19 U.s.c. 1592(c)(4)

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possible for such merchandise, or any part
thereof, to be introduced into the United
States unlawfully.
(c) Civil penalties
Any person who violates any provision of this
section is liable for a civil penalty equal to
twice the value of the merchandise involved in
the violation, but not less than $10,000. The
value of any controlled substance included in
the merchandise shall be determined in accordance with section 1497(b) of this title.
(d) Criminal penalties
In addition to being liable for a civil penalty
under subsection (c) of this section, any person
who intentionally commits a violation of any
provision of this section is, upon conviction—
(1) liable for a fine of not more than $10,000
or imprisonment for not more than 5 years, or
both, if none of the merchandise involved was
a controlled substance; or
(2) liable for a fine of not more than $250,000
or imprisonment for not more than 20 years,
or both, if any of the merchandise involved
was a controlled substance.
(e) Seizure and forfeiture
(1) Except as provided in paragraph (2), a vessel or aircraft used in connection with, or in aiding or facilitating, any violation of this section,
whether or not any person is charged in connection with such violation, may be seized and forfeited in accordance with the customs laws.
(2) Paragraph (1) does not apply to a vessel or
aircraft operated as a common carrier.
(f) ‘‘Merchandise’’ defined
As used in this section, the term ‘‘merchandise’’ means only merchandise the importation
of which into the United States is prohibited or
restricted.
(g) Intent of transfer of merchandise
For purposes of imposing civil penalties under
this section, any of the following acts, when performed within 250 miles of the territorial sea of
the United States, shall be prima facie evidence
that the transportation or possession of merchandise was unlawful and shall be presumed to
constitute circumstances indicating that the
purpose of the transfer is to make it possible for
such merchandise, or any part thereof, to be introduced into the United States unlawfully, and
for purposes of subsection (e) of this section or
section 1595a of this title, shall be prima facie
evidence that an aircraft or vessel was used in
connection with, or to aid or facilitate, a violation of this section:
(1) The operation of an aircraft or a vessel
without lights during such times as lights are
required to be displayed under applicable law.
(2) The presence on an aircraft of an auxiliary fuel tank which is not installed in accordance with applicable law.
(3) The failure to identify correctly—
(A) the vessel by name or country of registration, or
(B) the aircraft by registration number
and country of registration,
when requested to do so by a customs officer
or other government authority.

(4) The external display of false registration
numbers, false country of registration, or, in
the case of a vessel, false vessel name.
(5) The presence on board of unmanifested
merchandise, the importation of which is prohibited or restricted.
(6) The presence on board of controlled substances which are not manifested or which are
not accompanied by the permits or licenses required under Single Convention on Narcotic
Drugs or other international treaty.
(7) The presence of any compartment or
equipment which is built or fitted out for
smuggling.
(8) The failure of a vessel to stop when
hailed by a customs officer or other government authority.
(June 17, 1930, ch. 497, title IV, § 590, as added
Pub. L. 99–570, title III, § 3120, Oct. 27, 1986, 100
Stat. 3207–84.)
PRIOR PROVISIONS
A prior section 1590, act June 17, 1930, ch. 497, title IV,
§ 590, 46 Stat. 750, related to false drawback claims,
prior to repeal by act June 25, 1948, ch. 645, § 21, 62 Stat.
862, eff. Sept. 1, 1948. See section 550 of Title 18, Crimes
and Criminal Procedure.
TERRITORIAL SEA OF UNITED STATES
For extension of territorial sea of United States, see
Proc. No. 5928, set out as a note under section 1331 of
Title 43, Public Lands.

§ 1591. Repealed. June 25, 1948, ch. 645, § 21, 62
Stat. 862, eff. Sept. 1, 1948
Section, acts June 17, 1930, ch. 497, title IV, § 591, 46
Stat. 750; Aug. 5, 1935, ch. 438, title III, § 304(a), 49 Stat.
527, related to fraud and personal penalties. See section
542 of Title 18, Crimes and Criminal Procedure.

§ 1592. Penalties for fraud, gross negligence, and
negligence
(a) Prohibition
(1) General rule
Without regard to whether the United States
is or may be deprived of all or a portion of any
lawful duty, tax, or fee thereby, no person, by
fraud, gross negligence, or negligence—
(A) may enter, introduce, or attempt to
enter or introduce any merchandise into the
commerce of the United States by means
of—
(i) any document or electronically transmitted data or information, written or
oral statement, or act which is material
and false, or
(ii) any omission which is material, or
(B) may aid or abet any other person to
violate subparagraph (A).
(2) Exception
Clerical errors or mistakes of fact are not
violations of paragraph (1) unless they are part
of a pattern of negligent conduct. The mere
nonintentional repetition by an electronic system of an initial clerical error does not constitute a pattern of negligent conduct.
(b) Procedures
(1) Pre-penalty notice
(A) In general
If the Customs Service has reasonable
cause to believe that there has been a viola-

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TITLE 19—CUSTOMS DUTIES

tion of subsection (a) of this section and determines that further proceedings are warranted, it shall issue to the person concerned
a written notice of its intention to issue a
claim for a monetary penalty. Such notice
shall—
(i) describe the merchandise;
(ii) set forth the details of the entry or
introduction, the attempted entry or introduction, or the aiding or procuring of
the entry or introduction;
(iii) specify all laws and regulations allegedly violated;
(iv) disclose all the material facts which
establish the alleged violation;
(v) state whether the alleged violation
occurred as a result of fraud, gross negligence, or negligence;
(vi) state the estimated loss of lawful duties, taxes, and fees, if any, and, taking
into account all circumstances, the
amount of the proposed monetary penalty;
and
(vii) inform such person that he shall
have a reasonable opportunity to make
representations, both oral and written, as
to why a claim for a monetary penalty
should not be issued in the amount stated.
(B) Exceptions
The preceding subparagraph shall not
apply if—
(i) the importation with respect to which
the violation of subsection (a) of this section occurs is noncommercial in nature, or
(ii) the amount of the penalty in the penalty claim issued under paragraph (2) is
$1,000 or less.
(2) Penalty claim
After considering representations, if any,
made by the person concerned pursuant to the
notice issued under paragraph (1), the Customs
Service shall determine whether any violation
of subsection (a) of this section, as alleged in
the notice, has occurred. If the Customs Service determines that there was no violation, it
shall promptly issue a written statement of
the determination to the person to whom the
notice was sent. If the Customs Service determines that there was a violation, it shall issue
a written penalty claim to such person. The
written penalty claim shall specify all changes
in the information provided under clauses (i)
through (vi) of paragraph (1)(A). Such person
shall have a reasonable opportunity under section 1618 of this title to make representations,
both oral and written, seeking remission or
mitigation of the monetary penalty. At the
conclusion of any proceeding under such section 1618, the Customs Service shall provide to
the person concerned a written statement
which sets forth the final determination and
the findings of fact and conclusions of law on
which such determination is based.
(c) Maximum penalties
(1) Fraud
A fraudulent violation of subsection (a) of
this section is punishable by a civil penalty in
an amount not to exceed the domestic value of
the merchandise.

