A "notice of penalty or liquidated damages incurred" is an unsettling letter, often evoking a payment in excess of $10,000. Sometimes confused with a penalty, they are a charge against an importer's bond for violating the terms of such bond. These include obligations such as paying duties, taxes, and fees, producing all necessary documentation to classify, value, and collect statistics, to re-deliver merchandise on demand, and an array of similar requirements.

First, you should know that the amount an often be mitigated down via petition. The probability of successfully reducing the charge depends on the circumstances of the case. If you think there are mitigating factors to consider, our professional services team is standing by to assist. Feel free to contact us at hello@inlt.com.

However, in lieu of mitigation, you will find that most liquidated damages notices offer two options in accordance with Part 172 of the Customs Regulations. One of the options is to pay an established amount, usually between $100 and $200, within a given period of time to make the case go away. In doing so, you waive the right to file a petition.

Like most federal agencies, this "offer in compromise" is paid at www.pay.gov. In addition to your company's name, address, and Federal Tax ID number, you will need to enter the 16-digit case number shown below in the column labeled "SEACATS" case number circled below. Next, leave the "FP Bill" blank and enter the amount you wish to pay.

Needless to say, when you're finished, print and save your receipt. If you have any questions, do not hesitate to contact us at support@inlt.com.

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