Subpart A-General Provisions § 171.1

Limitations on consideration of

petitions.

(a) Case referred for institution of legal proceedings. No action shall be taken on any petition if the civil liability has been referred to the U.S. attorney for institution of legal proceedings. The petition shall be forwarded to the U.S. attorney.

(b) Vessel or vehicle awarded for official use. When a vessel or vehicle is awarded for official use, a petition shall not be considered unless:

(1) It is filed before final disposition of the property is made; or

(2) It is a petition for restoration of proceeds of sale filed in accordance with Subpart E of this part.

Subpart B-Application for Relief § 171.11

Petition for relief.

(a) To whom addressed. Petitions for the remission or mitigation of a fine, penalty, or forfeiture incurred under any law administered by the Bureau of Customs shall be addressed to the Commissioner of Customs.

(b) Signature. The petition for remission or mitigation shall be signed by the petitioner. If the petitioner is a corporation, the petition shall be signed by an officer thereof.

(c) Form. The petition for remission or mitigation need not be in any particular form. It shall set forth the following:

(1) A description of the property involved;

(2) The date and place of the violation or seizure; and

(3) The facts and circumstances relied upon by the petitioner to justify the remission or mitigation.

(d) Petition for relief from forfeiture. When the petition is for relief from a forfeiture, it shall show the interest of the petitioner in the property and in appropriate cases shall be supported by bills of sale, contracts, mortgages, or other satisfactory evidence.

(e) False statement in petition. A false statement contained in a petition may subject the petitioner to prosecution under the provisions of 18 U.S.C. 1001. § 171.12

Filing of petition.

(a) Where filed. A petition for relief shall be filed with the district director

for the district in which the property was seized or the fine or penalty imposed.

(b) When filed. Petitions for relief shall be filed within 60 days from the date of mailing of the notice of fine, penalty, or forfeiture incurred, unless additional time has been authorized as provided in § 23.23 (c) of this chapter.

(c) Number of copies. The petition shall be filed in triplicate.

§ 171.13 Additional evidence required with certain petitions.

(a) Seized property in possession of another responsible for act. If the seized property was in the possession of another who was responsible for or caused the act which resulted in the seizure, evidence shall be produced by the petitioner as to the manner in which the property came into the possession of such other person. The petitioner shall also submit evidence that prior to parting with the property he did not know, nor have reasonable cause to believe, that the property would be used to violate Customs or other laws, and that he did not know or have reason to believe that the violator had a criminal record or general reputation for commercial crime. In the case of a family member having an interest in property seized while in possession of another family member, evidence shall be submitted that the petitioning family member did not know or have reason to know that the property was likely to be used in the act which resulted in the seizure.

(b) Petitioner holding chattle mortgage or conditional sales contract. A petitioner holding a chattel mortgage or conditional sales contract covering the seized property shall submit with his petition evidence showing that:

(1) He has an interest in such property, as owner or otherwise, which he acquired in good faith;

(2) He had at no time any knowledge or reason to believe that the property was being or would be used in violation of Customs or other laws of the United States; and

(3) Whether prior to the financial transaction an inquiry of at least one enforcement agency in the locality where the purchaser most recently resided, or resided in the past year, was made as to the purchaser's criminal record and reputation for commercial crime, and a responsive reply received.

Subpart C-Action on Petitions

§ 171.21 Petitions acted on by district director.

In the following cases the district director may mitigate or remit fines, penalties, and forfeitures incurred under any law administered by the Bureau of Customs on such terms and conditions as, under the law and in view of the circumstances, he shall deem appropriate:

(a) $2,000 or less. (1) Fines and other pecuniary penalties aggregating $2,000 or less in respect of any one offense;

(2) Forfeiture of imported merchandise or a claim for forfeiture value in lieu thereof when the merchandise is valued at $2,000 or less;

(3) Forfeiture of merchandise other than imported merchandise when the merchandise is valued at $2,000 or less, and no liability outside the purview of any other provision of this section has been incurred in connection with the same offense.