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(2) Gross negligence
A grossly negligent violation of subsection
(a) of this section is punishable by a civil penalty in an amount not to exceed—
(A) the lesser of—
(i) the domestic value of the merchandise, or
(ii) four times the lawful duties, taxes,
and fees of which the United States is or
may be deprived, or
(B) if the violation did not affect the assessment of duties, 40 percent of the dutiable
value of the merchandise.
(3) Negligence
A negligent violation of subsection (a) of
this section is punishable by a civil penalty in
an amount not to exceed—
(A) the lesser of—
(i) the domestic value of the merchandise, or
(ii) two times the lawful duties, taxes,
and fees of which the United States is or
may be deprived, or
(B) if the violation did not affect the assessment of duties, 20 percent of the dutiable
value of the merchandise.
(4) Prior disclosure
If the person concerned discloses the circumstances of a violation of subsection (a) of this
section before, or without knowledge of, the
commencement of a formal investigation of
such violation, with respect to such violation,
merchandise shall not be seized and any monetary penalty to be assessed under subsection
(c) of this section shall not exceed—
(A) if the violation resulted from fraud—
(i) an amount equal to 100 percent of the
lawful duties, taxes, and fees of which the
United States is or may be deprived, so
long as such person tenders the unpaid
amount of the lawful duties, taxes, and
fees at the time of disclosure, or within 30
days (or such longer period as the Customs
Service may provide) after notice by the
Customs Service of its calculation of such
unpaid amount, or
(ii) if such violation did not affect the
assessment of duties, 10 percent of the dutiable value; or
(B) if such violation resulted from negligence or gross negligence, the interest
(computed from the date of liquidation at
the prevailing rate of interest applied under
section 6621 of title 26) on the amount of lawful duties, taxes, and fees of which the
United States is or may be deprived so long
as such person tenders the unpaid amount of
the lawful duties, taxes, and fees at the time
of disclosure, or within 30 days (or such
longer period as the Customs Service may
provide) after notice by the Customs Service
of its calculation of such unpaid amount.
The person asserting lack of knowledge of the
commencement of a formal investigation has
the burden of proof in establishing such lack
of knowledge. For purposes of this section, a
formal investigation of a violation is considered to be commenced with regard to the dis-

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closing party and the disclosed information on
the date recorded in writing by the Customs
Service as the date on which facts and circumstances were discovered or information was received which caused the Customs Service to
believe that a possibility of a violation of subsection (a) of this section existed.
(5) Prior disclosure regarding NAFTA claims
An importer shall not be subject to penalties
under subsection (a) of this section for making
an incorrect claim for preferential tariff treatment under section 3332 of this title if the importer—
(A) has reason to believe that the NAFTA
Certificate of Origin (as defined in section
1508(b)(1) of this title) on which the claim
was based contains incorrect information;
and
(B) in accordance with regulations issued
by the Secretary, voluntarily and promptly
makes a corrected declaration and pays any
duties owing.
(6) Prior disclosure regarding claims under the
United States-Chile Free Trade Agreement
An importer shall not be subject to penalties
under subsection (a) of this section for making
an incorrect claim that a good qualifies as an
originating good under section 202 of the
United States-Chile Free Trade Agreement
Implementation Act if the importer, in accordance with regulations issued by the Secretary of the Treasury, voluntarily makes a
corrected declaration and pays any duties
owing.
(7) Prior disclosure regarding claims under the
United States-Singapore Free Trade Agreement
(A) An importer shall not be subject to penalties under subsection (a) of this section for
making an incorrect claim that a good qualifies as an originating good under section 202 of
the United States-Singapore Free Trade
Agreement Implementation Act if the importer, in accordance with regulations issued
by the Secretary of the Treasury, voluntarily
and promptly makes a corrected declaration
and pays any duties owing.
(B) In the regulations referred to in subparagraph (A), the Secretary of the Treasury is authorized to prescribe time periods for making
a corrected declaration and paying duties
owing under subparagraph (A), if such periods
are not shorter than 1 year following the date
on which the importer makes the incorrect
claim that a good qualifies as an originating
good.
(8) Prior disclosure regarding claims under the
United States-Australia free trade agreement
(A) In general
An importer shall not be subject to penalties under subsection (a) of this section for
making an incorrect claim that a good
qualifies as an originating good under section 203 of the United States-Australia Free
Trade Agreement Implementation Act if the
importer, in accordance with regulations issued by the Secretary of the Treasury, vol-

