Under the Oversight of Customs soccer striker Karl-Heinz Rummenigge: In 2013, the president of FC Bayern was stopped by customs at Munich Airport when arriving in Germany from Qatar. He had two luxury watches in his possession that he had failed to register as in free circulation and to pay customs duty on. He was fined a handsome sum of EUR 249,000, plus an entry relating to tax evasion was made in his certificate of conduct. What happens, however, if an expensive watch is already on its owner's wrist when leaving the country, and it is in fact not a souvenir from a trip? Customs law, which applies to the same extent in all 28 European Member States, stipulates that any goods that leave Community territory without specifically being registered to do so, are given the status of non-Community goods. When re-entering Community territory, non-Community goods must once again be subjected to a customs involves registering the goods for transfer into free intra-Community traffic. According to customs law, these goods would constitute return goods, which are generally exempt from customs duty. Business travelers carry valuable objects, often unknowingly laptops, company cell phones or product samples, just to name a few. Upon re-entering the country, customs typically asks where the goods in fact originated. Because only very few travelers carry purchase receipts with them for their personal luggage, it becomes impossible to provide receipt evidence during a customs check. This might result in import duty notices and penal proceedings. The solution to this problem is to register with customs any objects the traveler carries prior to leaving the country and to have "identification measures" performed. The traveler will then be given a written confirmation about the goods being exported with a with serial numbers. When returning, the traveler then once again registers the goods presenting the certificate. The goods are then exempt from customs as return goods. U.S. dollars equal to that), the process is similar. Though importing cash is always duty free, registering serves to combat international money laundering. Offenses against the registration obligation usually result in penalties of 25% of the amount carried if the irregular transfer was deliberate. Even if this was a negligent action, the penalty rate is still 12.5%. This is a significant penalty, which could easily be avoided. tax law, fiscal offenses and tax frauds. He assists clients in creating reports for tax authorities concerning false or incomplete tax declarations. He also advises individuals, businesses and nonprofit organizations on all aspects of the German sales tax law, income tax law, corporate tax law, commercial tax law, estate tax law, the tax code and the customs code. Tax Advisors Europa-Allee 22 Frankfurt am Main, Germany D-60327 +49 69 76 75 77 810 Fax winheller.com |