[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR162.77]

[Page 263]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 162--INSPECTION, SEARCH, AND SEIZURE--Table of Contents
 
          Subpart G--Special Procedures for Certain Violations
 
Sec. 162.77  Prepenalty notice for violations of section 592, Tariff Act of 1930, as amended.

    (a) When required. If the Fines, Penalties, and Forfeitures Officer 
has reasonable cause to believe that a violation of section 592, Tariff 
Act of 1930, as amended (19 U.S.C. 1592), has occurred, and determines 
that further proceedings are warranted, he shall issue to the person 
concerned a notice of his intent to issue a claim for a monetary 
penalty. The prepenalty notice shall be issued whether or not a seizure 
has been made.
    (b) Contents--(1) Facts of violation. The prepenalty notice shall:
    (i) Describe the merchandise,
    (ii) Set forth the details of the entry or introduction, the 
attempted entry or introduction, or the aiding or abetting of the entry, 
introduction, or attempt,
    (iii) Specify all laws and regulatons allegedly violated,
    (iv) Disclose all material facts which establish the alleged 
violation,
    (v) State whether the alleged violation occured as the result of 
fraud, gross negligence, or negligence, and
    (vi) State the estimated loss of duties, if any, and, taking into 
account all circumstances, the amount of the proposed monetary penalty.
    (2) Right to make presentations. The prepenalty notice also shall 
inform the person of his right to make an oral and a written 
presentation within 30 days of the mailing of the notice (or such 
shorter period as may be prescribed under Sec. 162.78) as to why a claim 
for a monetary penalty should not be issued or, if issued, why it should 
be in a lesser amount than proposed.
    (c) Exceptions. A prepenalty notice shall not be issued if:
    (1) The claim is for $1,000 or less, or
    (2) The violation occurred with respect to a noncommercial 
importation.

[T.D. 79-160, 44 FR 31958, June 4, 1979, as amended by T.D. 99-27, 64 FR 
13676, Mar. 22, 1999]