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HMRC internal manual

Customs Civil Penalties Guidance

From
HM Revenue & Customs
Updated
, see all updates

Introduction: Example of wording for Civil Penalty Warning Letters and Penalty Notices

 

Reason Code 036 - Presentation of Goods

A routine Assurance check of your records 29th October 2014 covering the period from 1st January 2012 to 30th June 2013 in respect of your Imports and Exports of Fish, has identified that your company failed to assign 3 shipments of fish to a customs approved treatment or use within the specified time line, which is 45 days for goods arriving by sea.

This is a contravention of Articles 48 and 49 and 59 of Council Regulation 2913/92/EEC and Regulation 5 of the Customs Controls on Importations of Goods regulations 1991.

(Please see enclosed schedule for the details)

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason Code 051 - Failure to declare the correct particulars

As part of an International Trade Assurance check on the 29th September 2014 I examined information and records in relation to your company’s Imports covering the period from July 2011 to January 2014. My examination of your records identified that your company had failed to declare the correct particulars on your Customs Declarations for Import. These errors / contraventions related to the classification of your goods. (See enclosed schedule)

Failure to provide the correct particulars on declarations which are submitted to Customs Authorities is contrary to Articles 62 and 77 of Council Regulation 2913/92/EEC. As the Importer /declarant your company is responsible for the accuracy of the information on the Customs Declarations under Article 199 of Commission Regulation 2454/93/EEC and Section 167(3) of the Customs & Excise Management Act 1979.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason 080 - Simplified Procedures

A International Trade Assurance check of your records on the 11th January 2014 has identified that during the period from 1st January 2012 to 30th November 2013 your company has failed to comply with the conditions of your CFSP Authorisation for the following reasons:

  • The information you have declared does not correspond to the information on Chief.
  • You have failed to advice within the agreed timeline of your late submission of declarations.
  • You have also failed to advise the detail of non-submissions. (See enclosed schedule for further details)

This is contrary to Articles 253(6) and 253(7) of Commission Regulation 2454 /93 /EEC As a company authorised to use simplified procedures; you are required to comply with the relevant conditions, meet the relevant criteria and comply with the relevant obligations as detailed in Section 15 d of your CFSP Authorisation.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason Code 120 - Authorisation Customs Procedure with economic Impact R/C120 - IPR

A International Trade Assurance check commenced with a visit to your premises on the 26th July 2014, examinations of your records covering the period from 1st January 2012 to 30th June 2014. It has identified that your company failed to comply with the conditions of the Inward Processing Relief (IPR) Regime and your associated Inward Processing Relief Authorisations IP/929/313/12 and IP/0902/362/15. You have imported goods to your Authorisation which are not covered by the terms of that Authorisation and you failed to ensure your IPR Goods have been processed and exported within the agreed through put period which is 6 months. (See enclosed schedule)

Failure to comply with a condition of an Authorisation is contrary to Articles 6, 7, 85 to 87 and 90 of Council Regulation 2913/92/EEC and Articles 505 to 508 of Commission Regulation 2454/93/EEC.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

R/C120 - Customs Warehouse

An International Trade audit was undertaken on 9th October 2014 to examine your Import and Export Records covering the period from 1st January 2012 to 30th June 2014 in relation to your operational use of a Customs Warehouse as per your Customs Warehouse Authorisation C2108567. It was identified that your company failed to comply with the terms and conditions of this Authorisation. The information held within your Stock Account Records does not allow a full trace of goods, from when they were received into the Customs Warehouse to when they were subsequently removed (Please see enclosed schedule for further details)

Failure to comply with the conditions of an Authorisation is contrary to Articles 6, 7, 85 to 87 and 90 of Council Regulation 2913/92/EEC and Articles 505 to 508 of Commission Regulation 2454/93/EEC.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason Code 150 - End Use Authorisation

