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:
“The customs of some savage nations might, perchance, be profitably imitated by us, for they at least go through the semblance of casting their slough annually; they have the idea of the thing, whether they have the reality or not.”
—Henry David Thoreau (1817–1862)
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Downward, the voices of Duty call—
Downward, to toil and be mixed with the main,
The dry fields burn, and the mills are to turn,
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And the lordly main from beyond the plain
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Calls through the valleys of Hall.”
—Sidney Lanier (1842–1881)