§ 1592

untarily and promptly makes a corrected
declaration and pays any duties owing.
(B) Time periods for making corrections
In the regulations referred to in subparagraph (A), the Secretary of the Treasury is
authorized to prescribe time periods for
making a corrected declaration and paying
duties owing under subparagraph (A), if such
periods are not shorter than 1 year following
the date on which the importer makes the
incorrect claim.
(9) Prior disclosure regarding claims under the
Dominican
Republic-Central
AmericaUnited States Free Trade Agreement
An importer shall not be subject to penalties
under subsection (a) of this section for making
an incorrect claim that a good qualifies as an
originating good under section 4033 of this
title if the importer, in accordance with regulations issued by the Secretary of the Treasury, promptly and voluntarily makes a corrected declaration and pays any duties owing.
(10) Prior disclosure regarding claims under
the United States-Peru Trade Promotion
Agreement
An importer shall not be subject to penalties
under subsection (a) for making an incorrect
claim that a good qualifies as an originating
good under section 203 of the United StatesPeru Trade Promotion Agreement Implementation Act if the importer, in accordance with
regulations issued by the Secretary of the
Treasury, promptly and voluntarily makes a
corrected declaration and pays any duties
owing with respect to that good.
(11) Prior disclosure regarding claims under
the United States–Korea Free Trade Agreement
An importer shall not be subject to penalties
under subsection (a) for making an incorrect
claim that a good qualifies as an originating
good under section 202 of the United
States–Korea Free Trade Agreement Implementation Act if the importer, in accordance
with regulations issued by the Secretary of
the Treasury, promptly and voluntarily makes
a corrected declaration and pays any duties
owing with respect to that good.
(12) Prior disclosure regarding claims under
the United States–Colombia Trade Promotion Agreement
An importer shall not be subject to penalties
under subsection (a) for making an incorrect
claim that a good qualifies as an originating
good under section 203 of the United
States–Colombia Trade Promotion Agreement
Implementation Act if the importer, in accordance with regulations issued by the Secretary of the Treasury, promptly and voluntarily makes a corrected declaration and pays
any duties owing with respect to that good.
(13) Prior disclosure regarding claims under
the United States–Panama Trade Promotion Agreement
An importer shall not be subject to penalties
under subsection (a) for making an incorrect
claim that a good qualifies as an originating

§ 1592

TITLE 19—CUSTOMS DUTIES

good under section 203 of the United
States–Panama Trade Promotion Agreement
Implementation Act if the importer, in accordance with regulations issued by the Secretary of the Treasury, promptly and voluntarily makes a corrected declaration and pays
any duties owing with respect to that good.
(14) Seizure
If the Secretary has reasonable cause to believe that a person has violated the provisions
of subsection (a) of this section and that such
person is insolvent or beyond the jurisdiction
of the United States or that seizure is otherwise essential to protect the revenue of the
United States or to prevent the introduction
of prohibited or restricted merchandise into
the customs territory of the United States,
then such merchandise may be seized and,
upon assessment of a monetary penalty, forfeited unless the monetary penalty is paid
within the time specified by law. Within a reasonable time after any such seizure is made,
the Secretary shall issue to the person concerned a written statement containing the
reasons for the seizure. After seizure of merchandise under this subsection, the Secretary
may, in the case of restricted merchandise,
and shall, in the case of any other merchandise (other than prohibited merchandise), return such merchandise upon the deposit of security not to exceed the maximum monetary
penalty which may be assessed under subsection (c) of this section.
(d) Deprivation of lawful duties, taxes, or fees
Notwithstanding section 1514 of this title, if
the United States has been deprived of lawful
duties, taxes, or fees as a result of a violation of
subsection (a) of this section, the Customs Service shall require that such lawful duties, taxes,
and fees be restored, whether or not a monetary
penalty is assessed.
(e) Court of International Trade proceedings
Notwithstanding any other provision of law, in
any proceeding commenced by the United States
in the Court of International Trade for the recovery of any monetary penalty claimed under
this section—
(1) all issues, including the amount of the
penalty, shall be tried de novo;
(2) if the monetary penalty is based on fraud,
the United States shall have the burden of
proof to establish the alleged violation by
clear and convincing evidence;
(3) if the monetary penalty is based on gross
negligence, the United States shall have the
burden of proof to establish all the elements of
the alleged violation; and
(4) if the monetary penalty is based on negligence, the United States shall have the burden of proof to establish the act or omission
constituting the violation, and the alleged violator shall have the burden of proof that the
act or omission did not occur as a result of
negligence.
(f) False certifications regarding exports to
NAFTA countries
(1) In general
Subject to paragraph (3), it is unlawful for
any person to certify falsely, by fraud, gross

Page 246

negligence, or negligence, in a NAFTA Certificate of Origin (as defined in section 1508(b)(1)
of this title) that a good to be exported to a
NAFTA country (as defined in section 3301(4)
of this title) qualifies under the rules of origin
set out in section 3332 of this title.
(2) Applicable provisions
The procedures and penalties of this section
that apply to a violation of subsection (a) of
this section also apply to a violation of paragraph (1), except that—
(A) subsection (d) of this section does not
apply, and
(B) subsection (c)(5) of this section applies
only if the person voluntarily and promptly
provides, to all persons to whom the person
provided the NAFTA Certificate of Origin,
written notice of the falsity of the Certificate.
(3) Exception
A person may not be considered to have violated paragraph (1) if—
(A) the information was correct at the
time it was provided in a NAFTA Certificate
of Origin but was later rendered incorrect
due to a change in circumstances; and
(B) the person voluntarily and promptly
provides written notice of the change to all
persons to whom the person provided the
Certificate of Origin.
(g) False certifications of origin under the
United States-Chile Free Trade Agreement
(1) In general
Subject to paragraph (2), it is unlawful for
any person to certify falsely, by fraud, gross
negligence, or negligence, in a Chile FTA Certificate of Origin (as defined in section
1508(f)(1)(B) of this title 1 that a good exported
from the United States qualifies as an originating good under the rules of origin set out in
section 202 of the United States-Chile Free
Trade Agreement Implementation Act. The
procedures and penalties of this section that
apply to a violation of subsection (a) of this
section also apply to a violation of this subsection.
(2) Immediate and voluntary disclosure of incorrect information
No penalty shall be imposed under this subsection if, immediately after an exporter or
producer that issued a Chile FTA Certificate
of Origin has reason to believe that such certificate contains or is based on incorrect information, the exporter or producer voluntarily
provides written notice of such incorrect information to every person to whom the certificate was issued.
(3) Exception
A person may not be considered to have violated paragraph (1) if—
(A) the information was correct at the
time it was provided in a Chile FTA Certificate of Origin but was later rendered incorrect due to a change in circumstances; and
1 So in original. Probably should be followed by a closing parenthesis.

