Page 243 TITLE 19—CUSTOMS DUTIES § 1592

possible for such merchandise, or any part (4) The external display of false registration thereof, to be introduced into the United numbers, false country of registration, or, in States unlawfully. the case of a vessel, false vessel name. (c) Civil penalties (5) The presence on board of unmanifested merchandise, the importation of which is pro- Any person who violates any provision of this hibited or restricted. section is liable for a civil penalty equal to (6) The presence on board of controlled sub- twice the value of the merchandise involved in stances which are not manifested or which are the violation, but not less than $10,000. The not accompanied by the permits or licenses re- value of any controlled substance included in quired under Single Convention on Narcotic the merchandise shall be determined in accord- Drugs or other international treaty. ance with section 1497(b) of this title. (7) The presence of any compartment or (d) Criminal penalties equipment which is built or fitted out for smuggling. In addition to being liable for a civil penalty (8) The failure of a vessel to stop when under subsection (c) of this section, any person hailed by a customs officer or other govern- who intentionally commits a violation of any ment authority. provision of this section is, upon conviction— (1) liable for a fine of not more than $10,000 (June 17, 1930, ch. 497, title IV, § 590, as added or imprisonment for not more than 5 years, or Pub. L. 99–570, title III, § 3120, Oct. 27, 1986, 100 both, if none of the merchandise involved was Stat. 3207–84.) a controlled substance; or PRIOR PROVISIONS (2) liable for a fine of not more than $250,000 A prior section 1590, act June 17, 1930, ch. 497, title IV, or imprisonment for not more than 20 years, § 590, 46 Stat. 750, related to false drawback claims, or both, if any of the merchandise involved prior to repeal by act June 25, 1948, ch. 645, § 21, 62 Stat. was a controlled substance. 862, eff. Sept. 1, 1948. See section 550 of Title 18, Crimes and Criminal Procedure. (e) Seizure and forfeiture TERRITORIAL SEA OF UNITED STATES (1) Except as provided in paragraph (2), a ves- sel or aircraft used in connection with, or in aid- For extension of territorial sea of United States, see ing or facilitating, any violation of this section, Proc. No. 5928, set out as a note under section 1331 of Title 43, Public Lands. whether or not any person is charged in connec- tion with such violation, may be seized and for- § 1591. Repealed. June 25, 1948, ch. 645, § 21, 62 feited in accordance with the customs laws. Stat. 862, eff. Sept. 1, 1948 (2) Paragraph (1) does not apply to a vessel or aircraft operated as a common carrier. Section, acts June 17, 1930, ch. 497, title IV, § 591, 46 Stat. 750; Aug. 5, 1935, ch. 438, title III, § 304(a), 49 Stat. (f) ‘‘Merchandise’’ defined 527, related to fraud and personal penalties. See section As used in this section, the term ‘‘merchan- 542 of Title 18, Crimes and Criminal Procedure. dise’’ means only merchandise the importation § 1592. Penalties for fraud, gross negligence, and of which into the United States is prohibited or negligence restricted. (a) Prohibition (g) Intent of transfer of merchandise (1) General rule For purposes of imposing civil penalties under Without regard to whether the United States this section, any of the following acts, when per- is or may be deprived of all or a portion of any formed within 250 miles of the territorial sea of lawful duty, tax, or fee thereby, no person, by the United States, shall be prima facie evidence fraud, gross negligence, or negligence— that the transportation or possession of mer- (A) may enter, introduce, or attempt to chandise was unlawful and shall be presumed to enter or introduce any merchandise into the constitute circumstances indicating that the commerce of the United States by means purpose of the transfer is to make it possible for of— such merchandise, or any part thereof, to be in- (i) any document or electronically trans- troduced into the United States unlawfully, and mitted data or information, written or for purposes of subsection (e) of this section or oral statement, or act which is material section 1595a of this title, shall be prima facie and false, or evidence that an aircraft or vessel was used in (ii) any omission which is material, or connection with, or to aid or facilitate, a viola- (B) may aid or abet any other person to tion of this section: violate subparagraph (A). (1) The operation of an aircraft or a vessel (2) Exception without lights during such times as lights are required to be displayed under applicable law. Clerical errors or mistakes of fact are not (2) The presence on an aircraft of an auxil- violations of paragraph (1) unless they are part iary fuel tank which is not installed in accord- of a pattern of negligent conduct. The mere ance with applicable law. nonintentional repetition by an electronic sys- (3) The failure to identify correctly— tem of an initial clerical error does not con- (A) the vessel by name or country of reg- stitute a pattern of negligent conduct. istration, or (b) Procedures (B) the aircraft by registration number (1) Pre-penalty notice and country of registration, (A) In general when requested to do so by a customs officer If the Customs Service has reasonable or other government authority. cause to believe that there has been a viola- § 1592 TITLE 19—CUSTOMS DUTIES Page 244

tion of subsection (a) of this section and de- (2) Gross negligence termines that further proceedings are war- A grossly negligent violation of subsection ranted, it shall issue to the person concerned (a) of this section is punishable by a civil pen- a written notice of its intention to issue a alty in an amount not to exceed— claim for a monetary penalty. Such notice (A) the lesser of— shall— (i) the domestic value of the merchan- (i) describe the merchandise; dise, or (ii) set forth the details of the entry or (ii) four times the lawful duties, taxes, introduction, the attempted entry or in- and fees of which the United States is or troduction, or the aiding or procuring of may be deprived, or the entry or introduction; (iii) specify all laws and regulations al- (B) if the violation did not affect the as- legedly violated; sessment of duties, 40 percent of the dutiable (iv) disclose all the material facts which value of the merchandise. establish the alleged violation; (3) Negligence (v) state whether the alleged violation A negligent violation of subsection (a) of occurred as a result of fraud, gross neg- this section is punishable by a civil penalty in ligence, or negligence; an amount not to exceed— (vi) state the estimated loss of lawful du- (A) the lesser of— ties, taxes, and fees, if any, and, taking (i) the domestic value of the merchan- into account all