15. John Rose has an individual c ustoms broker license and a National Permit. Shady is importing eighteen (18) unmounted 1- carat diamonds worth $2,500.00 each for a total of $45,000.00 in his luggage. Shady is arriving from London, England, via private airplane. Shady intends to put the diamonds in rings to sell from his U.S.- based jewelry store. Rose obtains a power of attorney from Shady to be Shady’s broker, and Rose advises Shady that the diamonds do not need to be declared because the diamonds are abso lutely duty free. Which statement below is TRUE with respect to any penalty that may be imposed under these circumstances?(2024 April No.15 Broker Compliance)
A) A $45,000.00 penalty may be assessed against the client under 19 USC 1497, but
B) A $45,000.00 penalty may be assessed against the broker under 19 USC
C) A $30,000.00 penalty may be assessed against the broker under 19 USC
D) A $30,000.00 penalty under 19 USC 1641 may be assessed against the broker and
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The Answer is: C
Citation: 19 CFR 171, Apx C Section VI(D)(1)
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