Customs

Customs, Tolls or Duties of the Corporation of Kinsale - 1788 (click image to enlarge)

Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, personal effects and hazardous items in and out of a country. Depending on local legislation and regulations, the import or export of some goods may be restricted or forbidden, and the customs agency enforces these rules.[1] The customs LEBA may be different from the immigration authority, which monitors persons who leave or enter the country, checking for appropriate documentation, apprehending people wanted by international arrest warrants, and impeding the entry of others deemed dangerous to the country. In most countries customs are attained through government agreements and international laws.

A customs duty is a tariff or tax on the export of goods. In the Kingdom of England, customs duties were typically part of the customary revenue of the king, and therefore did not need parliamentary consent to be levied, unlike excise duty, land tax, or other forms of taxes.

Commercial goods not yet cleared through customs are held in a customs area, often called a bonded store, until processed. All authorized ports are recognized customs area.

Contents

Red and Green Channels

Customs procedures for arriving passengers at many international airports, and some road crossings, are separated into Red and Green Channels.[2][3] Passengers with goods to declare (carrying items above the permitted customs limits and/or carrying prohibited items) should go through the Red Channel. Passengers with nothing to declare (carrying goods within the customs limits only and not carrying prohibited items) can go through the Green Channel. Passengers going through the Green Channel are only subject to spot checks and save time. But, if a passenger going through the Green Channel is found to have goods above the customs limits on them or carrying prohibited items, they may be prosecuted for making a false declaration to customs, by virtue of having gone through the Green Channel.

Canada and the United States do not operate a red and green channel system.

Airports within the EU also have a Blue Channel. As the EU is a customs union, travellers between EU countries do not have to pay customs duties. VAT and Excise duties may be applicable if the goods are subsequently sold, but these are collected when the goods are sold, not at the border. Passengers arriving from other EU countries should go through the Blue Channel, where they may still be subject to checks for prohibited or restricted goods. In addition, limitations exist on various tobacco and alcohol products being imported from other EU member states and use of the Blue Channel if those limitations are being exceeded would be inappropriate. Luggage tickets for checked in luggage within the EU are green-edged so they may be identified.[4][5] UK policy is that entry into a particular Channel constitutes a legal declaration.

Privatization of customs

Border control in the United States

Customs is an important part of the government involved in one of the three basic functions of a government, namely, administration, maintenance of law, order and justice and collection of revenue. However, in a bid to mitigate corruption, many countries have partly privatized its Customs. This has occurred by way of engagement of Pre-shipment Inspection Agencies who examine the cargo and verify the declared value before importation is effected and the nation Customs is obliged to accept the report of the agency for the purpose of assessment of leviable duties and taxes at the port of entry. While engaging a preshipment inspection agency may appear justified in a country with an inexperienced or inadequate Customs establishment, the measure has not really been able to plug the loophole and protect revenue. It has been found that evasion of Customs duty escalated when pre-shipment agencies took over.[6] It has also been alleged that such involvement of such agencies has been causing delays in the shipment process.[1] Privatization of Customs has been viewed as a fatal remedy.[6]

