Import valued at R13.22 attracts R6 000 fine

Customs comes down heavily on undeclared ‘gift’ ALAN PEAT A PENALTY of over R6 000 was recently levied by customs on a containerised cargo containing two extra packages of 100 baseball caps - sent as a gift to the import customer - and a batch of advertising material, all valued at R13.22 including VAT and duty, but unfortunately undeclared. According to Rafael Rincon of Intercargo Forwarding, the agents for the consignment, the 20-foot (6-metre) container was detained for customs examination. But, he told FTW, while the actual goods examined were found to be in accordance with the tariff heading entered on the DA500, the two cartons containing the freebie caps and the advertising pamphlets were found uncleared. “The customs officer and his team issued the stop note and requested a voucher of correction (VOC),” Rincon said. The client, meantime, was unaware that these items were included in the container, and, on immediately contacting the supplier, this importer was informed that the 100 caps were sent in good faith as a gift and the advertising material as part of their normal practice. However, after Intercargo had spent days on the telephone and sent various letters back and forth through a number of other senior customs personnel, the explanation was rejected. “According to the book (the Customs Act) we had contravened by not declaring all goods in the container,” said Rincon. “Is this not ridiculous? For a total under-entry of R13.22, the importer incurred additional charges of R2 500 in penalty; R2 500 in forfeiture; and R1 320 for storage.” And, when the importer refused to pay the penalty and forfeiture, he was told to pay now and submit an application to mitigate forfeiture and penalty. “Same old story,” said Rincon. “SARS collects your monies and then, with a lot of luck, you might receive your refund within 12-months. While Rincon commends customs for the efforts they make in curbing illegal imports this, he believes, goes beyond the call of duty. “Customs advocates co-operation between agent and customs to stamp out corruption and report unscrupulous importers. But, I must say when we have situations like this one, it just creates a rift between SARS customs, the agent and the importer.” So, importers beware. If your supplier decides to send you any material or promotional gifts without your knowledge and customs stops your shipment, the full force of the law will come down on you. “You will be handled as a criminal,” said Rincon, “and full penalties and forfeiture will be levied.”