Penalty Notice System

Importers and Exporters or their agents

Customs can apply administrative penalties for non-compliance with Customs legislation in relation to the provision of false or misleading statements. Customs now has two options if it decides to pursue enforcement action. One option is to prosecute and the other option is to issue a notice under the Administrative Penalties Scheme.

Customs will consider which sanction is the best means of achieving future compliance. Some of the types of sanctions available to Customs are:

  • warning letters
  • imposition of penalties (50% to 200% of the duty unpaid, not declared or attempted to be avoided or where the goods are exempt, free or zero rated from duty a penalty of not more than 5% of the value of the goods)
  • prosecution action (in some cases Customs may also prosecute in addition to imposing a penalty). Additionally Customs can also cause the
  • removal from, or modification to, the self assessment benefit by examining and verifying each transaction which may result in delays in clearing goods
  • cancellation or suspension of Customs licences for clients (e.g. Agents, warehouse operators)

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