In the event of fraud, violation, or abuse of the privileges of a Convention or Agreement, action may be taken against the users of carnets for applicable duties and charges or liquidated damages, as the case may be. Penalties to which such persons have thereby rendered themselves liable may also be imposed.

[T.D. 70-134, 35 FR 9261, June 13, 1970, as amended by T.D. 98-10, 63 FR 4168, Jan. 28, 1998]