Full opinion text
OPINION TSOUCALAS, Senior Judge: Plaintiff, the Bureau of Customs and Border Protection of the Department of Homeland Security (“Customs”), seeks collection of a civil penalty pursuant to 19 U.S.C. § 1592 (1988), and customs duties concerning entries of vehicles and vehicle components made between 1987 and 1992 by defendant, Ford Motor Company (“Ford”). Customs alleges that Ford violated 19 U.S.C. § 1592 by acting grossly negligent or negligent in making false statements or omissions in connection with the entry of the merchandise at issue. Accordingly, Customs seeks civil penalties in the amount of $34,576,559 if Ford’s conduct was grossly negligent or $17,288,279 if such conduct was negligent. Customs also requests the Court to award it $68,178 for unpaid duties. Ford counterclaims for a refund of all or part of the $8,575,961.80 it has tendered for duties in connection with this matter plus interest, as provided for by law. DISCUSSION Customs filed a timely complaint on January 29, 2002, alleging that Ford made material false statements or acts or material omissions in connection with the entries of vehicles and vehicle components entered into the United States between January 1, 1987, continuing through December 1992. See Compl. ¶¶ 4-6. In its complaint, Customs alleges that Ford acted grossly negligent or negligent by: (1) falsely understating to Customs in its entry documents the price it paid or agreed to pay for the subject merchandise; (2) falsely declaring as true and correct the prices and other statements in the entry documents for the subject merchandise; (3) failing to declare on the entry documents that the prices set forth therein were not the final prices and were subject to adjustments based upon agreements Ford had with its suppliers; (4) failing to report upon entry the value of assists provided by Ford for the production of the imported merchandise; and (5) failing to produce to Customs “at once” information received after importation indicating that prices on its entry documents had been adjusted to include lump sum payments made by Ford to its suppliers pursuant to purchase contracts. See id. ¶ 6. Customs claims that Ford’s false statements or material omissions deprived the United States of $8,644,139.80 for lawful duty of which $68,178 remains unpaid. See id. at ¶ 9. A bench trial was held on March 15, 2005, through March 23, 2005, to resolve the issues of fact remaining in this action. Pursuant to USCIT R. 52(a), “[i]n all actions tried upon the facts without a jury ... the court shall find the facts specially and state separately its conclusions of law thereon....” USCIT R. 52(a). Accordingly, the Court’s findings of fact and conclusions of law are set forth below. I. Findings of Fact At trial, Customs produced two witnesses, Mr. Michael Turner, former Special Agent in the Detroit Customs Office of Enforcement, and Mr. Robert Neckel, former group supervisor of the Detroit Customs Office of Enforcement. Both witnesses testified to various factual matters relevant to Customs’ investigation of Ford such as, the scope of the investigation, the date such investigation commenced, and the findings Customs made pursuant to its investigation. Ford produced two witnesses, Mr. Harry Gibson, former attorney in Ford’s Office of General Counsel, and Mr. Donald Cohen, former manager of Ford’s International Transportation and Customs Office. Both witnesses testified, inter alia, to their knowledge of Customs’ investigation and the scope of the investigation as it related to Ford. Messieurs Gibson and Cohen also testified about Ford’s customs compliance procedures, compliance record, and Ford’s responses to inquiries made by Customs regarding its investigation. Customs and Ford identified documents relating to the investigation and Ford’s compliance measures. Such documents were moved by the parties and admitted by the Court into evidence. The Court finds most of these documents highly probative because they provide contemporaneous accounts of events related to Customs’ investigation, Ford’s response to the investigation, and Ford’s customs compliance procedures. The Court finds that the testimony of Messieurs Gibson and Cohen was not highly probative because the demeanor of the witnesses and the testimony they supplied proves that they did not independently recall events or facts relevant to Customs’ investigation of Ford. The Court, however, finds the testimony of Messieurs Turner and Neckel highly probative and credible based on their demean- or and ability to independently recollect Customs’ investigation of Ford. The Court also heard testimony from: (1) Ms. Laura Cox (formerly Ms. Laura Erpelding), former Special Agent in the Detroit Customs Office of Enforcement; (2) Ms. Dathrenal Davis, former Import Specialist and Field National Import Specialist for the commodity automotive team in Detroit Customs; (3) Mr. Richard Bri-denbaugh, former member of Ford’s customs unit; (4) Ms. Karen Monro, former member of Ford’s customs unit; and (5) Mr. Walter Manns, former Supervisory Import Specialist and former member of Ford’s customs unit. Based on the demeanor and quality of testimony of these witnesses, the Court finds them slightly probative because they did not exhibit an independent recollection or have knowledge of events or facts relating to the subject of this action. Ford and Customs stipulated to the admission of deposition testimony of Mr. Phillip Kruzich, former analyst in Ford’s customs unit, and the deposition and prior trial testimony given in Court No. 02-00106 of Ms. Angela Ryan, former Supervisory Import Specialist of the automotive team in Detroit Customs. The testimony presented at trial along with the documents admitted into evidence established by a preponderance of the evidence the following facts. A. Findings of Fact Relevant to the Commencement and Scope of Customs’ Investigation 1. Ford entered the vehicles, vehicle components, tooling and related materials for the five import programs identified in Exhibit A to the complaint between January 1, 1987, through December 31, 1992. See Pretrial Order, Schedule C ¶ 3. 2. Operation Hat Trick was a trade enforcement initiative meant to “subject certain Big Three import programs to joint Office of Enforcement, Commercial Operations, and Regulatory Audit scrutiny to identify undeclared assists and indirect payments, determine the level of culpability of parties responsible for the failure to declare the assists/payments, and, refer cases for criminal and civil action as appropriate.” Pl.’s Ex. 70; see also Trial Transcript (“TT”) at 37-39. Operation Hat Trick was initiated by Mr. Turner, based on his personal observations and information obtained from import specialists indicating that Ford and other car manufacturers were not declaring the full value, or price paid or to be paid, for merchandise entered into the United States. See TT at 37-38 & 283. 