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HMRC internal manual

Strategic Goods and Services: Assessment of risk and offence action

Pro-forma letters: Assessment of risk and offence action - Pro-forma letters

Agent: Compounding Offer

Dear Sirs

I refer to a consignment of which was presented for export by you on behalf of your principals which was seized as liable to forfeiture under section 68(1) of the Customs and Excise Management Act 1997 at on because no valid export licence was produced.

In presenting the goods for export without the necessary licence you may have become liable to proceedings under section 68(1) of the Customs and Excise Management Act 1979. In this instance however, after full consideration of the facts, we are prepared to exercise our powers under section 152(a) of the Act to compound proceedings against you for an offence under section 68(1) of the Act on payment of the sum of £(pounds).

If you wish to settle this matter in this way, send your payment, made payable to Her Majesty’s Revenue and Customs, to

[name and address of office where payment is to be made] within 21 days of the date of this letter, quoting our reference. If we do not receive payment within the stated time we may withdraw this offer and take legal proceedings against you without further notice.

Details of compounding settlements are not generally made public, however, you are warned that details may be disclosed:

(a) to the Court if you are prosecuted for a similar offence within the next 5 years;

(b) to other Government Departments whose responsibilities are affected by your offences; and

(c) to Parliament or the Press if your case attracts public attention and disclosure would be in the public interest.

I must warn you that we take a very serious view of this type of offence and that we are unlikely to show similar leniency if you repeat it. You should therefore ensure that the export licensing requirements are fully complied with in future.

Yours faithfully