Tennessee Code Title 67. Taxes and Licenses § 67-3-804

(a) A shipment of petroleum products may be diverted from the destination stated on the original shipping paper where the shipping paper is incorrect or where there is a legitimate business need to divert the shipment. Prior to any diversion or change to the shipping paper, the shipper, the transporter, or an agent of either, shall notify the department or its designee and shall manually add the assigned verification number to the shipping paper. Any claim for refund resulting from a diversion under this section shall be made and acted on under the refund provisions of chapter 1, part 18, and chapter 3, part 4, of this title.

(b) The commissioner may assess a civil penalty in an amount equal to the taxes and fees on the product, without regard to any exemption or dye, or one thousand dollars ($1,000), whichever is greater, for each violation, against any person who diverts a shipment or alters a shipping paper other than as provided for in subsection (a). No civil penalty will be assessed in those cases where the prior notification required in subsection (a) was not accomplished due to error, other than negligence, if within three (3) working days the shipper, the transporter, or the agent of either, notifies the department of the diversion and error.