US Customs Seized Money Going Into Mexico for Failure to Report $10,000,00?
The Customs Agent exclaimed “More Money for Overtime!” The U.S. Customs and Border has started to ask US citizens (and Visa holders) “how much money do you have on you today? In this case, my client was scheduled to have a surgical procedure, (which is much less money in Tijuana,) and the Surgeon charged 3% less if she did not use a credit card. So, to save $300 on the $10,000 surgery, she withdrew cash. As she crossed with her friend that was going to take care of her, both of them answered honestly and were quickly handcuffed and sent for interrogation while the agents said they were counting the cash. My client told the truth, “I have the withdrawal slip for $10,000, and the emails showing my surgery is today!” The Customs agents did not care and they seized the $10,038.00 USD for 31 USC 5317(c)(2), 31 USC 5316(a)(1)(A) for failure/inaccurate report over $10,000 USD out of the U.S. and gave her a letter with no instructions except that she would receive a letter. The Agents said, “You can go into Mexico now, or turn around.” Gee thanks.
So your first thought may be, how the United States Customs and Border Protections FP&F of Fines Penalties & Forfeitures can justify taking $10,038.00 for being $38 dollars over the limit. A ten thousand dollar fine for failure to declare? Well if you do not know how to fight it or think you will get criminally charged and are too scared to fight it, the Customs agent seizing your money will get accolades because he just made a cool $10,000.00 for a perfectly legitimate business transaction in Mexico because most American citizens do not have any idea they have to declare on the way into Mexico and well as on the way back into the United States. As of June 2020, San Ysidro and Otay CBX Passenger Operations has been snagging their easy money both ways.
Luckily, she found San Diego Defenders Law Firm in Chula Vista, just miles from the border at the Tijuana San Ysidro POE and called. I have already contacted the FP&F and let them know I am on the case. And I fully expect to get the money back, although Customs will probably ask for a small fee in return. These old laws that are being used by U.S. Customs are complicated and yes, in theory you could be charged criminally. But I have yet to see that happen to one of my clients because the United States Attorney does not like to lose cases in District Court and I do believe we would prevail.
The seizing of money by US Customs when you are crossing into Mexico is something new. I know clients that have been crossing for years and NEVER have they been asked if they are declaring any cash crossing into Mexico. If you know friends that are crossing into Mexico without declaring, warn them. If they do not listen, give Daniel Smith a call and I will talk to you personally. (619) 258-8888.
