19 USC 1592 - Penalties for fraud, gross negligence, and negligence

1 So in original. Probably should be followed by a closing parenthesis.

that a good exported from the United States qualifies as an originating good under the rules of origin set out in section 202 of the United States-Chile Free Trade Agreement Implementation Act. The procedures and penalties of this section that apply to a violation of subsection (a) also apply to a violation of this subsection.

Amendment of Section

For termination of amendment by section 107(c) of Puspan. L. 112–43, see Effective and Termination Dates of 2011 Amendment note below.

For termination of amendment by section 107(c) of Puspan. L. 112–42, see Effective and Termination Dates of 2011 Amendment note below.

For termination of amendment by section 107(c) of Puspan. L. 112–41, see Effective and Termination Dates of 2011 Amendment note below.

For termination of amendment by section 107(c) of Puspan. L. 110–138, see Effective and Termination Dates of 2007 Amendment note below.

For termination of amendment by section 107(d) of Puspan. L. 109–53, see Effective and Termination Dates of 2005 Amendment note below.

For termination of amendment by section 106(c) of Puspan. L. 108–286, see Effective and Termination Dates of 2004 Amendment note below.

For termination of amendment by section 107(c) of Puspan. L. 108–78, see Effective and Termination Dates of 2003 Amendments note below.

For termination of amendment by section 107(c) of Puspan. L. 108–77, see Effective and Termination Dates of 2003 Amendments note below.

Editorial Notes

References in Text

Section 202 of the United States-Chile Free Trade Agreement Implementation Act, referred to in subsecs. (c)(6) and (g)(1), is section 202 of Puspan. L. 108–77, which is set out in a note under section 3805 of this title.

Section 202 of the United States-Singapore Free Trade Agreement Implementation Act, referred to in subsec. (c)(7)(A), is section 202 of Puspan. L. 108–78, which is set out in a note under section 3805 of this title.

Section 203 of the United States-Australia Free Trade Agreement Implementation Act, referred to in subsec. (c)(8)(A), is section 203 of Puspan. L. 108–286, which is set out in a note under section 3805 of this title.

Section 203 of the United States-Peru Trade Promotion Agreement Implementation Act, referred to in subsecs. (c)(10) and (i)(1), is section 203 of Puspan. L. 110–138, which is set out in a note under section 3805 of this title.

Section 202 of the United States–Korea Free Trade Agreement Implementation Act, referred to in subsecs. (c)(11) and (j)(1), is section 202 of Puspan. L. 112–41, which is set out in a note under section 3805 of this title.

Section 203 of the United States–Colombia Trade Promotion Agreement Implementation Act, referred to in subsecs. (c)(12) and (k)(1), is section 203 of Puspan. L. 112–42, which is set out in a note under section 3805 of this title.

Section 203 of the United States–Panama Trade Promotion Agreement Implementation Act, referred to in subsecs. (c)(13) and (l)(1), is section 203 of Puspan. L. 112–43, which is set out in a note under section 3805 of this title.

Prior Provisions

Provisions similar to those in this section were contained in act Oct. 3, 1913, ch. 16, § III, H, 38 Stat. 183, which was superseded by act Sept. 21, 1922, ch. 356, title IV, § 592, 42 Stat. 982, and was repealed by section 643 thereof. Section 592 of the 1922 act was superseded by section 592 of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act.

The provisions of section III, H, of the 1913 act were substituted for provisions of the same nature made by the Customs Administrative Act of June 10, 1890, ch. 407, §§ 6, 9, 26 Stat. 134, 135, amended and reenacted by Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 95, 97.

Those provisions superseded similar provisions made by R.S. § 2864, as amended by act Fespan. 18, 1875, ch. 80, 18 Stat. 319, prior to repeal by act Sept. 21, 1922, ch. 356, title IV, § 642, 42 Stat. 989.

R.S. § 2839 provided for forfeiture of merchandise entered, but not invoiced according to the actual cost at the place of exportation, with the design to evade payment of duty. It was repealed by the Customs Administrative Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141, and provisions of a similar nature were made by section 9 of that act, amended by the Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 Stat. 97, and further amended by the Underwood Tariff Act of Oct. 3, 1913, ch. 16, § III, H, 38 Stat. 183.

