Export of Motorvehicles

Export of Motorvehicles

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One of my client is planning to start a new business - Exporting Motor Vehicles to an Asian Country. The problem is the customer in Asia is insisting that a low value should be declared for Customs and Duty purposes. Is it legal to do that?

My client is happy to declare the actual sales value to the HMRC in UK, but have been forced to undervalue for the Asian Customs Invoice. 

Is there any options for him to do that?

My worry is if HMRC comes for an inspection, the value in the Export documents will be less than the Sales Invoice in his records. 

Anyone has any similar experience? Any help would be much appreciated.

Replies (4)

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By ACDWebb
14th Sep 2011 09:14

Does it sound legal?

Thought not.

Sorry that does not help at all, but has to be said.

For example, what is going to happen when

the receiving countries border control checks and confiscate the vehicles because of the false declarationthere is a problem with a vehicle requiring a returnan accident in shipping and the couriers will only reimburse the declared value

The list goes on, and possibly affects the purchaser more than the client, but ultimately the client is making false declarations and you need to consider your position as to ML reports that might be required, and whether you are happy to continue to act for the client if they are unwilling to rectify matters.

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Replying to DMS:
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By vdeepan3
14th Sep 2011 14:40

Thanks. This makes sense. I advised the same to the client. But as you may have come across, their argument is lots of people are doing it and don't you know any legal way of doing it.. 

 

I am going to get back to the client and say I can't help unless it's a correct declaration.. not worth risking my career .. 

 

 

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Replying to Cloudcounter:
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By ACDWebb
14th Sep 2011 14:52

Indeed

but just because a lot of people are doing it doesn't make it right, and is only ever likely to end in tears at some point..

Similar to a client years ago who said "All my friends accountants get them repayments. Why don't you for me?" to which the response was "Well if you'd like me to make you pay too much tax to start with, then claim it back at the end of the year we could do that". Funnily enough they preferred to pay the right tax to start with :)

 

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Replying to Flying Scotsman:
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By vdeepan3
14th Sep 2011 15:01

It's a problem

Fair enough.. your client did the right thing.

I had a client said the same thing. As I explained the way the tax works , he went ahead with another accountant who charges 10% of the refund amount as his fees. This causes problems for the accountants who try and do the right thing. 

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