When shipping international shipments, a crucial concept to determine is customs valuation. The declared value is a critical factor in the entire customs duty assessment and import process. Over-declared values lead to unnecessary costs, and under-declared values can lead to substantial fines and legal actions.
This guide explores the basic concepts of declared value for shipping parcels.
customs clearance process.
Regarding customs clearance, that value is allocated to imported goods by the shipper of records. That calculates how much import tax or duty must be levied on the shipment. Thus, it is essential to get that right to prevent paying too much.
How Can I Determine Customs Value?
What is the Purpose of Customs Valuation?
Methods that People Scam Customs and Avoid Paying Import Taxes.
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The Consequences of Declaring Fake Customs Value
The customs authorities thoroughly check imported items after entering a specific nation. These professionals are allowed to open any suspect parcel to prevent counterfeit, dangerous, or illegal from entering the county or even stop tax evasion.
If they suspect that the shipment has the wrong customs declared value or the item’s type or quantity doesn’t correspond to the declared information, they will immediately call you and request proof of value for the goods in the shipment and even for conformity and certificates of origin to guarantee the HS code isn’t falsified.
Depending on the circumstance, breaking the law when importing goods can result in various penalties and consequences for falsifying the customs form.
· Your package will be confiscated
· You’ll get a penalty for tax evasion
· The real customs duty will be computed on the real value, and you’ll be asked to pay that money
· Insurance will cover the declared value
The key reason behind people trying to fake declared value to customs is to pay fewer import taxes or not pay customs duties at all.
Considering the higher number of packages, which are sent each day from and to a single country, it’s difficult for the customs office personnel to check each parcel.
Remember that declared value can provide peace of mind when shipping valuable items. We know that shipping can be hard on packages, but improper handling could also cause damage or loss to your shipment.
In those scenarios, you must at least get some of the value returned to you to pay for the loss throughout shipping.
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