[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: 19CFR163.6]



[Page 274-276]

 

                        TITLE 19--CUSTOMS DUTIES

 

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

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

PART 163_RECORDKEEPING--Table of Contents

 

Sec.  163.6  Production and examination of entry and other records 

and witnesses; penalties.



    (a) Production of entry records. Pursuant to written, oral, or 

electronic notice, any Customs officer may require the production of 

entry records by any person listed in Sec.  163.2(a) who is required 

under this part to maintain such records, even if the entry records were 

required at the time of entry. Any oral demand for entry records shall 

be followed by a written or electronic demand. The entry records shall 

be produced within 30 calendar days of receipt of the demand or within 

any



[[Page 275]]



shorter period as Customs may prescribe when the entry records are 

required in connection with a determination regarding the admissibility 

or release of merchandise. Should any person from whom Customs has 

demanded entry records encounter a problem in timely complying with the 

demand, such person may submit a written or electronic request to 

Customs for approval of a specific additional period of time in which to 

produce the records; the request must be received by Customs before the 

applicable due date for production of the records and must include an 

explanation of the circumstances giving rise to the request. Customs 

will promptly advise the requesting person electronically or in writing 

either that the request is denied or that the requested additional time 

period, or such shorter period as Customs may deem appropriate, is 

approved. The mere fact that a request for additional time to produce 

demanded entry records was submitted under this section shall not by 

itself preclude the imposition of a monetary penalty or other sanction 

under this part for failure to timely produce the records, but no such 

penalty or other sanction will be imposed if the request is approved and 

the records are produced before expiration of that additional period of 

time.

    (b) Failure to produce entry records--(1) Monetary penalties 

applicable. The following penalties may be imposed if a person fails to 

comply with a lawful demand for the production of an entry record and is 

not excused from a penalty pursuant to paragraph (b)(3) of this section:

    (i) If the failure to comply is a result of the willful failure of 

the person to maintain, store, or retrieve the demanded record, such 

person shall be subject to a penalty, for each release of merchandise, 

not to exceed $100,000, or an amount equal to 75 percent of the 

appraised value of the merchandise, whichever amount is less; or

    (ii) If the failure to comply is a result of negligence of the 

person in maintaining, storing, or retrieving the demanded record, such 

person shall be subject to a penalty, for each release of merchandise, 

not to exceed $10,000, or an amount equal to 40 percent of the appraised 

value of the merchandise, whichever amount is less.

    (2) Additional actions--(i) General. In addition to any penalty 

imposed under paragraph (b)(1) of this section, and except as otherwise 

provided in paragraph (b)(2)(ii) of this section, if the demanded entry 

record relates to the eligibility of merchandise for a column 1 special 

rate of duty in the Harmonized Tariff Schedule of the United States 

(HTSUS), the entry of such merchandise:

    (A) If unliquidated, shall be liquidated at the applicable HTSUS 

column 1 general rate of duty; or

    (B) If liquidated within the 2-year period preceding the date of the 

demand, shall be reliquidated, notwithstanding the time limitation in 19 

U.S.C. 1514 or 1520, at the applicable HTSUS column 1 general rate of 

duty.

    (ii) Exception. Any liquidation or reliquidation under paragraph 

(b)(2)(i)(A) or (b)(2)(i)(B) of this section shall be at the applicable 

HTSUS column 2 rate of duty if Customs demonstrates that the merchandise 

should be dutiable at such rate.

    (3) Avoidance of penalties. No penalty may be assessed under 

paragraph (b)(1) of this section if the person who fails to comply with 

a lawful demand for entry records can show:

    (i) That the loss of the demanded record was the result of an act of 

God or other natural casualty or disaster beyond the fault of such 

person or an agent of the person;

    (ii) On the basis of other evidence satisfactory to Customs, that 

the demand was substantially complied with;

    (iii) That the record demanded was presented to and retained by 

Customs at the time of entry or submitted in response to an earlier 

demand; or

    (iv) That he has been certified as a participant in the 

Recordkeeping Compliance Program (see Sec.  163.12), that he is 

generally in compliance with the appropriate procedures and requirements 

of that program, and that the violation in question is his first 

violation and was a non-willful violation.

    (4) Penalties not exclusive. Any penalty imposed under paragraph 

(b)(1) of this section shall be in addition to any other penalty 

provided by law except for:



[[Page 276]]



    (i) A penalty imposed under 19 U.S.C. 1592 for a material omission 

of any information contained in the demanded record; or

    (ii) Disciplinary action taken under 19 U.S.C. 1641.

    (5) Remission or mitigation of penalties. A penalty imposed under 

this section may be remitted or mitigated under 19 U.S.C. 1618.

    (6) Customs summons. The assessment of a penalty under this section 

shall not limit or preclude the issuance or enforcement of a summons 

under this part.

    (c) Examination of entry and other records--(1) Reasons for 

examination. Customs may initiate an investigation or compliance 

assessment, audit or other inquiry for the purpose of:

    (i) Ascertaining the correctness of any entry, determining the 

liability of any person for duties, taxes and fees due or duties, taxes 

and fees which may be due, or determining the liability of any person 

for fines, penalties and forfeitures; or

    (ii) Ensuring compliance with the laws and regulations administered 

or enforced by Customs.

    (2) Availability of records. During the course of any investigation 

or compliance assessment, audit or other inquiry, any Customs officer, 

during normal business hours, and to the extent possible at a time 

mutually convenient to the parties, may examine, or cause to be 

examined, any relevant entry or other records by providing the person 

responsible for such records with reasonable written, oral or electronic 

notice that describes the records with reasonable specificity. The 

examination of entry records shall be subject to the notice and 

production procedures set forth in paragraph (a) of this section, and a 

failure to produce entry records may result in the imposition of 

penalties or the taking of other action as provided in paragraph (b) of 

this section.

    (3) Examination notice not exclusive. In addition to, or in lieu of, 

issuance of an examination notice under paragraph (c)(2) of this 

section, Customs may issue a summons pursuant to Sec.  163.7, and seek 

its enforcement pursuant to Sec. Sec.  163.9 and 163.10, to compel the 

production of any records required to be maintained and produced under 

this chapter.



[T.D. 98-56, 63 FR 32946, June 16, 1998; 63 FR 34808, June 26, 1998]