(a) When required. If the Fines, Penalties, and Forfeitures Officer has reasonable cause to believe that a violation of section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592), has occurred, and determines that further proceedings are warranted, he shall issue to the person concerned a notice of his intent to issue a claim for a monetary penalty. The prepenalty notice shall be issued whether or not a seizure has been made.
(b) Contents -
(1) Facts of violation. The prepenalty 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 abetting of the entry, introduction, or attempt,
(iii) Specify all laws and regulations allegedly violated,
(iv) Disclose all material facts which establish the alleged violation,
(v) State whether the alleged violation occured as the result of fraud, gross negligence, or negligence, and
(vi) State the estimated loss of duties, if any, and, taking into account all circumstances, the amount of the proposed monetary penalty.
(2) Right to make presentations. The prepenalty notice also shall inform the person of his right to make an oral and a written presentation within 30 days of the mailing of the notice (or such shorter period as may be prescribed under § 162.78) as to why a claim for a monetary penalty should not be issued or, if issued, why it should be in a lesser amount than proposed.
(c) Exceptions. A prepenalty notice shall not be issued if:
(1) The claim is for $1,000 or less, or
(2) The violation occurred with respect to a noncommercial importation.
[T.D. 79-160, 44 FR 31958, June 4, 1979, as amended by T.D. 99-27, 64 FR 13676, Mar. 22, 1999]