Customs services by country

Country Customs Service
 Argentina Dirección General de Aduanas
 Australia Australian Customs and Border Protection Service
 Bolivia Aduana Nacional de Bolivia
 Brazil Receita Federal Brasileira
 Canada Canada Border Services Agency / Agence des services frontaliers du Canada
 Chile Servicio Nacional de Aduanas
 China Chinese Maritime Customs Service
 Colombia Policia Fiscal y Aduanera
 Cuba Aduana General de la República [1]
 Czech Republic Customs Administration of the Czech Republic (Czech: "Celní správa České republiky". http://www.cs.mfcr.cz/cmsgrc/. )
 Ecuador Corporacion Aduanera Ecuatoriana [2]
 Egypt Egyptian Customs Authority [3]
 Finland Tullilaitos [4]
 France Direction Générale des Douanes
 Germany Zollkriminalamt
 Hong Kong Customs and Excise Department
 Hungary Hungarian Customs and Finance Guard (Hungarian: Vám- és Pénzügyőrség)
 Iceland Directorate of Customs
 India INDIAN REVENUE SERVICE (CUSTOMS AND CENTRAL EXCISE)
 Ireland Office of the Revenue Commissioners - Customs Division [5]
 Indonesia Direktorat Jenderal Bea dan Cukai
 Italy Agenzia delle Dogane [6]
 Laos Lao PDR Customs
 Lithuania Lithuanian Customs
 Maldives Maldives Customs Service
 Morocco Administration des Douanes et Impôts Indirects [7]
 Mexico Administración General de Aduanas
 Netherlands Dutch Tax and Customs Administration (Dutch: Belastingdienst)
 Norway Tollvesenet
 New Zealand New Zealand Customs Service
 Pakistan
 Papua New Guinea Papua New Guinea Customs Service
 Peru Superintendencia Nacional de Administracion Tributaria
 Philippines Bureau of Customs
 Poland Customs Service
 Portugal Direcção-geral das Alfândegas e dos Impostos Especiais sobre o Consumo
 Romania Autoritatea Nationala a Vămilor
Garda Financiară / Financial guard  ; Poliţia de Frontieră / Border patrol
 Russia Federal Customs Service of Russia (Russian: Федеральная таможенная служба России)
 Slovakia Custom Service of Slovakia (Slovak: "Colná správa Slovenskej republiky". http://www.colnasprava.sk/. )
 Spain Servicio de Vigilancia Aduanera
 Sri Lanka Sri Lanka Customs
 Sweden Tullverket
 Turkey Turkish Customs Administration [8]
 United Kingdom UK Border Agency
Her Majesty's Revenue and Customs
 Ukraine Ukrainian customs [9]
 United States U.S. Customs and Border Protection [10]
U.S. Immigration and Customs Enforcement [11]|

Summary of basic custom rules

Asia

Hong Kong

Hong Kong is a free port and generally does not impose duties on imported or exported goods, with the exception of liquors, tobacco, methyl alcohol and hydrocarbon oil.[7][8] Residents leaving the territory with a valid Hong Kong Identity Card for 24 hours or more may import up to 1 litre of alcohol and 19 cigarettes or 15 cigars.[9]

Indonesia

No customs for mailed goods below or equal to US$50. Customs policy may be different in Batam free trade zone.

European Union

The basic customs law is harmonized across Europe. This includes customs duties and restrictions. Customs tax from 150 €. In addition, see regulations of each Member State.

Germany

From 22 € is VAT payable. National restrictions especially in weapons and drugs.

Romania

Customs may be very strict, especially for mailed goods (from outside the EU). No known lower limit. Taxes may be stiff. There may be an outgoing custom tax too.

Slovakia

Up to 22€ there are no taxes (it is free). From 22€ up to 150€, it is necessary to pay VAT (DPH in Slovak) which is 19%. From 150€ it is necessary to pay VAT and customs. Customs may be from 0 to 10%, the amount depending on the type of imported goods.

North America

Canada

See also

Notes & references

  1. ↑ 1.0 1.1 Chowdhury, F. L. (1992) Evasion of Customs Duty in Bangladesh, unpublished MBA dissertation submitted to Monash University, Australia.
  2. ↑ Dual-Channel System - Travellers' Info Guide - Immigration & Checkpoints Authority (ICA) - Singapore
  3. ↑ http://www.toll.no/upload/Dokumenter/brosjyrer_veiledere/Reisende_ENG.pdf
  4. ↑ EUROPA - Taxation and Customs Union / Baggage controls
  5. ↑ http://ec.europa.eu/taxation_customs/resources/images/etiquette_verte.gif
  6. ↑ 6.0 6.1 Chowdhury, F. L. (2006) Corrupt bureaucracy and privatization of Customs in Bangladesh, Pathok Samabesh, Dhaka.
  7. ↑ HKSAR is a Free Port
  8. ↑ Dutiable Commodities in HKSAR
  9. ↑ Advice to Travellers
  10. ↑ Mail items worth $20 or less
  11. ↑ Gifts worth $60 or less
  12. ↑ I Declare: A guide for residents of Canada returning to Canada

External links