An International Trade Assurance check commenced with a visit to your premises on the 16th April 2014 to examine your Import and Export records covering the period from 1st January 2012 to 31st December 2013. It was to audit your company’s operational use of an End Use Authorisation EU/0909/ 031/15. Examination of the records has identified that your company failed to comply with the terms and conditions of your End Use Authorisation. When importing goods to your End Use Authorisation your company has failed to ensure that your goods were put to the prescribed treatment or use within the agreed through put period as per the terms and conditions of your End Use Authorisation. (See enclosed schedule)

Failure to comply with a condition of an End Use Authorisation is contrary to Articles 6, 7, 21, 82, 85 to 87and 90 of Council Regulation 2913 /92/ EEC and Article 292 and 293 of Commission Regulation 2454 / 93 / EEC.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason Code 200 - Community Transit

As part of a routine verification check I visited your premises on the 24th September 2014 to examine both the paperwork and the goods which were travelling under Community Transit procedures Ref T1 13BE10100081257885. When I was accompanied into the Warehouse by ??????, your Warehouse Keeper, I identified that the goods had been unloaded from the container without permission having been given by Customs Authorities. (Please see the enclosed schedule for further details.)

This is contrary to Article 96 (1) and (2) of Council Regulation 2913/92/EEC, which outlines your obligation to produce the goods intact at the customs office of destination, by the prescribed time limit and duly observe the measures adopted by customs, to ensure identification of the goods, with due observance of the provisions relating to the Community Transit Procedure.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason Code 230 - Failure to Produce

You have failed to respond by the specified deadline, to requests and further reminders to provide information, documentation and records in relation to queries I have made. This was with regards to your company’s Customs Declarations for Imports and Exports under the Outward Processing Relief Regime. (See enclosed schedule for details)

Failure to produce information and documentation as requested by HMRC and by the specified deadline is contrary to Article 14 of Council Regulation 2913 /92 /EEC and Section 23 of the Finance Act 1994

YOU MUST NOW PRODUCE THE DOCUMENTS, INFORMATION REQUESTED ON OR BEFORE ??????

NOTE. This is the only CPWL where the RTBH paragraph is included in the CPWL 1st page, see CCPG11500 - paragraph copied below.

If there is a reasonable explanation or further information or evidence you wish to provide, by way of an explanation as to why, you are unable to comply with this request for the provision of records, documents and or information, then please send this to me by 26/02/2014. If I have not heard from you in that time, I will conclude that you have no additional information you wish me to consider, and in the event of you failing to produce the information requested, I will progress Customs Civil Penalty action accordingly.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason Code 231 - Deficiencies in systems

I undertook an International Trade Audit of your company’s records on 11th August 2014 which covered the period from 01/11/2011 to 30/06/2013. I found that there are serious deficiencies in the systems your company has in place for managing your International Trade activity effectively. My examination of your records identified that your company was not able to produce evidence to support the use of the customs procedure used at point of Import and was unable to explain the discrepancies identified. (See enclosed schedule)

This is contrary to Article 16 of Council Regulation 2913/92/EEC and Regulations 3 to 5 and 9 of the Customs Traders (Accounts & Records) Regulation 1995. As the Importer /declarant you have an obligation to keep, preserve and maintain information, records and documents relating to your International Trade activity and make these available upon request.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason Code 301 - Preference

An International Trade Assurance check of your records on the 9th October 2014 covering the period from 1st January 2012 to 30th June 2012 identified that you have failed to fulfil the conditions of Preference for Import. There were 15 customs declarations for which you did not have Authentic Proof of Origin or an equivalent declaration. (See enclosed schedule for the full details)

This is contrary to Articles 5 and 62 of Council Regulation 2913/92/EEC, and Article 84 of Commission Regulation 2454/93/EEC. As the declarant you are responsible for the accuracy of the information on your Customs declarations under Article 199 of Commission Regulation 2454/ 93/EEC. This is also contrary to the agreement between EC and Switzerland (L300/1972) and Decision 3/2005 of EC - Switzerland Joint Committee - Revised Protocol 3 on rules of origin providing for Pan-Euro-Med Cumulation.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason Code 302 - Preference

