Sagal’s Modern Furniture imports classic Danish reproduced chairs from Mexico. During an internal review of their year 2000 imports, Sagal’s discovered that 5 of their shipments failed to include an assist of $15,000 per shipment. Each shipment was originally entered at the invoice value of $30,000. Because the chairs qualified for NAFTA and were therefore duty and MPF free, Sagal’s decided it was not necessary to report the issue to Customs. Early in year 2001, Customs discovers the discrepancies through an audit and issues a penalty under 19 USC 1592 for negligence against the 5 shipments. Which ONE of the following would be the amount of the assessed penalty?
A) 45000
B) 225000
C) 75000
D) 90000
E) 25000
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The Answer is: A
Citation: 19 CFR 162.73(a)(3)(ii)
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