Dutch customs duties assessment period adjusted to 3 years

25/03/24

The three years assessment period for customs duties will be applicable, replacing the current Dutch standard of applying the five years period in most cases.

What does this mean for your company?

When businesses receive assessments of customs duties from Dutch Customs, they should review whether the customs authorities properly apply the new legislation, in other words apply the three years assessment period rather than the five years period. This applies in cases of non-deliberate mistakes for customs debts for events occurring after 1 July 2021. Although the legislation enters into force as of 1 July 2024, it will have retrospective implications.

How can we help?

We can provide assistance and guidance to your company for cases where customs duties assessments will be or are imposed on your company. As such, we assess whether these assessments are addressing the appropriate assessment period as well as have a sound legal basis and correct calculation of the amount of the customs debt. Where appropriate we can advise on the process of challenging such incorrect assessments and may also be able to assist in that process.

Background

The current practice In the Netherlands is that the Dutch Customs authorities apply the extended five years assessment period for collecting customs duties in almost all cases, also in cases of non-deliberate mistakes. Although the regular assessment period in the EU legislation is three years, it is rarely applied in the Netherlands. The reason is that all mistakes currently qualify as offenses that can be subject to criminal court proceedings. The Dutch legislation did not make any distinction between intentional / fraudulent behavior and non-deliberate mistakes that may occur in any daily practice.

Following an adjustment in the Dutch legislation non-deliberate mistakes will qualify as omissions, which are no longer acts liable to criminal court proceedings. This means that for such customs debts the standard three years assessment period will be applicable.

The new Dutch legislation will come into force on 1 July 2024. Furthermore, it will be applicable with retrospect for customs debts that arose as of 1 July 2021.