Customs inspectors find 46 cartons of counterfeit Gucci and Versace handbags, Nintendo Game Boys, and Fendi jackets. The merchandise is seized under 19 U.S.C. 1526(e) and 19 C.F.R. 133.21. Customs import specialists appraise the merchandise at $833,771. Customs later forfeits and destroys the counterfeit merchandise, or with the approval of the trademark owner, may donate the goods to a deserving charitable organization.

In a fraud case initiated by Customs agents, an import specialist imposes a fine on a shipment for violation of 19 U.S.C. 1592. Customs notifies the company of the penalty. The company files a petition with Customs. The case ends up in the Court of International Trade and a judge makes his decision.

Fines, Penalties, and Forfeitures (FPF) officers play a vital role in all of these scenarios, but their contribution is often overshadowed because of their work "behind the scenes."

"FPF officers are the ultimate enforcers because they faithfully defend each Customs seizure case," says Mark Edwards, Director, FPF Office, Miami, who started as an FPF clerk in the Miami office almost 16 years ago. The FPF officer responsible for the port of entry where the admitted violation took place will start the legal process for Customs, set up the case file, and process all legal matters - whether it's to process a forfeiture action or adjudicate a penalty or liquidated damages case for an import or export violation. FPF officers are also responsible for the port's Seized Property Program and the storage, maintenance, and final disposition of all seized property including narcotics, weapons, conveyances, and general property.

Because the federal forfeiture law imposes strict deadlines for the government, FPF officers must adjudicate seizure cases expeditiously and work under legal time restraints, pressure, and stress. "We don't want to lose a case because we didn't get our job done on time or because we overlooked a small detail in our work," says Edwards.

A typical case, based on a true story
Let's look at how a FPF officer would work a typical forfeiture case.

Day 1
Customs inspectors find a Haitian freighter with a hidden compartment outfitted for smuggling drugs as it enters the Miami River. No drugs are found. However, Customs inspectors seize the freighter because they have probable cause that there was a violation of a Customs law.

The inspectors contact the local FPF officer who starts a case file on this administrative seizure.

Days 2-60
The FPF officer searches for the names and addresses of individuals having an interest in the freighter, and prepares and sends them a notice of seizure within 60 days. (Routinely the notice is issued within a few days and the owner/violator has 30 days to final a petition or request referral for judicial review.) The FPF officer in this case discovers that the freighter has only one owner (claimant).

"The seizure notice includes the date of seizure, the specific Customs law(s) violated, and description of the property," explains Edwards.

During this time, the FPF officer contracts with an independent company to appraise the freighter; personal items, such as jewelry, are appraised by Customs import specialists.

Photo Credit: James Tourtellotte

Miami Customs agents seized Haitian vessel, while FPF officers processed the forfeiture proceedings and worked with the local county to use the ship as an artificial reef.

Days 61-90
The FPF officer now waits for a response from the claimant. Generally, claimants have many options: they can do nothing, file a petition for relief to waive the forfeiture action, make an offer in compromise to settle the case, or file a claim and cost bond to initiate referral to the U.S. Attorney.

In this freighter case, the claimant files a petition for relief within the 30-day limit. The petition essentially explains the claimant's point of view.

Days 91-120
When the FPF officer receives the petition, he has two options depending on the appraised value of the property: to refer the petition to Headquarters OR&R (if over $100,000) or render its own decision of the case.

Since 1995, FPF officers have been given the authority to render decisions on petition cases in which the value of property is $100,000 or less. Anything valued more than $100,000 is referred to the Office of Regulations and Rulings at Customs headquarters.

The freighter is valued at $5,000 "with a cost bond of $500" and the FPF officer denies the petition because the claimant has not provided information that would warrant mitigation.

The FPF officer sends a denial notice to the attorney stating that Customs intends to forfeit the freighter.

Days 121-140
To begin the forfeiture process of the freighter, the FPF officer publishes an advertisement for at least three consecutive weeks (21 days) in a newspaper circulated at the Customs port and in the judicial district in which the seizure took place (Miami).

Claimants still have a chance to stop the administrative forfeiture by filing a cost bond within 20 days of the first publication date. The bond allows a judge to make the final decision. In the freighter case, the claimant's attorney was one day late he filed the cost bond on the 21st day.

"If we do not hear from the owner within the 20 days of the first publication date, Customs has the authority to sell the forfeited property, destroy it, retain it for official use, or donate it to a state or local agency," says Edwards. "Here the freighter was declared forfeit and donated to a local community as an artificial oceanic reef because the owner was late."

Days 140 and beyond
But the story doesn't stop here and the freighter case is not yet closed. The claimant's attorney files a TRO (temporary restraining order) and a few months later before a judge, Customs and the claimant both present their cases. In the end, the judge sides with Customs because the attorney missed the cost bond deadline.

Although FPF officers work behind the scenes on Customs cases, their responsibility is high profile, enforcing Customs seizure and penalty laws everyday under tight deadlines.

The authority to make seizures and enforce fines, penalties, or bond provisions was established in the Fifth Act of Congress - Act of July 31, 1789. At this time there was no provision allowing the granting of equitable relief. This was partially remedied in the Act of March 3, 1797, when the authority to grant equitable relief from a penalty or forfeiture by remission or mitigation was given to the Secretary of the Treasury. Today, FPF officers are bound by 19 U.S.C. 1618 and 19 U.S.C. 1623(c).