What are the penalties for trying to avoid customs duties?

In Plain English

Trying to dodge customs duties can land you in hot water. Here's a breakdown:

  • For Pilots: If you're a pilot and don't follow directions from a customs officer about aircraft stores or drugs, you could face a penalty of up to 60 penalty units under the Customs Act 1901. This is a strict liability offence, meaning you can be penalised even if you didn't intend to break the rules.
  • General Offence: If you try to cheat the system and don't pay the required duty, you will be required to pay the duty plus a penalty. If the goods were found during a search of your baggage when arriving in Australia, the penalty will be the amount of duty you tried to avoid. In any other case, the penalty will be twice the amount of duty you tried to avoid Customs Act 1901.
  • Tobacco Products: Illegally importing tobacco products, or possessing them knowing they were illegally imported, can lead to imprisonment of up to 5 years, a fine, or both. The fine can be hefty, potentially three times the amount of duty that should have been paid, or if that can't be determined, up to 500 penalty units Customs Amendment (Illicit Tobacco Offences) Act 2018.

Detailed Explanation

Several sections of the Customs Act 1901 and related legislation address penalties for attempting to avoid customs duties:

  • Failure to Comply with Directions (Aircraft): Subsection 129(3) of the Customs Act 1901 states that a pilot who fails to comply with directions from a customs officer regarding aircraft stores or prohibited import drugs can face a penalty of up to 60 penalty units. This is a strict liability offence, as noted in subsection 129(3A).
  • General Offence: Section 209 of the Customs Act 1901 outlines what happens when a customs officer believes someone has tried to evade duty. If the owner of goods pays the demanded duty, plus a penalty, the goods will be released. The penalty will be the amount of duty sought to be evaded if the goods were found in the course of a search of the baggage of a person who has arrived in Australia from a place outside Australia, or twice the amount of duty sought to be evaded in any other case.
  • Illicit Tobacco Offences: The Customs Amendment (Illicit Tobacco Offences) Act 2018 introduced new offences related to tobacco products. Subsections 233BABAD(2A) and (2B) create offences for importing tobacco products recklessly as to whether it would defraud the revenue, and for conveying or possessing tobacco products while being reckless as to whether they were imported with intent to defraud the revenue. The penalty for these offences, as per subsection 233BABAD(4A), is imprisonment for up to 5 years, a fine not exceeding the amount worked out under subsection (5A), or both. Subsection 233BABAD(5A) specifies that the fine can be three times the amount of duty that would have been payable, or 500 penalty units if the duty amount cannot be determined.