Which of the following is a TRUE statement regarding decisions to remit or mitigate a penalty or cancel a claim for liquidated damages upon payment of a lesser amount?
How to get there
19 CFR 172.22(a): Mitigation decision not subject to protestAny decision to remit or mitigate a penalty or cancel a claim for liquidated damages upon payment of a lesser amount is not a protestable decision as defined under the provisions of 19 U.S.C. 1514. Any payment made in compliance with any decision to remit or mitigate … is not a charge or exaction and therefore is not a protestable action …
The answer is D.
Why the other choices are wrong
A) Protestable in ACE within 365 days, B) Paper protest within 180 days and C) In-person protest within 180 days: all assume a protest route that § 172.22(a) rules out. The way to keep contesting is a supplemental petition under part 172. Paying the mitigated amount ends the case as an accord and satisfaction (§ 172.22(b)).
Tip
Two tracks, don't mix them. Protests (part 174) challenge CBP decisions on entries: liquidation, classification, charges. Petitions (parts 171–172) seek relief from penalties and liquidated damages. Mitigation decisions sit on the petition track.
Source: 19 CFR 172.22 (eCFR).
CBP answer key: Answer D · 19 CFR 172.22(a)Source: CBP past exams ↗