Sec. 302. Modification of standards and penalties for fraud and negligence
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Section 592 of the Tariff Act of 1930 ( 19 U.S.C. 1592 ) is amended— in the section heading, by striking ; and , gross negligence, in subsection (a)— in paragraph (1)— in the matter preceding subparagraph (A), by striking , gross negligence, ; in subparagraph (A)(ii), by striking , or and inserting a semicolon; in subparagraph (B), by striking the period at the end and inserting ; or ; and by adding at the end the following: may direct or facilitate the entry or introduction of merchandise in violation of subparagraph (A). ; by adding at the end the following: A violation of paragraph
(1)is by fraud if the violation results from an act (including the transmission of a statement or document to U.S. Customs and Border Protection) or omission, done knowingly or with deliberate ignorance or reckless disregard of the offender's obligations to act in accordance with applicable provisions of law. A violation of paragraph
(1)is by negligence if the violation results from an act (including the transmission of a statement or document to U.S. Customs and Border Protection) or omission done through the failure to exercise the degree of reasonable care— to ensure that statements made and information provided in connection with the importation of merchandise are complete and accurate; or to perform any material act required by the customs and trade laws of the United States (as defined in section 2 of the Trade Facilitation and Trade Enforcement Act of 2015 ( 19 U.S.C. 4301 )) or any regulation prescribed pursuant to such laws. ; in subsection (c)— by striking paragraph (2); and in paragraph (4)(B), by striking or gross negligence ; in subsection (e)— in the matter preceding paragraph (1), by inserting after this section the following: , without regard to whether U.S. Customs and Border Protection asserts that the violation to which the penalty relates was done by fraud or negligence ; by striking paragraph (3); and by redesignating paragraph
(4)as paragraph (3); and in subsections
(f)through (l), by striking , gross negligence, each place it appears. Section 592(b) of the Tariff Act of 1930 ( 19 U.S.C. 1592(b) ) is amended— in paragraph (1)— in subparagraph (A)— in clause (ii)— by striking , or and inserting a comma; and by inserting before the semicolon the following: , or the direction or facilitation of the entry or introduction ; in clause (v), by striking whether and all that follows through or negligence and inserting the alleged level of culpability ; and by amending subparagraph
(B)to read as follows: U.S. Customs and Border Protection is not required to issue a notice under subparagraph
(A)if— the importation with respect to which the violation of subsection
(a)occurs is noncommercial in nature, or the amount of the penalty in the penalty claim issued under paragraph
(2)is less than an amount established by the Secretary by regulation. ; by amending paragraph
(2)to read as follows: U.S. Customs and Border Protection shall determine whether any violation of subsection
(a)has occurred after considering representations, if any, made by the person concerned. If U.S. Customs and Border Protection determines under subparagraph
(A)that a person described in that subparagraph did not violate subsection (a), U.S. Customs and Border Protection shall promptly issue a written statement of the determination to that person. If U.S. Customs and Border Protection determines under subparagraph
(A)that a person described in that subparagraph violated subsection (a), U.S. Customs and Border Protection shall issue a written penalty claim to that person. A written penalty claim issued under clause
(i)with respect to a violation of subsection
(a)shall specify— the information described in clauses
(i)through
(vi)of paragraph (1)(A); and if a notice was issued under paragraph (1)(A) with respect to the violation, any changes to the information described in clauses
(i)through
(vi)of that paragraph. Except as provided by clause (iii), a person to which U.S. Customs and Border Protection issues a penalty claim under subparagraph
(C)shall have a reasonable opportunity under section 618 to make representations, both oral and written, seeking remission or mitigation of the monetary penalty. At the conclusion of any proceeding under section 618 described in clause (i), U.S. Customs and Border Protection shall provide to the person to which U.S. Customs and Border Protection issued a penalty claim a written statement (which may be issued electronically) that sets forth the final determination and the findings of fact and conclusions of law on which that determination is based. A penalty for a violation of subsection
(a)by fraud may be enforced in the United States Court of International Trade without the issuance of a notice under paragraph (1)(A) or an administrative proceeding under section 618. . Section 592(e) of the Tariff Act of 1930 ( 19 U.S.C. 1592(e) ) is amended— in the matter preceding paragraph (1), by inserting after under this section the following: (without regard to the level of culpability asserted by U.S. Customs and Border Protection in any proceeding under subsection (b)) ; in paragraph (2), by striking the semicolon and inserting ; and ; by striking paragraph (3); and by redesignating paragraph
(4)as paragraph (3). Section 592 of the Tariff Act of 1930 ( 19 U.S.C. 1592 ), as amended by this section, is further amended by striking the Customs Service each place it appears and inserting U.S. Customs and Border Protection .
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