Section 241: Civil penalties for certain offences under the customs and excise laws

1 It is unlawful for any person, without due regard to whether the Service is deprived of all or a portion of any lawful duty, excise tax, other tax or fee to -
a enter or introduce goods into the customs territory and zones by means of any document or electronically transmitted data or information, such as manifest transmission and single goods declaration;
b enter or introduce any goods into the customs territory and zones by means of written or oral statement which is false in any material particular; or
c aid or abet any other person in connection with the provisions of paragraph (a) or (b).

2 Unless a part of a pattern of negligent conduct -
a clerical errors or mistakes, or
b repetition by electronic system of an initial clerical error shall not constitute a contravention of the provision of subsection (1),

provided that the burden of proof of a clerical error shall be that of the defendant.

3 A grossly negligent violation of the provision of this section is punishable by a penalty in an amount not exceeding the lesser of -
a the value of the goods;
b four times the duties, excise Customs duties, other Customs duties and fees of which the Service is or may be deprived; or
c 40% of the value of the goods if the violation did not affect the collection of a customs debt.

4 Any negligent violation of the provision of this section is punishable by a penalty in an amount not exceeding the lesser of -
a the value of the goods,
b two times the duties, excise Customs duties, other Customs duties and fees of which the Service is or may be deprived; or
c 20% of the value of the goods, if the violation did not affect the collection of a customs debt.

5 Where a defendant discloses the circumstances of a violation of the provision of subsection (1) before, or without knowledge of, the commencement if a formal investigation of a violation by the Service, the goods concerned shall not be seized and any monetary penalty to be assessed under this section shall not exceed -
a 100% of his duties, excise Customs duties, other Customs duties and fees due as long as the person tenders the unpaid amount due at the time of disclosure or within such longer period as the service may determine;
b 10% of the value of the goods, if such violation did not affect the assessment of duties, excise Customs duties, other Customs duties and fees; or
c the interest on the unpaid customs debt computed from the date the debt was incurred, if the violation resulted from negligence or gross negligence and the person tenders the unpaid amount due at the time of disclosure or within such longer time as the Service may determine.

6 Any person asserting lack of knowledge of the commencement of a formal investigation has the burden of proof in establishing such lack of knowledge, and a formal investigation of a violation is deemed to be commenced on the date recorded in writing by the Service as the date on which facts and circumstances were discovered or information was received which caused the Service to believe that a possibility of a violation exists.