PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND NEGLIGENCE; PRIOR DISCLOSURE.

SEC. 621. PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND NEGLIGENCE; PRIOR DISCLOSURE. Section 592 (19 U.S.C. 1592) is amended— (1) by inserting “or electronically transmitted data or information” after “document” in subsection (a)(1)(A)(i); (2) by inserting “The mere nonintentional repetition by an electronic system of an initial clerical error does not con-107 STAT. 2181stitute a pattern of negligent conduct.” at the end of subsection (a)(2); (3) by amending subsection (b)— (A) by amending the first sentence of paragraph (1)(A)— (i) by striking out “the appropriate customs officer” and inserting “the Customs Service”, (ii) by striking out “he” and inserting “it”, and (iii) by striking out “his” and inserting “its”, and (B) by amending paragraph (2)— (i) by striking out “the appropriate customs officer” wherever it appears and inserting “the Customs Service”, (ii) by striking out “such officer” wherever it appears and inserting “the Customs Service”, and (iii) by striking out “he” wherever it appears and inserting “it”; (4) by amending subsection (c)(4)— (A) by striking “time of disclosure or within thirty days, or such longer period as the appropriate customs officer may provide, after notice by the appropriate customs officer of his” in subparagraph (A)(i) and by striking out “time of disclosure in 30 days, or such longer period as the appropriate customs officer may provide, after notice by the appropriate customs officer of his” in subparagraph (B), and inserting in each place “time of disclosure, or within 30 days (or such longer period as the Customs Service may provide) after notice by the Customs Service of its”; and (B) by inserting after the last sentence the following: “For purposes of this section, a formal investigation of a violation is considered to be commenced with regard to the disclosing party and the disclosed information on the date recorded in writing by the Customs Service as the date on which facts and circumstances were discovered or information was received which caused the Customs Service to believe that a possibility of a violation of subsection (a) existed.”; and (5) by amending subsection (d)— (A) by striking out “the appropriate customs officer” and inserting “the Customs Service”, (B) by striking out “duties” wherever it appears and inserting “duties, taxes, or fees”, and (C) Duties” in the sideheading.