§ 791.317. Pre-penalty notice; settlement.
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/us/cfr/t15/s§ 791.317·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)When required. If BIS has reason to believe that there has occurred a violation of any provision of this subpart or a violation of the provisions of any exemption, general authorization, specific authorization, regulation, order, directive, instruction, or prohibition issued by or pursuant to the direction or authorization of the Secretary pursuant to this subpart or otherwise under IEEPA and determines that a civil monetary penalty is warranted, BIS will issue a pre-penalty notice informing the alleged violator of BIS's intent to impose a monetary penalty. A pre-penalty notice shall be in writing and issued either electronically or by mail to the alleged violator. The pre-penalty notice may be issued whether or not another agency has taken any action with respect to the matter. BIS will consider any voluntary disclosures of a violation prior to issuing such notice.
(b)Response---(1) Right to respond. An alleged violator may respond to a pre-penalty notice in writing to BIS.
(2)Deadline for response. A response to a pre-penalty notice must be made within 30 days as set forth below. The failure to submit a response within 30 days shall be deemed to be a waiver of the right to respond.
(i)Computation of time for response. A response to a pre-penalty notice must be electronically transmitted on or before the 30th day after the date of delivery by BIS.
(ii)Extensions of time for response. If a due date falls on a Federal holiday or weekend, that due date is extended to include the following business day. Any other extensions of time will be granted, at the discretion of BIS, only upon specific request to BIS.
(3)Form and method of response. A response to a pre-penalty notice need not be in any particular form, but it must be typewritten and signed by the alleged violator or a representative thereof, contain information sufficient to indicate that it is in response to the pre-penalty notice, and include the BIS identification number listed on the pre-penalty notice. A digital signature is acceptable.
(4)Information that should be included in response. Any response should set forth in detail why the alleged violator either believes that a violation of the provisions of this subpart did not occur and/or why a civil monetary penalty is otherwise unwarranted under the circumstances. The response should include all documentary or other evidence available to the alleged violator that supports the arguments set forth in the response. BIS will consider all relevant materials submitted in the response.
(c)Representation. A representative of the alleged violator may act on behalf of the alleged violator, but any oral communication with BIS prior to a written submission regarding the specific allegations contained in the pre-penalty notice must be preceded by a written letter of representation, unless the pre-penalty notice was served upon the alleged violator in care of the representative.
(d)Settlement. Settlement discussions may be initiated by BIS, the alleged violator, or the alleged violator's authorized representative.