Voluntary disclosure of customs violations can win full or partial fine waivers

Article (141 bis) of the GCC Common Customs Law introduces a voluntary disclosure mechanism under which customs fines may be waived, in whole or in part, where a customs violation is disclosed voluntarily before it is detected by the customs authorities, subject to the applicable conditions. Dubai Customs issued Customs Policy No. (58) of 2024 setting out the requirements and procedures for implementing the Voluntary Disclosure System. Under the policy, an applicant may voluntarily disclose errors or violations identified in its customs declarations or transactions, supported by the relevant documents and information. Subject to the applicable conditions and requirements, the disclosure may result in a full or partial waiver of the applicable customs fines. The system covers, among other matters, violations relating to imports and exports, customs declarations, transit, warehouses, temporary admission and re-export. A key condition is that the voluntary disclosure must be submitted before the violation is detected. A request will also not be accepted if the company is targeted for a post-clearance customs audit or has been notified of a referral or the initiation of an inspection, investigation or customs audit. The applicant must settle any customs duties due within 30 days of receiving the financial claim notification. Failure to do so will result in the voluntary disclosure request and related decision being deemed cancelled. The Voluntary Disclosure System gives businesses an opportunity to address customs errors identified through their own internal reviews before those errors are detected by the customs authorities. Where the applicable conditions are met, early disclosure may result in a full or partial waiver of the applicable customs fines.