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(B) the person immediately and voluntarily provides written notice of the change
in circumstances to all persons to whom the
person provided the certificate.
(h) False certifications of origin under the Dominican Republic-Central America-United
States Free Trade Agreement
(1) In general
Subject to paragraph (2), it is unlawful for
any person to certify falsely, by fraud, gross
negligence, or negligence, in a CAFTA–DR certification of origin (as defined in section
1508(g)(1)(B) of this title) that a good exported
from the United States qualifies as an originating good under the rules of origin set out in
section 4033 of this title. The procedures and
penalties of this section that apply to a violation of subsection (a) of this section also apply
to a violation of this subsection.
(2) Prompt and voluntary disclosure of incorrect information
No penalty shall be imposed under this subsection if, promptly after an exporter or producer that issued a CAFTA–DR certification of
origin has reason to believe that such certification contains or is based on incorrect information, the exporter or producer voluntarily
provides written notice of such incorrect information to every person to whom the certification was issued.
(3) Exception
A person may not be considered to have violated paragraph (1) if—
(A) the information was correct at the
time it was provided in a CAFTA–DR certification of origin but was later rendered incorrect due to a change in circumstances;
and
(B) the person promptly and voluntarily
provides written notice of the change in circumstances to all persons to whom the person provided the certification.
(i) False certifications of origin under the United
States-Peru Trade Promotion Agreement
(1) In general
Subject to paragraph (2), it is unlawful for
any person to certify falsely, by fraud, gross
negligence, or negligence, in a PTPA certification of origin (as defined in section
1508(h)(1)(B) of this title) that a good exported
from the United States qualifies as an originating good under the rules of origin provided
for in section 203 of the United States-Peru
Trade Promotion Agreement Implementation
Act. The procedures and penalties of this section that apply to a violation of subsection (a)
also apply to a violation of this subsection.
(2) Prompt and voluntary disclosure of incorrect information
No penalty shall be imposed under this subsection if, promptly after an exporter or producer that issued a PTPA certification of origin has reason to believe that such certification contains or is based on incorrect information, the exporter or producer voluntarily
provides written notice of such incorrect information to every person to whom the certification was issued.

§ 1592

(3) Exception
A person shall not be considered to have violated paragraph (1) if—
(A) the information was correct at the
time it was provided in a PTPA certification
of origin but was later rendered incorrect
due to a change in circumstances; and
(B) the person promptly and voluntarily
provides written notice of the change in circumstances to all persons to whom the person provided the certification.
(j) False certifications of origin under the United
States–Korea Free Trade Agreement
(1) In general
Subject to paragraph (2), it is unlawful for
any person to certify falsely, by fraud, gross
negligence, or negligence, in a KFTA certification of origin (as defined in section 1508 of
this title) that a good exported from the
United States qualifies as an originating good
under the rules of origin provided for in section 202 of the United States–Korea Free Trade
Agreement Implementation Act. The procedures and penalties of this section that apply
to a violation of subsection (a) also apply to a
violation of this subsection.
(2) Prompt and voluntary disclosure of incorrect information
No penalty shall be imposed under this subsection if, promptly after an exporter or producer that issued a KFTA certification of origin has reason to believe that such certification contains or is based on incorrect information, the exporter or producer voluntarily
provides written notice of such incorrect information to every person to whom the certification was issued.
(3) Exception
A person shall not be considered to have violated paragraph (1) if—
(A) the information was correct at the
time it was provided in a KFTA certification
of origin but was later rendered incorrect
due to a change in circumstances; and
(B) the person promptly and voluntarily
provides written notice of the change in circumstances to all persons to whom the person provided the certification.
(k) False certifications of origin under the
United States–Colombia Trade Promotion
Agreement
(1) In general
Subject to paragraph (2), it is unlawful for
any person to certify falsely, by fraud, gross
negligence, or negligence, in a CTPA certification of origin (as defined in section 1508 of
this title) that a good exported from the
United States qualifies as an originating good
under the rules of origin provided for in section 203 of the United States–Colombia Trade
Promotion Agreement Implementation Act.
The procedures and penalties of this section
that apply to a violation of subsection (a) also
apply to a violation of this subsection.
(2) Prompt and voluntary disclosure of incorrect information
No penalty shall be imposed under this subsection if, promptly after an exporter or pro-

§ 1592

TITLE 19—CUSTOMS DUTIES

ducer that issued a CTPA certification of origin has reason to believe that such certification contains or is based on incorrect information, the exporter or producer voluntarily
provides written notice of such incorrect information to every person to whom the certification was issued.
(3) Exception
A person shall not be considered to have violated paragraph (1) if—
(A) the information was correct at the
time it was provided in a CTPA certification
of origin but was later rendered incorrect
due to a change in circumstances; and
(B) the person promptly and voluntarily
provides written notice of the change in circumstances to all persons to whom the person provided the certification.
(l) False certifications of origin under the United
States–Panama Trade Promotion Agreement
(1) In general
Subject to paragraph (2), it is unlawful for
any person to certify falsely, by fraud, gross
negligence, or negligence, in a Panama TPA
certification of origin (as defined in section
1508 of this title) that a good exported from
the United States qualifies as an originating
good under the rules of origin provided for in
section 203 of the United States–Panama
Trade Promotion Agreement Implementation
Act. The procedures and penalties of this section that apply to a violation of subsection (a)
also apply to a violation of this subsection.
(2) Prompt and voluntary disclosure of incorrect information
No penalty shall be imposed under this subsection if, promptly after an exporter or producer that issued a Panama TPA certification
of origin has reason to believe that such certification contains or is based on incorrect information, the exporter or producer voluntarily provides written notice of such incorrect information to every person to whom the
certification was issued.
(3) Exception
A person shall not be considered to have violated paragraph (1) if—
(A) the information was correct at the
time it was provided in a Panama TPA certification of origin but was later rendered
incorrect due to a change in circumstances;
and
(B) the person promptly and voluntarily
provides written notice of the change in circumstances to all persons to whom the person provided the certification.
(June 17, 1930, ch. 497, title IV, § 592, 46 Stat. 750;
Aug. 5, 1935, ch. 438, title III, § 304(b), 49 Stat. 527;
Pub. L. 95–410, title I, § 110(a), Oct. 3, 1978, 92
Stat. 893; Pub. L. 96–417, title VI, § 609, Oct. 10,
1980, 94 Stat. 1746; Pub. L. 99–514, § 2, Oct. 22, 1986,
100 Stat. 2095; Pub. L. 103–182, title II, § 205(c),
title VI, § 621, Dec. 8, 1993, 107 Stat. 2095, 2180;
Pub. L. 104–295, §§ 3(a)(4), (5), 21(e)(12), (13), Oct.
11, 1996, 110 Stat. 3515, 3531; Pub. L. 106–36, title
I, § 1001(b)(8), June 25, 1999, 113 Stat. 132; Pub. L.
108–77, title II, § 205(a), Sept. 3, 2003, 117 Stat. 930;
Pub. L. 108–78, title II, § 204, Sept. 3, 2003, 117

