An importer discloses violations of 19 USC § 1592 that were the result of gross negligence. The violations resulted in $10,000 in actual loss of duty, which the importer tendered to CBP. How is the penalty for these violations calculated?
A. An amount ranging from 2.5 times the total loss of duty to a maximum of 4 times the total loss of duty.
B. An amount equal to the interest on the actual loss of duty computed from the date of liquidation to the date of payment.
C. An amount equal to 100 percent of the total loss of duty resulting from the violation.
D. An amount ranging from a minimum of 0.5 times the total loss of duty to a maximum of 2 times the total loss of duty.
E. When an entity submits a prior disclosure, they are not penalized for the violations.
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The Answer is: B
Citation: 19 CFR 162.73, 19 CFR 171, Appendix B, 19 CFR 162.74
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