Penalties & Offences
Undervaluation involves cases where the transaction value of the goods imported is undervalued.
Overvaluation of Goods involves inflating the true value of the goods.
Abuse of Concession – this type of offence involves goods which are cleared under duty concession but are used for other purposes other than for which the duty concession was granted for. An example of such would be, raw materials cleared under duty concession for manufacturing purposes but have been diverted in the domestic market for other purposes.
False declaration/mis-description – this involves declaration of incorrect description of goods which are falsely described or misdescribed to evade proper Customs duty.
Incorrect tariff classification – this offence involves the use of an incorrect Tariff Item to calculate duty for goods being imported. An example of this would be, using Tariff Code of low duty item to clear high dutiable goods.
Undeclared and surplus goods– These surplus goods which are not declared to Customs at the time of importation.
Money laundering – is the practice of engaging in specific financial transaction order to conceal the identity, source, and/or destination of money and is a main operation of underground economy. It encompasses any financial transaction which generates an asset or a value as the result of an illegal act, which may involve actions such as tax evasion or false accounting.
Smuggling – involves unauthorized movement of undeclared uncustomed goods across the border, whether it be importing or exporting with the intention to defraud Customs revenue.
Importation of Prohibited Imports as described in Schedule 1 of Customs Prohibited (imports) and (exports) Regulation 1986 is also an Offence.
Exportation of Prohibited Exports as described in Schedule 6 of Customs Prohibited (imports) and (exports) Regulation 1986 is also an Offence.
Narcotics – This involves the import or export of prohibited drugs or controlled substances.
Breach of Customs Offences carries penalties/fine ranging from $25,000.00 to Three (3) times the value of the goods or a term of imprisonment not exceeding 10 years, or both and the goods.
There are two options available to the offender for settlement of cases, they are:
- request for settlement of the case under Section 155 of the Customs Act.
- Defend the case in the Court of Competent Jurisdiction