“Self-denunciation” of customs violations

Companies operating in foreign trade often realize that they have involuntarily infringed a customs’ regulation.  If the company notices the infringement before the customs authority does, it has the possibility of formulating a “self-denunciation” (autodenuncia) of what has happened.

The self-denunciation grants a substantial reduction of the fine (i.e. to a 25% of the minimum amount applicable for the specific infraction at stake). Moreover, the infraction leaves no track record. The most common cases involve surpluses, differences in quality that alter the relevant tariff code, “package reversals” (inversión de bultos) among others.

The Executive Branch recently issued regulations on this subject matter, complementing the provisions contained in Article 917 of the Customs Code.  The regulation (i.e. Decree No. 142/2010) grants up to 30 working days to formulate a self-denunciation for cases involving goods already released (librados a plaza).  The Decree is effective as of February 17, 2010. 

There are good reasons to argue that situations occurred prior to this date may be subject to “self-denunciation” and would not fall within the scope of this 30-day term.

The Decree sets forth that the person making the self denunciation shall provide sufficient evidence to prove the reported facts.