Fines, Penalties, and Forfeitures Flashcards
7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Fines, Penalties, and Forfeitures flashcards as text
Under the Customs Modernization Act, the 'reasonable care' standard places primary compliance responsibility on:
Answer: The importer of record
The Mod Act shifted compliance responsibility to the importer of record, who must exercise reasonable care in all entry submissions.
A penalty notice issued under 19 USC 1592 for a negligence violation where no duties were unpaid would be based on:
Answer: 20% of the dutiable value of the merchandise
For negligence violations with no revenue loss, the penalty is based on 20% of the dutiable value of the merchandise.
Under 19 USC 1595a(c), merchandise may be seized and forfeited if it was imported contrary to law. Which of the following is an example?
Answer: Counterfeit trademarked goods imported in violation of 15 USC 1124
Counterfeit goods violating trademark law under 15 USC 1124 are subject to seizure and forfeiture under 19 USC 1595a(c).
The statute of limitations for CBP to issue a penalty under 19 USC 1592 is generally:
Answer: 5 years from the date of the violation
CBP generally has 5 years from the date of the violation to issue a penalty notice under 19 USC 1592.
In a forfeiture proceeding, a 'cost bond' is required from a claimant primarily to:
Answer: Cover CBP's costs if the claimant loses the court case
The cost bond ensures the claimant will pay the government's costs if the forfeiture is ultimately upheld by the court.
Which section of the Tariff Act governs penalties for importation of merchandise by means of false statements (entry fraud)?
Answer: 19 USC 1592
19 USC 1592 is the primary statute covering penalties for material false statements, omissions, or fraud in connection with the entry of merchandise.
An importer who files a Prior Disclosure for a negligence violation and tenders unpaid duties would generally face a maximum penalty of:
Answer: No penalty
Under 19 USC 1592(c)(4), a valid Prior Disclosure for a negligence violation results in no penalty beyond payment of unpaid duties and interest.