Customs have measures in place to ensure that importer’s are paying the correct duty. It is common practice for them to detain shipments to assess the correctness of each declaration. If they are of the opinion that the importer has declared the goods incorrectly they will instruct the importer to amend the declaration and bring the additional duty to account. In addition a penalty will be imposed on the underpayment.
As a result Customs will then often also inspect previous import shipments, going back two years. Customs will issue a Letter Of Intent where they deem importers have under declared Customs duty. A Letter Of Intent notifies the importer of the intent to raise a debt for these outstanding duties. Customs will allow importers the opportunity to dispute these findings. In most cases Customs will “stick to their guns” and will issue a Letter Of Demand, thus making the importer liable to pay the duty within a specified amount of time.
In order to avoid the matter progressing to a Letter of Demand it is important to strongly contest the Letter Of Intent. A well motivated and researched argument will go a long way to achieving this. Consequently, appeals should be well motivated and based on relevant facts, previous determinations and supported by the various Customs guidebooks.
Customs Refund Specialist specialises in these matters. Use our expertise to resolve these issues.
- To resolve disputes with Customs regarding Tariff Classification, Letters Of Intent and Letters Of Demand.
- Contesting disputes with Customs regarding Tariff Classification.
- We resolve the above disputes through the following appeals processes:
- Internal Administrative Appeal process (IAA)(DA51)
- Alternate Dispute Resolution process (ADR)(DA52)
- Section 96 legal appeals through the Supreme Court