4 Mistakes to Avoid when Importing Goods into the EU.
When it comes to declaring goods for trade in the EU, you have to deal withmany complex rules. No matter how you are implementing the process, good communication always determines the quality of your customs applications. Anyway, it is always a good idea for an importing company to execute its own customs department for controlling the accuracy of the info as you don’t want any third party to deal with this. Here are the key points to remember when setting customs control in your company.
- Information about buyer-seller relations
Anytime buyer and seller transact, the customs will investigate the possible price influence. When you are organizing the customs procedures, ensure that all info related to the trading relationship is in the right hands like Clearit USA. Any doubts that the price was not influenced can cause transfer or intercompany prices. For keeping the controlling problems at bay, the transactions must bear extrinsic qualities as the buyer is buying from an independent third buyer.
- Pro forma invoices
“Pro forma invoices” or “invoices solely for customs purposes” are not typically forbidden. When using this type for customs declaration, consider a few factors. The value of the invoice must always be consistent with the actual purchase price and that can be proven with zero inconsistencies. If you can prevent it, never use pro forma invoices or invoices for the sake of customs but always use the actual receipt that your bookkeeper uses during payment.
- Costs not clearly stated on the commercial invoice
This is referred to as a readjusted purchase price. This is associated with the indirect costs which are not found on the invoice directly. Elements like tools, casting costs, or domestic transport costs, which must be addressed by the purchaser but must be calculated separately, are usually forgotten. There are also instances where a shipment is changed from sea to air shipment in the last moment and the higher transport costs are calculated later. There are also expenses involved in quality control and certification, which leads to customs value that differs from the direct purchase price.
- Provisions
If the supplier gives you anything that is necessary for product production free of cost or at a discounted rate, these are usually provisions, which must always be added to the customs value. A differentiation is made on the materials and intellectual provisions which must always be added to the customs value too based on where they were made or produced.
