Scarfe, Delegate of the Chief Executive Officer of Customs v Coflexip Stena Offshore International SA

In the case of Scarfe, Delegate of the Chief Executive Officer of Customs v Coflexip Stena Offshore International SA, the Supreme Court of Western Australia was presented with a matter involving allegations of customs duty evasion against Coflexip Stena Offshore International SA, Coflexip SA, and Coflexip Stena Offshore Asia Pacific Pty Ltd, among others. The central legal issue was whether the third defendant had indeed evaded payment of duty amounting to $691,558.73, as alleged. The court had to determine the appropriate penalty, if any, to be imposed on the third defendant following the admission of evading duty.

The court began by acknowledging the settlement reached between the plaintiff and the first to third defendants, Coflexip. It was noted that the settlement was in the public interest and included a declaration that the third defendant had evaded payment of the specified duty amount and an order for its conviction. The court then turned its attention to the penalty to be imposed, taking into account the admitted conduct of evading duty and the agreed settlement amount of $825,000. The court applied established principles of penalty determination, considering the significant number of evasions and the substantial amount involved. The court also took into account the significant cooperation and assistance provided by Coflexip to the Australian Customs Service in the prosecution of the remaining defendants. The court concluded that the penalty should be set at the minimum level prescribed by the Customs Act, which was $1,383,117, given the cooperation and assistance provided by Coflexip.

The final orders of the court included a declaration that the third defendant had evaded duty, an order for its conviction, an order for payment of unpaid duty and penalty, and a stay and potential dismissal of the action against the first to third defendants pending the outcome of the plaintiff's action against the other defendants.