[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR162.73]

[Page 259]
 
                        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. 162.73  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 Sec. 162.74, 
the monetary penalty under section 592, Tariff Act of 1930, as amended 
(19 U.S.C. 1592), shall not exceed:
    (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.

[T.D. 79-160, 44 FR 31958, June 4, 1979, as mended by T.D. 99-64, 64 FR 
43267, Aug. 10, 1999]