[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: 19CFR162.77a]



[Page 265-266]

 

                        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.  162.77a  Prepenalty notice for violation of section 593A, Tariff 

Act of 1930, as amended.



    (a) When required. If the appropriate Customs field officer has 

reasonable cause to believe that a violation of section 593A, Tariff Act 

of 1930, as amended (19 U.S.C. 1593a) has occurred, and determines that 

further proceedings are warranted, the officer will issue to the person 

concerned a notice of intent to issue a claim for a monetary penalty.

    (b) Contents--(1) Facts of violation. The prepenalty notice will:

    (i) Identify the drawback claim;

    (ii) Set forth the details relating to the seeking, inducing, or 

affecting, or the attempted seeking, inducing, or affecting, or the 

aiding or procuring of, the drawback claim;

    (iii) Specify all laws and regulations allegedly violated;

    (iv) Disclose all the material facts which establish the alleged 

violation;

    (v) State whether the alleged violation occurred as a result of 

fraud or negligence; and

    (vi) State the estimated actual or potential loss of revenue due to 

the drawback claim and, taking into account all circumstances, the 

amount of the proposed monetary penalty.



[[Page 266]]



    (2) Right to make presentations. The prepenalty notice also will 

inform the person of his right to make an oral and a written 

presentation within 30 days of mailing of the notice (or such shorter 

period as may be prescribed under Sec.  162.78) as to why a claim for a 

monetary penalty should not be issued or, if issued, why it should be in 

a lesser amount than proposed.

    (c) Exceptions. A prepenalty notice will not be issued for a 

violation of 19 U.S.C. 1593a if the amount of the proposed monetary 

penalty is $1,000 or less.

    (d) Prior approval. If an alleged violation of 19 U.S.C. 1593a 

occurred as a result of fraud, a prepenalty notice will not be issued 

without prior approval by Customs Headquarters.



[T.D. 00-5; 65 FR 3809, Jan. 25, 2000]