3.Plaintiff moved into evidence several reports of investigation (“ROI”) prepared by Mr. Turner or Ms. Cox in the ordinary course of their business as special agents of Customs’ Office of Enforcement. See PL’s Ex. 1, 52, 59, 70, 71. The Court places substantial weight on the veracity of the ROIs that were contemporaneously written with events concerning the commencement of Customs’ investigation of Ford. See PL’s Ex. 70 & 71. The Court gives less weight to the ROIs which summarized the findings of Customs’ investigation, particularly ROI # 15 and ROI # 22, because these ROIs were prepared in anticipation of penalty proceedings. See e.g., PL’s Ex. 1, 52 & 59. In preparing certain ROIs, the special agents often used notes and previous ROIs to compile their findings. See TT at 170-172; see e.g., PL’s Ex. 52 at 5 (referencing ROIs # 3 & 5). While events are recorded in ROIs # 15, 22, and 27, see PL’s Ex. 1, 52, 59, these ROIs also contain the legal conclusions of Customs. See TT at 185 & 226. For example, ROI # 22, dated November 23, 1994, is a penalty referral reporting the findings of Customs’ Office of Enforcement as well as making legal conclusions relating to Ford’s culpability under 19 U.S.C. § 1592. See PL’s Ex. 1. Consequently, the Court gives ROIs # 15, 22, and 27 less weight than the earlier reports, ROI # 1 and 2, because the former did not simply record contemporaneous events or facts. 4. Operation Hat Trick “included all the components surrounding value, material omissions, undervaluations, payments that may not have been reflected on the invoice that was submitted with the entry summary____” TT at 283; see also TT 37-38. 5. During Operation Hat Trick, Customs looked at Ford’s prior importations and found repeated instances where Ford had “failed to declare and pay duties on assists and indirect payments at the time of entry summary, but only declared those assists/payments in response to import specialist Requests for Information (‘CF-28s’).” PL’s Ex. 71 at 1; See also TT at 283. 6. The Ford vehicle and vehicle component programs investigated by Customs included the Lincoln Mercury Capri (“Capri”), Ford Festiva (“Festive”), Mercury Tracer and Taurus SHO engine (“Yamaha SHO engine”). See PL’s Ex. 70. 7. On May 23, 1991, Customs notified Ford by letter that it had opened a formal investigation of Ford “concerning the proper declaration of assists and indirect payments in imports of vehicles and vehicle component assemblies.” PL’s Ex. 5; see also TT at 39-42; PL’s Ex. 71; Pretrial Order, Schedule C ¶ 14. 8. Ford requested a meeting with Customs to discuss the May 23, 1991, letter because neither Mr. Gibson nor Mr. Cohen knew what Customs meant by an indirect payment. See TT at 496-97; see also TT at 45-46. Ford did not “make indirect payments in terms of the general definition that we knew; that is, a payment to A, A makes a payment to B for the benefit of C. That is what we thought was an indirect payment, and Ford did not do that.” TT at 498; see also TT at 508. 9. The meeting was held on June 7, 1991, and was attended by Messieurs Turner and Neckel from Customs and Messieurs Gibson, Cohen, and Ron Hamell from Ford (the “June 1991 Meeting”). See TT at 45-50; Pl.’s Ex. 71. 10. The scope of the investigation, the meaning of the term “indirect payment,” and prior disclosure were issues discussed at the June 1991 Meeting. See TT at 45-50, 480-81, 489, 498-99; Pl.’s Ex. 71. Customs explained to Ford that “the investigation was going to look at the full scope of their imports of automobiles and automobile parts; that [Customs] would be looking programatically one program at a time.” TT at 47; see also TT at 51-52; PL’s Ex. 71. 11. Messieurs Cohen and Gibson testified that they asked for a definition of “indirect payment” from Customs at the June 1991 Meeting, but Ford never received a definition from Customs. See TT at 481 & 498. Mr. Gibson testified that, “We asked what was an indirect payment. Agent Turner says ‘Here.’ He presents two summonses ... I signed for the two summonses, and we said we would get back to them with our responses, and we left.” TT at 498; see also TT 510 (stating that Ford left the meeting not understanding the meaning of indirect payments). The Court finds it incredible that Ford requested the meeting to discuss the definition of the term “indirect payment” only to leave the meeting without having received a satisfactory response from Customs. 12. During the June 1991 Meeting, Customs served Ford with a summons relating to the Capri program. See PL’s Ex. 7 & 71; TT at 53-56. 13. The summons requested “all original records and documents related to any and all assists and payment made by Ford Motor Company in connection with the design, development, engineering, production, purchase, and importation of Mercury Capri automobiles into the United States.... ” PL’s Ex. 7. The scope of the investigation with regard to Capri “involved ... all records relating to the importation of Capri and Capri parts.” TT at 482; see also TT at 285. 14. Ford was advised at the June 1991 Meeting that Customs’ investigation included the entire scope of Ford’s importations of certain vehicles and vehicle components. See TT at 286-88; PL’s Ex. 71. 15. Ford knew or should have known that the term “indirect payment,” as used by Customs in its notification to Ford of the investigation, included all payments that impacted the final price paid by Ford for the merchandise in question. See TT at 511-12. The term “indirect payments” included lump sum payments for engineering and manufacturing expenses, retroactive price adjustments, and volume price adjustments. See TT at 47-48, 284, 287-88, 482; PL’s Ex. 71. 16. An assist is an item provided by the buyer, such as Ford, to the seller either free or at a reduced cost for the design, development or production of merchandise imported into the United States. See Joint Ex. 2 at G at 17; see also TT at 284 & 493. 17. “The investigation included all payment, indirect or otherwise, so [Customs] wanted to be sure that we were thorough and we got the information relative to all payment.” TT at 286. “At the conclusion of the meeting Ford indicated that they better understood what [Customs was] looking at; the fact that it was automobiles and automobile parts; that it was both the actual providing of assists as well as payments that impacted the agreed upon price.” TT at 48. 18. Ford was advised by Customs that the investigation would encompass entries made between 1987 through the 1991 model year. See TT at 188-90. Importations related to the 1992 model year and thereafter were not within the scope of Customs’ investigation. See TT at 188-90. B. Findings of Fact Relevant to Ford’s Reconciliation Agreement with Customs 19. Ford’s supply agreements with many of its foreign vendors contained post-importation price adjustments, which typically provided a per vehicle or vehicle component base price subject to possible modifications. See Pretrial Order, Schedule C ¶ 1. Although the prices Ford paid for vehicles and vehicle components was “fairly firm,” the prices could increase based on the supply agreements Ford had with its vendors. See TT at 492. 20. The supply agreements requiring lump sum payments, retroactive price adjustments and other post-entry payments were negotiated and signed prior to the shipment of the merchandise. See TT at 512. 