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.
Read more about this topic: Tax Evasion
Famous quotes containing the words customs and/or duty:
“No man ever looks at the world with pristine eyes. He sees it edited by a definite set of customs and institutions and ways of thinking.”
—Ruth Benedict (1887–1948)
“Life is mostly froth and bubble.
Two things stand like stone:
Dodging duty at the double,
Leaving work alone.”
—Anonymous.