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:
“He is a barbarian, and thinks that the customs of his tribe and island are the laws of nature.”
—George Bernard Shaw (1856–1950)
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When simpleness and duty tender it.”
—William Shakespeare (1564–1616)