Measure 6.3 - Penalty Disciplines

6.3

Penalty Disciplines

1
For the purpose of paragraph 3, the term "penalties" shall mean those imposed by a Member's customs administration for a breach of the Member's customs laws, regulations, or procedural requirements.
2
Each Member shall ensure that penalties for a breach of a customs law, regulation, or procedural requirement are imposed only on the person(s) responsible for the breach under its laws.
3
The penalty imposed shall depend on the facts and circumstances of the case and shall be commensurate with the degree and severity of the breach.
4
Each Member shall ensure that it maintains measures to avoid:
(a)
conflicts of interest in the assessment and collection of penalties and duties; and
(b)
creating an incentive for the assessment or collection of a penalty that is inconsistent with paragraph 3.3.
5
Each Member shall ensure that when a penalty is imposed for a breach of customs laws, regulations, or procedural requirements, an explanation in writing is provided to the person(s) upon whom the penalty is imposed specifying the nature of the breach and the applicable law, regulation or procedure under which the amount or range of penalty for the breach has been prescribed.
6
When a person voluntarily discloses to a Member's customs administration the circumstances of a breach of a customs law, regulation, or procedural requirement prior to the discovery of the breach by the customs administration, the Member is encouraged to, where appropriate, consider this fact as a potential mitigating factor when establishing a penalty for that person.
7
The provisions of this paragraph shall apply to the penalties on traffic in transit referred to in paragraph 3.1.

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