the alleged violation, the law and culpability level, and the proposed penalty amount, and giving the importer (generally 30 days) to respond.
Penalty Notice — § 1592(b)(2). After considering the response, CBP issues its penalty claim.
Petition for relief — 19 U.S.C. § 1618 (procedures at 19 C.F.R. Part 171). The importer may petition CBP to cancel or mitigate the penalty, and may file a supplemental petition if the first is denied.
Referral to DOJ. If the penalty is not resolved administratively, CBP may refer the matter to the Department of Justice, which can bring a collection action in the U.S. Court of International Trade under 19 U.S.C. § 1582.

Prior Disclosure: The Most Powerful Mitigation Tool — § 1592(c)(4)

If an importer discovers a violation and voluntarily discloses it to CBP before, or without knowledge of, a CBP investigation, the penalty is sharply reduced:

For negligence or gross negligence, the penalty is generally limited to the interest on any lost duties.
For fraud, the penalty is generally limited to one times the loss of duties (or, where no revenue was lost, a reduced percentage of the dutiable value).

A valid prior disclosure requires disclosing the circumstances of the violation and tendering any actual loss of duties. Timing is everything — the benefit can be lost once CBP has commenced a formal investigation the importer knows about, which is why importers who suspect a problem should evaluate a prior disclosure quickly with counsel.

Deadlines: Statute of Limitations and Recordkeeping

Statute of limitations — 19 U.S.C. § 1621. A § 1592 penalty action generally must be commenced within five years — from the date of the violation for negligence and gross negligence, and from the date of discovery of the fraud for fraud cases.
Recordkeeping — 19 U.S.C. § 1509. Importers must keep entry records and produce them on CBP’s demand; failure to maintain or produce records carries its own penalties under § 1509(g). Good records are often the difference between winning and losing a penalty case.

How a Customs Attorney Defends a § 1592 Case

Defense usually turns on three questions: Was there a material false statement or omission at all? What is the correct level of culpability — and can CBP prove it? What mitigation applies — prior disclosure, cooperation, remedial measures, absence of revenue loss, and the § 1618 factors? Counsel gathers the entry records, reconstructs the compliance process, responds to the pre-penalty notice with law and evidence, petitions under § 1618, and — where warranted — evaluates prior disclosure before the window closes. The goal is to reduce culpability, reduce the penalty, and, wherever possible, resolve the matter administratively rather than in litigation.

Frequently Asked Questions

Is a CF-28 or CF-29 a penalty?

No. A CF-28 is a request for information and a CF-29 is a notice of action (such as a rate advance). Neither is a penalty by itself, but both can lead to a § 1592 penalty if CBP concludes an entry involved a material false statement — which is why the responses matter.

How much can a customs penalty be?

It depends on culpability. Under § 1592(c), fraud can reach the domestic value of the goods; gross negligence up to the lesser of domestic value or four times the lost duties (40% of dutiable value if no revenue loss); negligence up to the lesser of domestic value or two times the lost duties (20% if no revenue loss).

What is a prior disclosure and why does it matter?

Under § 1592(c)(4), voluntarily disclosing a violation to CBP before an investigation you know about sharply cuts the penalty — often to just interest on lost duties for negligence/gross negligence. Timing is critical.

How long does CBP have to bring a penalty case?

Generally five years under 19 U.S.C. § 1621 — from the violation for negligence/gross negligence, or from discovery for fraud.

I already got a Pre-Penalty Notice. Is it too late?

No. The pre-penalty response (§ 1592(b)(1)) and the § 1618 petition are meaningful opportunities to reduce or defeat the claim. Act within the stated deadline and preserve your records.

Talk to a Customs Penalty Defense Attorney

A CF-28, a CF-29, or a Pre-Penalty Notice each starts a clock. The earlier you respond well, the more leverage you have — and prior disclosure can vanish the moment CBP opens an investigation. Trembach Law Firm defends customs penalties and represents California importers before CBP and the Court of International Trade. Call (818) 514-7680 and bring the notice, your entry summaries, and your import records.

Contact Trembach Law Firm at (818) 514-7680 for a confidential consultation.

Trembach Law Firm | 27001 Agoura Road, Suite 350, Calabasas, CA 91301