# 15 CFR § 19.5: How will Commerce entities add interest, penalty charges, and administrative costs to a Commerce debt? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-15-19.5 ## Section - **Citation:** 15 CFR § 19.5 - **Heading:** How will Commerce entities add interest, penalty charges, and administrative costs to a Commerce debt? - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** September 22, 2026 - **Source:** Publisher's official text - **Location:** Title 15—Commerce and Foreign Trade > Subtitle A—Office of the Secretary of Commerce > PART 19—COMMERCE DEBT COLLECTION > Subpart B—Procedures To Collect Commerce Debts ## Text (a) Assessment and notice. Commerce entities shall assess interest, penalties and administrative costs on Commerce debts in accordance with the provisions of 31 U.S.C. 3717 and 31 CFR 901.9. Interest shall be charged in accordance with the requirements of 31 U.S.C. 3717(a). Penalties shall accrue at a rate of not more than 6% per year or such other higher rate as authorized by law. Administrative costs, that is, the costs of processing and handling a delinquent debt, shall be determined by the Commerce entity collecting the debt, as directed by the Office of the Deputy Chief Financial Officer. Commerce entities may have additional policies regarding how interest, penalties, and administrative costs are assessed on particular types of debts, subject to the approval of the Deputy Chief Financial Officer. Commerce entities are required to explain in the notice to the debtor described in § 19.4 of this part how interest, penalties, costs, and other charges are assessed, unless the requirements are included in a contract or other legally binding agreement. (b) Waiver of interest, penalties, and administrative costs. Unless otherwise required by law or contract, Commerce entities may not charge interest if the amount due on the Commerce debt is paid within 30 days after the date from which the interest accrues. See 31 U.S.C. 3717(d). Commerce entities may, with legal counsel approval, waive interest, penalties, and administrative costs, or any portion thereof, when it would be against equity and good conscience or not in the United States' best interest to collect such charges, in accordance with Commerce guidelines for such waivers. (See Commerce Department Credit and Debt Management Operating Standards and Procedures Handbook, available at http://www.osec.doc.gov/ofm/credit/cover.html.) (c) Accrual during suspension of debt collection. In most cases, interest, penalties and administrative costs will continue to accrue during any period when collection has been suspended for any reason (for example, when the debtor has requested a hearing). Commerce entities may suspend accrual of any or all of these charges when accrual would be against equity and good conscience or not in the United States' best interest, in accordance with Commerce guidelines for such waivers. (See Commerce Department Credit and Debt Management Operating Standards and Procedures Handbook, available at http://www.osec.doc.gov/ofm/credit.cover.html.) ## Nearby sections - [15 CFR § 19.1 § 19.1 What definitions apply to the regulations in this part?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.1.md) - [15 CFR § 19.2 § 19.2 Why did the Commerce Department issue these regulations and what do they cover?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.2.md) - [15 CFR § 19.3 § 19.3 Do these regulations adopt the Federal Claims Collection Standards (FCCS)?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.3.md) - [15 CFR § 19.4 § 19.4 What notice will Commerce entities send to a debtor when collecting a Commerce debt?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.4.md) - [15 CFR § 19.5 § 19.5 How will Commerce entities add interest, penalty charges, and administrative costs to a Commerce debt?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.5.md) - [15 CFR § 19.6 § 19.6 When will Commerce entities allow a debtor to pay a Commerce debt in installments instead of one lump sum?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.6.md) - [15 CFR § 19.7 § 19.7 When will Commerce entities compromise a Commerce debt?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.7.md) - [15 CFR § 19.8 § 19.8 When will Commerce entities suspend or terminate debt collection on a Commerce debt?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.8.md) - [15 CFR § 19.9 § 19.9 When will Commerce entities transfer a Commerce debt to the Treasury Department's Bureau of the Fiscal Service for collection?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.9.md) - [15 CFR § 19.10 § 19.10 How will Commerce entities use administrative offset (offset of non-tax Federal payments) to collect a Commerce debt?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.10.md) - [15 CFR § 19.11 § 19.11 How will Commerce entities use tax refund offset to collect a Commerce debt?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.11.md) - [15 CFR § 19.12 § 19.12 How will Commerce entities offset a Federal employee's salary to collect a Commerce debt?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.12.md) - [15 CFR § 19.13 § 19.13 How will Commerce entities use administrative wage garnishment to collect a Commerce debt from a debtor's wages?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.13.md) - [15 CFR § 19.14 § 19.14 How will Commerce entities report Commerce debts to credit bureaus?](https://www.frixlaw.com/law-library/statutes/ecfr-15-19.14.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-15-19.5. Check the current official text before relying on it. Not legal advice.