Page 248

Stat. 961; Pub. L. 108–286, title II, § 205, Aug. 3,
2004, 118 Stat. 939; Pub. L. 109–53, title II, § 206(a),
Aug. 2, 2005, 119 Stat. 484; Pub. L. 110–138, title II,
§ 205(a), Dec. 14, 2007, 121 Stat. 1475; Pub. L.
112–41, title II, § 204(a), Oct. 21, 2011, 125 Stat. 448;
Pub. L. 112–42, title II, § 205(a), Oct. 21, 2011, 125
Stat. 483; Pub. L. 112–43, title II, § 205(a), Oct. 21,
2011, 125 Stat. 518.)
AMENDMENT OF SECTION
For termination of amendment by section
107(c) of Pub. L. 112–43, see Effective and Termination Dates of 2011 Amendment note below.
For termination of amendment by section
107(c) of Pub. L. 112–42, see Effective and Termination Dates of 2011 Amendment note below.
For termination of amendment by section
107(c) of Pub. L. 112–41, see Effective and Termination Dates of 2011 Amendment note below.
For termination of amendment by section
107(c) of Pub. L. 110–138, see Effective and Termination Dates of 2007 Amendment note below.
For termination of amendment by section
107(d) of Pub. L. 109–53, see Effective and Termination Dates of 2005 Amendment note below.
For termination of amendment by section
106(c) of Pub. L. 108–286, see Effective and Termination Dates of 2004 Amendment note below.
For termination of amendment by section
107(c) of Pub. L. 108–78, see Effective and Termination Dates of 2003 Amendments note below.
For termination of amendment by section
107(c) of Pub. L. 108–77, see Effective and Termination Dates of 2003 Amendments note below.
REFERENCES IN TEXT
Section 202 of the United States-Chile Free Trade
Agreement Implementation Act, referred to in subsecs.
(c)(6) and (g)(1), is section 202 of Pub. L. 108–77, which
is set out in a note under section 3805 of this title.
Section 202 of the United States-Singapore Free
Trade Agreement Implementation Act, referred to in
subsec. (c)(7)(A), is section 202 of Pub. L. 108–78, which
is set out in a note under section 3805 of this title.
Section 203 of the United States-Australia Free Trade
Agreement Implementation Act, referred to in subsec.
(c)(8)(A), is section 203 of Pub. L. 108–286, which is set
out in a note under section 3805 of this title.
Section 203 of the United States-Peru Trade Promotion Agreement Implementation Act, referred to in
subsecs. (c)(10) and (i)(1), is section 203 of Pub. L.
110–138, which is set out in a note under section 3805 of
this title.
Section 202 of the United States–Korea Free Trade
Agreement Implementation Act, referred to in subsecs.
(c)(11) and (j)(1), is section 202 of Pub. L. 112–41, which
is set out in a note under section 3805 of this title.
Section 203 of the United States–Colombia Trade Promotion Agreement Implementation Act, referred to in
subsecs. (c)(12) and (k)(1), is section 203 of Pub. L.
112–42, which is set out in a note under section 3805 of
this title.
Section 203 of the United States–Panama Trade Promotion Agreement Implementation Act, referred to in
subsecs. (c)(13) and (l)(1), is section 203 of Pub. L. 112–43,
which is set out in a note under section 3805 of this
title.
PRIOR PROVISIONS
Provisions similar to those in this section were contained in act Oct. 3, 1913, ch. 16, § III, H, 38 Stat. 183,
which was superseded by act Sept. 21, 1922, ch. 356, title
IV, § 592, 42 Stat. 982, and was repealed by section 643
thereof. Section 592 of the 1922 act was superseded by
section 592 of act June 17, 1930, comprising this section,
and repealed by section 651(a)(1) of the 1930 act.

