WILLEMSTAD--The Customs Department of the Netherlands Antilles has apprehended three people in Curaçao so far in connection with an ongoing investigation into tax evasion.

Reports indicate that in April and August of last year persons tried to dodge import duties by entering incorrect values for slightly damaged vehicles they were importing from the United States.

A harbour employee was last month arrested as the third person because he went against regulations and removed the damaged vehicles from the harbour grounds. Investigations are still ongoing to determine whether the persons involved had somehow received help from "the inside."

Changes have since been made to prevent recurrence. For instance, a customs official is posted alongside the harbour employee who releases the (damaged) vehicles and other goods.

Human errors or even intent will be ruled out with the computerisation of customs processes, for which a USONA financing agreement was recently signed.

Media houses carrying the story have dubbed it "customs-gate." Customs, and the Antillean Minister of Finance, Ersilia "Zus" de Lannooy disagree with this.

"As there were no irregularities within the Antillean Customs corps itself regarding the import of damaged vehicles, there can be no question of a 'customs-gate'," De Lannooy said during a press conference at the Council of Ministers.

The minister also sent for Customs director Julian Lopez Ramirez and two officials of the Intelligence and Investigation Customs PIOD for an in depth explanation to help ward off rumours and insinuations that can possibly slur the governmental service.

"We cannot make any specific case comments as we do not wish to jeopardise the current investigation into this matter. However, there are no indications of internal incorrect performance, structural or intentional by the Customs. Anything beyond the applicable rules and regulations occurred outside the customs organisation," said the minister.

Customs was able to trace about 75 vehicles with irregularities.

"The Customs of the Netherlands Antilles deals with 200,000 import declarations per year; it regards 600,000 items or similar goods, and could easily concern 1,000 products per item. There will always be people who will try to evade taxes regarding some of these billions of products."

"Customs traces these with the help of the control mix and the applicable risk analysis, after which retroactive levies and fines are still given. PIOD is called in if a case exceeds a certain amount. Per year, this regards between forty to eighty cases," said Lopez Ramirez, putting things in the correct perspective.

As everything is documented at Customs, the body can always trace incorrect actions or patterns afterwards during inspections. Customs is allowed to retrace actions up to five years and to prolong this period, if necessary. The additional assessment had amounted to six million guilders last year.

In the present case, it turned out that certain procedures had not been followed. Lopez Ramirez said, "We have exposed their modus operandi."

Customs can impose a fine if it takes action, in addition to outstanding taxes still being collected. These fines vary from 0 per cent "upon non-existence of guilt" (an honest mistake by those involved) up to 400 percent "upon recidivism with intent." The next step is imprisonment.

"The treasury does not miss out on the non-paid taxes. On the contrary, it actually receives more money due to the amount of the imposed fines than had all gone according to the rules," the minister said.

Customs at Hato Airport will soon become stricter with levying import duties. "There is a stipulation which states that one must pay tax on bringing products into the country when the collective value exceeds NAf. 175 per person per trip. For example, if you buy a jacket in Miami for $100, you exceed that margin by a few guilders and have to pay import tax on the entire amount," Lopez Ramirez explained.

Customs will be introducing the internationally common system where returning passengers are asked whether they "have anything to declare" or not. Depending on the answer, they are to join the "green queue" or the "red queue."

"If it turns out that someone unjustifiably joined the green instead of the red queue, he or she will not only have to pay import tax, but also a fine," said Lopez Ramirez. However, he emphasised that prior to the introduction of this system Customs will not only inform the public accordingly, but also install more baggage scanners at the airport and consider an ample trial period.