circumstances, the dise, or amount of the proposed monetary penalty; (ii) two times the lawful duties, taxes, and and fees of which the United States is or (vii) inform such person that he shall may be deprived, or have a reasonable opportunity to make (B) if the violation did not affect the as- representations, both oral and written, as sessment of duties, 20 percent of the dutiable to why a claim for a monetary penalty value of the merchandise. should not be issued in the amount stated. (4) Prior disclosure (B) Exceptions If the person concerned discloses the circum- The preceding subparagraph shall not stances of a violation of subsection (a) of this apply if— section before, or without knowledge of, the (i) the importation with respect to which commencement of a formal investigation of the violation of subsection (a) of this sec- such violation, with respect to such violation, tion occurs is noncommercial in nature, or merchandise shall not be seized and any mone- (ii) the amount of the penalty in the pen- tary penalty to be assessed under subsection alty claim issued under paragraph (2) is (c) of this section shall not exceed— $1,000 or less. (A) if the violation resulted from fraud— (2) Penalty claim (i) an amount equal to 100 percent of the After considering representations, if any, lawful duties, taxes, and fees of which the made by the person concerned pursuant to the United States is or may be deprived, so notice issued under paragraph (1), the Customs long as such person tenders the unpaid Service shall determine whether any violation amount of the lawful duties, taxes, and of subsection (a) of this section, as alleged in fees at the time of disclosure, or within 30 the notice, has occurred. If the Customs Serv- days (or such longer period as the Customs ice determines that there was no violation, it Service may provide) after notice by the shall promptly issue a written statement of Customs Service of its calculation of such the determination to the person to whom the unpaid amount, or notice was sent. If the Customs Service deter- (ii) if such violation did not affect the mines that there was a violation, it shall issue assessment of duties, 10 percent of the du- a written penalty claim to such person. The tiable value; or written penalty claim shall specify all changes (B) if such violation resulted from neg- in the information provided under clauses (i) ligence or gross negligence, the interest through (vi) of paragraph (1)(A). Such person (computed from the date of liquidation at shall have a reasonable opportunity under sec- the prevailing rate of interest applied under tion 1618 of this title to make representations, section 6621 of title 26) on the amount of law- both oral and written, seeking remission or ful duties, taxes, and fees of which the mitigation of the monetary penalty. At the United States is or may be deprived so long conclusion of any proceeding under such sec- as such person tenders the unpaid amount of tion 1618, the Customs Service shall provide to the lawful duties, taxes, and fees at the time the person concerned a written statement of disclosure, or within 30 days (or such which sets forth the final determination and longer period as the Customs Service may the findings of fact and conclusions of law on provide) after notice by the Customs Service which such determination is based. of its calculation of such unpaid amount. (c) Maximum penalties The person asserting lack of knowledge of the (1) Fraud commencement of a formal investigation has A fraudulent violation of subsection (a) of the burden of proof in establishing such lack this section is punishable by a civil penalty in of knowledge. For purposes of this section, a an amount not to exceed the domestic value of formal investigation of a violation is consid- the merchandise. ered to be commenced with regard to the dis- Page 245 TITLE 19—CUSTOMS DUTIES § 1592

closing party and the disclosed information on untarily and promptly makes a corrected the date recorded in writing by the Customs declaration and pays any duties owing. Service as the date on which facts and circum- (B) Time periods for making corrections stances were discovered or information was re- ceived which caused the Customs Service to In the regulations referred to in subpara- believe that a possibility of a violation of sub- graph (A), the Secretary of the Treasury is section (a) of this section existed. authorized to prescribe time periods for making a corrected declaration and paying (5) Prior disclosure regarding NAFTA claims duties owing under subparagraph (A), if such An importer shall not be subject to penalties periods are not shorter than 1 year following under subsection (a) of this section for making the date on which the importer makes the an incorrect claim for preferential tariff treat- incorrect claim. ment under section 3332 of this title if the im- (9) Prior disclosure regarding claims under the porter— Dominican Republic-Central America- (A) has reason to believe that the NAFTA United States Free Trade Agreement Certificate of Origin (as defined in section 1508(b)(1) of this title) on which the claim An importer shall not be subject to penalties was based contains incorrect information; under subsection (a) of this section for making and an incorrect claim that a good qualifies as an (B) in accordance with regulations issued originating good under section 4033 of this by the Secretary, voluntarily and promptly title if the importer, in accordance with regu- makes a corrected declaration and pays any lations issued by the Secretary of the Treas- duties owing. ury, promptly and voluntarily makes a cor- rected declaration and pays any duties owing. (6) Prior disclosure regarding claims under the United States-Chile Free Trade Agreement (10) Prior disclosure regarding claims under the United States-Peru Trade Promotion An importer shall not be subject to penalties Agreement under subsection (a) of this section for making an incorrect claim that a good qualifies as an An importer shall not be subject to penalties originating good under section 202 of the under subsection (a) for making an incorrect United States-Chile Free Trade Agreement claim that a good qualifies as an originating Implementation Act if the importer, in ac- good under section 203 of the United States- cordance with regulations issued by the Sec- Peru Trade Promotion Agreement Implemen- retary of the Treasury, voluntarily makes a tation Act if the importer, in accordance with corrected declaration and pays any duties regulations issued by the Secretary of the owing. Treasury, promptly and voluntarily makes a corrected declaration and pays any duties (7) Prior disclosure regarding claims under the owing with respect to that good. United States-Singapore Free Trade Agree- ment (11) Prior disclosure regarding claims under the