Preparing a customs settlement request and a settlement offer

What the customs settlement request template contains

• A heading addressed to the Director General of the Customs and Indirect Taxes Administration, with the reference of the official report.
• A statement of facts: nature of the inspection, cooperation provided, outcome and duties already paid.
• Evidence of good faith: origin of the irregularity, absence of any prior litigation and corrective measures.
• The financial position: payments already made, capacity to settle and any instalment arrangement.
• The principal and alternative requests, followed by the list of enclosures.
• Notes for use based on Articles 220 and 273 to 275 of the Customs and Indirect Taxes Code.

When to resort to a settlement

A customs settlement request follows an inspection that has given rise to an official report or a notification. Indeed, a settlement may take place before or after a final judgment. The template concerns, in particular, importing and exporting companies that have cooperated with the inspection and regularised their practices. However, the quantified offer binds the person liable: it must correspond to a real and documented financial capacity.

Instructions for use

The company first gathers the official report and the receipts for duties and interest already paid. It then drafts the statement of facts and the evidence of good faith. Next, it documents its financial position and quantifies the alternative offer. Finally, the legal representative signs the request and attaches the documents. The company then follows up in writing on the enforcement of the decision until the file is closed.

Expected outcome

The file thus presents an orderly line of argument and complete supporting documents. It distinguishes remission of fines, as the principal request, from the lump-sum settlement, as the alternative request. However, duties and taxes normally payable cannot be remitted, subject to Articles 86 bis and 166 ter.

Key facts

Limitations

The template includes neither the drafting of procedural documents, nor representation before the administration or the courts, nor adaptation to the specific case. In addition, the settlement remains subject to ratification, under Article 274 of the Customs and Indirect Taxes Code.

Further reading: Customs Compliance & Litigation.