What are the criteria for selecting the subjects of a customs investigation?

A customs investigation is a procedure that customs conducts to confirm the legality of import and export transactions and the accuracy of the tax amount, and the subjects are selected according to certain criteria.

It is largely divided into regular investigations and irregular investigations, and a regular investigation is conducted where a business has not been investigated for 4 years or more recently, where there is a risk factor as a result of an analysis of filing sincerity, or where it is selected by a sampling method.

An irregular investigation is carried out where there is a report of tax evasion, where there is a suspicion of an error or omission in the filing, or where the taxpayer has not fulfilled the obligation to submit materials.

Even a new importer may become subject to an investigation if the transaction volume suddenly increases or if it repeatedly trades with a particular country.

However, a customs investigation does not immediately mean an illegality, and if you can prove normal transaction records, you do not need to worry greatly.

In ordinary times, please carefully organize key documents, such as contracts, invoices, and certificates of origin, and if you receive a notice of a customs investigation, I recommend that you respond calmly with the advice of an expert.

In particular, because the result can vary in the course of responding to the investigation depending on the interpretation of the statutes, the manner of submitting materials, and the organization of the facts, it is important to receive the assistance of a customs attorney.

If the initial response is inadequate, it may rather lead to a disadvantage, so it is desirable to respond promptly and accurately through professional help.