United States–Korea Free Trade Agree- (A) An importer shall not be subject to pen- ment alties under subsection (a) of this section for making an incorrect claim that a good quali- An importer shall not be subject to penalties fies as an originating good under section 202 of under subsection (a) for making an incorrect the United States-Singapore Free Trade claim that a good qualifies as an originating Agreement Implementation Act if the im- good under section 202 of the United porter, in accordance with regulations issued States–Korea Free Trade Agreement Imple- by the Secretary of the Treasury, voluntarily mentation Act if the importer, in accordance and promptly makes a corrected declaration with regulations issued by the Secretary of and pays any duties owing. the Treasury, promptly and voluntarily makes (B) In the regulations referred to in subpara- a corrected declaration and pays any duties graph (A), the Secretary of the Treasury is au- owing with respect to that good. thorized to prescribe time periods for making (12) Prior disclosure regarding claims under a corrected declaration and paying duties the United States–Colombia Trade Pro- owing under subparagraph (A), if such periods motion Agreement are not shorter than 1 year following the date An importer shall not be subject to penalties on which the importer makes the incorrect under subsection (a) for making an incorrect claim that a good qualifies as an originating claim that a good qualifies as an originating good. good under section 203 of the United (8) Prior disclosure regarding claims under the States–Colombia Trade Promotion Agreement United States-Australia free trade agree- Implementation Act if the importer, in ac- ment cordance with regulations issued by the Sec- (A) In general retary of the Treasury, promptly and volun- tarily makes a corrected declaration and pays An importer shall not be subject to pen- any duties owing with respect to that good. alties under subsection (a) of this section for making an incorrect claim that a good (13) Prior disclosure regarding claims under qualifies as an originating good under sec- the United States–Panama Trade Pro- tion 203 of the United States-Australia Free motion Agreement Trade Agreement Implementation Act if the An importer shall not be subject to penalties importer, in accordance with regulations is- under subsection (a) for making an incorrect sued by the Secretary of the Treasury, vol- claim that a good qualifies as an originating § 1592 TITLE 19—CUSTOMS DUTIES Page 246

good under section 203 of the United negligence, or negligence, in a NAFTA Certifi- States–Panama Trade Promotion Agreement cate of Origin (as defined in section 1508(b)(1) Implementation Act if the importer, in ac- of this title) that a good to be exported to a cordance with regulations issued by the Sec- NAFTA country (as defined in section 3301(4) retary of the Treasury, promptly and volun- of this title) qualifies under the rules of origin tarily makes a corrected declaration and pays set out in section 3332 of this title. any duties owing with respect to that good. (2) Applicable provisions (14) Seizure The procedures and penalties of this section If the Secretary has reasonable cause to be- that apply to a violation of subsection (a) of lieve that a person has violated the provisions this section also apply to a violation of para- of subsection (a) of this section and that such graph (1), except that— person is insolvent or beyond the jurisdiction (A) subsection (d) of this section does not of the United States or that seizure is other- apply, and wise essential to protect the revenue of the (B) subsection (c)(5) of this section applies United States or to prevent the introduction only if the person voluntarily and promptly of prohibited or restricted merchandise into provides, to all persons to whom the person the customs territory of the United States, provided the NAFTA Certificate of Origin, then such merchandise may be seized and, written notice of the falsity of the Certifi- upon assessment of a monetary penalty, for- cate. feited unless the monetary penalty is paid within the time specified by law. Within a rea- (3) Exception sonable time after any such seizure is made, A person may not be considered to have vio- the Secretary shall issue to the person con- lated paragraph (1) if— cerned a written statement containing the (A) the information was correct at the reasons for the seizure. After seizure of mer- time it was provided in a NAFTA Certificate chandise under this subsection, the Secretary of Origin but was later rendered incorrect may, in the case of restricted merchandise, due to a change in circumstances; and and shall, in the case of any other merchan- (B) the person voluntarily and promptly dise (other than prohibited merchandise), re- provides written notice of the change to all turn such merchandise upon the deposit of se- persons to whom the person provided the curity not to exceed the maximum monetary Certificate of Origin. penalty which may be assessed under sub- (g) False certifications of origin under the section (c) of this section. United States-Chile Free Trade Agreement (d) Deprivation of lawful duties, taxes, or fees (1) In general Notwithstanding section 1514 of this title, if Subject to paragraph (2), it is unlawful for the United States has been deprived of lawful any person to certify falsely, by fraud, gross duties, taxes, or fees as a result of a violation of negligence, or negligence, in a Chile FTA Cer- subsection (a) of this section, the Customs Serv- tificate of Origin (as defined in section ice shall require that such lawful duties, taxes, 1508(f)(1)(B) of this title 1 that a good exported and fees be restored, whether or not a monetary from the United States qualifies as an origi- penalty is assessed. nating good under the rules of origin set out in (e) Court of International Trade proceedings section 202 of the United States-Chile Free Notwithstanding any other provision of law, in Trade Agreement Implementation Act. The any proceeding commenced by the United States procedures and penalties of this section that in the Court of International Trade for the re- apply to a violation of subsection (a) of this covery of any monetary penalty claimed under section also apply to a violation of this sub- this section— section. (1) all issues, including the amount of the (2) Immediate and voluntary disclosure of in- penalty, shall be tried de novo; (2) if the monetary penalty is based on fraud, correct information the United States shall have the burden of No penalty shall be imposed under this sub- proof to establish the alleged violation by section if, immediately after an exporter or clear and convincing evidence; producer that issued a Chile FTA Certificate (3) if the monetary penalty is based on gross of Origin has reason to believe that such cer- negligence, the United States shall have the tificate contains or is based on incorrect infor- burden of proof to establish all the elements of mation, the exporter or producer voluntarily the alleged violation; and provides written notice of such incorrect in- (4) if the monetary penalty is based on neg- formation to every person to whom the certifi- ligence, the United States shall have the bur- cate was issued. den of proof to establish the act or omission (3) Exception constituting the violation, and the alleged vio- lator shall have the burden of proof that the A person may not be considered to have vio- act or omission did not occur as a result of lated paragraph (1) if— negligence. (A) the information was correct at the time it was provided in a Chile FTA Certifi- (f) False certifications regarding exports to cate of Origin but was later rendered incor- NAFTA countries rect due to a change in circumstances; and (1) In general

