A customs deficit is a demand by the customs from the importer to change the amount of tax payment required for the goods in the shipment. How can this requirement be avoided?
Common Causes of Customs Deficits
Value deficit: When the customs does not receive the value of the goods as stated in the account, usually when the price is lower than usual for such goods.
Classification deficit: When the customs does not receive the classification determined for the goods by the customs broker, usually when importing goods of a type that has not been imported in the past.
Certificate of Origin Deficit: When the shipment has passed a physical inspection at customs and there is no match between the declaration of origin and the contents of the shipment.
How do you avoid deficits?
- The supplier should be asked to specify a customs classification, (if known) in the description of the goods in the account.
- An account with a true value must be submitted: Indicating a value that appears unrealistic to customs may lead to a higher value and a customs charge accordingly.
- Any document that can assist in determining the value of the goods must be attached: a commercial brochure, technical specifications, an international price list, the importer's declaration of the contents of the shipment according to a purchase order, etc.
Attaching all relevant documents in advance allows DHL to respond promptly to any argument and demand of the customs, rather than subsequently obtaining them under time pressure that may result in unnecessary delays.
FAQS
Why is customs particularly strict on shipments from the East and especially from China?
Shipments from the East are sometimes shipped with an account at a value lower than the actual transaction price, so customs checks carefully. The importer must transfer a full value account to DHL for submission to customs.
I was required to pay customs surcharge, will this affect me in the future?
Absolutely. Any information about an importer, including customs deficits, is fed into the "risk rating" (profiling) system and may result in a negative rating that will affect future shipments. You should learn from the mistakes and be careful about dealing with the supplier.
What happens if customs decides to change a classification during the paperwork inspection?
If the Customs Assessor decides on a classification change, it notifies DHL which checks the reason for the change. If DHL or the importer thinks that the change is unjustified and all paperwork to prove your claims has been forwarded to customs and has not been accepted by the assessor. The deficit can be paid under "Incidental Protest" and can be appealed later.
Customs invalidated the certificate of origin that I attached. What do you do?
You can appeal the disqualification and produce documents supporting your arguments as long as the shipment has not been released. In exceptional cases, a special procedure called "release under deposit" can be initiated, in which the shipment will be released subject to the appraiser's instructions and subject to customs approval until the original certificate is produced.
Important! Do not release goods and receive customs exemption without a certificate of origin/declaration on the day of release.
Can customs require additional payment even after clearance?
Customs may require the completion of "underpayment" up to 5 years from the date of release. That's why it's important to keep the original shipping paperwork for 5 years. If you have received a proactive inquiry from customs, you can contact our customer service and receive an explanation and accompaniment in the process
In an inspection I conducted after the shipment was released, I discovered a mistake in calculating the customs in my favor. What to do?
If you believe that you have received an exemption unjustly or that you have been charged too low tax (due to a mistake in calculation, classification, calculation of foreign currency, etc.), you can submit a request for an "initiated deficit" to the customs agent and receive an amendment to the registration with the calculation of taxes in accordance with the law.
Our team of import experts is at your disposal for any questions by email: ilcsi2@dhl.com
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