1. (a) Application. Penalties shall be assessed if differences in an air cargo manifest (overages or shortages) are discovered and:

   1. (1) The required notice and explanation are not made in time;
   2. (2) The port director is not satisfied that the differences were caused by clerical error or other mistake;
   3. (3) There has been a loss of revenue to the U.S.; or
   4. (4) The port director is not satisfied that there was a valid reason for delay in reporting any differences.
2. (b) Definition. Under this section, “clerical error or other mistake” means a non-negligent, inadvertant, or typographical mistake in the preparation, assembly, or submission (electronically or otherwise) of the manifest.
3. (c) Repeated differences. If repeated differences are found in manifests filed by the same person, it may be determined that the differences were a result of negligence and not clerical error or other mistake.
4. (d) Knowledge. A penalty may be assessed for differences in a manifest that are unknown to the aircraft commander or owner.

[T.D. 88-12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 99-64, 64 FR 43266, Aug. 10, 1999]