VIOLATION OF CUSTOMS REGULATIONS: AN EXAMPLE FROM PRACTICE
Striking customs news at the start of last summer.
Striking customs news at the start of last summer.
C&A Serbia filed for bankruptcy as a result of customs fraud.
Although C&A Serbia claimed [1] to be the victim of an organized customs fraud committed by one of its business partners, together with unknown perpetrators, the Serbian customs authorities held C&A Serbia liable for the payment of additional import duties on 300 shipments of fraudulent imported goods.
Due to the magnitude of the import duties claimed, the filing for bankruptcy was, according to C&A, inevitable. The bankruptcy affected 14 stores in Serbia and 135 employees.
The unfortunate example of C&A Serbia shows how important strict compliance with customs regulations is. Clear agreements about this with business partners and effective control, both at companies themselves and at their partners, are indispensable.
The consequences of breaches of customs and excise regulations are usually very serious.
And yet, compliance with customs and excise regulations is not a priority for many companies today.
This is often due to a lack of knowledge of customs and excise regulations or ignorance of the risks of breaches of those regulations. Sometimes companies and directors do not see the added value of an independent audit that guarantees compliance with regulations by the company and its partners.
However, the benefits of such a program are clear. It avoids expensive and time-consuming processes, it protects the company, its directors and its employees. In short, it gives peace of mind.
Would you like to exchange ideas about this or know more about the solutions we offer? Let us talk.
[1] https://www.c-and-a.com/uk/en/corporate/company/newsroom/press-releases/2022/ca-serbia-being-the-target-of-organized-customs-fraud /
Written by Jurgen Gevers on 13/09/2022.
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