An International Trade verification check of your records on 12th September 2014 for Export Preference has identified that when exporting Goods, your company has facilitated the drawing up of a document, a EUR1, which contains incorrect information for the purpose of obtaining a Preferential tariff treatment for products exported to Israel. (Please see enclosed schedule for details)

This is contrary to Articles 27 and 20(3)(d) of Council Regulation 2913/92/EEC and the Agreements therein referred to which the Community has concluded with certain countries/groups of countries and, which provide for the granting of Preferential tariff treatment. The above mentioned Agreements require that penalties be imposed on any person who draws up or, causes to be drawn up, a document which contains incorrect information for the purpose of obtaining a Preferential tariff treatment.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason Code 511 - Misdeclarations at Export

I completed an International Trade assurance check on the 10/01/2014 covering the period from 01/01/12 to 30/12/12. I identified through examination of information and records in relation to your Exports that your company has failed to declare the correct particulars on your Customs declarations for Export. These errors centred on the use of LIC 99 which means the goods have been declared as non-licensable goods. In actual fact the goods have a dual purpose and as such require a license. (See schedule page)

Failure to provide the correct particulars on Customs Declarations is contrary to Articles 62 of Council Regulation 2913/92/EEC. As the Exporter/Declarant you are responsible for the accuracy of the information declared on your customs declarations.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice.

Reason Code 520 - Simplified Local Clearance Procedures at Export

I undertook an International Trade Audit of your records on 16th June 2014 covering the period from 1st January 2012 to 31st December 2013. I identified through examination of your records that your company has failed to comply with Simplified Local clearance procedures and the terms and conditions of your Memorandum of Understanding Authorisation. (Please see enclosed schedule for further details)

This is contrary to Articles 253(6) and 253(7) of Commission Regulation 2454/ 93/EEC. As the Exporter authorised for Simplified and or Local Clearance Procedures you must (a) comply with the relevant conditions, meet the relevant criteria and comply with the relevant obligations and (b) inform the authorising authorities of all factors arising after the authorisation has been granted which may influence it’s continuation or content.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice.

Reason Code 521 - Failure to comply with Export Procedure

An International Trade Assurance Check was undertaken on 10th September 2014 with regards your company’s use of the National Export System (NES) and associated procedures. I identified that on three separate occasions your company exported goods without having received permission to progress. In addition to this, the goods in question were licensable goods and as such subject to supervision by Customs Authorities as controlled goods. (See enclosed schedule)

This is contrary to Article 793 of Commission Regulation 2454/93/ EEC, the Customs ( Presentation of Goods for Export) Regulations 2003 and Article 183 of Council Regulation 2913/ 92/ EEC. Goods which have been released for export (a) must be presented to Customs at the customs office of exit; (b) leave the customs territory using the route prescribed by the customs authorities (if any) and in accordance with the procedures laid down by those authorities.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice

Reason Code 531 - Deficiencies in Systems (Exports)

I undertook an International Trade Audit on 10th September 2014 covering the period from 01/11/2011 to 30/06/2013. I found that there are serious deficiencies in the systems your company has in place for managing your International Trade activity effectively. My examination of your Export records identified that your company was not able to produce the evidence to support the use of the customs procedure used at point of Export and was unable to explain discrepancies identified. (See enclosed schedule)

This is contrary to Article 16 of Council Regulation 2913/92/EEC and Regulations 3 to 5 and 9 of the Customs Traders (Accounts & Records) Regulation 1995. As the Importer /declarant you have an obligation to keep, preserve and maintain information, records and documents relating to your International Trade activity and make these available upon request.

On the Schedule Page: - You should include:

  • the specifics of the contraventions,
  • the explanation provided by the trader,
  • the detail of the remedial action that needs to be taken to improve Compliance, and
  • the warning advising if similar errors re-occur the maximum penalty may be imposed.

If issuing a penalty please ensure the CCP Ref No is recorded on 3 Page Payment Advice