Fines, Penalties & Forfeitures
April 2018 — Question 66
A broker unknowingly employs a convicted felon and 1 year after employment discovers the existence of such a conviction. Which penalty action listed below would not lie?
- AIf he seeks approval of the Secretary within 30 days after discovery of the existence of the conviction, no penalty will be assessed
- BIf he seeks approval at some time after 30 days from the date of discovery, a $5,000 penalty would be assessed
- CIf he does not seek approval until after Customs becomes aware of the violation, a $10,000 penalty would be assessed✓ CBP's answer
- DIf he does not seek approval until after Customs becomes aware of the violation, a $25,000 penalty would be assessed
- EIf he seeks approval, but is denied, and continues to employ the convicted felon, a $30,000 penalty would be assessed
Why this answer
Under 19 U.S.C. 1641 and the broker penalty guidelines accompanying part 171 as tested, a broker who unknowingly employs a convicted felon faces a graduated scheme: seeking the Secretary's approval within 30 days of discovering the conviction avoids any penalty; seeking it later draws $5,000; failing to seek approval until Customs itself uncovers the violation draws $25,000; and continuing the employment after approval is denied draws $30,000. A $10,000 penalty appears nowhere in that schedule, so option C describes a penalty action that would not lie. Option D tempts because it states the correct consequence for exactly the same conduct. Watch for: Marking the $25,000 figure wrong because it seems harsh, when $10,000 is the amount the guidelines never use.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the April 2018 examination.
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