107 STAT. 2182 PUBLIC LAW 103-182—DEC. 8, 1993
- (i) any document, written or oral statement, or
electronically transmitted data or information, 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) PREPENALTY NOTICE. — "(A) IN GENERAL.— If the Customs Service has reasonable cause to believe that there has been a violation of subsection (a) and determines that further proceedings are warranted, the Customs Service shall issue to the person concerned a written notice of intent to issue a claim for a monetary penalty. Such notice shall— " (i) identify the drawback claim; " (ii) set forth the details relating to the seeking, inducing, or affecting, or the attempted seeking, inducing, or affecting, or the aiding or procuring of, the drawback claim;
- (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 or negligence; "(vi) state the estimated actual or potential loss of revenue due to the drawback claim, and, taking into account all circumstences, the amount of the proposed monetery 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 monetorv penalty should not be issued in the amount steted.
- (B) EXCEPTIONS. —The Customs Service may not issue
a prepenalty notice if the amount of the penalty in the penalty claim issued under paragraph (2) is $1,000 or less. In such cases, the Ciistoms Service may proceed directly with a penalty claim. "(U) PRIOR APPROVAL.— No prepenalty notice in which the alleged violation occurred as a result of fraud shall be issued without the prior approval of Customs Headquarters. (2) PENALTY CLAIM.— After considering representetions, 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), as alleged in the notice, has occurred. If the Customs Service determines that there was no violation, the Customs Service 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. Customs shall issue a written penalty claim to such person. The written penalty claim shall
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