Evasion of Customs Duty
Customs duties are an important source of revenue in the developing countries. The importers purport to evade customs duty by (a) under-invoicing and (b) misdeclaration of quantity and product-description. When there is ad valorem import duty, the tax base is reduced through underinvoicing. Misdeclaration of quantity is more relevant for products with specific duty. Production description is changed match a H. S. Code commensurate with a lower rate of duty.
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Famous quotes containing the words customs and/or duty:
“So easy is it, though many housekeepers doubt it, to establish new and better customs in the place of the old.”
—Henry David Thoreau (1817–1862)
“Oh! Duty is an icy shadow. It will freeze you. It cannot fill the heart’s sanctuary.”
—Augusta Evans (1835–1909)