What consequences do I face for non-compliance with customs laws?

• Customs has various monitoring and examination powers that equip it to determine whether customs laws are being complied with. It can also demand production of commercial documents and records for transactions up to 5 years old.
• Unpaid duty is a debt due to the Commonwealth and payable by the owner of the goods. Customs may make a written demand for payment of that debt specifying the amount of duty being demanded and explaining how that duty was calculated.
• Responses to non-compliant activity are determined by the extent and nature of the non-compliance.
• For certain strict liability offences (where the person can be penalised without needing to prove they acted intentionally or recklessly) an infringement notice can be issued and a penalty (fine) imposed. These offences include:
  • making false and misleading statements;
  • failure to report or to report on time;
  • failure to comply with certain directions; or
  • moving, altering or interfering with goods without authority.
• Penalties are only to be applied by certain senior Customs officers on a case-by-case basis after careful consideration of all the relevant facts.
• Customs officers retain the discretion to prosecute you for the offence at all times up until a penalty is paid. Prosecution cases are handed over to the Commonwealth Director of Public Prosecutions (DPP).
• Payment of a penalty discharges liability for the offence so that you cannot be prosecuted for it and no conviction is recorded against you.
• Customs prosecutions are rare for strict liability offences such as failure to pay the correct duty. They are more often used for importing or exporting prohibited substances such as weapons or drugs.
• In some circumstances an infringement notice may be issued as a warning without a penalty being imposed or Customs may recommend an alternative compliance action such as education.
• If you receive an infringement notice you may ask for it to be withdrawn and a different decision-maker will decide whether your request has merit.