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Prior Disclosure

How voluntary disclosure of customs violations can significantly reduce penalty exposure.

19 USC 1592(c)(4)19 CFR 162.74

Structured from CBP-designated exam references; confirm the editions approved for your exam sitting.

The textbook layer behind Study Map

From learning route to full explanation

This guide tests whether a disclosure was made before, or without knowledge of, a formal investigation and whether it identifies the transactions, circumstances, correct data, supplementation, and required tender. It separates a valid prior disclosure from an ordinary post-entry correction.

Study Map tells you what to learn and in what order; this page explains the rules, decision method, and boundaries. Reading completion is not proof of mastery.

1. Prior Disclosure

Textbook chapter 1

Prior Disclosure

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Answer first

Determine whether a disclosure is timely and complete, make the required tender, and calculate the reduced statutory exposure without calling every correction a prior disclosure. Prior-disclosure treatment requires disclosure of the violation's circumstances before, or without knowledge of, commencement of a formal investigation, plus tender of actual lost duties, taxes, and fees or revenue. The disclosure must identify the merchandise and transactions, explain the false statement or omission, provide the correct information or timely supplement it, and satisfy the tender rule. For a qualifying fraudulent violation, § 1592(c)(4) caps the penalty at 100% of the lawful duties, taxes, and fees of which the United States is or may be deprived; qualifying nonfraud violations use the statutory interest measure. A label reading 'prior disclosure' does not cure missing elements.

Rule breakdown

Controlling rule for Prior Disclosure

19 U.S.C. § 1592(c)(4) ↗

The result must be derived from the cited legal elements rather than from a label, commercial expectation, or memorized shortcut. Prior-disclosure treatment requires disclosure of the violation's circumstances before, or without knowledge of, commencement of a formal investigation, plus tender of actual lost duties, taxes, and fees or revenue. The disclosure must identify the merchandise and transactions, explain the false statement or omission, provide the correct information or timely supplement it, and satisfy the tender rule. For a qualifying fraudulent violation, § 1592(c)(4) caps the penalty at 100% of the lawful duties, taxes, and fees of which the United States is or may be deprived; qualifying nonfraud violations use the statutory interest measure. A label reading 'prior disclosure' does not cure missing elements. Apply every stated condition to the documented facts and stop if an essential condition cannot be proved.

Evidence route for Prior Disclosure

19 U.S.C. § 1592(c)(4); 19 CFR § 162.74; 19 CFR § 162.73 ↗

Use the official source in the order required by the issue and record both the rule and the fact that satisfies it. The assigned lookup is: Turn § 162.74 into a timestamped checklist: initial disclosure, oral confirmation if used, unknown-data supplement, CBP loss calculation, tender, and evidence of investigation commencement. Mark every event that can defeat treatment. Follow this source route: § 1592(c)(4) benefit → § 162.74(a) timing → § 162.74(b) content → § 162.74(c) tender → investigation knowledge. A technically accepted filing or a completed reading is not itself proof that the legal outcome is correct.

Decision path

  1. 1

    Set the gate for Prior Disclosure

    Determine whether a disclosure is timely and complete, make the required tender, and calculate the reduced statutory exposure without calling every correction a prior disclosure. Identify the legally significant party, merchandise, event, date, value, status, and document before selecting a rule or performing a calculation.

  2. 2

    Verify 19 U.S.C. § 1592(c)(4)

    Open 19 U.S.C. § 1592(c)(4), complete the chapter lookup task, and preserve the exact subsection, table, form, or agency guide used. Follow § 1592(c)(4) benefit → § 162.74(a) timing → § 162.74(b) content → § 162.74(c) tender → investigation knowledge rather than jumping directly to a remembered result.

  3. 3

    Test the boundary of Prior Disclosure

    Apply each controlling element to the documented facts, calculate only after eligibility is established, and compare the result with the worked example conclusion: The importer must still tender the $12,000 loss, but qualifying nonfraud prior-disclosure penalty exposure is limited to the applicable interest measure under § 1592(c)(4), not the ordinary negligence or gross-negligence multiplier. Record any unresolved fact instead of converting uncertainty into a pass or mastery claim.

Worked example

Scenario: Before learning of any formal investigation, an importer discloses a nonfraudulent valuation omission covering identified entries, provides the correct data, and tenders the $12,000 actual duty loss as required. What penalty framework replaces the ordinary negligence or gross-negligence maximum?

  1. 1.Verify that timing, transaction identification, circumstances, correct data, and tender satisfy § 162.74.
  2. 2.Separate repayment of the $12,000 actual loss from the civil monetary penalty.
  3. 3.For qualifying nonfraud prior disclosure, use the statutory interest-based penalty ceiling rather than the ordinary two-times or four-times loss ceiling.
  4. 4.Boundary check: change one decisive fact identified by “Turn § 162.74 into a timestamped checklist: initial disclosure, oral confirmation if used, unknown-data supplement, CBP loss calculation, tender, and evidence of investigation commencement. Mark every event that can defeat treatment.” and explain whether the result changes under 19 U.S.C. § 1592(c)(4); 19 CFR § 162.74; 19 CFR § 162.73.

Conclusion: The importer must still tender the $12,000 loss, but qualifying nonfraud prior-disclosure penalty exposure is limited to the applicable interest measure under § 1592(c)(4), not the ordinary negligence or gross-negligence multiplier.

