Legal service for preventing e-cigarette from forfeiture by the UK Customs

一、不实申报行为

1 Untrue declaration

不实申报行为是指在海关进口申报时，向海关人员提供、暗示传达不真实的报关信息，或在海关问询时回复不真实的报关信息。

英国海关和消费税管理法（Customs and Excise Management Act 1979，以下简称为“CEMA”）中明确规定，无论故意为之或者疏忽大意，任何人向海关官员作出声明或回答时，该声明或回答的内容是为任何指定事项的任何目的而制作或作出的，内容并不属实，他即属违反CEMA第167条，可被拘留；任何有关的货品将被没收。

如海关人员排查发现某次申报信息不实，在尚未最终认定是否属于不实申报前，英国海关往往会暂扣货物。而在暂扣货物期间，海关人员将作进一步调查，其中包括向申报人发函要求回答相关问题。

申报人在收到此类海关函件时，应该高度谨慎地回函。因为这份回函很可能会决定了次申报会否被认定为不实申报。如被认定为不实申报，英国海关将有权没收、销毁相关货物。（严重情况下还可能对申报主体采取罚款、甚至监禁的措施）

According to section 167(1) of Customs and Excise Management Act 1979, if any person either knowingly or recklessly makes any declaration or makes any answer statement to any question from an officer being a document or statement produced or made for any purpose of any assigned matter, which is untrue in any material particular, he shall be guilty of an offence against the section and may be detained; and any goods in relation shall be liable to forfeiture.

If the UK Customs (“the Customs”) suspects the declaration may be untrue, the Customs probably tends to seize the goods. After the seizure, the officer would further investigate the declaration, even the relative previous declaration.

Also, the officer may send a question list, mostly about the abnormal information. We suggest the declarer shall highly prudently answer these questions, because any failure to explain the abnormal information may cause eventually forfeiture or destroy the goods (or even charge and imprisonment in severe circumstances).

二、 严查EORI、VAT及申报价值过低行为2 Rigorous investigation on EORI, VAT and low declaration value自从英国脱欧以来，英国海关持续严查不实申报行为，尤其是对EORI（Economic operators registration and identification）及VAT（Value-added Tax）信息的真实性以及申报价值数据作严格审查。

自2009年7月1日起，欧盟要求成员国应使用EORI系统，未作EORI登记的公司不得从非欧盟国家进口货物。[1] 虽然英国已脱欧，但该系统仍然沿用至今。[2]而VAT则是商事主体在英国本地仓储、货运所必须完成的增值税登记。[3]

经近期相关媒体报道，不少中国出口商公司的货物因申报的EORI信息有误而被英国海关扣留。且经英国海关通知后，不少申报主体仍未在期限内作出有效解释，相关货物最终被英国海关没收，出口商公司承担巨额损失。

Since the UK left the European Union, the Customs has rigorously investigated untrue declaration, especially on EORI, VAT and low declaration value.

Started from 1 July 2009, there has been a requirement within the EU for persons who are involved in activities covered by the customs legislation to register with the customs authorities. [1] And the UK continues to use EORI for the customs declaration after Brexit.[2] And any company shall register VAT before warehousing or freight.[3]

As recently reported, quiet a lot Chinese exporters were informed that their goods had been seized by the Customs, because of the wrong declaration about EORI. And most of the exporters failed to present a reasonable explanation before the deadline, then the goods were eventually forfeited, causing great loss to the exporters.

三、合理回函及时止损

3 Reasonable reply would stop loss

疫情期间，境内公司向英国出口电子烟产品，希望在英国市场推广产品。但是经报关后，英国海关发现申报文件多处异常，涉嫌申报价值不实、收货主体未作EORI及VAT登记等问题，并发函要求境内公司及时回复相关问题。

针对上述函件，境内公司向英国海关提供购货凭证，用以证明申报价格的合理性。因上述购货凭证中的价值比该公司以往提供的同款产品价格更低，且境内公司未就价格变动情况做解释，英国海关不予采信。英国海关不予接受该解释，且如果境内公司未能做进一步解释，将没收、销毁该批货物。

考虑到该批货物价值颇高，如回复不当，境内公司将遭受巨额损失。为避免没收、销毁货物，境内公司向中银律所寻求法律服务。郑明伟律师团队结合案件情况，对境内公司拟作出的回复逐一调整，并最终成功获得批准退回货物至中国，以下是针对相关问题的应对措施：

During the epidemic, our client (Chinese company) exported a load of e-cigarette to London for the following promotion. However, the Customs figured several suspected problems in the declaration, including inaccurate declaration of value, the recipient without EORI and VAT. The Customs required our client to explain the above problems.

Our client provided the invoices with corresponding price to prove that the declaration value was true. But the Customs told that the explanation was unacceptable, because the value was not only low  but even lower than the value provided in our client’s previous declaration for the same product. Therefore, our client was given another (maybe the last) chance to reasonably explain.If our client failed to explain, the Customs would decide to forfeiture or destroy the goods.

