[Code of Federal Regulations]

[Title 19, Volume 2]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR162.73]



[Page 259-260]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

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



[[Page 260]]



    (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]