Court sets limits on Customs: decisions require concrete evidence

ORANJESTAD — Two rulings by Aruba’s Court of First Instance clarify how disputes between importers and Customs should be handled: both sides must support their position with concrete facts about the imported goods. General comparisons, registrations or assumptions are not enough.

In the first case, a commercial fisherman lost his request for an import-duty exemption on a 28-foot Harris Cuttyhunk boat. Although the owner is registered as a commercial fisherman and uses the vessel for his work, the court ruled that this was not decisive. What matters is the vessel’s objective physical and technical characteristics at the time of import.

The court found that the boat lacked several features associated with professional fishing vessels, including a functional work deck, fixed equipment for hauling nets or lines, storage or cooling space for the catch, and hydraulic or mechanical fishing equipment. Customs was therefore entitled to reject the exemption.

In a second case, the same evidentiary standard worked against Customs. An Aruban importer bought a 2002 Harley-Davidson Road King in the United States for $3,200, but Customs raised its value to $6,000, relying mainly on online asking prices for similar motorcycles.

The importer submitted the sales agreement, proof of payment, messages with the seller and the seller’s statement. The court found that Customs had not shown sufficient evidence that more than $3,200 was actually paid and had not investigated the motorcycle’s condition, mileage or maintenance history.

The customs value must therefore be reduced to $3,200 and the duties and other charges recalculated. Customs must also reimburse Afl. 1,400 in legal costs and Afl. 25 in court fees.

The rulings show that the burden of proof works both ways: importers seeking special tax treatment must show that the goods meet the legal requirements, while Customs must also provide concrete evidence when rejecting a declared value. Source Aruba.nu