CBP issued a Request for Information to an importer for a valid NAFTA Certificate of Origin for an entry in which a duty free claim under the NAFTA was made. The importer failed to produce the Certificate of Origin. Which of the following is true concerning possible penalty action by CBP?
A) The importer is not subject to a recordkeeping penalty because only the exporter is required to retain the NAFTA Certificate of Origin.
B) The importer is not subject to a recordkeeping penalty because the NAFTA Certificate of Origin is not on the “(a)(1)(A) list”.
C) If CBP liquidates the entry without NAFTA duty preference, CBP cannot also issue a penalty.
D) The importer may be subject to a recordkeeping penalty for failure to comply with the lawful demand.
E) CBP may issue a penalty only after serving a Customs summons in addition to the Request for Information.
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The Answer is: D
Citation: 19 C.F.R. § 163, 19 C.F.R. § 181.22(a)
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