21. In a letter dated October 14, 1988, Ford proposed to Customs a change in how it reported lump sum payments. See Pl.’s Ex. 55. In its letter, Ford stated that a lump sum annual reconciliation report would allow Ford to track all lump sum billings throughout the entire model year and reduce the paperwork and time associated with the reconciliation process for both Ford and Customs. See id. Ford proposed the following policy: 1. The Ford Motor Company will track all lump sum billings throughout each model year (July 1 to June 30) and report the dutiable expenses associated with each import program. Credits will be used to offset relevant debits with final dutiable expenses being reported. If the final dutiable expense results in a credit balance to the Ford Motor Company, a negative report will be presented to U.S. Customs. Dutiable expenses for future model year import programs will be recorded in their respective model year and reported at the close of the model year. 3. An annual reconciliation report will be prepared for each import program and filed with the Detroit customs district within 60 days after the close of each model year (July 30) to enable us to followup and capture all relevant model year expenses. All backup data will be retained in our office and will be available for your review up request. Pl.’s Ex. 55 (emphasis in original). 22. In a letter dated August 29, 1989, Customs accepted Ford’s proposal to report and reconcile lump sum payments on an annual basis (“Reconciliation Agreement”). See Pretrial Order, Schedule C ¶ 8. Customs, however, made two modifications to Ford’s proposal: (1) Ford would not be allowed to offset debits with credits; and (2) Ford would only be allowed to annually reconcile withheld duties on entry summaries which had already been liquidated. See Pl.’s Ex. 55. Customs response did not indicate a modification to the time period proposed by Ford. See PL’s Ex. 55; TT at 550. 23. A model year ran from July 1 to June 30. See Pretrial Order, Schedule C ¶ 2. 24. Under the Reconciliation Agreement, Ford was obligated to file its annual reconciliation report with Detroit Customs within 60 days of the end of the model year, i.e. August 31. See Pl.’s Ex. 55; see also Pl.’s Ex. 17 at 2 (Ford states that certain costs incurred for Yamaha SHO engines “will be declared 60 days after the end of the 1992 model scheduled to end July 30, 1992”); TT at 307-09 & 476-77. Mr. Kruzich testified that he came up with the 60 day time period because he “thought it was reasonable at the time.” Joint Ex. 2 at 114. 25. With the exception of one reconciliation report, see Pl.’s Ex. 8, Ford failed to file reconciliation reports within 60 days of the end of the model year. See e.g., Pl.’s Ex. 14, 15, 17, 19, 20; Def.’s Ex. LL, MM, NN. 26. Ford was not notified of the untimely nature of its submissions. See TT at 322-23, 355-56, 394. Ford did not ask Customs for permission to extend the 60 day period. See TT. at 364; Joint Ex. 2 at 117. 27. Ms. Monro, the Ford employee responsible for the reconciliation program from approximately 1990 through 1993, see TT at 381, was not aware of the deadline for the submission of reconciliation reports to Customs. See TT at 392. 28. The lump sum payments Ford made to its suppliers were made subsequent to entry and, therefore, the amount of the payments was not known at the time of entry. See TT at 382. The invoices or entry documents reviewed to make reconciliation reports did not indicate that the prices were subject to change. See TT at 410 & 492. 29. “[A]ny expenses that came in for a model year for a particular program after that model year closed went into the program folder for the next model year when [Ford] would declare it.” TT at 386; see also TT at 402-03 & 435-36. “If the entry had been liquidated, then [Ford] would tack ... the additional duties onto an entry that was not liquidated even though the entry may not have related to the program that initially incurred it.” TT at 488; see also Joint Ex. 2 at 179. 30. Ford began the reconciliation process at the end of the model year, see TT at 387-88, even though the reconciliation process “could take anywhere from a few months to six months to eight months.” TT at 391. 31. Between 1987 and 1992, Customs did not have a regulation requiring an importer to put a statement on the entry documents indicating that the price may change after entry. See TT at 531; Joint Ex. 1 at 511. 32. Ford did not entirely capture additional assists or lump sum payments in its initial reconciliation reports for each program. See TT at 471 & 474-75; Joint Ex. 2 at Z. C. Findings of Fact Relevant to Ford’s Unreported Tooling Assists and Payments for 1987-1992 33. Ford had a program to report assists, whereby it gathered information about assists at the time of importation and paid all duties related to such assists on the first entry. See TT at 493-94. 34. Assists related to vehicles and vehicle components “start to occur in Ford’s major programs sometimes two, three years prior to the good actually being imported into the United States.” TT at 493. 35. Ford also declared assists by “looking at the total assists versus the total sales, [and] coming up with a factor, and adding that to the entry that [Ford] brought across from ... Canada.” TT at 495. 36. If Ford learned of an additional assist after the first importation, then Ford would “sweep those and file them as necessary.” TT at 494. 37. On May 22, 1992, Ford submitted a letter to Customs, which it claimed was a prior disclosure relating to certain under-valuations of imported tooling assists from 1987 through 1992. See Pretrial Order, Schedule C ¶ 24; Pl.’s Ex. 22. Customs, however, did not accept the letter as a prior disclosure. See Pretrial Order, Schedule C ¶24. Ford stated that the tooling assists were “omitted from the dutiable values of the related parts because of inadequate instructions to certain Ford foreign suppliers.” PL’s Ex. 22. 38. On August 6, 1992 Ford submitted a letter to Customs claiming to be a prior disclosure relating to lump sum payments for merchandise imported between 1987 and August 6, 1992. See Pretrial Order, Schedule C ¶ 39; PL’s Ex. 32. Ford explained that “[t]he undervaluation of these imported goods was due to revisions to the price of these goods made subsequent to their importation and not identified by Ford and reported to U.S. Customs.” PL’s Ex. 32. 39. On October 22, 1992, Ford indicated to Customs that it had manufactured developmental engine parts for engines manufactured at its Essex Engine Plant located in Canada (“Essex Plant”). See Pretrial Order, Schedule C ¶ 40. These parts were provided free of charge to the plant and Ford had provided $1,327,455 of such parts for the 1990, 1991, and 1992 model year engines manufactured at the Essex Plant. See id. On April 13, 1993, Ford tendered $15,920.95 for duties for these undeclared assists. See id.; PL’s Ex. 26. 40. In a letter dated November 18, 1992, Ford advised Customs that it had failed to identify in its previous reconciliation submissions all of the duties and fees owed for tooling assists for merchandise imported between January 1, 1987 through and including May 22, 1992. See PL’s Ex. 23. The total value Ford failed to declare was $41,165,251. See id.; TT at 99. As part of the reconciliation, Ford tendered $1,304,847.95 in duties and fees. See PL’s Ex. 23; See Pretrial Order, Schedule C ¶ 24. 41. Ford submitted a letter, dated December 16, 1992, to Customs claiming to be “a partial voluntary disclosure reconciliation of additional duties and fees owed for unreported retroactive price adjustment payments and lump-sum payments for imported goods made during the period January 1, 1987 through various dates in July 1992.” PL’s Ex. 33. In connection with these payments, Ford tendered $848,262.34 as unpaid duties and fees and stated that it needed further time to analyze some additional payments. See id.; Pretrial Order, Schedule C ¶ 39. 