0:00What is your duty actually calculated on?
0:03Not just the invoice price.
0:06Most countries use the transaction value method.
0:10Start with the price actually paid or payable for the goods.
0:14Then add costs you bear that are not already in the invoice price.
0:19Freight and insurance to the border.
0:21Commissions, and royalties or licence fees paid as a condition of the sale.
0:27This adjusted figure, not the bare product price,
0:31is what duty and import taxes are calculated on.
0:36Undervaluing an invoice to reduce duty is customs fraud.
0:40It is not a negotiating tactic.
0:43It is one of the most commonly detected and penalised import violations,
0:47because customs authorities routinely compare declared
0:52values against known market prices for similar goods.
0:57Always declare the real value.