THE Fiji Revenue and Customs Authority has been given the green light to demand $668,723.23 from a company that tried to evade duties by providing incorrect tariff classification.
FRCA said the Court of Review upheld the decision this week to demand the sum from the company, which incorrectly classified various goods and resulted in short payment of duties in 2011.
The court, established under the Customs Act, has jurisdiction to make determination arising under Customs laws.
“Following a tip off, an investigation was carried out by Customs, which established that the company has evaded duties amounting to $668,723.23. The Comptroller of Customs issued a demand notice in 2013 asking the company to clear the short payment. The company then filed a notice of appeal in court on the grounds that the goods had been cleared 12 months ago and the issue arises of recovery window period being time barred as prescribed under section 95(1)(a) of the Customs Act.
“However, the court ruled that FRCA has authority to check records dating back five years and demand duty that has been short paid.”
FRCA CEO Jitoko Tikolevu said this was a landmark judgment, which should act as a deterrent to those importers who were incorrectly classifying goods to evade duties.
