Fiscal Year 2010 CBP Annual Financial Report - CBP.gov

Notes to Financial Statements
6. Taxes, Duties and Trade Receivables, Net
Receivables as of September 30, 2010 and 2009 are as follows (in thousands):
Receivable Category Gross Receivable
2010
Amounts
Uncollectible
Total Net
Receivables
Duties $ 2,161,519 $ (139,392) $ 2,022,127
Excise Taxes 121,282 (5,916) 115,366
User Fees 133,176 4,329 137,505
Fines/Penalties 454,475 (370,706) 83,769
Interest 350,652 (314,848) 35,804
Anti-dumping/Countervailing Duties 551,270 (487,255) 64,015
Refunds and Drawback 586 (525) 61
Total $ 3,772,960 $ (1,314,313) $ 2,458,647
Receivable Category Gross Receivable
2009
Amounts
Uncollectible
Total Net
Receivables
Duties $ 1,649,664 $ (146,167) $ 1,503,497
Excise Taxes 105,481 (5,774) 99,707
User Fees 117,151 (6,971) 110,180
Fines/Penalties 521,194 (471,846) 49,348
Interest 291,084 (251,234) 39,850
Anti-dumping/Countervailing Duties 420,950 (349,904) 71,046
Refunds and Drawback 448 (374) 74
Total $ 3,105,972 $ (1,232,270) $ 1,873,702
CBP assesses duties, taxes and fees on goods and merchandise brought into the United States from foreign countries.
At the time importers bring merchandise into the United States, they are required to file CBP entry documents.
Generally, within 10 working days after CBP releases the merchandise into the U.S. commerce, the importer
is to submit an entry document with payment of estimated duties, taxes and fees. CBP allows periodic monthly
payment that requires payment of estimated duties, taxes and fees on the 15th work day of the month following
release. A receivable of $2.2 billion and $1.7 billion was recorded for 993,375 entries and 844,316 entries for merchandise
released into commerce on or before September 30, 2010 and 2009, respectively. It is CBP’s policy to track
and demand payment of unpaid estimated duties, taxes and fees receivable amounts by establishing a liquidated
damage case which generally results in a fine and penalty type receivable.
A fine or penalty is established when a violation of import/export law is discovered. CBP assesses a liquidated
damage or penalty for these cases to the maximum extent of the law. After receiving the notice of assessment, the
importer or surety has 60 days to either file a petition requesting a review of the assessment or make payment of
the assessed amount. Until this process has been completed, CBP records an allowance on fines and penalties of
approximately 81.5 percent of the total assessment based on historical experience of fines and penalties mitigation
and collection. Duties and taxes receivable are non-entity assets for which there is an offsetting liability due to the
Treasury General Fund.
90 U.S. Customs and Border Protection • Annual Financial Report