General Annex - Chapter 3 (Clearance and other Customs Formalities)
Chapter 3 of the General Annex contains several standards relating to Customs offences and errors. During the process of supplying information to Customs by means of a Goods declaration, supporting documents, a cargo declaration or any other means, it is always possible that errors may occur. When errors in the information supplied are accidental, and are not made on a regular basis, Customs may normally give the declarant an opportunity to correct the mistake and will not take further action such as imposing a penalty.
When an offence is detected, a considerable time may elapse before the administrative or legal procedure is completed. It is often not beneficial to Customs or to the trade to delay the release of the goods until a final decision has been taken on the offence. Standard 3.43 provides for Customs to release the goods under certain conditions and take adequate security to ensure the payment of any additional duties and taxes or any penalties that may be imposed once the administrative or legal procedure is completed.
3.39. Standard
The Customs shall not impose substantial penalties for errors where they are satisfied that such errors are inadvertent and that there has been no fraudulent intent or gross negligence. Where they consider it necessary to discourage a repetition of such errors, a penalty may be imposed but shall be no greater than is necessary for this purpose.
3.43. Standard
When an offence has been detected, the Customs shall not wait for the completion of administrative or legal action before they release the goods, provided that the goods are not liable to confiscation or forfeiture or to be needed as evidence at some later stage and that the declarant pays the duties and taxes and furnishes security to ensure collection of any additional duties and taxes and of any penalties which may be imposed.
RKC Guidelines on RKC General Annex - Chapter 3 (download)
Specific Annex H - Chapter 1 (Customs Offences)
The primary task of Customs is to ensure compliance with Customs law. To assist in dealing with Customs offences or suspected offences, it is necessary that Customs have powers to investigate and, where appropriate, to impose sanctions against those who are not in compliance. Chapter 1 of Specific Annex H deals with the investigation and establishment of breaches of Customs law and with the administrative settlement of offences by Customs. The repression of Customs offences, by the application of suitable penalties, is also addressed but only to the extent that it falls within the competence of Customs.
This Chapter sets standards which aim to combine the adequate investigation of Customs offences with minimal disruption of trade. This is because long and costly criminal proceedings as a reaction to frequently occurring minor irregularities may impose disproportionate burdens on trade. Similarly, severe penalties for minor breaches of Customs law are inappropriate.
19. Standard
The Customs shall take the necessary measures to ensure, where applicable, that as soon as possible after a Customs offence is discovered :
- the administrative settlement of the latter is initiated; and
- the person concerned is informed about the terms and conditions of the settlement, the avenues of appeal and the time limits for such appeals.
20. Recommended Practice
Where during clearance of the goods a Customs offence has been discovered which is regarded as of minor importance, it should be possible for the offence to be settled by the Customs office which discovers it.
21. Recommended Practice
Where a traveller is regarded as having committed a Customs offence of minor importance, it should be possible for the offence to be settled without delay by the Customs office which discovers it.
22. Standard
National legislation shall lay down the penalties applicable to each category of Customs offence that can be dealt with by administrative settlement and shall designate the Customs offices competent to apply them.
23. Standard
The severity or the amount of any penalties applied in an administrative settlement of a Customs offence shall depend upon the seriousness or importance of the Customs offence committed and the record of the person concerned in his dealings with the Customs.
24. Standard
Where untrue particulars are furnished in a Goods declaration and the declarant can show that all reasonable steps had been taken to provide accurate and correct information, the Customs shall take that factor into account in considering the imposition of any penalty.
25. Standard
Where a Customs offence occurs as a result of force majeure or other circumstances beyond the control of the person concerned and there is no question of negligence or fraudulent intent on his part, no penalty shall be applied provided that the facts are duly established to the satisfaction of the Customs.
RKC Guidelines on RKC Specific Annex H - Chapter 1 (download)
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