What are the impacts of low invoicing and low customs clearance behaviors, and which country needs to avoid these behaviors
The buyer's request to lower the invoice amount has been encountered to some extent. But what are the specific impacts?
 
What specific impact does having a low invoice amount have on importers and suppliers? For importing countries, this is actually tax evasion, and customs need to crack down on it. When encountering countries like Indonesia or India, they are likely to directly withhold goods. For exporters, long-term underreporting of exports may be recognized as dumping by the importing country, and then they will engage in anti-dumping and crazy tax increases, suffering the entire industry.
 
The customs of the following countries have been connected to China, vigorously cracking down on the behavior of issuing low invoices and low-priced customs declarations

Pakistan


Why does China and Pakistan attach so much importance to electronic data exchange? In the previous fiscal year, Pakistan exported 1.74 billion US dollars to China and imported 15.7 billion US dollars from China. However, according to many official and unofficial studies, there is a phenomenon of low customs clearance for approximately $3-6 billion of imports from China.
On April 30, 2018, China and Pakistan jointly announced the launch of the electronic data exchange system; After the visit of the Pakistani Prime Minister to China in November of the same year, China and Pakistan signed a memorandum of understanding again, and electronic data exchange entered into actual operation. Both sides will exchange export data once a quarter to combat the phenomenon of low-priced customs clearance.
 
Starting from April 30, 2018, the "China Pakistan Origin Electronic Information Exchange System" was officially launched and put into operation, transmitting electronic data of origin under the Agreement in real-time.
 
It is reported that the Pakistani customs attach great importance to the offshore price of goods. The customs clearance amount declared by local importers in Pakistan must be consistent with the export amount declared by Chinese exporters to Chinese customs in order to successfully complete customs clearance. Otherwise, local importers in Pakistan will be fined. And the exporter's certificate of origin will also be returned by the Pakistani customs, so the domestic inspection authorities will also investigate domestic enterprises! If a Pakistani customer requests to issue an invoice on their behalf, be sure to say NO!
 
Notes for import and export of Pakistani enterprises:
After the data exchange between China and Pakistan, the electronic information transmitted by China to the Pakistani customs includes all fields of the paper certificate of origin, as well as the number of the export declaration form, shipper, exporter, bill of lading number, transportation vehicle, container number, corresponding certificate of origin number and item number, product description, tax number, quantity, etc.
Due to the high attention paid by the Pakistani customs to the electronic data transmitted by the Chinese side, especially the offshore price information of goods recorded in the certificate of origin, goods that have not been declared in accordance with the requirements of the General Administration of Customs Announcement No. 29 of 2018 and No. 51 of 2016 may be blocked from customs clearance in Pakistan.
Remind relevant import and export enterprises to comply with regulations in order to achieve normal exchange of information data through the system.