Common traps and corrections

× Assuming a post-entry correction automatically qualifies as prior disclosure.

✓ The shortcut “Assuming a post-entry correction automatically qualifies as prior disclosure.” skips a controlling distinction in Prior Disclosure. Return to 19 U.S.C. § 1592(c)(4), follow § 1592(c)(4) benefit → § 162.74(a) timing → § 162.74(b) content → § 162.74(c) tender → investigation knowledge, and test the decisive fact against this boundary: Prior-disclosure treatment requires disclosure of the violation's circumstances before, or without knowledge of, commencement of a formal investigation, plus tender of actual lost duties, taxes, and fees or revenue. The disclosure must identify the merchandise and transactions, explain the false statement or omission, provide the correct information or timely supplement it, and satisfy the tender rule. For a qualifying fraudulent violation, § 1592(c)(4) caps the penalty at 100% of the lawful duties, taxes, and fees of which the United States is or may be deprived; qualifying nonfraud violations use the statutory interest measure. A label reading 'prior disclosure' does not cure missing elements. Do not infer eligibility, release, or mastery from the shortcut.

× Disclosing a general problem without identifying covered transactions and the material false statements or omissions.

✓ The shortcut “Disclosing a general problem without identifying covered transactions and the material false statements or omissions.” skips a controlling distinction in Prior Disclosure. Return to 19 U.S.C. § 1592(c)(4), follow § 1592(c)(4) benefit → § 162.74(a) timing → § 162.74(b) content → § 162.74(c) tender → investigation knowledge, and test the decisive fact against this boundary: Prior-disclosure treatment requires disclosure of the violation's circumstances before, or without knowledge of, commencement of a formal investigation, plus tender of actual lost duties, taxes, and fees or revenue. The disclosure must identify the merchandise and transactions, explain the false statement or omission, provide the correct information or timely supplement it, and satisfy the tender rule. For a qualifying fraudulent violation, § 1592(c)(4) caps the penalty at 100% of the lawful duties, taxes, and fees of which the United States is or may be deprived; qualifying nonfraud violations use the statutory interest measure. A label reading 'prior disclosure' does not cure missing elements. Do not infer eligibility, release, or mastery from the shortcut.

× Ignoring tender because the disclosure narrative was timely.

✓ The shortcut “Ignoring tender because the disclosure narrative was timely.” skips a controlling distinction in Prior Disclosure. Return to 19 U.S.C. § 1592(c)(4), follow § 1592(c)(4) benefit → § 162.74(a) timing → § 162.74(b) content → § 162.74(c) tender → investigation knowledge, and test the decisive fact against this boundary: Prior-disclosure treatment requires disclosure of the violation's circumstances before, or without knowledge of, commencement of a formal investigation, plus tender of actual lost duties, taxes, and fees or revenue. The disclosure must identify the merchandise and transactions, explain the false statement or omission, provide the correct information or timely supplement it, and satisfy the tender rule. For a qualifying fraudulent violation, § 1592(c)(4) caps the penalty at 100% of the lawful duties, taxes, and fees of which the United States is or may be deprived; qualifying nonfraud violations use the statutory interest measure. A label reading 'prior disclosure' does not cure missing elements. Do not infer eligibility, release, or mastery from the shortcut.

× Expanding the disclosure after CBP discovers additional violations and assuming the additions inherit the original date.

✓ The shortcut “Expanding the disclosure after CBP discovers additional violations and assuming the additions inherit the original date.” skips a controlling distinction in Prior Disclosure. Return to 19 U.S.C. § 1592(c)(4), follow § 1592(c)(4) benefit → § 162.74(a) timing → § 162.74(b) content → § 162.74(c) tender → investigation knowledge, and test the decisive fact against this boundary: Prior-disclosure treatment requires disclosure of the violation's circumstances before, or without knowledge of, commencement of a formal investigation, plus tender of actual lost duties, taxes, and fees or revenue. The disclosure must identify the merchandise and transactions, explain the false statement or omission, provide the correct information or timely supplement it, and satisfy the tender rule. For a qualifying fraudulent violation, § 1592(c)(4) caps the penalty at 100% of the lawful duties, taxes, and fees of which the United States is or may be deprived; qualifying nonfraud violations use the statutory interest measure. A label reading 'prior disclosure' does not cure missing elements. Do not infer eligibility, release, or mastery from the shortcut.

Frequently asked questions

Which fact controls first for Prior Disclosure?

Begin with the chapter objective and the legally controlling facts, not with the desired commercial result. Determine whether a disclosure is timely and complete, make the required tender, and calculate the reduced statutory exposure without calling every correction a prior disclosure. Then use 19 U.S.C. § 1592(c)(4) and the remaining cited sources to test every required element before calculating or filing.

Where should I verify Prior Disclosure for the exam and live work?

For the October 28, 2026 CBLE, use the designated exam source card and pinpoint 19 U.S.C. § 1592(c)(4). For live work, separately verify the dated current source cards for this chapter as of the transaction date; a current statute, eCFR, HTSUS, recordation, or agency guide does not silently amend the exam edition.

Official sources and editions

Key Terms

Prior Disclosure|主动披露
Voluntary Admission|自愿承认
Penalty Mitigation|处罚减免
Duty Loss|关税损失

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Back to Knowledge BaseUpdated 2026-08-19