Professional Documents
Culture Documents
Panara-ag
BSCA-IV
Kinds of misdeclaration:
a) False invoice description through reporting lower qualities in the invoice, not identifying branded
items as such.
b) False country of origin.
NO surcharge shall be imposed when the discrepancy in duty is less than (10%), or when the declared
tariff heading is rejected in a formal customs dispute settlement process involving difficult or highly
technical question of tariff classification, or when the tariff classification declaration relied on an
official government ruling.
NO surcharge shall be imposed when the discrepancy in duty is less than (10%), or when the declared
tariff heading is rejected in a formal customs dispute settlement process involving difficult or highly
technical question of tariff classification, or when the tariff classification declaration relied on an
official government ruling.
c) UNDEREVALUATION- Reporting lower values than the actual transaction value. There is
underevaluation when a) the declared value fails to disclose in full the price actually paid or payable
or any dutiable adjustment to the price actually paid or payable; or b) when an incorrect valuation
method is used or the valuation rules are not properly observed, resulting in a discrepancy in duty
and tax to be paid between what is legally determine as the correct value against the declared value.
Purposes of undervaluation.
1. Reduce the amount of customs duty where the goods are subject to ad valorem, or mixed rate of
duty.
2. Evade the filing of a formal entry resulting to a less rigorous customs procedure for the release of
the imported article.
3. To circumvent quota restrictions based on value.
Effects of underevaluation:
1. When the underevaluation is established
a) without the need to go through the formal dispute settlement process provided for in this act,
b) a surcharge shall be imposed equivalent to (250%) of the duty and tax.
NO surcharge shall be imposed when the discrepancy in duty is less than (10%), or the declared value
is rejected as a result of an official ruling or decision under the customs dispute settlement process
involving difficult or hihly technical question relating to the application of customs valuation rules.
3. SHOW THE EQUATION ON HOW TO COMPUTE FOR THE PERCENTAGE OF DISCREPANCIES AND
THE AMOUNT OF SURCHARGE.