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:
“O Kate, nice customs curtsy to great kings. Dear Kate, you
and I cannot be confined within the weak list of a country’s
fashion. We are the makers of manners, Kate.”
—William Shakespeare (1564–1616)
“The chuck wagon carries the food and utensils for the range kitchen. Man-at-the-pot is the first buckaroo to pick up the coffee pot when out with the chuck wagons. It becomes his duty to pour the coffee for the outfit. “Come and get her before I throw her out” is the time honored mess call.”
—Administration in the State of Neva, U.S. public relief program (1935-1943)