Recovery of Duty

Recovery of Duty refers to the act of customs, after the release of goods, discovering that duties have been underpaid or evaded due to false declaration, misclassification, inaccurate origin declaration, or illegal use of duty-reduced or duty-exempt goods, and legally recovering the unpaid duties from the taxpayer. It commonly occurs in scenarios such as customs audits, post-clearance audits, or voluntary disclosures by enterprises. Unlike 'supplementary duty collection,' recovery typically targets underpayment or evasion caused by the taxpayer's violation of regulations, and customs may impose late fees or even fines; whereas supplementary collection is often due to customs' own reasons and generally does not incur late fees. The recovery period is generally 3 years, extendable to 5 years under special circumstances. Foreign trade enterprises should note: declare truthfully, keep complete documents, and respond promptly to customs inquiries to avoid recovery risks. If recovery occurs, cooperate actively and, if necessary, apply for administrative reconsideration or file an administrative lawsuit.