42. On January 29, 1993, Ford tendered an additional $17,888.23 for duties and fees for unreported lump sum payments for merchandise imported between 1987 and 1992. See Pretrial Order, Schedule C ¶ 39; PL’s Ex. 34. 43. By letter dated February 24, 1993, Ford advised Customs that it had failed to report assists paid four years earlier, in 1989, to Sheller-Ryobi, Indiana to produce prototype castings in Japan. See PL’s Ex. 24. In connection with these payments, Ford tendered $2,664.35 in duties and fees. See id. 44. In a letter dated April 6, 1993, Ford advised Customs that, between 1990 and 1992, it had provided assists to the Essex Plant totaling $1,327,455. See PL’s Ex. 25. Ford tendered $15,920.95 for duties and merchandise processing fees in connection with this merchandise. See PL’s Ex. 26. 45. In a letter dated February 14, 1994, Ford stated that it had discovered that it had not previously reported certain tooling assists for merchandise imported between 1987 through 1993. See Pl.’s Ex. 27. Ford stated that “[cjertain tooling assists may have been omitted because the country of origin for some tool orders was not coded correctly in the Ford payment records.” Id. 46. In two letters dated March 17, 1994, Customs advised Ford that it would accept Ford’s letters submitted on May 22, 1992, and March 1, 1993, relating to undeclared tooling and assists for the period of 1987 through 1992, as prior disclosures. See Def.’s Ex. WV & WWW. In both instances, Customs found that the misclas-sifícation of the relevant entries was due to Ford’s failure to exercise reasonable care in the preparation of the entries. See Def.’s Ex. WV & WWW. Therefore, Customs found Ford negligent and penalized Ford the interest on the withheld duties from the date of the liquidation and the balance of withheld duties. See id. 47. By letter dated May 13, 1994, Ford advised Customs that it had faded to declare $6,674,338 in tooling assists associated with imported merchandise from 1987 through 1993. See Pl.’s Ex. 28. In connection with these assists, Ford tendered $248,215 for duties and fees. See id. Ford indicated that it had “discovered supplier location coding errors in the payment records that [led] to some tooling assists being excluded from the prior reports.” Id. Ford advised Customs that it had made changes to assure that tooling assists did not go undeclared due to supplier location coding errors in payment records. See id. Ford stated that it is “now using a tooling report that uses information drawn directly from the tool order system as well as payment record data.” Id. D. Findings of Fact Relevant to the Capri Investigation 48. In April 1990, Ford began to purchase and import the Capri vehicles from Ford of Australia. See Pl.’s Ex. 57 at 2. As of July 31, 1991, Ford had imported 32,959 Capri vehicles valued at over $372,000,000. See id. In connection with the importation of the Capri vehicles, Ford filed 23 entries between April 1990 through July 1991. See Pl.’s Ex. 57 at Ex. A; Pl.’s Ex. 52 at 7; see also Pl.’s Ex. 82. 49. On September 5, 1992, Ford complied with the summons issued at the June 1991 Meeting and provided Customs with the requested documents. See PL’s Ex. 52 at 5. Ford provided a copy of the supply contract for the Capri vehicles, which indicated that transfer prices would be adjusted every six months to reflect increases or decreases in a market basket of similar vehicles. See Pretrial Order, Schedule C ¶ 19. 50. Ford made lump sum payments to Ford of Australia for the 1991 model year Capri vehicle, which were in addition to the payments reflected on the commercial invoices at the time of entry. See PL’s Ex. 8 & 57 at 4. 51. Ford disclosed these lump sum payments, totaling $5,570,900, to Customs in a letter dated August 26, 1991 and tendered a check for $155,708 for duties and fees. See PL’s Ex. 8; see also Pretrial Order, Schedule C ¶ 17. E. Findings of Fact Relevant to the Festiva Investigation 52. Ford filed 372 entries importing Ford Festiva vehicles from Kia Motors Corporation between December 15, 1988 and August 18, 1989. See PL’s Ex. 1; see also PL’s Ex. 14. Ford purchased Festiva vehicles from KM Corporation, a trading company consisting of Kia Motors Corporation and Mazda Motor Corporation. See PL’s Ex. 14. 53. Customs issued a summons on March 20, 1992, requesting Ford to produce “[a]ll original records and documents related to any and all assists given and payments made by Ford Motor Company in connection with the design, development, engineering, production, purchase, and importation of Ford Festiva automobiles manufactured by Kia Motors Corporation .... ” PL’s Ex. 13; See also Pretrial Order, Schedule C ¶ 20. 54. In a letter dated June 5, 1992, Ford responded to the Festiva summons and stated that “there is $11,408,470.92 of undeclared engineering and tooling cost prior to 1993 model and $309,169.56 is owed including duty and other fees.” PL’s Ex. 12; Pretrial Order, Schedule C ¶ 25. Ford tendered the duties and fees on April 29, 1993. See Pretrial Order, Schedule C ¶ 25. Ford indicated that $63,893 for duties and fees were applicable to the 1993 model year which it undertook to report 60 days after the end of the 1992 model year. See PL’s Ex. 12. 55. In a letter dated November 13, 1992, Ford advised Customs that it had failed to report, in its June 5, 1990 reconciliation, $13,358,413 paid to Kia Motors Corporation for the production shortfall of the 1990 model year Festiva. See PL’s Ex. 14; Pretrial Order, Schedule C ¶ 27. Ford tendered $362,013 in duties owed in connection with the shortfall payments. See id. 56. Ford and KM Corporation had a business agreement entitled Passenger Vehicle Program Agreement (“Festiva Agreement”), and dated July 1, 1988, containing an annual volume commitment clause and volume price adjustment clause. See PL’s Ex. 58; Pretrial Order, Schedule C ¶26. Pursuant to the annual volume commitment clause, Ford was obligated to purchase 85,000 Festivas for resale in the United States and Canada. See PL’s Ex. 58 at 11. 57. Under section 2.3A of the Festiva Agreement, if the number of orders for Festivas to be delivered during any production year was between 50 and 90 percent of 85,000 vehicles, then “the purchase price for each Ford vehicle ordered for delivery” would increase. See PL’s Ex. 58 at 11-12. 58. Pursuant to section 2.3B of the Festiva Agreement, if Ford ordered less than 50 percent of 85,000 Festivas, then the parties were obligated to engage in “good faith discussions.” See id. at 12-13. Either the purchase price for each vehicle would increase further, or the parties would renegotiate the terms of the contract or terminate the agreement. See id. 59. If Ford purchased more than the annual volume commitment by ten percent, then Ford would receive a lump sum payment from KM Corporation for the adjusted purchase price as calculated pursuant to Section 2.3C of the agreement. See PL’s Ex. 58 at 13. 60. The adjustments required under the Festiva Agreement were to the purchase price of each vehicle. See PL’s Ex. 58, See also TT at 77-79. 61. In a letter dated November 18, 1992, Ford advised Customs that it had made supplemental lump sum payments in the amount of $43,663,125 to Kia Motors for the 1991 and 1992 model year Festiva. See PL’s Ex. 15; See TT at 84-86; Pretrial Order, Schedule C ¶28. Ford tendered $1,220,384 for duties and fees associated with these payments. See PL’s Ex. 15, Pretrial Order, Schedule C ¶ 28. F. Findings of Fact Relevant to the Yamaha SHO Engines Investigation 62. Ford made 322 entries for Yamaha SHO engines between December 22, 1988 through December 31, 1991 at the ports of Atlanta, Georgia and Detroit, Michigan. See Pretrial Order, Schedule C ¶ 33. 