Subject to paragraph (3), it is unlawful for 1 So in original. Probably should be followed by a closing pa- any person to certify falsely, by fraud, gross renthesis. Page 247 TITLE 19—CUSTOMS DUTIES § 1592

(B) the person immediately and volun- (3) Exception tarily provides written notice of the change A person shall not be considered to have vio- in circumstances to all persons to whom the lated paragraph (1) if— person provided the certificate. (A) the information was correct at the (h) False certifications of origin under the Do- time it was provided in a PTPA certification minican Republic-Central America-United of origin but was later rendered incorrect States Free Trade Agreement due to a change in circumstances; and (1) In general (B) the person promptly and voluntarily Subject to paragraph (2), it is unlawful for provides written notice of the change in cir- any person to certify falsely, by fraud, gross cumstances to all persons to whom the per- negligence, or negligence, in a CAFTA–DR cer- son provided the certification. tification of origin (as defined in section (j) False certifications of origin under the United 1508(g)(1)(B) of this title) that a good exported States–Korea Free Trade Agreement from the United States qualifies as an origi- (1) In general nating good under the rules of origin set out in Subject to paragraph (2), it is unlawful for section 4033 of this title. The procedures and any person to certify falsely, by fraud, gross penalties of this section that apply to a viola- negligence, or negligence, in a KFTA certifi- tion of subsection (a) of this section also apply cation of origin (as defined in section 1508 of to a violation of this subsection. this title) that a good exported from the (2) Prompt and voluntary disclosure of incor- United States qualifies as an originating good rect information under the rules of origin provided for in sec- No penalty shall be imposed under this sub- tion 202 of the United States–Korea Free Trade section if, promptly after an exporter or pro- Agreement Implementation Act. The proce- ducer that issued a CAFTA–DR certification of dures and penalties of this section that apply origin has reason to believe that such certifi- to a violation of subsection (a) also apply to a cation contains or is based on incorrect infor- violation of this subsection. mation, the exporter or producer voluntarily (2) Prompt and voluntary disclosure of incor- provides written notice of such incorrect in- rect information formation to every person to whom the certifi- No penalty shall be imposed under this sub- cation was issued. section if, promptly after an exporter or pro- (3) Exception ducer that issued a KFTA certification of ori- A person may not be considered to have vio- gin has reason to believe that such certifi- lated paragraph (1) if— cation contains or is based on incorrect infor- (A) the information was correct at the mation, the exporter or producer voluntarily time it was provided in a CAFTA–DR certifi- provides written notice of such incorrect in- cation of origin but was later rendered in- formation to every person to whom the certifi- correct due to a change in circumstances; cation was issued. and (3) Exception (B) the person promptly and voluntarily A person shall not be considered to have vio- provides written notice of the change in cir- lated paragraph (1) if— cumstances to all persons to whom the per- (A) the information was correct at the son provided the certification. time it was provided in a KFTA certification (i) False certifications of origin under the United of origin but was later rendered incorrect States-Peru Trade Promotion Agreement due to a change in circumstances; and (1) In general (B) the person promptly and voluntarily provides written notice of the change in cir- Subject to paragraph (2), it is unlawful for cumstances to all persons to whom the per- any person to certify falsely, by fraud, gross son provided the certification. negligence, or negligence, in a PTPA certifi- cation of origin (as defined in section (k) False certifications of origin under the 1508(h)(1)(B) of this title) that a good exported United States–Colombia Trade Promotion from the United States qualifies as an origi- Agreement nating good under the rules of origin provided (1) In general for in section 203 of the United States-Peru Subject to paragraph (2), it is unlawful for Trade Promotion Agreement Implementation any person to certify falsely, by fraud, gross Act. The procedures and penalties of this sec- negligence, or negligence, in a CTPA certifi- tion that apply to a violation of subsection (a) cation of origin (as defined in section 1508 of also apply to a violation of this subsection. this title) that a good exported from the (2) Prompt and voluntary disclosure of incor- United States qualifies as an originating good rect information under the rules of origin provided for in sec- No penalty shall be imposed under this sub- tion 203 of the United States–Colombia Trade section if, promptly after an exporter or pro- Promotion Agreement Implementation Act. ducer that issued a PTPA certification of ori- The procedures and penalties of this section gin has reason to believe that such certifi- that apply to a violation of subsection (a) also cation contains or is based on incorrect infor- apply to a violation of this subsection. mation, the exporter or producer voluntarily (2) Prompt and voluntary disclosure of incor- provides written notice of such incorrect in- rect information formation to every person to whom the certifi- No penalty shall be imposed under this sub- cation was issued. section if, promptly after an exporter or pro- § 1592 TITLE 19—CUSTOMS DUTIES Page 248