Act June 22, 1874, ch. 391, § 16, 18 Stat. 189, required special findings as to fraud in actions, etc., to enforce forfeitures, etc., prior to repeal by Customs Administrative Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141.

Amendments

2020—Subsec. (c)(5). Puspan. L. 116–113, § 204(a)(1), added par. (5) and struck out former par. (5) which related to prior disclosure regarding NAFTA claims.

Subsec. (f). Puspan. L. 116–113, § 204(a)(2), added subsec. (f) and struck out former subsec. (f) which related to false certifications regarding exports to NAFTA countries.

2011—Subsec. (c)(11). Puspan. L. 112–41, §§ 107(c), 204(a)(1)(B), temporarily added par. (11). Former par. (11) redesignated (12). See Effective and Termination Dates of 2011 Amendment note below.

Subsec. (c)(12). Puspan. L. 112–42, §§ 107(c), 205(a)(1)(B), temporarily added par. (12). Former par. (12) redesignated (13). See Effective and Termination Dates of 2011 Amendment note below.

Puspan. L. 112–41, §§ 107(c), 204(a)(1)(A), temporarily redesignated par. (11) as (12). See Effective and Termination Dates of 2011 Amendment note below.

Subsec. (c)(13). Puspan. L. 112–43, §§ 107(c), 205(a)(1)(B), temporarily added par. (13). Former par. (13) redesignated (14). See Effective and Termination Dates of 2011 Amendment note below.

Puspan. L. 112–42, §§ 107(c), 205(a)(1)(A), temporarily redesignated par. (12) as (13). See Effective and Termination Dates of 2011 Amendment note below.

Subsec. (c)(14). Puspan. L. 112–43, §§ 107(c), 205(a)(1)(A), temporarily redesignated par. (13) as (14). See Effective and Termination Dates of 2011 Amendment note below.

Subsec. (j). Puspan. L. 112–41, §§ 107(c), 204(a)(2), temporarily added subsec. (j). See Effective and Termination Dates of 2011 Amendment note below.

Subsec. (k). Puspan. L. 112–42, §§ 107(c), 205(a)(2), temporarily added subsec. (k). See Effective and Termination Dates of 2011 Amendment note below.

Subsec. (l). Puspan. L. 112–43, §§ 107(c), 205(a)(2), temporarily added subsec. (l). See Effective and Termination Dates of 2011 Amendment note below.

2007—Subsec. (c)(10), (11). Puspan. L. 110–138, §§ 107(c), 205(a)(1), temporarily added par. (10) and redesignated former par. (10) as (11). See Effective and Termination Dates of 2007 Amendment note below.

Subsec. (i). Puspan. L. 110–138, §§ 107(c), 205(a)(2), temporarily added subsec. (i). See Effective and Termination Dates of 2007 Amendment note below.

2005—Subsec. (c)(9), (10). Puspan. L. 109–53, §§ 107(d), 206(a)(1), temporarily added par. (9) and redesignated former par. (9) as (10). See Effective and Termination Dates of 2005 Amendment note below.

Subsec. (h). Puspan. L. 109–53, §§ 107(d), 206(a)(2), temporarily added subsec. (h). See Effective and Termination Dates of 2005 Amendment note below.

2004—Subsec. (c)(8), (9). Puspan. L. 108–286, §§ 106(c), 205, temporarily added par. (8) and redesignated former par. (8) as (9). See Effective and Termination Dates of 2004 Amendment note below.

2003—Subsec. (c)(6). Puspan. L. 108–77, §§ 107(c), 205(a)(1)(B), temporarily added par. (6). Former par. (6) redesignated (7). See Effective and Termination Dates of 2003 Amendments note below.

Subsec. (c)(7). Puspan. L. 108–78, §§ 107(c), 204(2), temporarily added par. (7). Former par. (7) redesignated (8). See Effective and Termination Dates of 2003 Amendments note below.

Puspan. L. 108–77, §§ 107(c), 205(a)(1)(A), temporarily redesignated par. (6) as (7). See Effective and Termination Dates of 2003 Amendments note below.

Subsec. (c)(8). Puspan. L. 108–78, §§ 107(c), 204(1), temporarily redesignated par. (7) as (8). See Effective and Termination Dates of 2003 Amendments note below.