63. There were three variations to the Yamaha SHO engines: (1) the 3.0 liter engine introduced with the launch of the Taurus SHO 1988 model; (2) the 3.2 liter engine introduced in July 1992 for the 1993 model year; and (3) the 3.4 liter engine that was to be introduced at the launch of the 1996 model. See Pl.’s Ex. 17. 64. By letter dated January, 31, 1991, Ford advised Customs that it had made supplemental lump sum payments of $5,762,129 to Ford of Germany for the 1990 model year 2.9 liter V-6 engines. See Def.’s Ex. LL. In connection with these payments, Ford tendered $190,727 for duties and fees. See id. Ford also advised Customs that it had made supplemental lump sum payments of $77,217,109 to Ford of Germany for 1990 model year 4.0 liter V-6 engines. See Def.’s Ex. MM. In connection with these payments, Ford tendered $2,128,953 for duties and fees. See id. 65. In a letter dated January 31, 1991, Ford advised Customs that it had made supplemental lump sum payments of $58,457,120 to Ford of France for the 1990 model year A4LD Bordeaux transmissions. See Def.’s Ex. NN. Ford tendered $1,665,215 for duties and fees in connection with these payments. See id. 66. Customs issued a summons on January 22, 1992, requesting Ford to produce “[a]ll original records and documents related to any and all assists given and payments made by Ford,” in connection with automobile engines manufactured by the Yamaha Motor Co., Ltd. for the Taurus SHO automobile. See Pl.’s Ex. 18; TT at 88-89; see also Pretrial Order, Schedule C ¶ 29. 67. Ford’s response to the summons, on June 5, 1992, indicated that the value declared for the 3.0 liter engine had been $15,100,449 but that the total value had been $15,387,841. See Pl.’s Ex. 17 at 3. Accordingly, Ford advised Customs that it was liable for $287,112 in undeclared value for the 3.0 liter engine. See id. at 3-4; Pretrial Order ¶ 30. Ford tendered an additional $9,623.16 for duties and fees owed in connection with Customs’ investigation of the 3.0 liter engine. See Pl.’s Ex. 21; Pretrial Order, Schedule C ¶ 30. Ford also informed Customs that there were $14,779,026 in prototype and development costs for the 3.2 liter SHO engine for the 1993 model year, which would be declared 60 days after the end of the 1992 model year. See Pl.’s Ex. 17; See Pretrial Order, Schedule C ¶ 32. 68. Ford also provided Customs with a copy of its supply agreement, indicating that the base price for the SHO engines could be adjusted. See Pretrial Order, Schedule C ¶ 31. 69. In a letter dated November 13, 1992, Ford identified $2,158,417 in retroactive payments it made between 1987 through 1991 for the 3.0 liter engines, which it had failed to include in its June 5, 1992, reconciliation. See Pl.’s Ex. 19; see also Pretrial Order, Schedule C ¶ 34. Ford tendered $59,707 for duties and fees in connection with these lump sum payments. See Pl.’s Ex. 19. 70. In a letter dated November 18, 1992, Ford tendered $404,100 for duties associated with lump sum payments of $14,274,097 related to design and development costs for the 3.2 liter SHO engines made during 1991 and 1992. See Pl.’s Ex. 20; Pretrial Order, Schedule C ¶ 35. Ford also indicated that at the end of the 1993 model year it would reconcile actual usage and tender additional money owed or request a refund based on actual occurrences during the 1993 model year. See PL’s Ex. 20; Pretrial Order, Schedule C ¶ 35. 71. In a meeting with Customs Import Specialist Spiro Karras held on December 18, 1992, Ford admitted that it had not declared development costs apportioned to Yamaha prototype 3.2 liter SHO engines that were to be retained in Japan rather than shipped to the United States. See Pretrial Order, Schedule C ¶ 36. Ford sought advice from Customs’ Office of Regulations and Rulings (“Customs’ OR & R”) on March 26, 1993. See id. Ford was advised that the development costs should be apportioned over the imported production engines. See id.; PL’s Ex. 59 at 5. Customs’ OR & R advised Ford that the payment for development and design costs were attributable to the production of engines and, therefore, constituted the price actually paid or payable for the 3.2 liter SHO engines. See Pl.’s Ex. 59 at 5. Ford has not tendered $68,178 of alleged duties owed on the undeclared development costs for 3.2 liter SHO engines. See Pretrial Order, Schedule C ¶ 37. G. Findings of Fact Relevant to Customs Investigation of Engines From Germany and Transmissions from France 72. Prior to the commencement of Operation Hat Trick, Ford filed a voluntary disclosure on August 3, 1988, relating to undeclared lump sum payments made to Ford of France and Ford of Germany. See PL’s Ex. 1 at 22; Joint Ex. 2 at Z. In a letter dated October 3, 1988, Ford tendered duties and fees in connection with these payments. See Joint Ex. 2 at Z. Ford informed Customs that it had taken corrective action and that its accounting services had been instructed to provide copies of all debit and credit memoranda it processed. See id.; TT at 255-56. 73. In letters dated March 23, 1992, Ford advised Customs that lump sum payments totaling $21,401,808 and $32,130,256 had been made to Ford of Germany for 1991 model year 2.9 liter and 4.0 liter V-6 engines, respectively. See Pretrial Order, Schedule C ¶ 21-22; PL’s Ex. 29 & 31. Ford tendered $726,591 and $1,047,074, respectively, for duties and fees associated with these payments. See Pretrial Order, Schedule C ¶ 21-22; PL’s Ex. 29 & 31. 74. Ford informed Customs, in a letter dated May 6, 1993, that it had made lump sum payments to Ford of Germany totaling $4,783,094 for 1991 model year 2.6 liter V-6 engines. See Pretrial Order, Schedule C ¶ 42; PL’s Ex. 36. Ford tendered $162,625 for duties and fees in connection with these payments. See PL’s Ex. 36. 75. Ford disclosed on May 6,1993, that it had made lump sum payments to Ford of Germany for 1992 model year 4.0 liter V-6 engines in the amount of $25,782,651. See PL’s Ex. 35; Pretrial Order, Schedule C ¶ 43. Ford tendered $695,874 in unpaid duties and fees in connection with these payments. See PL’s Ex. 35. 76. On May 28, 1993, Customs issued a summons to Ford requesting “documents and information regarding ‘lump sum payments’ on engines imported from Ford of Germany for the period January 1990 to the present....” PL’s Ex. 39; see also Pretrial Order, Schedule C ¶ 45. 77. In a letter dated August 9, 1993, Ford responded to Customs’ summons. See PL’s Ex. 38. Ford adjusted the 1990 submission data relating to 1990 model year V-6 engines from Germany resulting in additional duties and fees of $73,635.13, which Ford tendered. See id.; TT at 258. 78. By letter dated March 23, 1992, Ford informed Customs that it had made lump sum payments in the amount of $10,875,431 to Ford of France for 1991 model year A4LD Bordeaux transmissions. See Pretrial Order, Schedule C ¶ 23; Pl.’s Ex. 30. Ford tendered $339,379 for duties and fees in connection with these payments. See Pl.’s Ex. 30. 79. Ford informed Customs by letter, dated May 6, 1993, that it had made lump sum payments to Ford of France in the amount of $16,359,794 for 1992 model year A4LD Bordeaux transmissions and tendered $458,893 for unpaid duties and fees. See Pl.’s Ex. 37; Pretrial Order, Schedule C ¶ 44. 