ducer that issued a CTPA certification of ori- Stat. 961; Pub. L. 108–286, title II, § 205, Aug. 3, gin has reason to believe that such certifi- 2004, 118 Stat. 939; Pub. L. 109–53, title II, § 206(a), cation contains or is based on incorrect infor- Aug. 2, 2005, 119 Stat. 484; Pub. L. 110–138, title II, mation, the exporter or producer voluntarily § 205(a), Dec. 14, 2007, 121 Stat. 1475; Pub. L. provides written notice of such incorrect in- 112–41, title II, § 204(a), Oct. 21, 2011, 125 Stat. 448; formation to every person to whom the certifi- Pub. L. 112–42, title II, § 205(a), Oct. 21, 2011, 125 cation was issued. Stat. 483; Pub. L. 112–43, title II, § 205(a), Oct. 21, (3) Exception 2011, 125 Stat. 518.) A person shall not be considered to have vio- AMENDMENT OF SECTION lated paragraph (1) if— For termination of amendment by section (A) the information was correct at the 107(c) of Pub. L. 112–43, see Effective and Ter- time it was provided in a CTPA certification mination Dates of 2011 Amendment note below. of origin but was later rendered incorrect For termination of amendment by section due to a change in circumstances; and 107(c) of Pub. L. 112–42, see Effective and Ter- (B) the person promptly and voluntarily mination Dates of 2011 Amendment note below. provides written notice of the change in cir- For termination of amendment by section cumstances to all persons to whom the per- 107(c) of Pub. L. 112–41, see Effective and Ter- son provided the certification. mination Dates of 2011 Amendment note below. (l) False certifications of origin under the United For termination of amendment by section States–Panama Trade Promotion Agreement 107(c) of Pub. L. 110–138, see Effective and Ter- (1) In general mination Dates of 2007 Amendment note below. For termination of amendment by section Subject to paragraph (2), it is unlawful for 107(d) of Pub. L. 109–53, see Effective and Ter- any person to certify falsely, by fraud, gross mination Dates of 2005 Amendment note below. negligence, or negligence, in a Panama TPA For termination of amendment by section certification of origin (as defined in section 106(c) of Pub. L. 108–286, see Effective and Ter- 1508 of this title) that a good exported from mination Dates of 2004 Amendment note below. the United States qualifies as an originating For termination of amendment by section good under the rules of origin provided for in 107(c) of Pub. L. 108–78, see Effective and Ter- section 203 of the United States–Panama mination Dates of 2003 Amendments note below. Trade Promotion Agreement Implementation For termination of amendment by section Act. The procedures and penalties of this sec- 107(c) of Pub. L. 108–77, see Effective and Ter- tion that apply to a violation of subsection (a) mination Dates of 2003 Amendments note below. also apply to a violation of this subsection. REFERENCES IN TEXT (2) Prompt and voluntary disclosure of incor- rect information Section 202 of the United States-Chile Free Trade Agreement Implementation Act, referred to in subsecs. No penalty shall be imposed under this sub- (c)(6) and (g)(1), is section 202 of Pub. L. 108–77, which section if, promptly after an exporter or pro- is set out in a note under section 3805 of this title. ducer that issued a Panama TPA certification Section 202 of the United States-Singapore Free of origin has reason to believe that such cer- Trade Agreement Implementation Act, referred to in tification contains or is based on incorrect in- subsec. (c)(7)(A), is section 202 of Pub. L. 108–78, which formation, the exporter or producer volun- is set out in a note under section 3805 of this title. Section 203 of the United States-Australia Free Trade tarily provides written notice of such incor- Agreement Implementation Act, referred to in subsec. rect information to every person to whom the (c)(8)(A), is section 203 of Pub. L. 108–286, which is set certification was issued. out in a note under section 3805 of this title. (3) Exception Section 203 of the United States-Peru Trade Pro- motion Agreement Implementation Act, referred to in A person shall not be considered to have vio- subsecs. (c)(10) and (i)(1), is section 203 of Pub. L. lated paragraph (1) if— 110–138, which is set out in a note under section 3805 of (A) the information was correct at the this title. time it was provided in a Panama TPA cer- Section 202 of the United States–Korea Free Trade tification of origin but was later rendered Agreement Implementation Act, referred to in subsecs. incorrect due to a change in circumstances; (c)(11) and (j)(1), is section 202 of Pub. L. 112–41, which and is set out in a note under section 3805 of this title. Section 203 of the United States–Colombia Trade Pro- (B) the person promptly and voluntarily motion Agreement Implementation Act, referred to in provides written notice of the change in cir- subsecs. (c)(12) and (k)(1), is section 203 of Pub. L. cumstances to all persons to whom the per- 112–42, which is set out in a note under section 3805 of son provided the certification. this title. Section 203 of the United States–Panama Trade Pro- (June 17, 1930, ch. 497, title IV, § 592, 46 Stat. 750; motion Agreement Implementation Act, referred to in Aug. 5, 1935, ch. 438, title III, § 304(b), 49 Stat. 527; subsecs. (c)(13) and (l)(1), is section 203 of Pub. L. 112–43, Pub. L. 95–410, title I, § 110(a), Oct. 3, 1978, 92 which is set out in a note under section 3805 of this Stat. 893; Pub. L. 96–417, title VI, § 609, Oct. 10, title. 1980, 94 Stat. 1746; Pub. L. 99–514, § 2, Oct. 22, 1986, PRIOR PROVISIONS 100 Stat. 2095; Pub. L. 103–182, title II, § 205(c), title VI, § 621, Dec. 8, 1993, 107 Stat. 2095, 2180; Provisions similar to those in this section were con- Pub. L. 104–295, §§ 3(a)(4), (5), 21(e)(12), (13), Oct. tained in act Oct. 3, 1913, ch. 16, § III, H, 38 Stat. 183, which was superseded by act Sept. 21, 1922, ch. 356, title 11, 1996, 110 Stat. 3515, 3531; Pub. L. 106–36, title IV, § 592, 42 Stat. 982, and was repealed by section 643 I, § 1001(b)(8), June 25, 1999, 113 Stat. 132; Pub. L. thereof. Section 592 of the 1922 act was superseded by 108–77, title II, § 205(a), Sept. 3, 2003, 117 Stat. 930; section 592 of act June 17, 1930, comprising this section, Pub. L. 108–78, title II, § 204, Sept. 3, 2003, 117 and repealed by section 651(a)(1) of the 1930 act. Page 249 TITLE 19—CUSTOMS DUTIES § 1592

