Customs valuation fraud risks indicators

1. Customs valuation fraud risks indicators

2. Row material price vs invoice • The unit price of the commodities is lower than price of the raw material • Invoice issued by seller based in third country • Seller premises in an apartment • Unusual (standards) invoice format • Lack of usual elements on the invoice (i.g. company logo, address

3. Goods exported form producer sold by third party Goods exported form Korea . Goods sold by USA trader Risk indicators: • Wrong model of refrigerator • Invoice from USA seller (other than the regular distributor) • Seller premises in an apartment • Unusual invoice format • Lacking of usual elements on the invoice (company logo, address)

4. Cyprus /Dubai Goods produced in China sold by seller in Cyprus to the country of importation. Goods originally sold from producer to distributor in Dubai Risk indicators: • Invoice for seller in Cyprus • Lacking of usual elements on the invoice (i.g. payment terms, company logo, address) • Transport cost paid on Dubai account

5. China/Marshall Islands/Dubai Goods origin China sold by seller based on Marshall Island. Goods originally sold from producer to distributor in Dubai; goods transported directly from China to the country of importation Risk indicators: • Invoice for seller in Marshall Islands • Same price for different commodities • Mistake in the spelling of Marshall Islands • Unit price lower than same commodity declared in the country of importation • Unusual invoice format • Lacking of usual elements on the invoice (payment terms, company logo, address)

6. British Virgin Islands Goods produced in China sold by seller in Cyprus to country of importation. Goods originally sold from producer to distributor in Dubai; goods delivered directly form China to the country of importation (Certificate of Origin) Risk indicators: • Invoice for seller in British Virgin Islands • Invoice number identical to the number on the Certificate of origin although invoice issued by different consignee • Payment in Latvia • Unusual invoice format • Lacking of usual elements on the invoice (e.g. payment terms, company logo, address

7. USA Apartment Goods experted from Korea the country of importation. Seller based in USA Risk indicators: • Invoice from USA seller • Seller premises in an apartment • Different prices for same commodities (by period of the year and by importer) • Unusual invoice format • Lacking of usual elements on the invoice (company logo, address)

8. Airsoft guns • Seller offers reduction of price upon buyer order on his webpage • Goods originally paid in USD • Invoice issued in HKD

9. Fake Commissioner – undervaluation, avoiding AD duties • Companies offering ocmplete service on internet

10. What to do? • In case of risk indicators do not release goods into the free circulation • The goods should be properly documented, customs debt granted and upon consideration of the risks goods increased by possible fine (usually +10 -15% of the price) may be hand over to importer (or not – consider the risks!) if not – temporary storage treatment • The investigation – collection of proves, more docs, interviews, potential international cooperation with the customs from the countries involved • When proves are available – refuse transaction value

11. Questions?