Hong Kong Regulations

IMPORT AND EXPORT (REGISTRATION) REGULATIONS - REGULATION 10

Assessment of extra charges in certain circumstances, penalties and appeals

(Past version on 30/06/1997).

Adaptation amendments retroactively made - see 66 of 2000 s. 3

(1) Where the Commissioner has reason to believe that the value or aggregate
value of any article or articles in relation to which an import or export
declaration has been lodged pursuant to regulation 4(1) or 5(1) has been
understated therein to such extent as to reduce the amount of the charge which
would otherwise have been payable under regulation 8, he shall assess the
extra charge which would have been payable under that regulation if the value
or aggregate value of the article or articles had not been understated in the
declaration, and shall notify the person who lodged the declaration
accordingly and demand from him payment of such extra charge together with
such penalty (amounting to not more than 20 times such extra charge) as the
Commissioner sees fit to impose, and, subject to the decision of the Chief
Executive on any appeal under paragraph (4), such extra charge or, where
varied on such an appeal, such extra charge as varied and such penalty (if
any) or, where varied on such an appeal, such penalty as varied shall be a
civil debt due to the Government: (L.N. 544 of 1995; 66 of 2000 s. 3) Provided
that no penalty imposed under this paragraph shall exceed $10000. (L.N. 260 of
1983)

(1A) A notice under paragraph (1) may be given to the person-

   (a)  in writing served personally or sent by post; or

   (b)  by sending it using services provided by a specified body. (L.N. 544
        of 1995)

(2) In assessing an extra charge under paragraph (1), if the actual value of
the article or articles upon which such assessment depends is unknown to the
Commissioner and cannot reasonably be ascertained by him, he shall assess the
value or aggregate value of the article or articles at such amount as in his
opinion represents a fair value for such article or articles, and the extra
charge under paragraph (1) shall be assessed on the basis of such value or
aggregate value.

(2A) Any person who is required to pay an extra charge or penalty under
paragraph (1) may, by notice in writing served on the Commissioner within 21
days after the receipt of the notice under paragraph (1), object to the extra
charge or penalty without prejudice to his right of appeal to the Chief
Executive under paragraph (3). (L.N. 46 of 1984; 66 of 2000 s. 3)

(2B) A notice of objection under paragraph (2A) shall state precisely the
ground of objection and shall be accompanied by all written statements and
other documentary evidence relied upon by the objector in support of the
objection. (L.N. 46 of 1984)

(2C) An objection under paragraph (2A) shall be considered by the
Commissioner, who may uphold, cancel or reduce the extra charge or penalty.
(L.N. 46 of 1984)

(2D) The Commissioner shall notify the objector of the decision under
paragraph (2C) within 28 days after the receipt by the Commissioner of the
notice of objection under paragraph (2A) and, if an extra charge or penalty
which he has paid is cancelled or reduced, the amount of extra charge or
penalty cancelled or reduced shall forthwith be repaid by the Commissioner to
the objector. (L.N. 46 of 1984)

(3) Any person who is dissatisfied with an assessment of the Commissioner or
the imposition of a penalty under this regulation may, within 21 days after
receipt of the notification under paragraph (1) or paragraph (2D) respecting
such assessment or penalty, or within such longer period as the Chief
Executive may in any particular case allow, and on payment of the extra charge
and of the penalty (if any) in conformity with the demand therefor, appeal by
petition to the Chief Executive against such assessment or penalty, and the
decision of the Chief Executive thereon shall be final. (L.N. 46 of 1984; 66
of 2000 s. 3)

(4) On any appeal under paragraph (3) the Chief Executive may uphold, cancel,
increase or reduce the assessment appealed against and uphold, cancel,
increase or reduce the penalty (if any) appealed against or, where no penalty
was imposed by the Commissioner, may, on any appeal under paragraph (3)
against an assessment, impose a penalty, but no penalty shall be imposed or
increased of or to an amount exceeding 20 times the extra charge payable in
accordance with the decision of the Chief Executive under this paragraph, and,
where the extra charge is reduced to the extent that the penalty (if any)
exceeds 20 times such extra charge, such penalty, unless further reduced,
shall be reduced to an amount equivalent to 20 times such extra charge:
Provided that no penalty upheld, increased, reduced or imposed under this
paragraph shall exceed $10000. (L.N. 260 of 1983; 66 of 2000 s. 3)

(5) Written notice of the decision of the Chief Executive on any appeal under
this regulation shall be given to the petitioner, and where the extra charge
assessed by the Commissioner or the penalty (if any) imposed by the
Commissioner is cancelled or reduced by the Chief Executive, the extra charge
or the penalty, or, as the case may be, the excess of the extra charge or the
excess of the penalty paid shall forthwith be repaid to the petitioner. (66 of
2000 s. 3) (L.N. 172 of 1971; L.N. 294 of 1982)