Three
years and four months imprisonment for a $313,000 customs fraud by Amar Raouf
Shakib was confirmed following an appeal to the High Court. Return of tobacco impounded by Customs was
denied.
For just over four
years, Shakib ran a double-invoicing scam to reduce the dutiable value of
flavoured tobacco imported from the Middle East by his company Ormat Ltd. Full details of the scam were unearthed with
documents and emails seized under search warrant. In league with his suppliers, lower value
invoices for duty assessment were included in packing slips on deliveries
crossing the border with invoices stating the higher price for actual payment
sent separately.
Justice Gordon said the
offending was deliberate and persistent, involving fifteen separate
importations over four and half years.
Shakib asked for the return of impounded tobacco. After becoming aware of Custom’s
investigation, he paid in full all duties owing of some $313,000. The Customs and Excise Act does permit the
return of impounded goods. Where the
importer is a company, investors behind the company can seek a return though
technically they do not own the goods.
Restoration is considered to be the exception not the rule, Justice
Gordon said. Shakib engaged in a
deliberate and prolonged course of deceit, knowing his conduct to be
illegal. Seizure of the goods is
unfortunate for Shakib, but was an entirely predictable outcome of his
offending, she said.
Shakib
v. Customs – High Court (3.07.17)
17.077