Togo’s Harsh Penalties for Financial Crimes: Vessels FaceMillions in Fines and Prison Sentences

Caution for Vessels Docking in Togolese Waters

Lomé, Togo – A word of caution for vessels docking in Togolese waters: Engaging in informal transactions with local fishermen could result in fines exceeding €130 million and imprisonment for up to a year.

Unofficial Transactions Leading to Fines and Imprisonment

• Fishermen soliciting small quantities of low-value items from anchored ships
  • In return, they offered seafood or SIM cards
• Items exchanged included barrels of sludge, bottles of water, and scrap
• After transactions occurred, fishermen were arrested upon returning to Lomé’s port
• Police reported incidents to customs authorities

Detained Vessels and Demanded Fines

• Customs authorities detained the vessels
• Citing unofficial transactions as smuggling activities
• Demanded fines based on:
  • Value of exchanged items
  • Value of all involved vessels
  • Customs duties between 28% and 49% on:
    • Articles swapped
    • Estimated values of the vessels

Customs’ Negotiation Policies and Disclaimers

• Customs refuses to engage in negotiations regarding the fines
  • Unless a vessel representative with a formal mandate signs the fine demand documents
• No signee is allowed to add standard disclaimers to the documents
• One instance of a disclaimer led to weeks of detention with no negotiations

Reasons for Extensive Smuggling Fines

Togolese Customs Code, as outlined in Articles 60, 340, 372, 369, and 359, dictates the following:

• No goods can be discharged or transferred without custom’s approval
• Ship captains are responsible for cargo declarations and shipping infractions
• Undeclared imports are considered fraudulent
• Smuggling actions and other prohibited or heavily taxed activities have severe penalties

Skippets and Vessel Operators Warned

Skippers and vessel operators are advised to steer clear of bartering with fishermen or anyone else while at anchor.

Further Information

Skuld, a global marine insurer, has shared this alert, provided by the BUDD Group.