CustomsBrokerLicenseExam

Home / Past exams / April 2024 / Question 23

April 2024, question 23

Modernized Drawback · Drawback

What is the maximum civil administrative penalty for any person who seeks, induces, or affects, or attempts to seek, induce, or affect, the payment of drawback by fraud?

  1. One (1) times the total actual or potential loss of revenue.
  2. Three (3) times the total actual or potential loss of revenue.
  3. Five (5) times the total actual or potential loss of revenue.
  4. Twenty (20) percent of actual or potential loss of revenue.
Show the answer and walk-through

CBP's answer: B. B: Three (3) times the total actual or potential loss of revenue.

For a fraudulent drawback violation the civil penalty under 19 USC 1593a has a maximum of 3 times the total actual or potential loss of revenue (B). The equal-to-loss figure applies only to repetitive negligent violations.

A fraudulent violation is subject to a maximum administrative penalty of 3 times the total actual or potential loss of revenue. 19 CFR 190.62(b)

Search for: maximum administrative penalty drawback fraud

CBP's key cites: 19 CFR 190.62

Question and key from CBP's April 2024 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).