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The provisions of section III, H, of the 1913 act were
substituted for provisions of the same nature made by
the Customs Administrative Act of June 10, 1890, ch.
407, §§ 6, 9, 26 Stat. 134, 135, amended and reenacted by
Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, § 28, 36
Stat. 95, 97.
Those provisions superseded similar provisions made
by R.S. § 2864, as amended by act Feb. 18, 1875, ch. 80, 18
Stat. 319, prior to repeal by act Sept. 21, 1922, ch. 356,
title IV, § 642, 42 Stat. 989.
R.S. § 2839 provided for forfeiture of merchandise entered, but not invoiced according to the actual cost at
the place of exportation, with the design to evade payment of duty. It was repealed by the Customs Administrative Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141, and
provisions of a similar nature were made by section 9
of that act, amended by the Payne-Aldrich Tariff Act of
Aug. 5, 1909, ch. 6, § 28, 36 Stat. 97, and further amended
by the Underwood Tariff Act of Oct. 3, 1913, ch. 16, § III,
H, 38 Stat. 183.
Act June 22, 1874, ch. 391, § 16, 18 Stat. 189, required
special findings as to fraud in actions, etc., to enforce
forfeitures, etc., prior to repeal by Customs Administrative Act of June 10, 1890, ch. 407, § 29, 26 Stat. 141.
AMENDMENTS
2011—Subsec. (c)(11). Pub. L. 112–41, §§ 107(c),
204(a)(1)(B), temporarily added par. (11). Former par.
(11) redesignated (12). See Effective and Termination
Dates of 2011 Amendment note below.
Subsec. (c)(12). Pub. L. 112–42, §§ 107(c), 205(a)(1)(B),
temporarily added par. (12). Former par. (12) redesignated (13). See Effective and Termination Dates of 2011
Amendment note below.
Pub. L. 112–41, §§ 107(c), 204(a)(1)(A), temporarily redesignated par. (11) as (12). See Effective and Termination Dates of 2011 Amendment note below.
Subsec. (c)(13). Pub. L. 112–43, §§ 107(c), 205(a)(1)(B),
temporarily added par. (13). Former par. (13) redesignated (14). See Effective and Termination Dates of 2011
Amendment note below.
Pub. L. 112–42, §§ 107(c), 205(a)(1)(A), temporarily redesignated par. (12) as (13). See Effective and Termination Dates of 2011 Amendment note below.
Subsec. (c)(14). Pub. L. 112–43, §§ 107(c), 205(a)(1)(A),
temporarily redesignated par. (13) as (14). See Effective
and Termination Dates of 2011 Amendment note below.
Subsec. (j). Pub. L. 112–41, §§ 107(c), 204(a)(2), temporarily added subsec. (j). See Effective and Termination
Dates of 2011 Amendment note below.
Subsec. (k). Pub. L. 112–42, §§ 107(c), 205(a)(2), temporarily added subsec. (k). See Effective and Termination
Dates of 2011 Amendment note below.
Subsec. (l). Pub. L. 112–43, §§ 107(c), 205(a)(2), temporarily added subsec. (l). See Effective and Termination
Dates of 2011 Amendment note below.
2007—Subsec. (c)(10), (11). Pub. L. 110–138, §§ 107(c),
205(a)(1), temporarily added par. (10) and redesignated
former par. (10) as (11). See Effective and Termination
Dates of 2007 Amendment note below.
Subsec. (i). Pub. L. 110–138, §§ 107(c), 205(a)(2), temporarily added subsec. (i). See Effective and Termination
Dates of 2007 Amendment note below.
2005—Subsec. (c)(9), (10). Pub. L. 109–53, §§ 107(d),
206(a)(1), temporarily added par. (9) and redesignated
former par. (9) as (10). See Effective and Termination
Dates of 2005 Amendment note below.
Subsec. (h). Pub. L. 109–53, §§ 107(d), 206(a)(2), temporarily added subsec. (h). See Effective and Termination
Dates of 2005 Amendment note below.
2004—Subsec. (c)(8), (9). Pub. L. 108–286, §§ 106(c), 205,
temporarily added par. (8) and redesignated former par.
(8) as (9). See Effective and Termination Dates of 2004
Amendment note below.
2003—Subsec.
(c)(6).
Pub.
L.
108–77,
§§ 107(c),
205(a)(1)(B), temporarily added par. (6). Former par. (6)
redesignated (7). See Effective and Termination Dates
of 2003 Amendments note below.
Subsec. (c)(7). Pub. L. 108–78, §§ 107(c), 204(2), temporarily added par. (7). Former par. (7) redesignated (8).

§ 1592

See Effective and Termination Dates of 2003 Amendments note below.
Pub. L. 108–77, §§ 107(c), 205(a)(1)(A), temporarily redesignated par. (6) as (7). See Effective and Termination Dates of 2003 Amendments note below.
Subsec. (c)(8). Pub. L. 108–78, §§ 107(c), 204(1), temporarily redesignated par. (7) as (8). See Effective and
Termination Dates of 2003 Amendments note below.
Subsec. (g). Pub. L. 108–77, §§ 107(c), 205(a)(2), temporarily added subsec. (g). See Effective and Termination
Dates of 2003 Amendments note below.
1999—Subsec. (c)(4)(A)(i), (B). Pub. L. 106–36 amended
Pub. L. 103–182, § 621(4)(A). See 1993 Amendment notes
below.
1996—Subsec. (a)(1). Pub. L. 104–295, § 3(a)(4)(A), substituted ‘‘lawful duty, tax, or fee’’ for ‘‘lawful duty’’.
Subsecs. (b)(1)(A)(vi), (c)(2)(A)(ii), (3)(A)(ii). Pub. L.
104–295, § 3(a)(4)(B), substituted ‘‘lawful duties, taxes,
and fees’’ for ‘‘lawful duties’’.
Subsec. (c)(4)(A)(i), (B). Pub. L. 104–295, § 21(e)(12),
amended Pub. L. 103–182, § 621(4)(A). See 1993 Amendment notes below.
Pub. L. 104–295, § 3(a)(4)(B), substituted ‘‘lawful duties, taxes, and fees’’ for ‘‘lawful duties’’ in two places.
Subsec. (d). Pub. L. 104–295, § 21(e)(13), inserted comma
after ‘‘taxes’’ in heading.
Pub. L. 104–295, § 3(a)(5), substituted ‘‘and fees be restored’’ for ‘‘or fees be restored’’.
1993—Subsec. (a)(1)(A)(i). Pub. L. 103–182, § 621(1), inserted ‘‘or electronically transmitted data or information’’ after ‘‘document’’.
Subsec. (a)(2). Pub. L. 103–182, § 621(2), inserted at end
‘‘The mere nonintentional repetition by an electronic
system of an initial clerical error does not constitute a
pattern of negligent conduct.’’
Subsec. (b)(1)(A). Pub. L. 103–182, § 621(3)(A), substituted ‘‘the Customs Service’’ for ‘‘the appropriate
customs officer’’, ‘‘it shall issue’’ for ‘‘he shall issue’’
and ‘‘its intention’’ for ‘‘his intention’’ in introductory
provisions.
Subsec. (b)(2). Pub. L. 103–182, § 621(3)(B), substituted
‘‘the Customs Service shall determine’’ for ‘‘the appropriate customs officer shall determine’’, ‘‘the Customs
Service determines’’ for ‘‘such officer determines’’ in
two places, ‘‘it shall’’ for ‘‘he shall’’ in two places, and
‘‘the Customs Service shall provide’’ for ‘‘the appropriate customs officer shall provide’’.
Subsec. (c)(4). Pub. L. 103–182, § 621(4)(B), inserted at
end ‘‘For purposes of this section, a formal investigation of a violation is considered to be commenced with
regard to the disclosing party and the disclosed information on the date recorded in writing by the Customs
Service as the date on which facts and circumstances
were discovered or information was received which
caused the Customs Service to believe that a possibility of a violation of subsection (a) of this section existed.’’
Subsec. (c)(4)(A)(i). Pub. L. 103–182, § 621(4)(A), as
amended by Pub. L. 104–295, § 21(e)(12); Pub. L. 106–36,
§ 1001(b)(8), substituted ‘‘time of disclosure, or within 30
days (or such longer period as the Customs Service may
provide) after notice by the Customs Service of its’’ for
‘‘time of disclosure or within thirty days, or such
longer period as the appropriate customs officer may
provide, after notice by the appropriate customs officer
of his’’.
Subsec. (c)(4)(B). Pub. L. 103–182, § 621(4)(A), as amended by Pub. L. 104–295, § 21(e)(12); Pub. L. 106–36,
§ 1001(b)(8), which directed the substitution of ‘‘time of
disclosure, or within 30 days (or such longer period as
the Customs Service may provide) after notice by the
Customs Service of its’’ for ‘‘time of disclosure, or
within 30 days, or such longer period as the appropriate
customs officer may provide, after notice by the appropriate customs officer of his’’, was executed by making
the substitution for text which began ‘‘time of disclosure or within 30 days’’, to reflect the probable intent
of Congress.
Subsec. (c)(5), (6). Pub. L. 103–182, § 205(c)(1), added
par. (5) and redesignated former par. (5) as (6).