(b) Over $2,000 but not over $20,000. Penalty and forfeiture incurred under section 497, Tariff Act of 1930 (19 U.S.C. 1497), for failure to declare merchandise valued at more than $2,000 but not over $20,000, if the failure to declare is a first offense and involves a noncommercial importation. Where undeclared chandise is valued at $2,000 or less, the provisions of paragraph (a) (1) and (2) of this section apply.

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(c) Not over $20,000. (1) Forfeiture of motor vehicles, other than imported motor vehicles, valued at $20,000 or less, and no liability outside the purview of any other provision of this section has been incurred in connection with the same offense;

(2) Penalties and forfeitures, aggregating not over $20,000 in any one case and incurred under section 460, Tariff Act of 1930, as amended (19 U.S.C. 1460), for failure to report arrival as required by section 459, Tariff Act of 1930, as amended (19 U.S.C. 1459), in the following cases:

(i) Violations due to ignorance of the reporting requirements or due to inadvertence and either no merchandise, or only typical personal or souvenir merchandise which would have been free of duty, if entered, is carried in the vessel or vehicle, or

(ii) Where the violation is the first offense, although not due to ignorance

or inadvertence, and no intended commercial use or threat to the revenue is involved.

(d) Amount of penalty not specified. Penalties imposed under title 13, United States Code, section 304, and in the amounts prescribed by Title 15, Code of Federal Regulations, § 30.24, for the failure to timely file the complete manifest of the carrier when required and all the required shipper's export declarations, when clearance or permission to depart prior to the filing thereof is granted upon the filing of the required bond. § 171.22 Special cases acted upon by district director.

(a) Forfeitures of merchandise illegally transported coastwise. Forfeiture of merchandise under title 46, United States Code, section 883, for having been illegally transported coastwise, regardless of the value of the merchandise, may be remitted if the petition for relief establishes to the satisfaction of the district director that the violation occurred as a direct result of an arrival of the transporting vessel in distress.

(b) Forfeiture of imported liquor or compound. When any package of or package containing any spirituous, vinous, malted, or other fermented liquor, or any compound containing any spirituous, vinous, malted, or other fermented liquor fit for use for beverage purposes, or any vessel or vehicle in which the same has been transported has become subject to forfeiture under the provisions of 18 U.S.C. 3615, for noncompliance with 18 U.S.C. 1263, and the U.S. attorney has advised the district director that there is not sufficient evidence of intent to violate the law to warrant criminal prosecution thereunder, the forfeiture incurred shall be remitted pursuant to the authority of section 7327, Internal Revenue Code of 1954 (26 U.S.C. 7327), and section 618, Tariff Act of 1930 (19 U.S.C. 1618), upon the condition that the expenses of seizure, if any, shall be paid.

(c) Claim for property stolen in Canada and seized by U.S. Customs. Under the provisions of Executive Order 4306, dated September 19, 1925 (T.D. 41110), any person claiming to be the owner of property stolen in Canada, brought into the United States and seized by Customs authorities for violation of law, may file with the district director having custody of the property a petition for its release, addressed to the Secretary

of the Treasury. The petition shall be supported by evidence of ownership in the claimant and shall contain a waiver and release of all possible claims against the United States or any officer thereof for compensation or damages incident to the seizure and detention of the property. If the district director is satisfied that the claimant is the owner of the property and that it was brought into the United States without collusion on the part of the claimant, the district director may release the property for return to Canada upon the payment of all expenses incident to its seizure and detention. In the event of conflicting claims for the property or any doubt as to the claimant's interest in or right to the property, the district director shall submit the matter to the Commissioner of Customs for decision.

Subpart D-Disposition of Petitions § 171.31

Act or omission did not occur.

If it is definitely determined that the act or omission forming the basis of a penalty or forfeiture claim did not in fact occur, the claim shall be canceled by the district director. When the determination of whether or not the claim was erroneously made depends upon a construction of law, the claim shall not be canceled without the approval of the Commissioner of Customs unless there is in force a ruling by the Commissioner of Customs decisive of the issue.

