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:
“He is a barbarian, and thinks that the customs of his tribe and island are the laws of nature.”
—George Bernard Shaw (1856–1950)
“‘Tis a sort of duty to be rich, that it may be in one’s power to do good, riches being another word for power.”
—Mary Wortley, Lady Montagu (1689–1762)