The provisions of section III, H, of the 1913 act were See Effective and Termination Dates of 2003 Amend- substituted for provisions of the same nature made by ments note below. the Customs Administrative Act of June 10, 1890, ch. Pub. L. 108–77, §§ 107(c), 205(a)(1)(A), temporarily re- 407, §§ 6, 9, 26 Stat. 134, 135, amended and reenacted by designated par. (6) as (7). See Effective and Termi- Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36 nation Dates of 2003 Amendments note below. Stat. 95, 97. Subsec. (c)(8). Pub. L. 108–78, §§ 107(c), 204(1), tempo- Those provisions superseded similar provisions made rarily redesignated par. (7) as (8). See Effective and by R.S. § 2864, as amended by act Feb. 18, 1875, ch. 80, 18 Termination Dates of 2003 Amendments note below. Stat. 319, prior to repeal by act Sept. 21, 1922, ch. 356, Subsec. (g). Pub. L. 108–77, §§ 107(c), 205(a)(2), tempo- title IV, § 642, 42 Stat. 989. rarily added subsec. (g). See Effective and Termination R.S. § 2839 provided for forfeiture of merchandise en- Dates of 2003 Amendments note below. tered, but not invoiced according to the actual cost at 1999—Subsec. (c)(4)(A)(i), (B). Pub. L. 106–36 amended the place of exportation, with the design to evade pay- Pub. L. 103–182, § 621(4)(A). See 1993 Amendment notes ment of duty. It was repealed by the Customs Adminis- below. trative Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141, and 1996—Subsec. (a)(1). Pub. L. 104–295, § 3(a)(4)(A), sub- provisions of a similar nature were made by section 9 stituted ‘‘lawful duty, tax, or fee’’ for ‘‘lawful duty’’. of that act, amended by the Payne-Aldrich Tariff Act of Subsecs. (b)(1)(A)(vi), (c)(2)(A)(ii), (3)(A)(ii). Pub. L. Aug. 5, 1909, ch. 6, § 28, 36 Stat. 97, and further amended 104–295, § 3(a)(4)(B), substituted ‘‘lawful duties, taxes, by the Underwood Tariff Act of Oct. 3, 1913, ch. 16, § III, and fees’’ for ‘‘lawful duties’’. H, 38 Stat. 183. Subsec. (c)(4)(A)(i), (B). Pub. L. 104–295, § 21(e)(12), Act June 22, 1874, ch. 391, § 16, 18 Stat. 189, required amended Pub. L. 103–182, § 621(4)(A). See 1993 Amend- special findings as to fraud in actions, etc., to enforce ment notes below. forfeitures, etc., prior to repeal by Customs Adminis- Pub. L. 104–295, § 3(a)(4)(B), substituted ‘‘lawful du- trative Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141. ties, taxes, and fees’’ for ‘‘lawful duties’’ in two places. Subsec. (d). Pub. L. 104–295, § 21(e)(13), inserted comma AMENDMENTS after ‘‘taxes’’ in heading. 2011—Subsec. (c)(11). Pub. L. 112–41, §§ 107(c), Pub. L. 104–295, § 3(a)(5), substituted ‘‘and fees be re- 204(a)(1)(B), temporarily added par. (11). Former par. stored’’ for ‘‘or fees be restored’’. (11) redesignated (12). See Effective and Termination 1993—Subsec. (a)(1)(A)(i). Pub. L. 103–182, § 621(1), in- Dates of 2011 Amendment note below. serted ‘‘or electronically transmitted data or informa- Subsec. (c)(12). Pub. L. 112–42, §§ 107(c), 205(a)(1)(B), tion’’ after ‘‘document’’. temporarily added par. (12). Former par. (12) redesig- Subsec. (a)(2). Pub. L. 103–182, § 621(2), inserted at end nated (13). See Effective and Termination Dates of 2011 ‘‘The mere nonintentional repetition by an electronic Amendment note below. system of an initial clerical error does not constitute a Pub. L. 112–41, §§ 107(c), 204(a)(1)(A), temporarily re- pattern of negligent conduct.’’ designated par. (11) as (12). See Effective and Termi- Subsec. (b)(1)(A). Pub. L. 103–182, § 621(3)(A), sub- nation Dates of 2011 Amendment note below. stituted ‘‘the Customs Service’’ for ‘‘the appropriate Subsec. (c)(13). Pub. L. 112–43, §§ 107(c), 205(a)(1)(B), customs officer’’, ‘‘it shall issue’’ for ‘‘he shall issue’’ temporarily added par. (13). Former par. (13) redesig- and ‘‘its intention’’ for ‘‘his intention’’ in introductory nated (14). See Effective and Termination Dates of 2011 provisions. Amendment note below. Subsec. (b)(2). Pub. L. 103–182, § 621(3)(B), substituted Pub. L. 112–42, §§ 107(c), 205(a)(1)(A), temporarily re- ‘‘the Customs Service shall determine’’ for ‘‘the appro- designated par. (12) as (13). See Effective and Termi- priate customs officer shall determine’’, ‘‘the Customs nation Dates of 2011 Amendment note below. Service determines’’ for ‘‘such officer determines’’ in Subsec. (c)(14). Pub. L. 112–43, §§ 107(c), 205(a)(1)(A), two places, ‘‘it shall’’ for ‘‘he shall’’ in two places, and temporarily redesignated par. (13) as (14). See Effective ‘‘the Customs Service shall provide’’ for ‘‘the appro- and Termination Dates of 2011 Amendment note below. priate customs officer shall provide’’. Subsec. (j). Pub. L. 112–41, §§ 107(c), 204(a)(2), tempo- Subsec. (c)(4). Pub. L. 103–182, § 621(4)(B), inserted at rarily added subsec. (j). See Effective and Termination end ‘‘For purposes of this section, a formal investiga- Dates of 2011 Amendment note below. tion of a violation is considered to be commenced with Subsec. (k). Pub. L. 112–42, §§ 107(c), 205(a)(2), tempo- regard to the disclosing party and the disclosed infor- rarily added subsec. (k). See Effective and Termination mation on the date recorded in writing by the Customs Dates of 2011 Amendment note below. Service as the date on which facts and circumstances Subsec. (l). Pub. L. 112–43, §§ 107(c), 205(a)(2), tempo- were discovered or information was received which rarily added subsec. (l). See Effective and Termination caused the Customs Service to believe that a possibil- Dates of 2011 Amendment note below. ity of a violation of subsection (a) of this section ex- 2007—Subsec. (c)(10), (11). Pub. L. 110–138, §§ 107(c), isted.’’ 205(a)(1), temporarily added par. (10) and redesignated Subsec. (c)(4)(A)(i). Pub. L. 103–182, § 621(4)(A), as former par. (10) as (11). See Effective and Termination amended by Pub. L. 104–295, § 21(e)(12); Pub. L. 106–36, Dates of 2007 Amendment note below. § 1001(b)(8), substituted ‘‘time of disclosure, or within 30 Subsec. (i). Pub. L. 110–138, §§ 107(c), 205(a)(2), tempo- days (or such longer period as the Customs Service may rarily added subsec. (i). See Effective and Termination provide) after notice by the Customs Service of its’’ for Dates of 2007 Amendment note below. ‘‘time of disclosure or within thirty days, or such 2005—Subsec. (c)(9), (10). Pub. L. 109–53, §§ 107(d), longer period as the appropriate customs officer may 206(a)(1), temporarily added par. (9) and redesignated provide, after notice by the appropriate customs officer former par. (9) as (10). See Effective and Termination of his’’. Dates of 2005 Amendment note below. Subsec. (c)(4)(B). Pub. L. 103–182, § 621(4)(A), as amend- Subsec. (h). Pub. L. 109–53, §§ 107(d), 206(a)(2), tempo- ed by Pub. L. 104–295, § 21(e)(12); Pub. L. 106–36, rarily added subsec. (h). See Effective and Termination § 1001(b)(8), which directed the substitution of ‘‘time of Dates of 2005 Amendment note below. disclosure, or within 30 days (or such longer period as 2004—Subsec. (c)(8), (9). Pub. L. 108–286, §§ 106(c), 205, the Customs Service may provide) after notice by the temporarily added par. (8) and redesignated former par. Customs Service of its’’ for ‘‘time of disclosure, or (8) as (9). See Effective and Termination Dates of 2004 within 30 days, or such longer period as the appropriate Amendment note below. customs officer may provide, after notice by the appro- 2003—Subsec. (c)(6). Pub. L. 108–77, §§ 107(c), priate customs officer of his’’, was executed by making 205(a)(1)(B), temporarily added par. (6). Former par. (6) the substitution for text which began ‘‘time of disclo- redesignated (7). See Effective and Termination Dates sure or within 30 days’’, to reflect the probable intent of 2003 Amendments note below. of Congress. Subsec. (c)(7). Pub. L. 108–78, §§ 107(c), 204(2), tempo- Subsec. (c)(5), (6). Pub. L. 103–182, § 205(c)(1), added rarily added par. (7). Former par. (7) redesignated (8). par. (5) and redesignated former par. (5) as (6). § 1592 TITLE 19—CUSTOMS DUTIES Page 250

