What is the maximum amount that a broker can be penalized for a violation or violations of 19 USC 1641 in one penalty notice?
How to get there
19 CFR Part 171, Appendix C, § XII: Limits of Penalty AssessmentsA. A broker shall be penalized a maximum of $30,000 for any violation or violations of the statute in any one penalty notice.
B. If a broker is penalized to the maximum … and continues to commit the same violation or violations, revocation or suspension of his license would be the appropriate sanction. …
C. From any one audit, the maximum aggregate penalty for all violations discovered is $30,000.
B. If a broker is penalized to the maximum … and continues to commit the same violation or violations, revocation or suspension of his license would be the appropriate sanction. …
C. From any one audit, the maximum aggregate penalty for all violations discovered is $30,000.
The answer is B.
Why the other choices are wrong
A) $25,000: the § VII amount for knowingly employing a felon without seeking approval, not the overall cap.
C) $50,000 and D) $100,000: above the $30,000 statutory maximum for § 1641 broker penalties.
Tip
Broker penalty numbers: $30,000 maximum per notice and per audit; $10,000 generally for unlicensed customs business; the $5,000, $25,000 and $30,000 ladder for felon employment. Repeat maximum violations lead to suspension or revocation.
Source: 19 CFR Part 171, Appendix C, §§ VII, XII (eCFR).
CBP answer key: Answer B · 19 CFR Part 171 Appendix C XIISource: CBP past exams ↗