Pre-Penalty Notice Law and Legal Definition

A pre-penalty notice refers to a notice issued to a company by a governmental agency that is suspected of committing some serious violation. The notice demands a written response within specified time or the company will be subject to a penalty or fine. For example, a pre-penalty notice can be issued under 19 USCS § 1592 for fraud, gross negligence, and negligence in international trade. After the issuance of the pre-penalty notice and consideration of any representations made by the importer, the U.S. Bureau of Customs and Border Protection must issue a written penalty claim, i.e., a notice of penalty, specifying any changes in the information provided in the pre-penalty notice.