Fines, Penalties & Forfeitures
October 2023 — Question 64
What would the proposed penalty amount be under the following facts? In a negligence case brought against an importer of seamless, steel pipe from China that was subject to Section 301 duties of 15% ad valorem, the loss of revenue is $300,000.00. The entered value of the pipe is $500,000.00. The domestic value is $900,000.00. CBP has decided to proceed with the issuance of a pre-penalty notice alleging negligent violations of 19 U.S.C. § 1592. The importer has not made a prior disclosure.
- A$100,000.00, or twenty percent (20%) of the entered value.
- B$600,000.00, or two times the loss of revenue.✓ CBP's answer
- C$900,000.00, or the domestic value.
- D$1,800,000, or two times the domestic value.
Why this answer
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CBP's cited authority
Answer and citations as published in CBP's official answer key for the October 2023 examination.
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