§ 1592

TITLE 19—CUSTOMS DUTIES

Subsec. (d). Pub. L. 103–182, § 621(5), inserted ‘‘, taxes
or fees’’ after ‘‘duties’’ in heading and in text substituted ‘‘duties, taxes, or fees’’ for ‘‘duties’’ in two
places and ‘‘the Customs Service’’ for ‘‘the appropriate
customs officer’’.
Subsec. (f). Pub. L. 103–182, § 205(c)(2), added subsec.
(f).
1986—Subsec. (c)(4)(B). Pub. L. 99–514 substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue
Code of 1954’’, which for purposes of codification was
translated as ‘‘title 26’’ thus requiring no change in
text.
1980—Subsec. (e). Pub. L. 96–417 substituted in heading ‘‘Court of International Trade’’ for ‘‘District court’’
and in text ‘‘proceeding commenced by the United
States in the Court of International Trade’’ for ‘‘proceeding in a United States district court commenced by
the United States pursuant to section 1604 of this
title’’.
1978—Pub. L. 95–410 substituted subsecs. (a) to (e) relating to penalties for fraud, gross negligence, and negligence for prior provisions which: provided for forfeiture of merchandise, or recovery of value thereof, where
entry or attempted entry of the merchandise was made
using fraudulent or false invoice, declaration, affidavit,
letter, paper, or false statement, written or verbal,
false or fraudulent practice or appliance, or false statement in a declaration on entry without reasonable
cause to believe the truth of the statement or aided or
procured the making any such false statement as to
any material matter without reasonable cause to believe the truth of the statement, regardless of deprivation of lawful duties, or guilty of any willful act or
omission when there was a deprivation of such duties;
made the forfeiture applicable to the whole of the merchandise or the value thereof where package contained
the particular articles to which the fraud or false paper
or statement related; and defined attempt to enter the
merchandise without an actual entry having been made
or offered.
1935—Act Aug. 5, 1935, inserted ‘‘whether or not the
United States shall or may be deprived of the lawful
duties, or any portion thereof, accruing upon the merchandise, or any portion thereof, embraced or referred
to in such invoice, declaration, affidavit, letter, paper,
or statement;’’.
EFFECTIVE AND TERMINATION DATES OF 2011
AMENDMENT
Amendment by Pub. L. 112–43 effective Oct. 21, 2011,
applicable with respect to Panama on the date the
United States–Panama Trade Promotion Agreement
enters into force, and to cease to be effective on the
date the Agreement terminates, see section 107(b), (c)
of Pub. L. 112–43, set out in a note under section 3805 of
this title.
Amendment by Pub. L. 112–42 effective Oct. 21, 2011,
applicable with respect to Colombia on the date the
United States–Columbia Trade Promotion Agreement
enters into force, and to cease to be effective on the
date the Agreement terminates, see section 107(b), (c)
of Pub. L. 112–42, set out in a note under section 3805 of
this title.
Amendment by Pub. L. 112–41 effective Oct. 21, 2011,
applicable with respect to Korea on the date the United
States–Korea Free Trade Agreement enters into force
(Mar. 15, 2012), and to cease to be effective on the date
the Agreement terminates, see section 107(b), (c) of
Pub. L. 112–41, set out in a note under section 3805 of
this title.
EFFECTIVE AND TERMINATION DATES OF 2007
AMENDMENT
Amendment by Pub. L. 110–138 effective on the date
the United States-Peru Trade Promotion Agreement
enters into force (Feb. 1, 2009) and to cease to be effective on the date the Agreement ceases to be in force,
see section 107(a), (c) of Pub. L. 110–138, set out in a
note under section 3805 of this title.

Page 250

EFFECTIVE AND TERMINATION DATES OF 2005
AMENDMENT
Amendment by Pub. L. 109–53 effective on the date
the
Dominican
Republic-Central
America-United
States Free Trade Agreement enters into force (Mar. 1,
2006) and to cease to have effect on date Agreement
ceases to be in force with respect to the United States,
and, during any period in which a country ceases to be
a CAFTA–DR country, to cease to have effect with respect to such country, see section 107 of Pub. L. 109–53,
set out as an Effective and Termination Dates note
under section 4001 of this title.
EFFECTIVE AND TERMINATION DATES OF 2004
AMENDMENT
Amendment by Pub. L. 108–286 effective on the date
on which the United States-Australia Free Trade
Agreement enters into force (Jan. 1, 2005) and to cease
to be effective on the date on which the Agreement terminates, see section 106(a), (c) of Pub. L. 108–286, set
out in a note under section 3805 of this title.
EFFECTIVE AND TERMINATION DATES OF 2003
AMENDMENTS
Amendment by Pub. L. 108–78 effective on the date
the United States-Singapore Free Trade Agreement enters into force (Jan. 1, 2004), and to cease to be effective
on the date the Agreement ceases to be in force, see
section 107(a), (c) of Pub. L. 108–78, set out in a note
under section 3805 of this title.
Amendment by Pub. L. 108–77 effective on the date
the United States-Chile Free Trade Agreement enters
into force (Jan. 1, 2004), and to cease to be effective on
the date the Agreement ceases to be in force, see section 107(a), (c) of Pub. L. 108–77, set out in a note under
section 3805 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by section 3(a)(4), (5) of Pub. L. 104–295
applicable as of Dec. 8, 1993, see section 3(b) of Pub. L.
104–295, set out as a note under section 1321 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by section 205(c) of Pub. L. 103–182 effective on the date the North American Free Trade Agreement enters into force with respect to the United
States [Jan. 1, 1994], see section 213(b) of Pub. L.
103–182, set out as an Effective Date note under section
3331 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–417 applicable with respect
to civil actions commenced on or after 90th day after
Nov. 1, 1980, see section 701(c)(2) of Pub. L. 96–417, set
out as a note under section 251 of Title 28, Judiciary
and Judicial Procedure.
EFFECTIVE DATE OF 1978 AMENDMENT
Section 110(f) of Pub. L. 95–410 provided that:
‘‘(1)(A) Except as provided in subparagraphs (B) and
(C), subsections (a), (b), and (c) (other than new subsection (e) of section 592 of the Tariff Act of 1930 as
added by subsection (a)) [subsec. (a), (b), and (c), not including (e) of this section] shall be effective with respect to proceedings commenced after the 89th day
after the date of enactment of this Act [Oct. 3, 1978].
‘‘(B) Except as provided in subparagraph (C), section
592 of the Tariff Act of 1930 [this section] (as such section existed on the day before the date of enactment of
this Act) [Oct. 3, 1978] shall apply to any alleged intentional violation thereof involving television receivers
that are the product of Japan and that were or are the
subject of antidumping proceedings if the alleged intentional violation—
‘‘(i) occurred before the date of enactment of this
Act, and
‘‘(ii) was the subject of an investigation by the Customs Service which was begun before the date of enactment of this Act.

