(U.S. Customs & Border Protection & Border Protection) A punishment, fixed by law, that can be a fine, loss of privilege or seizure of merchandise. There are penalties to importers or others for violations of U.S. Customs & Border Protection & Border Protection Regulations, particularly for failing to meet particular shipment-related Customs requirements. Penalties may be incurred for many different reasons, ranging from violations in record-keeping to misrepresentation of transactions and fraud. With regards to merchandise, penalties may result, for example, due to improper marking (See not legally marked.) or copyright or trade mark violation. A Customs bond is in place to guarantee compliance with applicable laws and regulations, and in the case of a penalty, a claim may be made for liquidated damages.
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