80. Ford informed Customs by letter dated September 2, 1993, that the value of certain lump sum payments relating to transmissions imported from Ford of France for the 1989 through 1992 model year were not reported to Customs because of “incorrect currency exchange rates applied at the time of payment, missing billing invoices and a change in Ford’s internal tracking/reporting process from manual to a mechanized procedure.” Pl.’s Ex. 42. 81. In a letter dated December 1,1993, Ford explained how it calculated duties and fees it owed on the additional payments referred to in its September 2,1993, letter. See Pl.’s Ex. 43. Ford determined that it had not declare $4,973,042 of value upon entry of the merchandise. See id.; Pretrial Order, Schedule C ¶ 47. Ford calculated that it owed $113,387.68 for duties and fees and tendered a check to Customs in that amount. See id. H. Ford’s Compliance Measures 82. After the June 1991 Meeting, Ford undertook a review of earlier post-entry submissions and tenders dating from 1987 through 1992 (“Five Year Look Back”). TT at 446-48. Mr. Cohen testified that the Five Year Look Back was not in response to a summons. See TT at 447. Mr. Gibson testified that the review did not occur after Ford was notified of Customs’ investigation. See TT at 503-04. No testimony or documentary evidence was presented at trial to support the conclusion that Ford had undertaken a Five Year Look Back prior to the commencement of Customs’ investigation or that it has undertaken such a review with regard to any other program that was not within the scope of Customs’ investigation. The Court finds the testimony of Messieurs Cohen and Gibson incredible and finds that the Five Year Look Back was in response to Customs’ investigation of Ford. 83. Ford had a Customs compliance manual which instructed Ford employees on how to properly file documents for imported goods. See TT at 422; Joint Ex. 2 at G. 84. Ford’s compliance manual states that, “[t]he invoice must be priced so that the true value can be ascertained. In the event that the value is not completely and correctly shown, a ‘provisional’ disclaimer is stated on the invoice, thereby advising customs.” Joint Ex. 2 at G at 12. The manual further explains that Ford is required to report to Customs all extraneous dutiable payments that affect the original entered value of the imported merchandise. See Joint Ex. 2 at G. Examples of extraneous payments list in the manual may be in the form of: (a) retroactive adjustments; (b) lump sum payments for engineering and manufacturing expenses; © adjustments for currency fluctuations; or (d) volume price adjustments. See id. 85. Ford sent a draft copy of the manual to Customs for review and comment. See TT at 423. Customs offered several suggestions, which Ford subsequently incorporated in its final manual. See Def.’s Ex. H; TT at 423 & 425. 86. During the relevant time period, Ford had training videos, a Customs compliance hotline, and held seminars and meetings to make its employees aware of their responsibilities with regard to complying with Customs’ laws and regulations. See Def.’s Ex. J, K, & L; see also TT at 381 & 425-28. 87. Ford received a letter from Customs’ regional director, in September 1988, commending Ford “for recognizing the importance of complying with Customs’ regulations and taking constructive and positive steps to educate other members of the Ford Motor Company community in these matters.” Def.’s Ex. Q. 88. Ford’s purchasing and finance departments were instructed to provide Ford’s customs unit “with copies of anything that might impact the cost of the goods.” TT at 437. Every Ford employee in the purchasing department involved in overseas purchases was instructed to provide a copy of the purchase order to Ford’s International Transportation and Customs Office. See Joint Ex. 2 at 19. The employees of Ford’s purchasing unit, however, did not always comply with these instructions. See id. 89. Ford’s customs unit “had to rely on the procedures in place at the time that we were to get a copy of the purchase order, period.” Joint Ex. 2 at 30. If a purchase order was not sent to Ford’s customs unit then it would not know what was being imported. See id. at 31. Ford’s customs unit knew that Ford’s purchasing unit’s failure to provide it with purchase orders would open Ford to liability for failure to report dutiable payments. See id. 90. After Operation Hat Trick had commenced, Ford proposed to Customs a change in its methodology for reporting dutiable assists. See Def.’s Ex. V. In a letter dated August 26, 1992, Ford advised Customs that it “would like to discontinue reporting assist values at the time of the first importation of the applicable goods.” Id. Instead, Ford proposed to provide Customs with information on potential assists before importation, in July for the upcoming year, and report and tender duties on such assists in December of the following year. See id. Customs, in a letter dated February 1, 1993, accepted Ford’s proposal to change its methodology of reporting assists. See Def.’s Ex. W. 91. In a report dated October 27, 2000, Customs assessed Ford’s compliance and import practices beginning in 1995. See Joint Ex. 1 at Ex. 114. Customs’ audit of Ford found that “Ford lacked adequate internal control procedures in ... verifying the reliability of their brokers’ work [and] ... ensuring the reporting of correct values on entries.... ” Id. Customs, found, however, that Ford “has attempted to improve their Customs compliance through their involvement in various other programs.” Id. Based on corrective action taken by Ford, Customs’ Compliance Assessment Team recommended that “Ford’s imports ... should receive the level of cargo examinations and document reviews associated with companies that pose a low risk.” Id. II. Conclusions of law The Court has jurisdiction of this matter pursuant to 28 U.S.C. § 1582 (2000). In actions brought for the recovery of any monetary penalty claimed under section 592 of the Tariff Act of 1930, as amended, 19 U.S.C. § 1592, all issues are tried de novo, see 28 U.S.C. § 2640(a)(6) (2000), including the amount of the penalty. See 19 U.S.C. § 1592(e)(1). The level of culpability has a direct correlation to the maximum amount of penalty that can be assessed. See 19 U.S.C. § 1592©. Customs has alleged that Ford violated 19 U.S.C. § 1592, thereby depriving the United States of all or a portion of lawful duty through grossly negligent or, in the alternative, negligent conduct. See Compl. In pertinent part, 19 U.S.C. § 1592(a) states: Without regard to whether the United States is or may be deprived of all or a portion of any lawful duty thereby, no person, by fraud, gross negligence, or negligence- (A) may enter, introduce, or attempt to enter or introduce any merchandise into the commerce of the United States by means of- (I) any document, written or oral statement, or act which is material and false, or (ii) any omission which is material. 