Plain language law

New Zealand law explained for everyone

Customs and Excise Act 2018

Administrative provisions - Administrative penalties

288: No penalty in certain cases

You could also call this:

"No penalty if you own up to a mistake before Customs finds it"

Illustration for Customs and Excise Act 2018

You are not liable for a penalty under section 285 if you tell Customs about an error or omission voluntarily, before they notify you about it. This means you must tell them before they select your goods for examination, ask for documentation, or decide to audit or investigate your entry. You can also avoid a penalty if you can show that you had a reasonable view of the facts when you made the entry, even if it was incorrect.

You might also avoid a penalty if you acted in good faith on information given to you by the importer, exporter, or supplier, and it was reasonable to rely on that information. Other situations where you are not liable for a penalty include if a charging document is filed for an offence related to the error or omission, if the error or omission is identified more than 4 years after the entry was made, or if section 345 applies, which is about relying on a Customs ruling.

If any of these situations apply to you, you will not have to pay a penalty under section 285, as explained in the section 285 and section 345 provisions.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7039624.

Topics:
Money and consumer rights > TaxesBusiness > Industry rules
Previous

287: Calculation of amount of penalty, or

"How to work out the amount of penalty you might have to pay if you make a mistake with customs"

Next

289: Late payment of penalty: further penalties payable, or

"Paying a penalty late means you have to pay even more."

Part 5Administrative provisions
Administrative penalties

288No penalty in certain cases

  1. A person is not liable for a penalty under section 285 if—

  2. the person voluntarily discloses the relevant error or omission to Customs, except where the disclosure is made after Customs has notified the person of any of the following:
    1. that the goods to which the entry relates have been selected for examination by Customs:
      1. that documentation is required to be presented to Customs in relation to the entry:
        1. that Customs intends to conduct an audit or investigation in relation to—
          1. a selection of entries that includes the entry; or
            1. entries made over a period of time that includes the time when the entry was made; or
          2. the person satisfies the chief executive that the person formed a view as to the relevant facts pertaining to the entry that, while incorrect, was reasonable having regard to the information available to the person when the entry was prepared; or
            1. the person satisfies the chief executive that—
              1. the person acted in good faith on information provided by the importer, exporter, or supplier of the goods (as the case may be) to which the entry relates; and
                1. reliance on the accuracy or completeness of that information was reasonable in the circumstances; or
                2. a charging document for an offence under this Act is filed in relation to the error or omission; or
                  1. the date on which the error or omission was first identified is more than 4 years after the date of lodgement of the entry; or
                    1. section 345 (no liability where Customs ruling relied on) applies.

                      Compare