[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: 19CFR162.77a]

[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. 162.77a  Prepenalty notice for violation of section 593A, Tariff Act of 1930, as amended.

    (a) When required. If the appropriate Customs field officer has 
reasonable cause to believe that a violation of section 593A, Tariff Act 
of 1930, as amended (19 U.S.C. 1593a) has occurred, and determines that 
further proceedings are warranted, the officer will issue to the person 
concerned a notice of intent to issue a claim for a monetary penalty.
    (b) Contents--(1) Facts of violation. The prepenalty notice will:
    (i) Identify the drawback claim;
    (ii) Set forth the details relating to the seeking, inducing, or 
affecting, or the attempted seeking, inducing, or affecting, or the 
aiding or procuring of, the drawback claim;
    (iii) Specify all laws and regulations allegedly violated;
    (iv) Disclose all the material facts which establish the alleged 
violation;
    (v) State whether the alleged violation occurred as a result of 
fraud or negligence; and
    (vi) State the estimated actual or potential loss of revenue due to 
the drawback claim and, taking into account all circumstances, the 
amount of the proposed monetary penalty.
    (2) Right to make presentations. The prepenalty notice also will 
inform the person of his right to make an oral and a written 
presentation within 30 days of 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 will not be issued for a 
violation of 19 U.S.C. 1593a if the amount of the proposed monetary 
penalty is $1,000 or less.
    (d) Prior approval. If an alleged violation of 19 U.S.C. 1593a 
occurred as a result of fraud, a prepenalty notice will not be issued 
without prior approval by Customs Headquarters.

[T.D. 00-5; 65 FR 3809, Jan. 25, 2000]