2017 April No.53 – Free Trade Agreements


53. An importer fails to produce a NAFTA Certificate of Origin for an entry claiming duty free treatment after CBP issued a Request for Information asking the importer to provide a valid NAFTA Certificate of Origin. Which of the following is true concerning a possible recordkeeping penalty action by CBP?

A. The importer is not subject to a recordkeeping penalty because only the exporter is required to retain the NAFTA Certificate of Origin.

B. The importer is not subject to a recordkeeping penalty because the NAFTA Certificate of Origin is not on the “(a)(1)(A) list”.

C. If CBP liquidates the entry without NAFTA duty preference, CBP cannot also issue a recordkeeping penalty.

D. The importer may be subject to a recordkeeping penalty for failure to comply with the lawful demand.

E. CBP may issue a recordkeeping penalty only after serving a Customs summons in addition to the Request for Information.

[bg_collapse view=”button-green” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer and Citation” collapse_text=”Hide Answer and Citation” ]

The Answer is: D

Citation: 19 CFR 163

[/bg_collapse]



Subscribe
Notify of