Subsec. (d). Pub. L. 103–182, § 621(5), inserted ‘‘, taxes EFFECTIVE AND TERMINATION DATES OF 2005 or fees’’ after ‘‘duties’’ in heading and in text sub- AMENDMENT stituted ‘‘duties, taxes, or fees’’ for ‘‘duties’’ in two Amendment by Pub. L. 109–53 effective on the date places and ‘‘the Customs Service’’ for ‘‘the appropriate the Dominican Republic-Central America-United customs officer’’. States Free Trade Agreement enters into force (Mar. 1, Subsec. (f). Pub. L. 103–182, § 205(c)(2), added subsec. 2006) and to cease to have effect on date Agreement (f). ceases to be in force with respect to the United States, 1986—Subsec. (c)(4)(B). Pub. L. 99–514 substituted ‘‘In- and, during any period in which a country ceases to be ternal Revenue Code of 1986’’ for ‘‘Internal Revenue a CAFTA–DR country, to cease to have effect with re- Code of 1954’’, which for purposes of codification was spect to such country, see section 107 of Pub. L. 109–53, translated as ‘‘title 26’’ thus requiring no change in set out as an Effective and Termination Dates note text. under section 4001 of this title. 1980—Subsec. (e). Pub. L. 96–417 substituted in head- ing ‘‘Court of International Trade’’ for ‘‘District court’’ EFFECTIVE AND TERMINATION DATES OF 2004 and in text ‘‘proceeding commenced by the United AMENDMENT States in the Court of International Trade’’ for ‘‘pro- Amendment by Pub. L. 108–286 effective on the date ceeding in a United States district court commenced by on which the United States-Australia Free Trade the United States pursuant to section 1604 of this Agreement enters into force (Jan. 1, 2005) and to cease title’’. to be effective on the date on which the Agreement ter- 1978—Pub. L. 95–410 substituted subsecs. (a) to (e) re- minates, see section 106(a), (c) of Pub. L. 108–286, set lating to penalties for fraud, gross negligence, and neg- out in a note under section 3805 of this title. ligence for prior provisions which: provided for forfeit- ure of merchandise, or recovery of value thereof, where EFFECTIVE AND TERMINATION DATES OF 2003 entry or attempted entry of the merchandise was made AMENDMENTS using fraudulent or false invoice, declaration, affidavit, Amendment by Pub. L. 108–78 effective on the date letter, paper, or false statement, written or verbal, the United States-Singapore Free Trade Agreement en- false or fraudulent practice or appliance, or false state- ters into force (Jan. 1, 2004), and to cease to be effective ment in a declaration on entry without reasonable on the date the Agreement ceases to be in force, see cause to believe the truth of the statement or aided or section 107(a), (c) of Pub. L. 108–78, set out in a note procured the making any such false statement as to under section 3805 of this title. any material matter without reasonable cause to be- Amendment by Pub. L. 108–77 effective on the date lieve the truth of the statement, regardless of depriva- the United States-Chile Free Trade Agreement enters tion of lawful duties, or guilty of any willful act or into force (Jan. 1, 2004), and to cease to be effective on omission when there was a deprivation of such duties; the date the Agreement ceases to be in force, see sec- made the forfeiture applicable to the whole of the mer- tion 107(a), (c) of Pub. L. 108–77, set out in a note under chandise or the value thereof where package contained section 3805 of this title. the particular articles to which the fraud or false paper or statement related; and defined attempt to enter the EFFECTIVE DATE OF 1996 AMENDMENT merchandise without an actual entry having been made Amendment by section 3(a)(4), (5) of Pub. L. 104–295 or offered. applicable as of Dec. 8, 1993, see section 3(b) of Pub. L. 1935—Act Aug. 5, 1935, inserted ‘‘whether or not the 104–295, set out as a note under section 1321 of this title. United States shall or may be deprived of the lawful duties, or any portion thereof, accruing upon the mer- EFFECTIVE DATE OF 1993 AMENDMENT chandise, or any portion thereof, embraced or referred Amendment by section 205(c) of Pub. L. 103–182 effec- to in such invoice, declaration, affidavit, letter, paper, tive on the date the North American Free Trade Agree- or statement;’’. ment enters into force with respect to the United EFFECTIVE AND TERMINATION DATES OF 2011 States [Jan. 1, 1994], see section 213(b) of Pub. L. AMENDMENT 103–182, set out as an Effective Date note under section 3331 of this title. Amendment by Pub. L. 112–43 effective Oct. 21, 2011, applicable with respect to Panama on the date the EFFECTIVE DATE OF 1980 AMENDMENT United States–Panama Trade Promotion Agreement Amendment by Pub. L. 96–417 applicable with respect enters into force, and to cease to be effective on the to civil actions commenced on or after 90th day after date the Agreement terminates, see section 107(b), (c) Nov. 1, 1980, see section 701(c)(2) of Pub. L. 96–417, set of Pub. L. 112–43, set out in a note under section 3805 of out as a note under section 251 of Title 28, Judiciary this title. and Judicial Procedure. Amendment by Pub. L. 112–42 effective Oct. 21, 2011, applicable with respect to Colombia on the date the EFFECTIVE DATE OF 1978 AMENDMENT United States–Columbia Trade Promotion Agreement Section 110(f) of Pub. L. 95–410 provided that: enters into force, and to cease to be effective on the ‘‘(1)(A) Except as provided in subparagraphs (B) and date the Agreement terminates, see section 107(b), (c) (C), subsections (a), (b), and (c) (other than new sub- of Pub. L. 112–42, set out in a note under section 3805 of section (e) of section 592 of the Tariff Act of 1930 as this title. added by subsection (a)) [subsec. (a), (b), and (c), not in- Amendment by Pub. L. 112–41 effective Oct. 21, 2011, cluding (e) of this section] shall be effective with re- applicable with respect to Korea on the date the United spect to proceedings commenced after the 89th day States–Korea Free Trade Agreement enters into force after the date of enactment of this Act [Oct. 3, 1978]. (Mar. 15, 2012), and to cease to be effective on the date ‘‘(B) Except as provided in subparagraph (C), section the Agreement terminates, see section 107(b), (c) of 592 of the Tariff Act of 1930 [this section] (as such sec- Pub. L. 112–41, set out in a note under section 3805 of tion existed on the day before the date of enactment of this title. this Act) [Oct. 3, 1978] shall apply to any alleged inten- tional violation thereof involving television receivers EFFECTIVE AND TERMINATION DATES OF 2007 that are the product of Japan and that were or are the AMENDMENT subject of antidumping proceedings if the alleged inten- Amendment by Pub. L. 110–138 effective on the date tional violation— the United States-Peru Trade Promotion Agreement ‘‘(i) occurred before the date of enactment of this enters into force (Feb. 1, 2009) and to cease to be effec- Act, and tive on the date the Agreement ceases to be in force, ‘‘(ii) was the subject of an investigation by the Cus- see section 107(a), (c) of Pub. L. 110–138, set out in a toms Service which was begun before the date of en- note under section 3805 of this title. actment of this Act. Page 251 TITLE 19—CUSTOMS DUTIES § 1592a

