SolvedCCPG22300 | Classifying the category of contravention: serious errors
From HM Revenue & Customs · Customs Civil Penalties Guidance
What is a serious error
A serious error is a contravention:
resulting in the non-payment of significant amounts of Customs duty and import VAT (see table below)
where goods have been removed from Customs Control.
| Scenario | Amount of duty understated where HMRC regard it as a serious error |
|---|---|
| Incorrect declarations, or a failure to provide declarations required by an authorisation | £10,000 - although where a series of identical errors is discovered (perhaps through interrogation of spreadsheets) it is the total amount of duty that should be used to determine whether the £10,000 threshold is met |
| Unauthorised incorrect use of Customs Procedure & Economic Impact (CPEI), for example incorrect drawback claims, etc. | £10,000 - although where a series of identical errors is discovered (perhaps through interrogation of spreadsheets) it is the total amount of duty that should be used to determine whether the £10,000 threshold is met |
| Declarations delayed so that payment falls in a later period (i.e. with Customs Freight Simplified Procedure (CFSP) or Inward Processing (IP) diversions) | No monetary limit applies for this type of serious error |
| Errors which have detrimental effect on the physical control of the goods | No monetary limit applies for this type of serious error |
How might we address a serious error
We may consider going direct to penalty, see CCPG23550.
If we decide not to go direct to penalty we may