Increase in civil penalties for fraudulent and grossly negligent violations of United States customs laws

Section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) is amended— (1) in subsection (a)— (A) by redesignating paragraph (2) as paragraph (3); and (B) by inserting after paragraph (1) the following: (2) Presumption (A) In general For purposes of paragraph (1)(B), if a person purchases merchandise from two or more affiliated persons after such persons are determined by U.S. Customs and Border Protection or a court of competent jurisdiction to have violated subsection (a) by means of fraud or gross negligence, there shall be a presumption that the purchaser had knowledge of such violation with respect to purchases from the second or subsequent such affiliated person. (B) Affiliated person defined In subparagraph (A), the term affiliated person has the meaning given that term in section 771(33).; and (2) in subsection (c)— (A) in paragraph (1)— (i) by striking A fraudulent violation and inserting the following: (A) In general A fraudulent violation; (ii) in subparagraph (A) (as so designated), by inserting before the domestic value the following: three times; and (iii) by adding at the end the following: (B) Additional penalties A person— (i) that commits a fraudulent violation of subsection (a) shall be prohibited from importing merchandise into the United States during a period of five years beginning on the date of entry of a final judgment with respect to such violation; and (ii) that is an affiliated person of a person described in clause (i) shall be prohibited from importing merchandise into the United States during the period described in such clause. (C) Affiliated person defined In subparagraph (B)(ii), the term affiliated person has the meaning given that term in section 771(33).; and (B) in paragraph (2)— (i) by striking A grossly negligent violation and inserting the following: (A) In general A grossly negligent violation; (ii) by striking (A) the lesser of— and inserting the following: (i) the lesser of—; (iii) by striking (i) the domestic value and inserting the following: (I) three times the domestic value; (iv) by striking (ii) four times and inserting the following: (II) 10 times; (v) by striking (B) if the violation and inserting the following: (ii) if the violation; (vi) in clause (ii) of subparagraph (A) (as so redesignated), by striking 40 percent of and inserting three times; and (vii) by adding at the end the following: (B) Additional penalties A person— (i) that commits a grossly negligent violation of subsection (a) shall be prohibited from importing merchandise into the United States during a period of two years beginning on the date of entry of a final judgment with respect to such violation; and (ii) that is an affiliated person of a person described in clause (i) shall be prohibited from importing merchandise into the United States during the period described in such clause. (C) Affiliated person defined In subparagraph (B)(ii), the term affiliated person has the meaning given that term in section 771(33)..