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:
“Change often makes accepted customs into crimes.”
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“Not once or twice in our rough island story
The path of duty was the way to glory.”
—Alfred Tennyson (1809–1892)