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Under declaring exports - VAT Inspection

We've been asked to drop ship for a customer in america, us sending single shipments to end users (100 a week), however it will only work if we under declare the value of each item so customer doesn't pay duties, what are the implications for us? If we get inspected for VAT will they check customs declarations and what would be our implications if they are under declared exports?
 

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10th Dec 2012 19:12

Export problem!

Don't do it!

There may well be Customs offences/breaches, but there is a possibility of criminal fraud.

No doubt others will add more detailed comments.

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10th Dec 2012 22:19

You will be making false export declarations for EU Duty purposes for a starter. This can be treated as either a criminal or Civil case depensing on the circumstances. The US Customs, if they discover this undervaluation, have draconian powers and have  imprisoned importers or associates in the US as well as informing the EU authorities to ensure you are penalised. Our American cousins take a dim view of this practice.

 The simple answer as Les says is DON'T DO IT

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11th Dec 2012 10:58

Unless

You fancy being extradited to the USA, NO!

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11th Dec 2012 11:53

Ok thanks for your advice guys. Basically we have two issues then:

1) We have already done this for a few shipments, we didn't realise the seriousness of it, and at first thought it meant the value of the product to us, we put the value of the product to us rather than sale price. how would we go about solving this and getting these shipments above board?

2) What type of specialist can we talk to about how to best structure the company to export it properly, perhaps in bulk to USA and distribute from there? I'm guessing a normal accountant wouldn't know 

Any advice would be great, want to get everything above board and proper, Im scared that we might be in trouble already for the shipments we sent, we need to back date and sort this out asap I guess

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12th Dec 2012 09:47

Next stage

I would PM Shaun King, given the detailed answer he gave.

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