A decision to mitigate a penalty or to remit a forfeiture upon condition that a stated amount is paid shall be effective for not more than 60 days from the date of notice to the petitioner of such decision, unless the decision itself prescribes a different effective period or the decision is later amended to change the effective period. If payment of the stated amount is not received within the effective period, or arrangements made for delayed payment or installment payments, or a supplemental petition filed within the effective period, the full penalty or forfeiture shall be deemed applicable and shall be enforced by promptly referring the matter to the U.S. attorney for appropriate attention, unless other action has been directed by the Commissioner of Customs.

§ 171.33 Supplemental petitions for relief.

(a) Time and place of filing. If the petitioner is not satisfied with a decision of the district director or the Commissioner of Customs, a supplemental petition may be filed with the district director. Such a petition shall be filed either:

(1) Within 60 days from the date of notice to the petitioner of the decision on the initial petition for relief if no effective period is prescribed in the decision; or

(2) Within the time prescribed in the decision on the initial petition for relief as the effective period of the decision.

(b) Consideration. Where the district director has the authority to grant relief or additional relief in accordance with § 171.21, he may grant such relief if he believes it is warranted and there has been no specific request for review by the Commissioner of Customs. In all other cases, the supplemental petition, together with all pertinent documents, shall be forwarded to the Commissioner of Customs for reconsideration of the case.

Subpart E-Restoration of Proceeds of Sale

§ 171.41 Application of provisions for petitions for relief.

The general provisions of Subpart B of this part on filing and content of petitions for relief apply to petitions for restoration of proceeds of sale except insofar as modified by this subpart. § 171.42 Time limit for filing petition for restoration.

A petition for the restoration of proceeds of sale under section 613, Tariff Act of 1930, as amended (19 U.S.C. 1613), shall be filed within 3 months after the date of the sale.

§ 171.43 Evidence required.

In addition to such other evidence as may be required under the provisions of Subpart B of this part, the petition for restoration of proceeds of sale under section 613, Tariff Act of 1930, as amended (19 U.S.C. 1613), shall show the interest of the petitioner in the property, supported in appropriate cases by bills of sale, contracts, mortgages, or other satisfactory documentary evidence. The petition shall be supported by satisfactory proof that the petitioner did not know

If forfeited property the subject of a claim under section 613, Tariff Act of 1930, as amended (19 U.S.C. 1613), has been authorized for official use, retention or delivery shall be regarded as the sale thereof for the purposes of section 613. The appropriation available to the receiving agency for the purchase, hire, operation, maintenance, and repair of property of the kind so received is available for the granting of relief to the claimant and for the satisfaction of liens for freight charges and contributions in general average that may have been filed.

(Secs. 305, 306, 49 Stat. 880; 40 U.S.C. 304j, 304k)

bond posted with Customs, the filing of petitions for relief from liquidated damages incurred, and the consideration of such petitions.

Subpart A-General Provisions

§ 172.1 Notice of liquidated damages incurred and right to petition for relief. (a) Notice of liquidated damages incurred. When there is a failure to meet the conditions of any bond posted with Customs, the principal shall be notified in writing of any liability for liquidated damages incurred by him and a demand shall be made for payment. The sureties on such bond shall also be advised in writing, at the same time as the principal, of the liability for liquidated damages incurred by the principal.

(b) Notice of right to petition for relief. The notice shall also inform the principal and his sureties on the bond that application may be made for relief from payment of liquidated damages under section 623(c), Tariff Act of 1930, as amended (19 U.S.C. 1623 (c)), or any other applicable statute authorizing the cancellation of any bond or of any bond charge that may have been made against such bond.

§ 172.2 Failure to petition for relief.

(a) Referral of claim to U.S. attorney. If the parties liable for liquidated damages incurred fail to petition for relief or to pay or make arrangements to pay the liquidated damages within 60 days from the date of mailing of the notice of the liquidated damages incurred as provided for in § 172.1, or within such additional time as may have been granted, the district director of Customs shall refer the claim immediately to the U.S. attorney for collection.

