19 CFR 162.73 – Penalties under section 592, Tariff Act of 1930, as amended
(a) Maximum penalty without prior disclosure. If the person concerned has not made a prior disclosure as provided in § 162.74, the monetary penalty under section 592, Tariff Act of 1930, as amended (19 U.S.C. § 1592), shall not exceed:
Terms Used In 19 CFR 162.73
- Clerical error: means an error in the preparation, assembly, or submission of a document which results when a person intends to do one thing but does something else. See 19 CFR 162.71
- Duties: means Customs duties and any internal revenue taxes which attach upon importation. See 19 CFR 101.1
- Loss of duties: means the duties of which the Government is or may be deprived by reason of the violation and includes both actual and potential loss of duties. See 19 CFR 162.71
- Mistake of fact: means an action based upon a belief by a person that the material facts are other than they really are; it can be that a fact exists but is unknown to the person, or that he believes something is a fact when in reality it is not. See 19 CFR 162.71
(1) For fraudulent violations, the domestic value of the merchandise;
(2) For grossly negligent violations,
(i) The lesser of the domestic value of the merchandise or four times the loss of duties, taxes and fees or
(ii) If there is no loss of duties, taxes and fees 40 percent of the dutiable value of the merchandise; and
(3) For negligent violations,
(i) The lesser of the domestic value of the merchandise or two times the loss of duties, taxes and fees or
(ii) If there is no loss of duties, taxes and fees 20 percent of the dutiable value of the merchandise.
(b) Maximum penalty with prior disclosure. If the person concerned has made a prior disclosure, the monetary penalty shall not exceed:
(1) For fraudulent violations,
(i) One times the loss of duties, taxes and fees or
(ii) If there is no loss of duties, taxes and fees 10 percent of the dutiable value of the merchandise; and
(2) For grossly negligent and negligent violations, the interest on any loss of duties, taxes and fees. The interest shall be computed from the date of liquidation at the prevailing rate of interest applied under section 6621, Internal Revenue Code of 1954, as amended (26 U.S.C. § 6621).
(c) Exception; clerical error or mistake of fact. There is no violation and, consequently, no penalty incurred, if the falsity or omission is due solely to clerical error or mistake of fact, unless the error or mistake is part of the pattern of negligent conduct.