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Liquidated Damages
Our FDA Lawyers Work to Limit Your Loses
Importers are not specifically required by law to hold a shipment in any given location, once a Customs bond has been filed, pending a decision by FDA whether or not to sample. However, in the event the FDA decides to collect a sample, Customs can require, under terms of the bond, that the importer return the entire shipment or any portion thereof for sampling, if the shipment has left the port area.
Liquidated damage assessments, or bond actions, are taken when an entry is distributed prior to FDA release and can not be redelivered, or when an article has been detained and refused and the article is not destroyed or exported in accordance with the requirements of the law.
FDA's policy is to always seek the maximum liquidated damage assessment, which is three times the retail value of the shipment.
We provide our clients with an in-depth investigation when liquidated damage assessments occur, to ensure cancellation or mitigation when circumstances warrant.
For more Information
Bond Actions, FDA Regulatory Procedures Manual
http://www.fda.gov/ICECI/ComplianceManuals/RegulatoryProceduresManual/ucm179476.htm
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