由 caicai8478 In international trade, some companies or individuals may adopt the method of “underreporting the value of goods” to evade tariffs and value-added tax in order to reduce import costs. However, this behavior seems to be profitable in the short term, but it actually hides huge risks. At the least, it faces high fines, and at the worst, it is suspected of smuggling crimes. This article will analyze the hidden dangers of underreporting imports from multiple perspectives such as logistics, law, and taxation, and provide suggestions for avoiding pitfalls.
- Common means of underreporting imports
Underreporting the value of goods: the declared price is much lower than the actual transaction price to reduce tariffs and value-added tax.
Split customs declaration: split high-value goods into multiple batches of low-value goods, and use the tax-free quota to avoid taxes.
False product name: declare high-tax goods as low-tax goods (such as declaring luxury goods as ordinary daily necessities).
False origin: forge certificates of origin and use free trade agreements to reduce tariffs.
- The pitfalls behind underreporting of imports
- Strict inspection by customs, extremely high risk
Big data monitoring: Customs adopts an “intelligent document review system” to compare the prices of similar goods around the world, and abnormal declarations are easy to trigger inspections.
Post-audit: Even if the goods have been released, customs may still trace back to transaction records within 3 years, and pay additional taxes + fines + late payment fees.
Credit downgrade: The company is included in the “dishonest list”, which affects the efficiency of subsequent customs clearance and even loses the AEO certification qualification.
- Risks in the logistics link
Freight forwarders/customs brokers “pass the buck”: Some bad freight forwarders promise “tax-inclusive customs clearance” to attract customers, but shirk responsibility when something goes wrong, and importers have to bear the legal consequences alone.
Transport records exposed: If the actual weight and volume of the goods do not match the declaration (such as underreporting the value of the goods but using high freight logistics), the customs will focus on verification.
Supply chain disruption: Once the goods are detained, delayed delivery may lead to customer claims or even loss of long-term cooperation opportunities.
- Serious legal consequences
Administrative penalties: According to the Customs Law, tax evasion exceeding 100,000 yuan constitutes smuggling and may be fined 1 to 5 times the value of the goods.
Criminal liability: Those with serious circumstances (such as repeat offenders and large tax amounts) may face charges of smuggling and may be sentenced to life imprisonment.
Joint liability: The legal representative and financial director of the company may be held accountable and their personal property may be executed.
- Hidden dangers in subsequent operations
Bank account freezing: For companies suspected of smuggling, the flow of funds may be monitored by the anti-money laundering system, affecting normal payment and collection.
Supplier blacklist: Foreign honest suppliers are unwilling to cooperate with high-risk buyers, resulting in increased procurement costs.
Export restrictions: Some countries (such as the United States) will strengthen export reviews for companies with a record of violations.
III. Emergency lightning protection guide
- Compliance declaration is the bottom line
Reasonable use of policies: Study legal benefits such as free trade agreements and provisional tax rates, rather than taking the risk of underreporting.
Third-party valuation report: For high-value goods (such as machinery and equipment, luxury goods), professional institutions can be entrusted to issue price certification.
- Choose a reliable logistics service provider
Avoid the gray channel of “tax-inclusive double clearance” and require the freight forwarder to provide complete customs declaration documents (such as invoices, contracts, and payment vouchers).
Give priority to customs brokers with AEO qualifications to reduce the inspection rate.
- Risk self-inspection and remediation
Goods that have been underreported: Actively apply to the customs for “active disclosure” and the fine can be reduced or exempted for the back payment of taxes (applicable to some countries).
Future transactions: Use legal tax planning methods such as “transfer pricing” instead of simply underreporting.
- Pay attention to customs dynamics
Regularly check the “Dutiable Price List” and typical cases issued by the customs to avoid stepping on mines.
IV. Summary
Import underreporting may seem to “save a little money”, but in fact it may “lose all the original capital”. With the tightening of global customs supervision, compliance is the long-term way. Enterprises should establish a sound trade compliance system and consult professional customs lawyers or tax accountants when necessary to avoid losing the big picture.
Remember: There is no “guaranteed profit” in smuggling in the world, only the iron fist of “revenge”!