Set out the response issues on a customs monetary-penalty notice

Key facts

Human involvement

Red · Lawyer-led

How AI is used

From the written notice, extract the merchandise, the entry details, the laws and regulations alleged, the material facts, whether the notice says fraud, gross negligence, or negligence, the estimated loss of duties, taxes, and fees, and the proposed penalty. Beside the level the notice states, set the maximum in 19 U.S.C. 1592(c) for that level. List the date any representation is due if the notice states one. Do not choose the response.

What the lawyer must review

19 U.S.C. 1592(b) requires a written pre-penalty notice when CBP has reasonable cause to believe there was a violation and determines that further proceedings are warranted, and it gives a reasonable opportunity to respond. The notice step does not apply to a noncommercial importation or where the penalty claimed is $1,000 or less. The civil maximum is the domestic value for fraud; for gross negligence the lesser of domestic value or four times the lawful duties, taxes, and fees, or 40 percent of dutiable value if assessment was not affected; for negligence the lesser of domestic value or two times those duties, taxes, and fees, or 20 percent of dutiable value if assessment was not affected. If duties were lost, section 1592 requires them to be restored whether or not a penalty is assessed. The entry obligation of reasonable care is 19 U.S.C. 1484. The lawyer decides the response.

Written for / version

United States versionUS