What are the requirements for CBP to consider an offer in compromise under the Tariff Act of 1930 (as amended) arising from a violation of Customs law?
How to get there
19 CFR 161.5: Compromise of Government claims(a) An offer … in compromise of a Government claim arising under the Customs laws and the terms upon which it is made shall be stated in writing addressed to the Commissioner of Customs. …
(b) Deposit of specific sum tendered. No offer in which a specific sum of money is tendered … will be considered by the Commissioner … until due notice is received that such sum has been properly deposited … with the Treasurer of the United States or a Federal Reserve bank. … If the offer is rejected, the money will be returned to the proponent.
(b) Deposit of specific sum tendered. No offer in which a specific sum of money is tendered … will be considered by the Commissioner … until due notice is received that such sum has been properly deposited … with the Treasurer of the United States or a Federal Reserve bank. … If the offer is rejected, the money will be returned to the proponent.
Two requirements: a written offer and the specific sum offered, deposited. The answer is B.
Why the other choices are wrong
A) A 20% deposit: the regulation requires the full specific sum offered, not a percentage.
C) The domestic value of the claim: you tender what you're offering in compromise, which by definition is less than the claim. Domestic value appears elsewhere (for example, liquidated damages for diversion), not here.
D) At least $1,000: there's no minimum amount in § 161.5.
Tip
An offer in compromise is written, addressed to the Commissioner, limited to the proponent's civil liability, and backed by the full offered amount on deposit, which is refunded if the offer is rejected.
Source: 19 CFR 161.5 (eCFR); 19 U.S.C. 1617.
CBP answer key: Answer B · 19 CFR 161.5Source: CBP past exams ↗