What would the proposed penalty amount be under the following facts? In a negligence case brought against an importer of seamless, steel pipe from China that was subject to Section 301 duties of 15% ad valorem, the loss of revenue is $300,000.00. The entered value of the pipe is $500,000.00. The domestic value is $900,000.00. CBP has decided to proceed with the issuance of a pre-penalty notice alleging negligent violations of 19 U.S.C. ยง 1592. The importer has not made a prior disclosure.
A) $100,000.00, or twenty percent (20%) of the entered value.
B) $600,000.00, or two times the loss of revenue.
C) $900,000.00, or the domestic value.
D) $1,800,000, or two times the domestic value.
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The Answer is: B
Citation: 19 CFR 162.73(a)(3)(i)
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