‘‘(C) Except as provided in the next sentence, sub- (2) Violations section (e) of section 592 of the Tariff Act of 1930 (as added by subsection (a)) [subsec. (e) of this section] The violations of the customs laws referred shall be effective on the date of enactment of this Act to in paragraph (1) are the following: [Oct. 3, 1978]. Notwithstanding any provision of law, in (A) Using documentation, or providing any proceeding in a United States district court com- documentation subsequently used by the im- menced by the United States pursuant to section 604 of porter of record, which indicates a false or the Tariff Act of 1930 [section 1604 of this title] for the fraudulent country of origin or source of tex- recovery of any monetary penalty claimed under sec- tile or apparel products. tion 592 of such Act [this section] for an alleged inten- (B) Using counterfeit visas, licenses, per- tional violation described in subparagraph (B)— ‘‘(i) all issues, including the amount of the penalty, mits, bills of lading, or similar documenta- shall be tried de novo; and tion, or providing counterfeit visas, licenses, ‘‘(ii) the United States shall have the burden of permits, bills of lading, or similar docu- proof to establish such violation by a preponderance mentation that is subsequently used by the of the evidence. importer of record, with respect to the entry ‘‘(2)(A) The amendment made by subsection (e) [to into the customs territory of the United section 1621 of this title] shall apply with respect to al- States of textile or apparel products. leged violations of section 592 of the Tariff Act of 1930 (C) Manufacturing, producing, supplying, [this section] resulting from gross negligence or neg- ligence which are committed on or after the date of the or selling textile or apparel products which enactment of this Act [Oct. 3, 1978]. are falsely or fraudulently labelled as to ‘‘(B) In the case of any alleged violation of such sec- country of origin or source. tion 592 [this section] resulting from gross negligence (D) Engaging in practices which aid or or negligence which was committed before the date of abet the transshipment, through a country the enactment of this Act [Oct. 3, 1978] and for which other than the country of origin, of textile no suit or action for recovery was commenced before or apparel products in a manner which con- such date of enactment, no suit or action for recovery ceals the true origin of the textile or apparel with respect to such alleged violation shall be insti- tuted after— products or permits the evasion of quotas ‘‘(i) the closing date of the 5-year period beginning on, or voluntary restraint agreements with on the date on which the alleged violation was com- respect to, imports of textile or apparel mitted, or products. ‘‘(ii) the closing date of the 2-year period beginning (3) Removal from list on such date of enactment, whichever date later occurs, except that no such suit or Any person whose name has been included in action may be instituted after the date on which such a list published under paragraph (1) may peti- suit or action would have been barred under section 621 tion the Secretary to be removed from such of the Tariff Act of 1930 [section 1621 of this title] (as list. If the Secretary finds that such person in effect on the day before such date of enactment).’’ has not committed any violations described in TRANSFER OF FUNCTIONS paragraph (2) for a period of not less than 3 For transfer of functions, personnel, assets, and li- years after the date on which the person’s abilities of the United States Customs Service of the name was so published, the Secretary shall re- Department of the Treasury, including functions of the move such person from the list as of the next Secretary of the Treasury relating thereto, to the Sec- publication of the list under paragraph (1). retary of Homeland Security, and for treatment of re- (4) Reasonable care required for subsequent lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department imports of Homeland Security Reorganization Plan of Novem- (A) Responsibility of importers and others ber 25, 2002, as modified, set out as a note under section After the name of a person has been pub- 542 of Title 6. lished under paragraph (1), the Secretary of § 1592a. Special provisions regarding certain vio- the Treasury shall require any importer of lations record entering, introducing, or attempting to introduce into the commerce of the (a) Publication of names of certain violators United States textile or apparel products (1) Publication that were either directly or indirectly pro- The Secretary of the Treasury is authorized duced, manufactured, supplied, sold, ex- to publish in the Federal Register a list of the ported, or transported by such named person name of any producer, manufacturer, supplier, to show, to the satisfaction of the Secretary, seller, exporter, or other person located out- that such importer has exercised reasonable side the customs territory of the United care to ensure that the textile or apparel States— products are accompanied by documenta- (A) against whom the Customs Service has tion, packaging, and labelling that are accu- issued a penalty claim under section 1592 of rate as to its origin. Such reasonable care this title, and shall not include reliance solely on a source (B) if a petition with respect to that claim of information which is the named person. has been filed under section 1618 of this title, (B) Failure to exercise reasonable care against whom a final decision has been is- If the Customs Service determines that sued under such section after exhaustion of merchandise is not from the country administrative remedies, claimed on the documentation accompany- citing any of the violations of the customs ing the merchandise, the failure to exercise laws referred to in paragraph (2). Such list reasonable care described in subparagraph shall be published not later than March 31 and (A) shall be considered when the Customs September 30 of each year. Service determines whether the importer of