19 U.S.C. § 1592(a). An act or omission is deemed material if it has the potential to alter the appraisement or liability for duty. See 19 C.F.R. pt. 171, App. B(A) (1992). The issue of materiality is for the Court to determine. See United States v. Hitachi Am., Ltd. (“Hitachi /”), 21 CIT 373, 386, 964 F.Supp. 344, 360 (1997), aff'd in part and rev’d in part on other grounds, 172 F.3d 1319 (Fed.Cir.1999); see also United States v. Rockwell Int’l Corp., 10 CIT 38, 42, 628 F.Supp. 206, 210 (1986) (stating that “the measurement of the materiality of the false statement is its potential impact upon Customs’ determination of the correct duty for the imported merchandise”). As a threshold issue, Ford asserts that Customs failed to offer into evidence entries related to the subject merchandise, except for the Capri vehicle and Yamaha SHO engine entry documents. See Def.’s Post-Trial Br. at 16-17. Ford argues that, without the entries admitted into evidence, the Court has no means of evaluating Customs’ claim that the entered values were false or that Ford failed to notify Customs that the prices reflected therein were not final. See id. Ford’s argument is flawed because the statutory language contemplates violations where the importer has either made material omissions or failed to act. Accordingly, an importer may violate the statute by failing to provide Customs with entry documents in the first place. Pursuant to Ford’s argument, Customs would be precluded from successfully bringing an action pursuant to 19 U.S.C. § 1592 in instances where entry documents or specific entry information was never submitted to Customs. This reasoning is untenable and contradicts the plain language of the statute. The totality of the evidence submitted at trial provides the Court with enough evidence of the values Ford declared on its entry documents. Therefore, such documents need not be introduced and admitted into evidence. The testimony of Ford’s own witnesses established its failure to declare assists at entry and Ford’s failure to alert Customs “at once” of dutiable lump sump payments made after entry. See e.g. Pl.’s Ex. 12, 14, 15, 16, 17, 19, 23, 24, 25, 28, 29, 30, 31, 33, 35, 36 37; See also TT at 402-03; 435-36, 488. Such failures and acts may be found by a trier of fact to constitute gross negligence or negligence in violation of 19 U.S.C. § 1592. Based on the testimony and evidence presented at trial, the Court finds that there is sufficient evidence to evaluate Customs’ claim that values appearing on Ford’s entry documents were false or that Ford failed to notify Customs that the prices reflected therein were not final. A. Customs Failed to Establish by a Preponderance of the Evidence that Ford’s Conduct Was Grossly Negligent 1. Statutory Background Gross negligence arises “if it results from an act or acts (of commission or omission) done with actual knowledge of or wanton disregard for the relevant facts and with indifference to or disregard for the offender’s obligations under the statute.” 19 C.F.R. pt. 171, App. B(C)(2). A finding of gross negligence requires the Court to determine that Ford’s omissions of information from entry documents and its failure to comply with its statutory obligations was willful, wanton or reckless or that the evidence before the Court illustrates Ford’s utter lack of care. See Mach. Corp. of Am. v. Gullfiber AB, 774 F.2d 467, 473 (Fed.Cir.1985) (citation omitted). Gross negligence involves a type of intent which is a question of fact and not law. See United States v. Hitachi Am., Ltd., 172 F.3d 1319, 1326 (Fed.Cir.1999); see also Allen Organ Co. v. Kimball Int’l, Inc., 839 F.2d 1556, 1567 (Fed.Cir.1988) (stating that “intent is a factual determination particularly within the province of the trier of fact”). Customs bears the burden of establishing all the elements of the alleged violation. See 19 U.S.C. § 1592(e)(3). Customs must establish such elements by a preponderance of the evidence, which “is the general burden assigned in civil cases for factual matters.” St. Paul Fire & Marine Ins. Co. v. United States, 6 F.3d 763, 769 (Fed.Cir.1993). Preponderance of the evidence is “the greater weight of evidence, evidence which is more convincing than the evidence which is offered in opposition to it.” Id. (quoting Hale v. FAA, 772 F.2d 882, 885 (Fed.Cir.1985)). Based on the testimony and documents submitted during trial, the Court finds that Customs has failed to meet its burden of proof. 2. Discussion Customs has not established that Ford acted with a wanton disregard for the relevant facts and with indifference to or disregard for its obligations under 19 U.S.C. § 1592. During the relevant time period, Ford had a customs compliance manual setting forth the duties of its employees for reporting dutiable values to Customs. See TT at 422; Joint Ex. 2 at G. Customs reviewed Ford’s manual and made several comments and recommendations, see Def.’s Ex. H, which Ford subsequently incorporated into its compliance manual. See TT at 423 & 425. Moreover, Ford produced training videos, see Def.’s Ex. J, K & L, maintained a compliance hotline and held seminars and meetings relating to Ford’s compliance with Customs’ rules and regulations. See TT at 381 & 421-28. The evidence showed that Ford had mechanisms in place which enabled it to comply with its statutory obligations to properly enter merchandise. See Joint Ex. 2 at R, Z, CC, DD, EE, II, JJ, KK. The mere existence of such mechanisms, however, does not completely prevent Customs from establishing that Ford was grossly negligent. Customs may meet its burden by demonstrating that Ford disregarded or was indifferent to the internal compliance measures it put into place. Ford’s compliance measures relieve Ford from gross negligence liability only if (a) such mechanisms set forth procedures and guidelines that, if followed, ensured Ford’s fulfillment of its statutory duties, and (b) Ford made a good faith effort to follow its internal compliance measures. Ford satisfied the first requirement. Customs’ positive review of Ford’s compliance manual established that Ford’s compliance mechanisms would allow Ford to meet its statutory obligations. See TT at 423 & 425, Defs Ex. H. The Court, therefore, must determine whether Ford made a good faith attempt to implement and follow its internal compliance measures. Based on the testimony and documentary evidence produced, the Court finds that Customs failed to establish by a preponderance of the evidence that Ford did not make a good faith effort to follow its internal compliance measures or statutory obligations. Ford’s submission of reconciliation reports illustrates Ford’s understanding of its duty to report additional transaction values incurred after entry. See e.g., Pl.’s Ex. 8, 12, 19. Ford actively tried to fulfill its duty under 19 U.S.C. § 1485 to inform Customs of changes to the value declared on its entry documents. Credible evidence was admitted at trial showing that Ford attempted to reconcile the difference between the prices reported to Customs at the time of entry and the final price paid. See e.g., Pl.’s Ex. 8, 12, 14, 15, 16, 17, 19, 30, 31, 32, 33, 35, 36, 37. In October 1988, Ford proposed the Reconciliation Agreement as a means of increasing the efficiency of reporting lump sum payments to Customs. See PL’s Ex. 55. Ford indicated that the proposed changes would aid both Customs and Ford by reducing paperwork and the amount of time needed to report lump sum payments. See id. Ford undertook to report lump sum payments on an annual basis. See id. From about 1990 through 1993, Ford had an employee, Ms. Monro, who was responsible for implementing Ford’s lump sum reconciliation program. See TT at 381. Ford submitted reconciliation reports to Customs when it failed to capture certain lump sum payments or assists. See TT at 381-82, 471, 474-75; Joint Ex. 2 at Z; See e.g., PL’s Ex. 8, 12, 14, 15, 16, 17, 19, 23, 24, 25, 28, 29, 30, 31, 32, 33, 