Considering the great potential loss, our client came to Zhong Yin Law Firm for legal service and appoint Mingwei Zheng as his attorney. Mingwei Zheng revised the draft explanation based on facts and successfully persuaded the Customs to return the goods. The goods were finally “rescued” from forfeiture or being destroyed. Hereunder are the main thoughts of the persuasion:

1、 申报价格过低及发票信息异常

英国海关提出，进口货物（电子烟产品）申报价格低于3美元，且与该类产品在英国市场价格不符，且与以往的报关价格不符，涉嫌申报价格过低的问题。

针对价格问题，我方认为英国海关应从以往申报信息以及实际购买凭证综合考察申报价格的合理性。我方在各知名交易平台搜集类似产品的售价数据。数据显示低于3美元的价格在中国境内属于合理价格范围，而且最低价格甚至低于1美元。我方提供相关截图作为附件，用以证明已如实申报货物价格，该情况并不属于申报价格过低。

a. inaccurate declaration of value

The Customs mentioned the declaration value was lower than the market price in the UK and also the previous declaration value provided by our client. Our client was suspected of inaccurate declaration of value.

As for the above problem, we advised the Customs shall collectively consider the previous declaration data and the actual invoices. So we collected the value data from several well-known online trading platforms in China. These data showed that the declaration value was within the reasonable range, which was indeed lower than 3 USD at that time. Some of same product were even sold for 1 USD. Therefore, we provided with captures and sheets, to prove that our client declared the true value.

2、 收货主体并未登记EORI及VAT

境内公司此前在英国设立了一家公司，并本案申报文件中列明了该英国公司作为收货人。但经海关人员排查，该公司尚未登记EORI及VAT。

本案中，英国海关则提出，该英国公司将如何在未登记EORI及VAT的情况下，在英国收取、仓储、销售货物呢？

事实上，在海关申报之前境内公司已经寻找了中介公司协助登记EORI及VAT，但因为疫情申请流程需花费更多的时间，导致仍未完成登记。我方协助境内公司搜集有关委托中介结构、申请EORI及VAT的文件，以及向英国海关提供导致申请流程迟延的相关疫情政策。

其次，我方向英国海关澄清，该批货物并非直接用作销售，而系用作促销使用，即制作成圣诞礼盒寄送给代理商、作为展示产品在当地展会推广促销。我方同步提供促销材料，阐明境内公司及收货主体并非意图恶意逃税，请求海关给予宽限期以完成EORI及VAT登记，或者准予退还该批货物。

b. the recipient

Our client had established a Britain company, which was listed in the declaration document as recipient. Then, the Customs found out that this company was not registered in the system of EORI and VAT.

In this case, the Customs questioned, how would the Britain company receive, warehouse and sell the goods without the registration of EORI and VAT?

In fact, our client did entrust an agency to register both EORI and VAT before declaration, but the registration process cost more time due to the epidemic. So we helped our client to collect the documents about entrusting the agency and the registration, and also we provided the epidemic policy influencing the registration process.

Moreover, we explained that the goods were imported for the promotion of Christmas and exhibition, and mostly used as the gift to local sales agency. Given that our client and the Britain company never attempted to evade the tax, we tried to persuade the Customs for extension of declaration process or return the goods.

四、总结

4 Review

本案中，中银律师搜集了大量售价材料以及疫情政策文件，以合理的售价/成本、非恶意逃税等角度向客户提出意见，并协助客户逐一回复英国海关提出的问题。最终，英国海关同意退回货物，成功避免没收/销毁货物。

英国海关近年来加强对低申报行为或不实申报行为的审查，针对可疑申报将要求申报主体配合询问、调查。如申报主体无法作出合理解释或无法排除异常报关信息的，英国海关采取没收、销毁货物的可能性较高。为避免造成此类损失，申报主体应如实申报、按时完成报关手续，如遇海关问询、发函，则应及时向专业人士咨询并处理解决。

Zhong Yin Law Firm searched great number of value data and epidemic policy and helped our client to reply every question of the Customs, from the perspective of reasonable value and bona fide importation.

Recent years, the Customs has been strictly investigating and punishing the inaccurate declaration of value and the untrue declaration. If the suspected declarer could not explain reasonably, the goods are probably liable to forfeiture and destroy. To avoid such loss, declaring the information truthfully and timely is significant. If the Customs requires to answer the investigation question, the company are recommended to consult with us, and we would give our best advice to solve the problem.

参考文件

Reference

1 (EC) No 312/2009

2 THE CUSTOMS (ECONOMIC OPERATORS REGISTRATION AND IDENTIFICATION) (AMENDMENT) (EU EXIT) REGULATIONS 2019

3 Value Added Tax Act 1994