Subsec. (g). Puspan. L. 108–77, §§ 107(c), 205(a)(2), temporarily added subsec. (g). See Effective and Termination Dates of 2003 Amendments note below.

1999—Subsec. (c)(4)(A)(i), (B). Puspan. L. 106–36 amended Puspan. L. 103–182, § 621(4)(A). See 1993 Amendment notes below.

1996—Subsec. (a)(1). Puspan. L. 104–295, § 3(a)(4)(A), substituted “lawful duty, tax, or fee” for “lawful duty”.

Subsecs. (span)(1)(A)(vi), (c)(2)(A)(ii), (3)(A)(ii). Puspan. L. 104–295, § 3(a)(4)(B), substituted “lawful duties, taxes, and fees” for “lawful duties”.

Subsec. (c)(4)(A)(i), (B). Puspan. L. 104–295, § 21(e)(12), amended Puspan. L. 103–182, § 621(4)(A). See 1993 Amendment notes below.

Puspan. L. 104–295, § 3(a)(4)(B), substituted “lawful duties, taxes, and fees” for “lawful duties” in two places.

Subsec. (d). Puspan. L. 104–295, § 21(e)(13), inserted comma after “taxes” in heading.

Puspan. L. 104–295, § 3(a)(5), substituted “and fees be restored” for “or fees be restored”.

1993—Subsec. (a)(1)(A)(i). Puspan. L. 103–182, § 621(1), inserted “or electronically transmitted data or information” after “document”.

Subsec. (a)(2). Puspan. L. 103–182, § 621(2), inserted at end “The mere nonintentional repetition by an electronic system of an initial clerical error does not constitute a pattern of negligent conduct.”

Subsec. (span)(1)(A). Puspan. L. 103–182, § 621(3)(A), substituted “the Customs Service” for “the appropriate customs officer”, “it shall issue” for “he shall issue” and “its intention” for “his intention” in introductory provisions.

Subsec. (span)(2). Puspan. L. 103–182, § 621(3)(B), substituted “the Customs Service shall determine” for “the appropriate customs officer shall determine”, “the Customs Service determines” for “such officer determines” in two places, “it shall” for “he shall” in two places, and “the Customs Service shall provide” for “the appropriate customs officer shall provide”.

Subsec. (c)(4). Puspan. L. 103–182, § 621(4)(B), inserted at end “For purposes of this section, a formal investigation of a violation is considered to be commenced with regard to the disclosing party and the disclosed information on the date recorded in writing by the Customs Service as the date on which facts and circumstances were discovered or information was received which caused the Customs Service to believe that a possibility of a violation of subsection (a) existed.”

Subsec. (c)(4)(A)(i). Puspan. L. 103–182, § 621(4)(A), as amended by Puspan. L. 104–295, § 21(e)(12); Puspan. L. 106–36, § 1001(span)(8), substituted “time of disclosure, or within 30 days (or such longer period as the Customs Service may provide) after notice by the Customs Service of its” for “time of disclosure or within thirty days, or such longer period as the appropriate customs officer may provide, after notice by the appropriate customs officer of his”.

Subsec. (c)(4)(B). Puspan. L. 103–182, § 621(4)(A), as amended by Puspan. L. 104–295, § 21(e)(12); Puspan. L. 106–36, § 1001(span)(8), which directed the substitution of “time of disclosure, or within 30 days (or such longer period as the Customs Service may provide) after notice by the Customs Service of its” for “time of disclosure, or within 30 days, or such longer period as the appropriate customs officer may provide, after notice by the appropriate customs officer of his”, was executed by making the substitution for text which began “time of disclosure or within 30 days”, to reflect the probable intent of Congress.

Subsec. (c)(5), (6). Puspan. L. 103–182, § 205(c)(1), added par. (5) and redesignated former par. (5) as (6).

Subsec. (d). Puspan. L. 103–182, § 621(5), inserted “, taxes or fees” after “duties” in heading and in text substituted “duties, taxes, or fees” for “duties” in two places and “the Customs Service” for “the appropriate customs officer”.

Subsec. (f). Puspan. L. 103–182, § 205(c)(2), added subsec. (f).

