US Customs Service Reverses its Policy on ...

November 3, 2000

3 November 2000

US Customs Service Reverses its Policy on Publication of Import Violations

The US Customs Service (USCS) recently unsettled the American importing community by publishing on their web site a list of penalties paid by companies for commercial infractions. This was the first time that the USCS had made such information public on a national basis, and it evoked such a negative reaction from importers that the list has now been removed. The heart of the difficulty lies in the fact that many of the payments listed were voluntary payments of back duties that may have been underpaid due to accounting or clerical error, not attempts to defraud.

Members of the international trade community pointed out that publishing the name of companies that made voluntary disclosures of errors was likely to adversely affect prior disclosure in the future. The USCS's initial position was that posting such a list of companies was in compliance with the US Freedom of Information Act. Lists of companies paying these fines have been available in hard copy format at individual ports via a Freedom of Information request. Publication in a national electronic forum, however, is a significantly different matter, and Commissioner Raymond Kelly decided that future lists will be posted only after the USCS evaluates its electronic policy for posting information on the internet.

The CCRA says that the likelihood of a similar undertaking at the CCRA is remote. Only information on prosecutions of substantial size is published presently. While publication of the name of companies assessed penalties has been suggested by at least one correspondent to the CCRA as a deterrent to illegal activity, such a step is regarded as inappropriate. The principle of privacy is seen to overrule any potential benefit that might be gained by publication of commercial infractions.


Topic(s): 
Canadian Economy & Politics
Information Source: 
Canadian News Channel
Document Type: 
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