CCS - Certified Customs Specialist Fines, Penalties, and Forfeitures Questions and Answers

Question 1

An importer mistakenly undervalues a shipment due to a clerical error that is part of a pattern of such errors, resulting in a $25,000 loss of revenue to CBP.
CBP determines the violation was due to negligence.
What is the maximum statutory penalty CBP can assess before considering any mitigating factors?

Accepted Answer

$50,000.

Answer

The domestic value of the merchandise.

Answer

$25,000, which is the amount of revenue lost.

Answer

$100,000.

Question 2

Which of the following is a key element CBP must prove to establish a claim for a civil penalty under 19 U.S.C. 1592 for fraud?

Accepted Answer

The violation was committed knowingly and intentionally.

Answer

The importer failed to exercise the standard of reasonable care.

Answer

The violation resulted from an act done with wanton disregard for the relevant obligations.

Answer

The importer failed to maintain records for the statutory five-year period.

Question 3

An importer receives a Pre-Penalty Notice from CBP alleging a violation of 19 U.S.C. 1592. The notice proposes a substantial penalty for gross negligence. What is the importer's primary administrative recourse at this stage of the process?

Accepted Answer

Submit a written response to the issuing Fines, Penalties, and Forfeitures (FP&F) office to present arguments against the proposed penalty.

Answer

File a lawsuit in the Court of International Trade.

Answer

File a Prior Disclosure to mitigate the penalty.

Answer

Immediately pay the proposed penalty to avoid further action.

Question 4

A shipment of merchandise prohibited from importation under a health and safety statute is discovered at the port. Under 19 U.S.C. 1595a(b), in addition to seizing the goods, what action can CBP take against a person who knowingly assisted in the unlawful importation?

Accepted Answer

Assess a monetary penalty equal to the domestic value of the merchandise.

Answer

Issue a claim for liquidated damages against the carrier's bond.

Answer

Assess a penalty of two times the loss of revenue.

Answer

Require the person to enroll in a C-TPAT program.

Question 5

Generally, what is the statute of limitations for CBP to initiate a penalty action for a violation of 19 U.S.C. 1592 that is based on negligence or gross negligence?

Accepted Answer

Five years from the date of the alleged violation.

Answer

Three years from the date of liquidation.

Answer

Five years from the date of discovery of the violation.

Answer

Seven years from the date of importation.

Question 6

CBP issues a Notice of Redelivery (CBP Form 4647) for a conditionally released shipment, but the importer fails to return the goods to CBP custody as demanded. This failure is a breach of the customs bond. What is the primary enforcement action CBP will take?

Accepted Answer

Issue a claim for liquidated damages against the importer and their surety.

Answer

Issue a penalty for negligence under 19 U.S.C. 1592.

Answer

Refer the case to the Department of Justice for criminal prosecution.

Answer

Seize the importer's assets up to the value of the goods.