Penalty for submitting a “Certificate of Origin” issued after deadline

Complying with the requirements to obtain a benefit, such as a preferential rate according to the origin of the imported good, does not always depend on the party that intends to be granted such benefit.

This was the case of Alberta Villalba, who imported a good from Brazil and could not enjoy the preferential treatment set forth in the Mercosur because the Brazilian exporter issued the certificate of origin after the statutory deadline.

In addition to losing the preferential treatment, Customs authorities initiated a summary proceeding to apply a fine that, pursuant to the Customs Code, could range between $1,000 and $10,000.

The Argentine importer appealed the decision to apply the fine at the Tax Court (Tribunal Fiscal de la Nación).

The Tax Court reversed the decision, holding that there had been no violation of a duty, but an unfulfilled requirement to enjoy a benefit. The Customs authority appealed.

 

The Court of Appeals upheld the decision of the Tax Court for the same reasons (“Villalba Alberta c / DGA”, 07/03/2009).

This is an important case because both the Tax Court and the Court of Appeals, found that the case did not involve an infraction, and therefore no fine should be applied.

In other words, the only consequence should be losing the preferential treatment, but not the application of a fine.