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TITLE 19—CUSTOMS DUTIES

‘‘(C) Except as provided in the next sentence, subsection (e) of section 592 of the Tariff Act of 1930 (as
added by subsection (a)) [subsec. (e) of this section]
shall be effective on the date of enactment of this Act
[Oct. 3, 1978]. Notwithstanding any provision of law, in
any proceeding in a United States district court commenced by the United States pursuant to section 604 of
the Tariff Act of 1930 [section 1604 of this title] for the
recovery of any monetary penalty claimed under section 592 of such Act [this section] for an alleged intentional violation described in subparagraph (B)—
‘‘(i) all issues, including the amount of the penalty,
shall be tried de novo; and
‘‘(ii) the United States shall have the burden of
proof to establish such violation by a preponderance
of the evidence.
‘‘(2)(A) The amendment made by subsection (e) [to
section 1621 of this title] shall apply with respect to alleged violations of section 592 of the Tariff Act of 1930
[this section] resulting from gross negligence or negligence which are committed on or after the date of the
enactment of this Act [Oct. 3, 1978].
‘‘(B) In the case of any alleged violation of such section 592 [this section] resulting from gross negligence
or negligence which was committed before the date of
the enactment of this Act [Oct. 3, 1978] and for which
no suit or action for recovery was commenced before
such date of enactment, no suit or action for recovery
with respect to such alleged violation shall be instituted after—
‘‘(i) the closing date of the 5-year period beginning
on the date on which the alleged violation was committed, or
‘‘(ii) the closing date of the 2-year period beginning
on such date of enactment,
whichever date later occurs, except that no such suit or
action may be instituted after the date on which such
suit or action would have been barred under section 621
of the Tariff Act of 1930 [section 1621 of this title] (as
in effect on the day before such date of enactment).’’
TRANSFER OF FUNCTIONS
For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the
Department of the Treasury, including functions of the
Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and
557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section
542 of Title 6.

§ 1592a. Special provisions regarding certain violations
(a) Publication of names of certain violators
(1) Publication
The Secretary of the Treasury is authorized
to publish in the Federal Register a list of the
name of any producer, manufacturer, supplier,
seller, exporter, or other person located outside the customs territory of the United
States—
(A) against whom the Customs Service has
issued a penalty claim under section 1592 of
this title, and
(B) if a petition with respect to that claim
has been filed under section 1618 of this title,
against whom a final decision has been issued under such section after exhaustion of
administrative remedies,
citing any of the violations of the customs
laws referred to in paragraph (2). Such list
shall be published not later than March 31 and
September 30 of each year.

§ 1592a

(2) Violations
The violations of the customs laws referred
to in paragraph (1) are the following:
(A) Using documentation, or providing
documentation subsequently used by the importer of record, which indicates a false or
fraudulent country of origin or source of textile or apparel products.
(B) Using counterfeit visas, licenses, permits, bills of lading, or similar documentation, or providing counterfeit visas, licenses,
permits, bills of lading, or similar documentation that is subsequently used by the
importer of record, with respect to the entry
into the customs territory of the United
States of textile or apparel products.
(C) Manufacturing, producing, supplying,
or selling textile or apparel products which
are falsely or fraudulently labelled as to
country of origin or source.
(D) Engaging in practices which aid or
abet the transshipment, through a country
other than the country of origin, of textile
or apparel products in a manner which conceals the true origin of the textile or apparel
products or permits the evasion of quotas
on, or voluntary restraint agreements with
respect to, imports of textile or apparel
products.
(3) Removal from list
Any person whose name has been included in
a list published under paragraph (1) may petition the Secretary to be removed from such
list. If the Secretary finds that such person
has not committed any violations described in
paragraph (2) for a period of not less than 3
years after the date on which the person’s
name was so published, the Secretary shall remove such person from the list as of the next
publication of the list under paragraph (1).
(4) Reasonable care required for subsequent
imports
(A) Responsibility of importers and others
After the name of a person has been published under paragraph (1), the Secretary of
the Treasury shall require any importer of
record entering, introducing, or attempting
to introduce into the commerce of the
United States textile or apparel products
that were either directly or indirectly produced, manufactured, supplied, sold, exported, or transported by such named person
to show, to the satisfaction of the Secretary,
that such importer has exercised reasonable
care to ensure that the textile or apparel
products are accompanied by documentation, packaging, and labelling that are accurate as to its origin. Such reasonable care
shall not include reliance solely on a source
of information which is the named person.
(B) Failure to exercise reasonable care
If the Customs Service determines that
merchandise is not from the country
claimed on the documentation accompanying the merchandise, the failure to exercise
reasonable care described in subparagraph
(A) shall be considered when the Customs
Service determines whether the importer of