Mitigation

Mitigation is the formal administrative process by which CBP reduces a proposed or assessed customs penalty after the alleged violator demonstrates mitigating factors. The procedure is set out in 19 CFR Part 171 and the corresponding CBP "Mitigation Guidelines" published in Customs Bulletins.

Penalties subject to mitigation include:

• Section 1592 penalties for fraud, gross negligence, and negligence
• Section 1641 broker penalties
• Liquidated damages claims (failure to redeliver, late ISF, etc.)
• Penalties under 19 U.S.C. § 1466 (vessel repair), § 1497 (passenger declaration), § 1584 (manifest discrepancies), and other CBP-administered statutes

The mitigation process:

1. CBP issues a Prepenalty Notice or Penalty Notice
2. The respondent files a Petition for Mitigation within 30 days (extendable to 60)
3. The Fines, Penalties, and Forfeitures (FP&F) Officer reviews the petition
4. CBP issues a Mitigation Decision — typically reducing the penalty based on the factors below
5. If dissatisfied, the respondent may file a Supplemental Petition for further review
6. Final administrative decisions can be challenged in the Court of International Trade

Mitigating factors under the CBP Mitigation Guidelines:

• Inability to pay (must be financially documented)
• Prior disclosure and cooperation with CBP
• Cooperation with the investigation (production of records, witness availability)
• No prior penalty history
• Demonstrable reasonable care procedures
• Remedial action (improved compliance program, internal controls, new procedures)
• CTPAT Tier II/III or former ISA membership

Aggravating factors that reduce mitigation:

• Prior substantially similar violations
• Concealment or obstruction
• Failure to cooperate
• Multiple discrepancies in the same shipment

In practice, well-supported mitigation petitions routinely reduce Section 1592 penalties by 50–90% from the statutory maximum — making the mitigation process itself one of the most valuable compliance tools available to importers and brokers.