CUSTOMS METHODS.

Dominion, Volume 6, Issue 1807, 21 July 1913, Page 7

CUSTOMS METHODS.

MISAPPROPRIATION OF REFUNDS.

SEQUEL TO A CLERK'S LAPSE.

As a result of disclosures made in a recent action of law in tho course of which it was. proved that serious misappropriations of moneys had been made by a clerk entrusted by a local firm with tho payment of Customs dues, the New Zealand Socioty of Accountants recently addressed a memorandum to tho Minister for Customs (tho Hon. Pi M. B. Fisher) making certain suggestions in respect to Customs mothods in tho matter of over-the-counter financial transactions. Theso were outlined in The Dominion about a fortnight ago. ' Tho Minister, in his reply, states, inter alia, that with respect .to tho method adopted by the Department in paying refunds and drawbacks of duty it has been affirmed "that tho firm afl'ectud is not communicated with in any way whatever." "It is a Departmental instruction," states tho Minister, "that • notices of refund must he posted, to the firms entitled to receive tho samo instead of tho money being handed direct to clerks. I am informed that this instruction is carried out, and if refunds are misappropriated after notice has been given the Department cannot bo held in fault." With rcgardi to tho method of paying refunds of deposits, tho Minister states that "in September, 1905, an instruction was issued that 'when releasing deposits d;cl\efnio..draw]i.by t,he_collector is,either,. : to' b6'.made payable' 'to'frrd&r,.'or VcMSSed, 1 ' 60 as not to be negotiable at tho bank's counter; deposits aro not to' be returned in cash.' This instruction was immediately' greeted with- opposition by "a section of tho business community, who, -considered that they, wero amply protected (a) becauso. importers must, know when deposits have to bo mode and aro thoreforo in a position to seo that they are properly cleared up or accounted for; (b) because when completing a sight entry, which is the usual entry upon which deposits are necessary, they object to pay the amount dale a second time, and then wait until a chequo is drawn for the refund, and _ the collector's and landing surveyor's' signatures obtained thereto, should tho collector or landing surveyor bo out or .engaged, as frequently happens, doposit.ors could not got their monoy at once, and would have to go away oad call again for tha chequo or wait until it was sent to them by post." "From the point of view of tho Department, the inconvenionco and interruption consequent upon the signature of a largo number of cheques by the collector and landing surveyor has to bb considered. Theso officers might bo called upon for 15 or 20 signatures in tho coursoof tlio day, which would mean as many interruptions, and a great amount of grumbling on tho part of Importers, who would haro to bo kept waiting "until opportunity to obtain signatures aroso. "Tha present practice of paying tho difference, usually small, between tho amount deposited and the duty, in cash* is the most convenient to merchants generally, to Customs agents who havo a great number of entries to put through in the day, and to small importers, who pass their own entries. If any misappropriation of money returned by way of. deposit takes place, tho merchants .concorned can only blame their, own bad methods, 'l'hey know a, deposit has been made, becauso they havo drawn a cheque for tho amount, They get a receipt for tho monoy deposited, and do not need to deliver up that receipt until the entry is presented ready for completion. _ If they, want any greater security there is always tho alternative of passing tho complete entry themselves and receiving the money duo directly. As a general rule, liowover, importers give an authority to an authorised clerk, and if they choose to do this it is their own, affair. Owing to strong opposition to the instruction of September, 1903, it was decided that refunds of deposits not exceeding .£SO wero to bo made as beforo, sxcopt m tho caso of firms who specially asked that deposits bo released by chequo. "It is intended to warn all ports that the receipt forms on- tho red ink entry and in the pass-books must bo made out both in figures and words at length, and that care must be' taken to seo that no open space is left to enable words to be inserted either before or after tho amount of duty set forth therein. A warning will also bo sent that money is not to bo refunded out of crossed or non-negotiable cheques at the cashier's counter when mistakes aro niado on tho presentation of entries."