Understanding U.S. Customs Statute Of Limitations Waivers: What Importers Need To Know

When U.S. Customs and Border Protection (CBP) seeks to collect unpaid duties, taxes, or penalties, it generally must act within a defined window of time. But that window can be extended — and often is. Understanding how CBP statute of limitations (SOL) waivers work is essential for any importer navigating a customs audit or penalty proceeding. 

The Basic Rule: A Five-Year Limitation Period 

Under 19 U.S.C. § 1621, CBP has five years from the date of a violation to bring an action to recover unpaid duties or assess a penalty. This limitation period is designed to provide finality and protect importers from indefinite exposure. Once the period lapses, CBP’s ability to collect is generally barred. 

What Is a Statute of Limitations Waiver? 

A statute of limitations waiver is a written agreement by which an importer voluntarily extends CBP’s window to assess duties or penalties beyond the standard five-year period. CBP routinely requests these waivers during the course of audits, prior disclosures, and penalty proceedings, particularly when the matter is complex, ongoing, or near the limitations deadline. Standard SOL waivers generally provide CBP with two-year extensions of the SOL. During this time, the importer agrees not to exercise a statute of limitations defense for entries covered by the SOL waiver. 

Waivers are not automatic — they require the importer’s consent. However, in practice, refusing to sign is often not consequence-free. Refusing to sign forces CBP to expedite their review and make decisions quickly. It can prompt CBP to issue a formal penalty notice immediately, cutting off any opportunity for informal resolution. In the prior disclosure context, CBP can refuse to grant extensions of time to perfect the disclosure without an SOL waiver. CBP’s position is that signing a SOL waiver is a demonstration of the importer’s willingness to resolve issues collaboratively, rather than take a defensive posture. 

Why CBP Requests Waivers 

CBP generally does not seek SOL waivers arbitrarily, but rather when there is an ongoing case that the agency needs additional time to process. 

CBP typically seeks waivers when: 

• An audit or investigation spans multiple entries across the five-year timeframe 

• The agency needs additional time to calculate the full scope of potential underpayments 

• Negotiations for a settlement are still active 

• The importer has requested more time to perfect a prior disclosure 

• Supplemental information has been requested and not yet fully reviewed – in some cases, importers may be required to submit a SOL waiver prior to CBP’s acceptance of a supplemental petition.F rom CBP’s perspective, the waiver preserves flexibility, as it preserves all options to resolve potential violations. From the importer’s perspective, it preserves the chance to resolve matters cooperatively rather than through formal enforcement action and can give the importer time to perfect a prior disclosure. 

CBP Guidance on Requesting Waivers 

CBP’s Seized Asset Management and Enforcement Procedures Handbook (SAMEPH) provides guidance on when and how CBP should go about requesting SOL waivers. The guidance states that waivers should not be requested merely to delay the processing of a case, and that CBP officers should immediately communicate with the Fines, Penalties, and Forfeitures Officer (FPFO) if there is any possibility of a statute of limitations problem. FPFO must also acknowledge the acceptance of the waiver via a reply letter to the waiving party. View the full CBP guidance on requesting waivers here. 

Key Considerations Before Signing 

Signing a waiver is a significant legal decision. Before agreeing, importers should carefully consider: 

• Scope. Does the waiver apply to all entries, specific entry numbers, or a defined time period? Vague or overbroad waivers can expose you to claims you did not anticipate. Waiving a SOL defense for expired entries is also generally not advisable. 

• Duration. Waivers typically extend the limitations period by one year, but the length is negotiable. Avoid open-ended extensions with no defined expiration. 

Key Takeaway 

CBP statute of limitations waivers are a common tool in customs enforcement — but they are not without risk. A well-negotiated waiver can create space for a favorable resolution; a poorly reviewed one can extend your exposure unnecessarily. If CBP has contacted you about an audit or penalty proceeding and a waiver request is on the table, seek qualified legal guidance before responding. 

Learn More 

• Bloomberg Law: Submitting a Prior Disclosure to CBP 

• Bloomberg Law: Customs Administrative Enforcement Process: Fines, Penalties, Forfeitures and Liquidated Damages 

• Customs Audits 

• High Tariffs, High Stakes: The Rise in Customs Fraud and Enforcement Risk 

• DOJ Targets Trade Fraud: Importers Now on Notice as Criminal Division Ramps Up Enforcement 

• Webinar: Building and Maintaining an Effective Import Compliance Plan 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.