35, 36, 37. Accordingly, Ford’s attempt to reconcile the price paid with the price reported at entry demonstrates that Ford did not act with wanton disregard or indifference to its statutory obligations, which were set forth in its compliance manual. A showing of utter lack of care would have required Customs to establish that Ford made no attempt to meet its statutory obligations. To meet its burden of proof, Customs had to demonstrate Ford’s failure to act upon relevant facts indicating that Ford’s entry procedures were deficient. Ford’s attempt to reconcile the price actually paid and the price declared at entry along with the training videos, customs compliance hotline, and seminars relating to customs compliance illustrates that Ford did not act with wanton disregard or indifference to its internal compliance program. The testimony and documentary evidence simply does not establish Ford’s grossly negligent conduct. The evidence failed to establish Ford’s indifference to make material omissions from the entry documents. The evidence also failed to establish that Ford exhibited an utter lack of care. Accordingly, the Court concludes that Customs failed to carry its burden to show that Ford’s violation of 19 U.S.C. § 1592 was a result of grossly negligent conduct. B. Customs Established Ford’s Negligence by a Preponderance of the Evidence and Ford Failed to Demonstrate it Exercised Reasonable Care 1. Statutory Background Negligence arises out of “an act or acts (of commission or omission) done through either the failure to exercise the degree of reasonable care and competence expected from a person in the same circumstances in ascertaining the facts or in drawing inferences therefrom.... ” 19 C.F.R. pt. 171, App. B(B)(1). Consequently, negligence does not require the trier of fact to determine intent. Section 1592(e)(4) of Title 19 of the United States Code derogates from common law negligence (i.e., duty, breach, causation, and injury) by shifting the burden of persuasion to the defendant to show lack of negligence. See Hitachi I, 21 CIT at 380, 964 F.Supp. at 355. The statute removes the breach element from Customs’ prima facie negligence case. See id. Accordingly, Customs must establish by a preponderance of the evidence that the materially false act or omission occurred. See 19 U.S.C. § 1592(e)(3). Once Customs has met its burden, Ford bears the burden to establish that it exercised reasonable care under the circumstances and that the alleged violation was not caused by its negligence. See 19 U.S.C. 1592(e)(3); 19 C.F.R. pt. 171, App. B; see also Hitachi I, 21 CIT at 381, 964 F.Supp. at 355-56. Customs is directed to appraise imported merchandise based on the transaction value. See 19 U.S.C. § 1401a(a)(l) (1988). The statute defines transaction value as “the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts equal to ... the value, apportioned as appropriate, of any assist_” 19 U.S.C. § 1401a(b)(l). Under 19 U.S.C. § 1481(a), all invoices for imported merchandise are required to set forth, inter alia, the purchase price of each item. See 19 U.S.C. § 1481(a)(5) (1988). The statute also states that the invoices must contain any facts required to properly appraise the merchandise. See 19 U.S.C. § 1481(a)(10). An importer must file at the time of entry appropriate documentation enabling Customs to properly assess duties. See 19 U.S.C. § 1484(a)(1)(B); see also United States v. Thorson Chem. Corp., 16 CIT 441, 448, 795 F.Supp. 1190, 1195 (1992) (noting that defendant had a “legal obligation pursuant to the statute to file appropriate documentation permitting Customs to properly assess duties and determine whether any other applicable requirement of law is met”) (citation omitted). Furthermore, an importer making an entry must file a declaration under oath stating that “the prices set forth in the invoice are true, in the case of merchandise purchased or agreed to be purchased ... [and that] all other statements in the invoice or other documents filed with the entry, or in the entry itself, are true and correct....” 19 U.S.C. § 1485(a)(2) & (3). The importer must also declare “[t]hat he will produce at once to the appropriate customs officer any invoice, paper, letter, document, or information received showing that any such prices or statements are not true or correct.” 19 U.S.C. § 1485(a)(4). 2. Discussion The Court finds that Customs established, by a preponderance of the evidence, that Ford failed to exercise reasonable care expected from a person in the same circumstances. See 19 C.F.R pt. 171, App. B(C)(1). Testimonial and documentary evidence presented at trial established that Ford had made assists between 1987 through 1992, which it failed to declare on its entry documents or “at once” thereafter. See e.g., Pl.’s Ex. 23, 24, 25, 28, 29; see also TT at 493. Ford also failed to declare on its entry documents that the values stated therein were not final because Ford was obligated to make lump sum payments to its vendors after entry. Furthermore, Ford failed to report these lump sum payments “at once” pursuant to 19 U.S.C. § 1485 or the Reconciliation Agreement. See e.g., Pl.’s Ex. 12, 14, 15, 16, 17, 19, 30, 31, 33, 35, 36, 37; see also TT at 402-03; 435-36, 488. a. Ford’s Failure to Declare Assists at Entry Violated 19 U.S.C. §§ 1484 & 1485 1. Customs Satisfied its Burden of Proof The Court finds that Customs met its burden of proof and established that Ford made materially false statements or omissions in its entry documents related to tooling assists provided for certain vehicles and vehicle components thereby violating 19 U.S.C. § 1484. See Pl.’s Ex. 22, 23, 24, 25, 27, 28. Based on testimony and documentary evidence, the Court finds that Ford’s omission of assists on the entry documents had a material impact on Customs’ ability to properly determine the dutiable value of the relevant merchandise. See Rockwell, 10 CIT at 42, 628 F.Supp. at 210. Based on uncontroverted evidence, the Court farther concludes that Ford knew or should have known that it had incurred expenses for assists prior to importation, see TT at 493, but failed to report such assists as part of the transaction value in its entry documents. See 22, 23, 24, 25, 27, 28. Customs also established that Ford violated 19 U.S.C. § 1485 by failing to advise Customs “at once” that it had provided such tooling assists. Ford advised Customs, on several occasions, that it had failed to capture additional duties and fees on its entry documents relating to tooling assists provided by Ford. See Pl.’s Ex. 22, 23, 25, 27, 28. On one occasion, Ford indicated that it had failed to include tooling assists “from the dutiable values of the related parts because of inadequate instructions to certain Ford foreign suppliers.” Pl.’s Ex. 22. Ford, on a different occasion, indicated that it had failed to include certain tooling assists in the dutiable values “because the country of origin for some tool orders was not coded correctly in the Ford payment records.” PL’s Ex. 27. Ford’s lack of reasonable care to report the assists in the entry documents and invoices constitutes materially false statements or omissions arising out of Ford’s negligence. See 19 C.F.R. pt. 171, App. B(B)(1). Moreover, the evidence established that Ford failed to “at once” notify Customs that the entry values included assists. The documentary evidence demonstrates that Ford advised Customs of the assists well after entry. For e