Types of offences

Undervaluation involves cases where the value of the goods imported is undervalued so as to evade duty. In 2002, a company undervalued its importations of tyres, jam, and biscuit and evaded paying duty of over FJ$50,000. At the conclusion of the investigation a total of FJ$54,439.11 was collected as duty short paid, in addition to a compounding fee of FJ$22,000.

Abuse of Concession – this type of offence involves concession approval given to goods that should have had normal duty paid at time of importation. For example, an individual declaring goods as household items as personal effects and avoided paying duty. Investigation was carried out and confirmed that the goods were for commercial purpose. Total duty collected in this case was FJ$7,111.86 and compounding fee of FJ$1,000.

False declaration/misdescription – this involves declaration of incorrect description of goods. Usually the description of the item declared would attract less duty rate than the actual good that is being imported. A case involved misdescription of floor tiles by an importer. This resulted in collection of FJ$5,582.24 of duty short paid, and a compounding fee of FJ$2,000.

Incorrect tariff classification – this offence involves the use of an incorrect tariff to calculate duty for goods being imported. Usually, the tariff used attracts a lower rate of duty, and these are usually found in importations where goods with similar descriptions have vast differences in the rates of duty. For example, a company imported plastic bags but used a lower tariff that related to plastics as well. Investigations were carried out and short paid duty amounting to FJ$15,085.14 was collected, with compounding of FJ$300.

Undeclared and surplus goods – in this case, a consignment has surplus goods, which is not declared on the invoice to evade duty. A case involving an importation of surplus tyres resulted in the collection of FJ$3,272.50 and compounding fee of FJ$500.

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. An individual attempted to bring in FJ$80,000 but was caught at the border and referred to the CIB. The case was eventually referred to the Reserve Bank.

Smuggling – this involve the unauthorized moving of undeclared custom goods across the border, whether it be importing or exporting. The Captain of a fishing vessel was compounded FJ$2,000 for not declaring shark fins, and attempting to smuggle it without paying duty. The shark fins were sold by private treaty.

Narcotics – This involve the import or export of prohibited drugs. There was a case in 2006 where a person attempted to send a package to Tonga and upon verification by a Customs officer, the package contained cannabis intended for sale. The case referred to the Police. There was another case, which drew media attention, involving some Asians producing methamphetamine at Laucala Beach . These types of cases are usually referred to the Transnational Crime Unit (TCU).

There are two options available for settlements, they are:

• settlement under Section 155 of the Customs Act, 1986 Settlement of case by the Comptroller.
• court settlement.