Many declarants have experienced hearings or received official reports prepared by a Special Investigating Officer (BOA) due to an incorrect declaration. Errors are human and easily made, yet until July 1st, based on the General Customs Act (Adw), criminal prosecution was always pursued. Due to a change in the law, the standard has changed as of July 1st, and Customs can now impose an administrative fine when someone violates the law.

Criminal Prosecution vs. Administrative Fine

In the previous situation, submitting an incorrect declaration always resulted in criminal prosecution, and you were considered a suspect, followed by punitive measures. The incorrect declaration is no longer penalized with a punitive measure. Instead, the standard penalty is now an administrative fine. The retractional period for Customs is also shortened from five to three years. This is the period of time that the Customs Authorities can use to decide and notify the declarant of an outstanding debt that needs to be paid. The introduction of the administrative fine does not entail that criminal prosecution will never occur. If there is evidence of intent, the Public Prosecution Service can still decide to pursue criminal prosecution.

Objection Procedure Changed as of July 1st

Previously, objections (against a punitive measure) were made to the Public Prosecution Service. After the change on July 1st, objections are now made to Customs itself. The objection is no longer against a punitive measure but against the administrative fine. This legislative change was ultimately achieved through a strong lobby hailing from the business community, and the political decision was made to adjust the law accordingly.

If you want to know more about this topic or other customs-related legislative changes, please feel free to contact us.

30 Jul 2024 at 10:47 am

2 min