Civil evasion penalties for customs contraventions and excise contraventions

Customs civil evasion penaltiesCustoms civil evasion penalties (CCEPs) for breaches of European Union and UK customs law were introduced in the Finance Act 2003. They are levied where HMRC has reasonable grounds to believe that customs duties or import VAT has been evaded or sought to be evaded.

.The duties and relevant taxes covered by CCEPs include:UK customs duty,EU customs duty,import VAT,customs duties in the agricultural sectorA CCEP may be imposed by HMRC when it is satisfied that a trader has evaded the payment of a relevant tax and duty or if they have claimed any repayment rebate, drawback, relief, exemption or allowance to which they are not entitled.


The amount of penalty payable is calculated as a percentage of the duty and/or import VAT that has been evaded. If traders co-operate fully in the investigation, the amount of penalty payable may be reduced. An early and honest admission of the true extent of the evasion may attract a considerable reduction.


These procedures do not affect HMRC's ability to seize goods. In normal circumstances a trader will be able to reclaim seized goods when they have paid the CCEP and the duty and import VAT that is due. See the page in this guide on customs seizures.CCEPs do not apply to offences involving prohibited or restricted goods. In these instances, criminal proceedings will be take.