CCS Fines, Penalties, and Forfeitures 3

Question 1

Under the Customs Modernization Act, the 'reasonable care' standard places primary compliance responsibility on:

Accepted Answer

The importer of record

Answer

The Mod Act shifted compliance responsibility to the importer of record, who must exercise reasonable care in all entry submissions.

Question 2

A penalty notice issued under 19 USC 1592 for a negligence violation where no duties were unpaid would be based on:

Accepted Answer

20% of the dutiable value of the merchandise

Answer

For negligence violations with no revenue loss, the penalty is based on 20% of the dutiable value of the merchandise.

Question 3

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?

Accepted Answer

Counterfeit trademarked goods imported in violation of 15 USC 1124

Answer

Counterfeit goods violating trademark law under 15 USC 1124 are subject to seizure and forfeiture under 19 USC 1595a(c).

Question 4

The statute of limitations for CBP to issue a penalty under 19 USC 1592 is generally:

Accepted Answer

5 years from the date of the violation

Answer

CBP generally has 5 years from the date of the violation to issue a penalty notice under 19 USC 1592.

Question 5

In a forfeiture proceeding, a 'cost bond' is required from a claimant primarily to:

Accepted Answer

Cover CBP's costs if the claimant loses the court case

Answer

The cost bond ensures the claimant will pay the government's costs if the forfeiture is ultimately upheld by the court.

(CCS) Certified Customs Specialist Practice Test