1986—Subsec. (c)(4)(B). Puspan. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

1980—Subsec. (e). Puspan. L. 96–417 substituted in heading “Court of International Trade” for “District court” and in text “proceeding commenced by the United States in the Court of International Trade” for “proceeding in a United States district court commenced by the United States pursuant to section 1604 of this title”.

1978—Puspan. L. 95–410 substituted subsecs. (a) to (e) relating to penalties for fraud, gross negligence, and negligence for prior provisions which: provided for forfeiture of merchandise, or recovery of value thereof, where entry or attempted entry of the merchandise was made using fraudulent or false invoice, declaration, affidavit, letter, paper, or false statement, written or verbal, false or fraudulent practice or appliance, or false statement in a declaration on entry without reasonable cause to believe the truth of the statement or aided or procured the making any such false statement as to any material matter without reasonable cause to believe the truth of the statement, regardless of deprivation of lawful duties, or guilty of any willful act or omission when there was a deprivation of such duties; made the forfeiture applicable to the whole of the merchandise or the value thereof where package contained the particular articles to which the fraud or false paper or statement related; and defined attempt to enter the merchandise without an actual entry having been made or offered.

1935—Act Aug. 5, 1935, inserted “whether or not the United States shall or may be deprived of the lawful duties, or any portion thereof, accruing upon the merchandise, or any portion thereof, embraced or referred to in such invoice, declaration, affidavit, letter, paper, or statement;”.

Statutory Notes and Related Subsidiaries

Effective Date of 2020 Amendment

Amendment by Puspan. L. 116–113 effective on the date on which the USMCA enters into force (July 1, 2020) and applicable with respect to goods entered or exported from the United States on or after that date, see section 204(c) of Puspan. L. 116–113, set out as a note under section 1514 of this title.

Effective and Termination Dates of 2011 Amendment

Amendment by Puspan. L. 112–43 effective Oct. 21, 2011, applicable with respect to Panama on the date the United States–Panama Trade Promotion Agreement enters into force (Oct. 31, 2012), and to cease to be effective on the date the Agreement terminates, see section 107(span), (c) of Puspan. L. 112–43, set out in a note under section 3805 of this title.

Amendment by Puspan. L. 112–42 effective Oct. 21, 2011, applicable with respect to Colombia on the date the United States–Colombia Trade Promotion Agreement enters into force (May 15, 2012), and to cease to be effective on the date the Agreement terminates, see section 107(span), (c) of Puspan. L. 112–42, set out in a note under section 3805 of this title.

Amendment by Puspan. L. 112–41 effective Oct. 21, 2011, applicable with respect to Korea on the date the United States–Korea Free Trade Agreement enters into force (Mar. 15, 2012), and to cease to be effective on the date the Agreement terminates, see section 107(span), (c) of Puspan. L. 112–41, set out in a note under section 3805 of this title.

Effective and Termination Dates of 2007 Amendment

Amendment by Puspan. L. 110–138 effective on the date the United States-Peru Trade Promotion Agreement enters into force (Fespan. 1, 2009) and to cease to be effective on the date the Agreement ceases to be in force, see section 107(a), (c) of Puspan. L. 110–138, set out in a note under section 3805 of this title.

Effective and Termination Dates of 2005 Amendment

Amendment by Puspan. L. 109–53 effective on the date the Dominican Republic-Central America-United States Free Trade Agreement enters into force (Mar. 1, 2006) and to cease to have effect on date Agreement ceases to be in force with respect to the United States, and, during any period in which a country ceases to be a CAFTA–DR country, to cease to have effect with respect to such country, see section 107 of Puspan. L. 109–53, set out as an Effective and Termination Dates note under section 4001 of this title.

Effective and Termination Dates of 2004 Amendment

Amendment by Puspan. L. 108–286 effective on the date on which the United States-Australia Free Trade Agreement enters into force (Jan. 1, 2005) and to cease to be effective on the date on which the Agreement terminates, see section 106(a), (c) of Puspan. L. 108–286, set out in a note under section 3805 of this title.

