Not only does Customs face this difficulty, even those Importers who may not be aware of their surplus goods, but really want them, had to go through hectic processes of getting their goods released.
This has all changed since introduction of the new Act. Section 180 clearly states that goods which were not fully accounted for in terms of the number of packages, or uncustomed goods or goods found so packed as to be likely to deceive a Customs Officer, are to be forfeited to the State. Section 181 further states that such goods may be seized by Customs.
Once the goods are seized by Customs, section 184 of the Act has given the Importer the opportunity to pay the full value of the goods before the condemnation date. Such goods will be released to the Importer once full payment is received by Customs. Not only does the Importer now able to have access to their goods, which they might never have paid for abroad, this law has also created another revenue avenue for the Government without having to go through lengthy procedures and court cases.
This new law and procedures have been working well for the past year or so, however it has no come to a point where it seems Importers are not too concern about having their surplus goods seized by Customs, as they know they can always pay for the full value of the goods to get them back. This is defeating the purpose of the law which is to assist Importers with improving their compliance levels. Furthermore, this does not help Customs with committing its limited resources to other areas of enforcement and risks.
In this regard, not only are undeclared goods continued to be seized pending payments, Importers are now being penalized by Customs for not fully declaring their consignments. This is a technical offence under the Customs Act and is therefore subject to penalties.
It is worthwhile mentioning that it still remains the discretion of Customs to decide whether undeclared goods are to be seized, Importers penalized or the matter investigated by Customs for prosecution. This has happened in the past where an Importer was prosecuted for importing undeclared goods and ordered by the Courts to pay a fine of vt3million. The seized goods at that time were forfeited to the state and were sold by Customs for over vt2.3million.
Importers and Customs Brokers are therefore reminded to make sure all invoices and packing lists submitted to Customs are correct and true, and that all goods are fully declared to Customs, or face the consequences of the law. Customs anticipates that this increased level of enforcement would allow Importers to improve their level of compliance, by making sure they deal with suppliers that submit proper records and invoices.
