Infringement Notice Scheme

When does this change start?

The Infringement Notice Scheme will start on 1 April 2019.

Why doesn’t this start until April 2019?

Customs is using the time between 1 October 2018 and 1 April 2019 to educate people about their obligations under the new Act. On-the-spot warnings will be issued during this time and other existing sanctions will still apply.

Who does this change affect?

International arriving and departing passengers (air and sea), importers, exporters, excise manufacturers, brokers and Customs-controlled areas.

Why has this changed?

The new infringement scheme allows for a more proportionate response to minor offending and will be more time and cost effective than the current petty offences regime. The scheme is also more transparent as the fee is set in legislation, and because the offences are strict liability, no admission of guilt is required.

Under the new Infringement Notices Scheme, will more than one fine be issued if multiple offences have occurred?

A fine will be issued for any offence that occurs. However, if there are multiple offences in the same event, it’s likely that only one infringement notice would be issued.

The goal of the Infringement Notice Scheme is to encourage compliance, and the intent of the infringement fee is to encourage that compliance by providing an effective monetary sanction.

Will infringement notices be issued to both a company and an individual employee for the same offence?

Potentially, but this would be an unusual situation. A more likely situation is that a company has rules that are compliant, but the employee did not follow them – which would mean that the employee would receive the infringement. Another situation, which is less likely, could be that the company’s rules are non-compliant, and the employee follows those – in which case the company, not the employee, has committed the offence.

Can I get an infringement notice and an administrative penalty for the same offence?

No. The penaltywill be the most appropriate penalty for the offence committed. Two types of penalties given for the same offence.

If the error or omission is one that has not caused duty to not be paid/declared, or has caused an excess drawback to be claimed/to be paid, you will be liable for an administrative penalty of $200.00. Cases of this type will be treated under the administrative penalties provisions.

All other errors or omissions will be dealt with by the appropriate sanctions for the facts of the case. These sanctions may include an administrative penalty or infringement notice, not both.

We have produced some guidelines that show what factors Customs officers need to take into account when issuing either an infringement notice or an administrative penalty. We will publish these guidelines on 1 October 2018 so the process is transparent.

Can I get an infringement notice and an administrative penalty for the same offence?

No. The penalty will be the most appropriate for the offence committed. Two types of penalties will not be given for the same offence.

If the error or omission has not caused duty to not be paid/declared, or has caused an excess drawback to be claimed/to be paid, you will be liable for an administrative penalty of $200.00.

All other errors or omissions will be dealt with by the appropriate sanctions for the facts of the case. These sanctions may include an administrative penalty or infringement notice, not both.

We have produced some guidelines that show what factors Customs officers need to take into account when issuing either an infringement notice or an administrative penalty. We will publish these guidelines on 1 October 2018 so the process is transparent.