Dutch Customs applies new penalty provisions since 1 July 2024.

The General Administrative Law Act

The General Administrative Law Act (Awb) determines the procedure an inspector must follow when imposing an administrative fine. The General Customs Act then specifies the conditions under which a fine can be imposed, including when, why and the maximum amount. The rules for imposing a customs fine are further elaborated in both the BBBD and the Administrative Fines Tax Board Decree (BBBB).

Default fines pursuant to Section 9:1a Adw

Section 9:1a Adw comes into effect when an incorrect or incomplete declaration is made. This fine is imposed on ‘the person who files or should have filed the return or the person in whose name the return is filed’.

Direct or indirect representation: implications for administrative fines

In case of direct representation and the declarant/representative is established in the Netherlands, the administrative fine is imposed on the declarant/representative. When the declarant/representative is established abroad, the administrative fine is imposed on the person filing the declaration. The latter also occurs in cases of indirect representation.

Threshold charges

For a customs declaration for free circulation a default penalty shall be imposed when:

• The amount of duty due is €50 or more for a customs declaration filed in DMS/AGS;

• The amount due is €250 or more for declarations made in DMS/AGS, for economic operators with an Authorised Economic Operator (AEO) authorisation;

• The amount due is €25 or more, for declarations in free circulation filed in DECO. This also applies to AEO authorisation holders.

In case of systematic omission or deliberate negligence, these rules may be deviated from.

Height of negligence fines

Declarations made for free circulation in DMS/AGS, where the negligence is found upon verification:

• For a more due amount of import duties below €5,150, the negligence fine is €250 under Section 9:1a(1) Adw;

• For an amount of import duties due in excess of €5,150, the negligence fine is 10% of the adjustment amount, with a maximum of €10,300, pursuant to Article 9:1a, paragraph 2 Adw.

Declarations filed for free transit in DECO, where the negligence is found upon verification:

• Where it is established that the value of the goods exceeds the intrinsic value of €150, what is described above shall be applied as a starting point;

• If the intrinsic value is found to be lower than €150, in general, no negligence penalty is imposed on the basis of Section 9:1a Adw;

• For incorrect declarations where the goods are not at the location indicated in the subsequently filed declaration, a negligence penalty of €250 will be imposed on the basis of Section 9:1a(1) Adw.

Negligence fines pursuant to Section 9:1b Adw

Section 9:1b Adw introduces a fine for failing, incorrect or incomplete provision of information or data. The standard fine is €250, but in exceptional cases a fine up to the statutory maximum may be imposed. This fine is imposed on the person obliged under customs legislation to provide information, data or instructions.

Concurrence of articles 9:1a and 9:1b Adw

In many cases, an incorrectly detected declaration will also involve the provision of incorrect data. In these cases, generally only a default fine under Section 9:1a Adw will be imposed.

Administrative penalty NCTS

What is new is that from 1 July, Customs will also fine errors on documents made in NCTS (transit). For every customs declaration that results in a customs debt and an invitation to pay (UTB), Customs imposes a fine. This applies to declarations released from 1 January 2024.

Transitional law

Articles VIII and XII(2) of the Other Fiscal Measures Act 2024 regulate the transitional law from the old to the new legal provisions. On this basis, the General Customs Act as it was before 1 July 2024 will continue to apply to customs debts incurred before 1 July 2021. From 1 July 2021, the new provisions of sections 9:1a and 9:1b of the Adw will apply (retroactively), among others.