PART 172—CLAIMS FOR LIQUIDATED DAMAGES; PENALTIES SECURED BY BONDS Authority: 19 U.S.C. 66, 1618, 1623, 1624. Source: T.D. 00-57, 65 FR 53578, Sept. 5, 2000, unless otherwise noted. § 172.0 Scope. This part contains provisions relating to petitions for relief from claims for liquidated damages arising under any Customs bond and penalties incurred which are secured by the conditions of the International Carrier Bond (see § 113.64 of this Chapter). This part does not relate to petitions on unsecured fines or penalties or seizures and forfeitures, nor does it relate to petitions for the restoration of proceeds of sale pursuant to 19 U.S.C. 1613. Subpart A—Notice of Claim and Application for Relief § 172.1 Notice of liquidated damages or penalty incurred and right to petition for relief. (a) Notice of liquidated damages or penalty incurred. (b) Notice of right to petition for relief. § 172.2 Petition for relief. (a) To whom addressed. (b) Signature. (c) Form. (1) The date and place of the violation; and (2) The facts and circumstances relied upon by the petitioner to justify cancellation, remission or mitigation. (d) False statement in petition. § 172.3 Filing a petition. (a) Where filed. (b) When filed. (c) Extensions. (d) Number of copies. (e) Exception for certain cases. § 172.4 Demand on surety. If the principal fails to file a petition for relief or fails to comply in the prescribed time with a decision to mitigate a penalty or cancel a claim for liquidated damages issued with regard to a petition for relief, Customs will make a demand for payment on surety. The surety will then have 60 days from the date of the demand to file a petition for relief. Subpart B—Action on Petitions § 172.11 Petitions acted on by Fines, Penalties, and Forfeitures Officer. (a) Mitigation or cancellation authority. (b) When violation did not occur. [T.D. 00-57, 65 FR 53578, Sept. 5, 2000, as amended by CBP Dec. 12-07, 77 FR 19534, Apr. 2, 2012] § 172.12 Petitions acted on at Customs Headquarters. Upon receipt of a petition for relief filed pursuant to the provisions of section 618 or 623 of the Tariff Act of 1930, as amended (19 U.S.C. 1618 or 19 U.S.C. 1623), involving fines, penalties, and claims for liquidated damages which are outside of his or her delegated authority the Fines, Penalties, and Forfeitures Officer will refer that petition to the Chief, Penalties Branch, Office of International Trade Regulations and Rulings, CBP Headquarters, who is empowered, notwithstanding any other law or regulation, to mitigate penalties or cancel bond claims on such terms and conditions as, under law and in view of the circumstances, he or she deems appropriate. [T.D. 00-57, 65 FR 53578, Sept. 5, 2000, as amended by CBP Dec. 12-07, 77 FR 19534, Apr. 2, 2012] § 172.13 Limitations on consideration of petitions. (a) Cases referred for institution of legal proceedings. (b) Delinquent sureties. § 172.14 Headquarters advice. The advice of the Director, Border Security and Trade Compliance Division, Regulations and Rulings, Office of International Trade, CBP Headquarters, may be sought in any case (except as provided in this section), without regard to delegated authority to act on a petition or offer, when a novel or complex issue concerning a ruling, policy, or procedure is presented concerning a CBP action(s) or potential CBP action(s) relating to penalties secured by bonds (including penalty-based determinations of duty except as provided in this section), claims for liquidated damages or mitigating any claim. This section does not apply to actual duty loss tenders determined by CBP pursuant to § 162.74(c) of this chapter relating to prior disclosure. The request for advice may be initiated by the bond principal, surety or any CBP officer, but must be submitted to the Fines, Penalties, and Forfeitures Officer. The Fines, Penalties, and Forfeitures Officer retains the authority to refuse to forward any request that fails to raise a qualifying issue and to seek legal advice from the appropriate Associate or Assistant Chief Counsel in any case. Subpart C—Disposition of Petitions § 172.21 Decisions effective for limited time. A decision to mitigate a penalty or to cancel a claim for liquidated damages upon condition that a stated amount is paid will 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. If payment of the stated amount is not made or a petition or a supplemental petition is not filed in accordance with regulation, the full penalty or claim for liquidated damages will be deemed applicable and will be enforced by promptly transmitting the matter, after required collection action, if appropriate, to the appropriate office of the Chief Counsel for preparation for referral to the Department of Justice unless other action has been directed by the Commissioner of Customs. Any such case may also be the basis for a sanction action commenced in accordance with regulations in this chapter. § 172.22 Decisions not protestable. (a) Mitigation decision not subject to protest. (b) Payment of mitigated or cancellation amount as accord and satisfaction. Subpart D—Offers in Compromise § 172.31 Form of offers. Offers in compromise submitted pursuant to the provisions of section 617 of the Tariff Act of 1930, as amended (19 U.S.C. 1617), must expressly state that they are being submitted in accordance with the provisions of that section. The amount of the offer must be deposited with Customs in accordance with the provisions of § 161.5 of this chapter. § 172.32 Authority to accept offers. The authority to accept offers in compromise, subject to the recommendation of the General Counsel of the Treasury or his delegee, resides with the official having authority to decide a petition for relief, except that authority to accept offers in compromise submitted with regard to penalties secured by a bond or claims for liquidated damages which are the subject of a letter to show cause issued to a surety in anticipation of possible action involving nonacceptance of bonds authorized under the provisions of part 113 of this chapter will reside with the designated Headquarters official who issued the show cause letter. § 172.33 Acceptance of offers in compromise. An offer in compromise will be considered accepted only when the offeror is so notified in writing. As a condition to accepting an offer in compromise, the offeror may be required to enter into any collateral agreement or to post any security which is deemed necessary for the protection of the interest of the United States. Subpart E—Supplemental Petitions for Relief § 172.41 Time and place of filing. If the petitioner is not satisfied with a decision of the deciding official on an original petition for relief, a supplemental petition may be filed with the Fines, Penalties, and Forfeitures Officer having jurisdiction in the port where the violation occurred. The petitioner must file such a supplemental petition within 60 days from the date of notice to the petitioner of the decision from which further relief is requested or within 60 days following an administrative or judicial decision with respect to issues serving as the basis for the claim for liquidated damages (whichever is later) unless another time to file such a supplemental petition is prescribed in the decision. A supplemental petition may be filed whether or not the mitigated amount designated in the decision on the original petition is paid. § 172.42 Supplemental petition decision authority. (a) Decisions of Fines, Penalties, and Forfeitures Officers. (b) Decisions of CBP Headquarters. (c) Authority of Executive Director. § 172.43 Waiver of statute of limitations. The deciding Customs official always reserves the right to require a waiver of the statute of limitations executed by the charged party or parties as a condition precedent before accepting a supplemental petition in any case in which less than one year remains before the statute will be available as a defense to all or part of that case.