Types of Offences

Undervaluation involves cases where the transaction value of the goods imported is not declared so as to evade duty.

Overvaluation of Goods involves cases where the true transaction of the goods imported is grossly overvalued so as to remitt money illegally or for illicit monetary gain.

Abuse of Concession – this type of offence involves goods which are cleared under duty concession but are used for other purposes other than for which the duty concession has granted. An exampleof such would be, raw materials cleared under duty concession for manufacturing purposes but have been diverted in the domestic market for other purposes.

False declaration/misdescription – this involves declaration of incorrect description of goods which are falsely described to evade proper Customs duty.

Incorrect tariff classification – this offence involves the use of an incorrect Tariff Code to calculate duty for goods being imported. An example of this would be, using Tariff Code of low duty item to clear high dutiable goods.

Undeclared and surplus goods – in this case, a consignment has surplus goods, which is not declared on the invoice to evade duty.

Money laundering – is the practice of engaging in specific financial transaction order to conceal the identity, source, and/or destination of money and is a main operation of underground economy. It encompasses any financial transaction which generates an asset or a value as the result of an illegal act, which may involve actions such as tax evasion or false accounting.

Smuggling – involves unauthorized movement of undeclared uncustomed goods across the border, whether it be importing or exporting with the intention to defraud Customs revenue.

Narcotics – This involves the import or export of prohibited drugs or controlled substances.

There are two options available to the offender for settlement of cases, they are:

• request for settlement of the case under Section 155 of the Customs Act, 1986
• Defend the case in the Court of Competent Jurisdiction