The customs authority, as an administrative body, has the option to enforce compliance administratively by imposing administrative penalties. The range and type of violations for which customs can impose such penalties are limited and specifically outlined in various laws.
Most administrative penalties in customs matters are imposed under excise legislation. For instance, if you fail to submit your periodic excise return on time, you violate a provision in the General Tax Act (the rule), and this law specifies the penalty (sanction) applicable for such a violation.
Another example is failing to meet the obligations under your customs authorization. The rule is outlined in the Union Customs Code, which specifies the requirements for obtaining and maintaining the authorization. The General Customs Act further ‘specifies the applicable penalty for failing to meet these obligations.
Filing an objection against an administrative penalty
If you disagree with an administrative penalty, you may file an objection. This process is the same as filing an objection against an invitation to pay or an additional tax assessment. Here you will find more information on filing an objection or, if necessary, appealing.
Default and offence penalties
The General Tax Act (primarily for excise matters) and the General Customs Act both include provisions for default and offence penalties. The difference between a default penalty and an offence penalty lies in the underlying fault. Penalties for minor violations are referred to as default penalties, whereas penalties for serious violations are considered offence penalties. The law specifies the circumstances under which each penalty applies. For offence penalties, intent or gross negligence is often alleged and must be proven by the inspector.
The policy rules for imposing administrative penalties are set out in the decree on administrative penalties by the tax and customs administration (BBBB/D) and the tax authority’s administrative penalty decree. These rules also specify the (maximum) amounts for various penalties.
Practical tips
1. Right to access your file
Exercise this right to review the allegations against you and the evidence the inspector has to justify the penalties.
2. Review the penalty notice carefully
The penalty notice must specify the (legal) grounds on which the penalty is based. Carefully read these provisions before deciding whether to file an objection.
3. Right to respond to a proposed penalty
If the inspector intends to impose an offence penalty, they must first give you the opportunity to respond to the proposed penalty. If this has not happened, it may impact the penalty or the amount imposed.
