Classifying the category of contravention: serious errors
What is a serious error
A serious error is a contravention that
- either potentially results in the non-payment of significant amounts of Customs duty and import VAT (see table below), or
- Goods have been removed from Customs Control
|In the case of||It is regarded as a serious error where the amount of duty exceeds|
|Incorrect declarations, or a failure to provide declarations required by an authorisation.|
|Unauthorised incorrect use of Customs Procedure & Economic Impact (CPEI), for example incorrect drawback claims, etc||£10,000|
In the case of import VAT an error of this amount should only be regarded as serious where it is apparent that the tax will stick.
|Where a series of identical errors is discovered, perhaps through interrogation of spreadsheets, it is the total that should be used to determine whether the matter is serious.|
|Declarations delayed so that payment falls in a later period. (This may occur with Customs Freight Simplified Procedure (CFSP) or Inward Processing (IP) diversions).||£25,000|
|Errors which have detrimental effect on the physical control of the goods.||No monetary limit applies for this type of serious error|
How might we address a serious error
We may consider going direct to penalty, see CCPG23550.
If we decide not to go direct to penalty
- a warning letter may be appropriate, follow the guidance at CCPG26000
- recommending that a trader’s authorisation be amended or revoked may be appropriate, follow the guidance at CCPG28000.