As a licensed broker, you filed entry summaries on behalf of Spyglass, Inc. for five shipments of binoculars invoiced at $50,000 per shipment. Weeks later your client discovered that a computer error had generated incorrect invoices. The correct value of each shipment was actually $150,000. Because the merchandise was duty-free, Spyglass, Inc. decided it was not necessary to notify you or Customs and Border Protection (CBP). A year later CBP discovered the discrepancies through an audit. A penalty was assessed under 19 U.S.C. 1592 for gross negligence against the five shipments. The amount of the penalty assessed would have been:
A. $80,000
B. 150000
C. 300000
D. $750,000
E. Zero, since there was no loss of duties involved
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The Answer is: C
Citation: 19 CFR 162.73(a)(2)
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