Section 85: Customs debt through non-compliance

1 For goods liable to import or export duties, excise Customs duties, other Customs duties and fees, a customs debt on importation or exportation is incurred for non-compliance with any of the following -
a an obligation laid down in any customs legislation concerning the introduction of goods into or exit from the customs territory, their removal from customs controls, or the movement, processing, storage, temporary admission or disposal of goods within the customs territory;
b an obligation laid down in any customs legislation concerning the end-use of goods within the customs territory; and
c a condition governing the placement of goods, under a customs procedure or the granting, by virtue of the end-use of goods, of a duty, excise tax, other tax or fee exemption or reduce rate.

2 A customs debt is incurred when -
a an obligation giving rise to the customs debt is not fulfilled or ceases to be fulfilled;
b a customs declaration is accepted for the placing of goods under a customs procedure where it is established subsequently that a condition governing the placing of the goods under that procedure or the granting of a duty, excise tax, tax or fee exemption or reduced rate was not fulfilled.

3 In the circumstances referred to under subsection (2), the debtor shall be any person who -
a was required to fulfill the obligation concerned;
b was aware or ought reasonably to have been aware that an obligation under any customs legislation was not fulfilled and who acted on behalf of the person who was under a duty to fulfill the obligation;
c provided a guarantee in connection with the obligation; or
d participated in the act which led to the non-fulfillment of the obligation.

4 Any person who acquired or held the goods referred to in subsection (1) and who was aware or should reasonably have been aware at the time of acquiring or receiving the goods that an obligation under customs legislation was not fulfilled shall be a debtor.