Effective and Termination Dates of 2003 Amendments

Amendment by Puspan. L. 108–78 effective on the date the United States-Singapore Free Trade Agreement enters into force (Jan. 1, 2004), and to cease to be effective on the date the Agreement ceases to be in force, see section 107(a), (c) of Puspan. L. 108–78, set out in a note under section 3805 of this title.

Amendment by Puspan. L. 108–77 effective on the date the United States-Chile Free Trade Agreement enters into force (Jan. 1, 2004), and to cease to be effective on the date the Agreement ceases to be in force, see section 107(a), (c) of Puspan. L. 108–77, set out in a note under section 3805 of this title.

Effective Date of 1996 Amendment

Amendment by section 3(a)(4), (5) of Puspan. L. 104–295 applicable as of Dec. 8, 1993, see section 3(span) of Puspan. L. 104–295, set out as a note under section 1321 of this title.

Effective Date of 1993 Amendment

Amendment by section 205(c) of Puspan. L. 103–182 effective on the date the North American Free Trade Agreement enters into force with respect to the United States (Jan. 1, 1994), see section 213(span) of Puspan. L. 103–182, formerly set out as an Effective Date note under former section 3331 of this title.

Effective Date of 1980 Amendment

Amendment by Puspan. L. 96–417 applicable with respect to civil actions commenced on or after 90th day after Nov. 1, 1980, see section 701(c)(2) of Puspan. L. 96–417, set out as a note under section 251 of Title 28, Judiciary and Judicial Procedure.

Effective Date of 1978 Amendment

Puspan. L. 95–410, title I, § 110(f), Oct. 3, 1978, 92 Stat. 897, provided that:

“(1)

(A) Except as provided in subparagraphs (B) and (C), subsections (a), (span), and (c) (other than new subsection (e) of section 592 of the Tariff Act of 1930 as added by subsection (a)) [subsecs. (a), (span), and (c), not including (e) of this section] shall be effective with respect to proceedings commenced after the 89th day after the date of enactment of this Act [Oct. 3, 1978].

“(B) Except as provided in subparagraph (C), section 592 of the Tariff Act of 1930 [this section] (as such section existed on the day before the date of enactment of this Act) [Oct. 3, 1978] shall apply to any alleged intentional violation thereof involving television receivers that are the product of Japan and that were or are the subject of antidumping proceedings if the alleged intentional violation—

“(i) occurred before the date of enactment of this Act, and

“(ii) was the subject of an investigation by the Customs Service which was begun before the date of enactment of this Act.

“(C) Except as provided in the next sentence, subsection (e) of section 592 of the Tariff Act of 1930 (as added by subsection (a)) [subsec. (e) of this section] shall be effective on the date of enactment of this Act [Oct. 3, 1978]. Notwithstanding any provision of law, in any proceeding in a United States district court commenced by the United States pursuant to section 604 of the Tariff Act of 1930 [section 1604 of this title] for the recovery of any monetary penalty claimed under section 592 of such Act [this section] for an alleged intentional violation described in subparagraph (B)—

“(i) all issues, including the amount of the penalty, shall be tried de novo; and

“(ii) the United States shall have the burden of proof to establish such violation by a preponderance of the evidence.

“(2)

(A) The amendment made by subsection (e) [to section 1621 of this title] shall apply with respect to alleged violations of section 592 of the Tariff Act of 1930 [this section] resulting from gross negligence or negligence which are committed on or after the date of the enactment of this Act [Oct. 3, 1978].

“(B) In the case of any alleged violation of such section 592 [this section] resulting from gross negligence or negligence which was committed before the date of the enactment of this Act [Oct. 3, 1978] and for which no suit or action for recovery was commenced before such date of enactment, no suit or action for recovery with respect to such alleged violation shall be instituted after—

“(i) the closing date of the 5-year period beginning on the date on which the alleged violation was committed, or

“(ii) the closing date of the 2-year period beginning on such date of enactment,

whichever date later occurs, except that no such suit or action may be instituted after the date on which such suit or action would have been barred under section 621 of the Tariff Act of 1930 [section 1621 of this title] (as in effect on the day before such date of enactment).”

Transfer of Functions

For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Security, treated as if included in Puspan. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended generally by Puspan. L. 114–125, and section 802(span) of Puspan. L. 114–125, set out as a note under section 211 of Title 6.