Prior Disclosure Starter Kit: What Importers Need To Know

Prior disclosure is a voluntary, written self-disclosure to U.S. Customs and Border Protection (CBP) where an importer (or other eligible party) notifies CBP of past import-related errors and explains what happened, which entries are affected, and how the revenue impact was calculated.

This starter kit is for importers, compliance managers, finance teams, and logistics teams who suspect an error or discovered one during an internal review and want to understand whether prior disclosure is an option—plus what a “strong” submission typically includes and how to avoid common mistakes.

Key takeaways:

• Importers file their prior disclosure revealing an issue with their shipment before CBP discovers it.
• Multiple parties may be eligible to file, but the importer of record (IOR) is typically central to the process.
• A strong prior disclosure clearly defines scope, explains root cause, and includes defensible calculations and supporting documents.
• Timing, submission location, and follow-through matter.
• Sloppy narratives, weak evidence, and unclear math are common reasons disclosures get delayed or questioned.
  

Now let’s walk through what prior disclosure is, who can submit, and how to prepare a submission that’s easy for CBP to review.

Legal Disclaimer: This article is general information and not legal advice.

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What Prior Disclosure Is and Isn’t

What it is: Prior disclosure is a voluntary, written self-report to CBP in which an importer or other eligible party discloses a compliance error in their import transaction before CBP discovers it.  

Errors can include incorrect:

• Classification
• Valuation
• Origin
• Quantity 

Prior disclosures provide the scope of affected entries, supporting facts, and corrected information. 

What it isn’t: Prior disclosure is not a way to avoid all accountability, and it’s not the same as other post-entry tools. 

For example:

• It’s not a routine correction filing such as a Post Summary Correction (PSC) or other entry update process.
• It’s not a protest against CBP’s decision.
• It’s not a substitute for building internal controls—you still need to correct the process that caused the error.

CBP wants accurate entry data and proper revenue collection. A well-prepared prior disclosure helps CBP understand the issue quickly and supports the integrity of the import process.

Entities That Submit A Prior Disclosures

In practice, prior disclosures usually involve the IOR. However, more than one entity may take part in the submission, depending on how the transaction is structured.

Common eligible/participating entities may include:

• IOR: The party responsible for the entry and compliance is typically the primary actor and signatory.
• Customs broker: A licensed customs broker often helps assemble data, reconstruct entry sets, and prepare the narrative and exhibits. The broker typically acts under a power of attorney and direction from the importer.
• Other parties with a direct compliance role: Depending on the facts, related parties in the supply chain like exporters, shippers, and foreign suppliers and manufacturers can submit prior disclosures.
  

Practical takeaway: Even when multiple parties are involved, CBP generally expects clarity on who is responsible, who is submitting, and who can produce the underlying records.

Why You Should Use One

You should submit a prior disclosure if you want to receive reduced penalties in connection with a violation. While this is the primary reason importers pursue a prior disclosure, there are other benefits they can enjoy.

This includes:

1. Control and clarity: You define the scope, explain the root cause, and provide your calculations rather than responding reactively to an inquiry with incomplete facts.
2. Faster path to resolution: A complete, well-organized package can shorten review cycles and limit business disruption.
3. Better internal compliance: A disclosure process forces discipline on your importers so they don’t make the same mistakes. 
4. Stronger partner relationships: When suppliers, finance teams, and logistics teams see the compliance process working, future shipments tend to run smoother.

Essentially, prior disclosure can lead to a smooth supply chain in the future. 

What CBP Expects In A Prior Disclosure

CBP reviewers want a prior disclosure that answers four basic questions quickly. 

1) What happened?

Provide a clear explanation of the issue using plain language. 

Information you need to provide includes:

• The importer declared HTS codes based on supplier descriptions that were incomplete.
• Certain assists were not added to the declared value.
• Country of origin was assigned at the SKU level using outdated production information.

2) Which entries are affected?

A strong disclosure defines scope in a way that is:

• Specific: Affected ports, entry numbers, SKUs, suppliers, date ranges.
• Reasonable: Based on evidence and a defensible sampling or identification method.
• Repeatable: Someone else could follow your logic and get the same list.
  

3) What is the revenue impact?

You’ll typically include:

• A summary table and detailed backup.
• A description of assumptions, such as exchange rates, allocation methods, sampling methodology.
• How you treated partial impact.
  

4) What have you done to prevent recurrence?

CBP generally expects corrective action, such as:

• Updated written procedures for classification/valuation/origin
• Broker instruction updates
• Supplier documentation requirements
• Training for procurement/AP/logistics
• A post-entry review cadence and exception reporting
  

Ensure your prior disclosure has a clean structure that makes it easy for CBP officials to identify the data elements they need to review. Finally, we’ve provided a checklist of the import documents and items you’ll need when submitting a prior disclosure.

This includes:

• Entry summaries and entry numbers
• Commercial invoices
• Packing lists
• Product descriptions
• Broker entry instructions
• Proof for the corrected position
• Calculations workbook
• A short corrective action plan

The information provided by these documents and items will help you submit an accurate and robust prior disclosure.

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When and Where To Submit

Prior disclosures must be submitted at the right time and place for them to be accepted. 

When:

Submit your prior disclosure when after you discover a violation and before CBP finds the same issues during a formal investigation. If you wait for CBP to discover the problem first, you’ll lose the ability to submit the document. 

Where:

Submit your prior disclosure to the port of entry where the disclosed violation occurred. If you have violations at multiple ports, you’ll need to list each one in the disclosure. 

How To Submit

Filing a prior disclosure can be a hassle. With so many steps to follow, it’s easy to make a mistake. That’s why we’ve provided the following graphic to make it easier for you to complete this process. 

Mistakes That Can Weaken A Prior Disclosure 

The fastest way to create delays is to submit a disclosure that is hard to understand or hard to verify. 

Common mistakes include:

• Vague narratives: Prior disclosure descriptions that are too general to audit
• Unclear or inconsistent scope: The disclosure doesn’t clearly define the boundaries of what’s being corrected.
• Weak calculations: The duty or revenue impact math is incomplete, full of eros, or not reproducible.
• Undocumented assumptions: The disclosure relies on choices that materially affect results.
• Unsupported technical positions: The disclosure asserts a corrected classification, valuation, origin, or program eligibility without sufficient authoritative support.
• No corrective action: The disclosure explains what went wrong but doesn’t show how the importer fixed the underlying process and will prevent reoccurrence. 

Take your time when filling out your prior disclosure and double check it for mistakes. Hiring a Licensed Customs Broker to look over it is another line of defense you can use to ensure your document is accurate before being submitted. 

How USA Customs Clearance Can Help Submit A Prior Disclosure

A prior disclosure is both a compliance project and a documentation project. USA Customs Clearance can support importers by helping you:

• Triage the issue type (classification, valuation, origin, quantity, preference program, documentation gaps)
• Define a defensible scope and create clean entry universes from broker/ACE data
• Reconstruct and validate calculations so the revenue impact is consistent and traceable
• Draft a reviewer-friendly narrative with an exhibit structure that’s easy to follow
• Strengthen internal controls (broker instructions, SOPs, supplier requirements, training, post-entry review cadence)
• Project-manage communications and follow-ups so nothing falls through the cracks

Here at USA Customs Clearance, we begin working on your prior disclosure right away. Give us a call at (855) 912-0406 or reach out to us on our contact page.