Fines for evading Customs duty have jumped to a maximum of $100,000 as a result of legislation recently passed by Government.

The fine for the most common offence ? a false Customs declaration ? rises to $12,000 when the new scale of penalties falls into place.

According to a Press release issued by Government earlier this month, Finance Minister Paula Cox also intends to expand the authority of the Collector of Customs to issue licences to store important goods duty-free in bonding warehouses.

The new penalties and the changes to warehousing law are elements of the Revenue Amendment Act 2004 which received Royal Assent on March 26.

The new legislation provides legal certainty for importers in their dealings with Customs, and lends openness and impartiality to the process of resolving disputes that may arise in the clearing of goods through Customs formalities.

The Revenue Amendment Act 2004 contains five different modules of which only the refunds module came into effect on Royal Assent because it was needed immediately to facilitate processing of claims for duty refunds.

The other modules are: warehousing or expand authority for the Collector to authorise bonded warehouse; new and higher penalties for all Customs offences; a new mechanism for appealing Customs decisions, and new rules for determining the dutiable value of imported goods.

Customs has implemented the modules of warehousing and penalties.

They were brought into operation by Ms Cox by Commencement Notice in on June 15.

Ms Cox intends for the module concerning appeals will go into effect this autumn and the valuation module is scheduled for activation next spring.

A third schedule will be appended to the Revenue Act 1898 including the new up-rated penalties.

The penalty amounts in both criminal offences and civil penalties have now been prescribed in the form of seven levels on a standard scale, with a statutory maximum of $100,000, according to a Press release.

Customs is not required to impose the maximum penalty, however.

Customs has the authority to assess a civil penalty amount that is less that the statutory maximum.

Under the new law the Collector will be able to authorise any premises, including suitably secured outdoor lots as bonding warehouses.