Revenue Customs Officer flashcards

39 cards. Read the term and the definition here. The deck at the top of this page is optional.

Customs debt

The obligation on a person to pay the amount of import or export duty corresponding to goods under a customs procedure. It arises at acceptance of the declaration or at unlawful entry.

Declarant

The person who lodges a customs declaration or on whose behalf it is lodged. The declarant is responsible for the accuracy of the particulars and for payment of the resulting duty.

Binding tariff information

A customs decision on the classification of goods that binds the administration against the holder for a defined period, usually three years, provided the goods and circumstances match those described.

Customs territory

The geographic area in which a state's customs law applies in full. It may differ from the political territory, for example where free zones or special fiscal territories are excluded.

Release for free circulation

A customs procedure that gives imported goods the same status as domestic goods. It requires payment of duties and compliance with all import formalities and restrictions.

Special procedure

A customs procedure other than release for free circulation or export, covering transit, storage, specific use, and processing. It suspends or relieves duty and requires authorisation.

Post-clearance audit

A control carried out after release of the goods, based on the trader's accounting records and customs documentation. It verifies the accuracy of past declarations and may lead to duty recovery.

Simplified declaration

A declaration that omits some particulars at release, which must be supplied in a supplementary declaration within the statutory period. It requires authorisation and a guarantee where duty is deferred.

Right of appeal

The trader's statutory right to challenge a customs decision before an independent body or court. The appeal must be lodged within the prescribed time limit and usually states the grounds.

Import VAT base

The amount on which import VAT is charged: customs value plus customs duty plus excise duty plus other charges. It is therefore larger than the customs value used for duty.

Ad valorem duty

Duty calculated as a percentage of the customs value of the goods. Duty equals customs value multiplied by the rate; it varies with price rather than with quantity.

Specific duty

Duty calculated as a fixed amount per unit of quantity, such as per kilogram or per litre. It does not vary with the value of the goods and is common for agricultural and excise goods.

Compound duty

A duty combining an ad valorem element and a specific element on the same goods. Both components are calculated separately and then added to give the total duty.

Excise duty

A tax on specified goods such as alcohol, tobacco, and energy products, charged by quantity, by value, or by a hybrid formula. It is collected at import or at production.

Anti-dumping duty

An additional duty imposed on dumped imports to offset injury to domestic industry. It is calculated per unit or as a percentage of value and is separate from normal customs duty.

General Interpretative Rules

The six rules governing classification under the Harmonized System. They set the order of analysis: heading text and notes first, then section and chapter notes, then the remaining rules.

GIR 3(b) essential character

A classification rule for mixtures, composite goods, and sets put up for retail sale. The goods are classified by the component that gives them their essential character.

Transaction value

The primary customs valuation method: the price actually paid or payable for the goods, adjusted by prescribed additions such as commissions, royalties, assists, packing, and transport to importation.

Deductive value

A fallback valuation method based on the resale price of the imported goods in the country of import, reduced by post-importation costs, duties, and a representative profit margin.

Preferential origin

Origin qualifying goods for a reduced or zero duty under a free trade agreement or a preferential scheme. It requires a proof of origin and compliance with direct transport rules.

Substantial transformation

The criterion for non-preferential origin where goods undergo a change of tariff heading, a specified process, or sufficient value added in a country. It determines the goods' origin.

Risk management selectivity

The technique of assigning declarations to control channels (green, yellow, red) according to risk profiles. It concentrates resources on high-risk consignments and facilitates compliant trade.

Documentary control

A customs control that verifies the declaration and supporting documents without physically inspecting the goods. It checks consistency of value, origin, classification, and licences.

Physical inspection

A customs control in which officers examine the goods themselves, including quantity, description, and condition. It verifies the goods against the declaration and may include sampling.

Authorised Economic Operator

A status granted to compliant traders meeting security and customs criteria. It confers benefits such as fewer controls, priority treatment, and mutual recognition with partner countries.

Smuggling

The unlawful movement of goods across a border, including concealment, false declaration, and evasion of duties or prohibitions. It may attract administrative penalties or criminal prosecution.

Chain of custody

The documented, unbroken record of who held evidence from seizure to adjudication. It preserves admissibility and prevents challenges that the evidence was altered or substituted.

Entry summary declaration

Advance electronic data lodged before goods arrive at the border. It is used for risk analysis and targeting, and its accuracy is the carrier's or declarant's responsibility.

Transit procedure

A procedure allowing goods to move under customs control from one office to another without payment of duty. It requires a guarantee and discharge at the office of destination.

Trade Facilitation Agreement

The WTO agreement obliging members to publish procedures, issue advance rulings, allow pre-arrival processing, and apply risk management. It aims to reduce border delays and costs.

Discharge of transit

The closure of a transit operation when goods and the transit document are presented at the office of destination. Failure to discharge creates a customs debt at the office of departure.

Proportionality of sanctions

The principle that a penalty must correspond to the gravity of the offence. It requires distinguishing negligent from fraudulent conduct and considering mitigating and aggravating circumstances.

Burden of proof

The obligation to establish a fact to the required standard. In customs fraud the administration must prove the offence, while the trader must substantiate declared value and origin.

Conflict of interest

A situation where an official's private interest could improperly influence an official decision. It must be declared and managed, for example by recusal or reassignment of duties.

Segregation of duties

An integrity control that divides responsibility for authorising, executing, and recording a transaction among different officers. It prevents one person from concealing errors or fraud.

Whistleblower protection

Legal and organisational safeguards for persons who report wrongdoing in good faith. They include confidentiality of identity and prohibition of retaliation against the reporter.

Effective duty rate

Total duty divided by customs value, expressed as a percentage. It differs from the nominal rate when specific, compound, or reduced duties apply to the consignment.

Landed tax total

The sum of customs duty, excise duty, and import VAT payable on a consignment. Each component is calculated in sequence because VAT is charged on value plus duty plus excise.

Preference saving

The difference between the MFN duty and the preferential duty on the same goods. Expressed as a percentage of the MFN duty, it measures the benefit of the origin proof.