DDP (Delivered Duty Paid) is a common trade term, which means that the seller shall bear all costs of the goods arriving at the port of destination, including freight, customs clearance fees, and taxes. But here comes the question:foreign tradeHow should the invoice amount be filled in?The customer contract amount is 1 million
Truthful declaration: Safe but costly
Compliance and legality
The taxes may be higher. Because the taxes at the port of destination are usually calculated based on the CIF price (Cost + Insurance + Freight), the larger the invoice amount, the more taxes there will be.Underreporting the amount: Risks and benefits coexist
Save on taxes
: If the customs finds that the value of the goods does not match the invoice amount, it may impose fines, detain the goods, or even blacklist the enterprise.
The invoice amount can be filled in according to the CIF priceinstead of the total amount including all DDP costs.Total contract amount: 1 million (including product price, freight, taxes)
For example:
Communicate with the customer
If the customer requests to under - declare the amount, it is necessary to clearly define the liability. It can be stated in the contract:If there is a customs fine due to under - declaring the amount, the customer shall bear it.,.
However, it should be noted that even if the customer agrees to under - declare, the risk still exists. Once discovered by the customs,the seller may bear the primary responsibility..
An experienced freight forwarder can help you reasonably plan the invoice amount, reduce tax costs, and at the same time avoid customs risks.
If the customs finds that the value of the goods does not match the invoice amount, it may impose a fine of **10% - 30%** of the difference in the value of the goods.
The customs may detain the goods until the problem is resolved. This not only delays time but may also incur additional costs.
Once listed on the blacklist by the customs, future exports may face more stringent inspections or even be prohibited from exporting.
When shipping under DDP, filling in the invoice amount seems like a trivial matter, but in fact it is related to the enterprises compliance and long - term development. Under - reporting the amount can save short - term costs, but the risks are huge and not worth it.
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