(b) Absence from the United States. If it appears that the parties liable for liquidated damages are absent from the United States or during the 60-day period referred to in paragraph (a) of this section were absent for more than 30 days, the district director may withhold such referral for a reasonable time unless other action is expressly authorized by the Commissioner of Customs.

Subpart B-Application for Relief § 172.11 Petition for relief.

(a) To whom addressed. Petitions for relief shall be addressed to the Commissioner of Customs.

(b) Form. A petition for relief need not be in any particular form. Such petition shall set forth the facts relied upon by the petitioner to justify cancellation of the claim for liquidated damages, and shall be signed by the petitioner. If the petitioner is a corporation, the petition shall be signed by an officer thereof. § 172.12 Filing of petition for relief.

(a) Where filed. A petition for relief shall be filed with the district director of Customs for the district in which the liability for liquidated damage is incurred.

(b) When filed. A petition for relief shall be filed within 60 days from the date of mailing of the notice of the liability for liquidated damages incurred unless an extension of such period has been granted by the district director.

(c) Number of copies. The petition for relief shall be filed in triplicate.

Subpart C-Action on Petitions § 172.21

Petitions acted on by district director of Customs.

In the following cases the district director of Customs may cancel any claim for liquidated damages incurred on such terms and conditions as, under the law and in view of the circumstances, he shall deem appropriate:

(a) Under $500. Liquidated damages under $500, incurred under the terms of any bond posted with Customs.

(b) Not over $20,000. (1) Claims for liquidated damages not exceeding $20,000 incurred for violation of the conditions of bonds taken pursuant to schedule 8, part 5C, Tariff Schedules of the United States. (See § 10.39 (e) and (f) of this chapter.)

(2) Claims for liquidated damages not exceeding $20,000 incurred for violation of the conditions of bonds taken pursuant to schedule 3, part 1C, headnote 4, Tariff Schedules of the United States. (See § 10.92 of this chapter.)

(3) Claims for liquidated damages not exceeding $20,000 in cases involving only country of origin marking under section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304). (See § 11.11(d) of this chapter.)

(4) Claims for liquidated damages not exceeding $20,000 incurred for violation of the conditions of bonds taken pursuant to § 18.1 of this chapter (See § 18.8 (d) of this chapter.)

(5) Claims for liquidated damages not exceeding $20,000 incurred for violation

of the conditions of cartmen's and lightermen's bonds taken pursuant to § 21.1 of this chaapter. (See § 21.8 (c) of this chapter.)

§ 172.22 Special cases acted on by district director of Customs.

(a) Nonproduction of documents in general. District directors of Customs are hereby authorized to treat any bond charge for the production of a missing document as satisfied upon payment by the principal or surety of the sum of $25 as liquidated damages for each missing declaration of the consignee or other document, except shippers' export declarations, special Customs and commercial invoices, and certificates of origin and certificates of reexport required under § 12.70 of this chapter, not produced within the time prescribed by law or regulations or any lawful extension of such time.

(b) Nonproduction of special Customs or commercial invoices. When a required special Customs or commercial invoice is not produced on the date of entry or within 6 months thereafter, unless such production is waived under the provisions of § 8.15(d) of this chapter, the bond charge for the production thereof may be canceled by the district director upon the payment of $25 as liquidated damages, if:

(1) The party who made the entry submits an application for relief explaining in detail why the special Customs or commercial invoice could not be produced within the prescribed period; and

(2) The district director of Customs is satisfied by such application or otherwise that the failure to produce the invoice within the prescribed period was due to causes wholly beyond the control of the party making the entry and not to any purpose of the foreign seller or shipper to withhold information required by law, regulation, or special instruction to be shown on the invoice.

(c) Nonproduction of free-entry or reduced-duty documents. When free entry or the application of a reduced rate of duty is dependent upon the production of a document which the importer fails to produce, or when a conditionally free or reduced-duty provision claimed on entry is held to be inapplicable, the claim for free entry or reduced rate of duty shall be treated by the district director as abandoned upon the assessment and payment of duty and the bond given for the production of the free-entry