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:
“Neighboring farmers and visitors at White Sulphur drove out occasionally to watch ‘those funny Scotchmen’ with amused superiority; when one member imported clubs from Scotland, they were held for three weeks by customs officials who could not believe that any game could be played with ‘such elongated blackjacks or implements of murder.’”
—For the State of West Virginia, U.S. public relief program (1935-1943)
“Oh! Duty is an icy shadow. It will freeze you. It cannot fill the heart’s sanctuary.”
—Augusta Evans (1835–1909)