On Countermeasures For Smuggling Crime With Fictitious Customs Values

Smuggling with fictitious customs values is understating the true transactionvalue of the goods by various means, so as to achieve the purpose of export andimport tax evasion. This type of crime has become a mainstream form of smugglingcrimes in China. Smuggling with fictitious customs values, a type of intelligent crime,bears various criminal methods, which are changing and evolving under thebackground of giant efforts to crack down on the smuggling in our country. This kindof smuggling causes enormous damage which leads to loss of billions in taxes.Moreover, the heavy impact to our domestic market brought by the massive overseasgoods with price advantage bounds to bring about a fatal blow to our dominantindustry. There are three leading causes of the development of smuggling withfictitious customs values. The relatively high integrated import and export tax ratebrings considerable profits in this type of smuggling. Additionally, we have not founda custom valuation model effective enough for restraining this type of smuggling.Lastly, smuggling under increasingly severe strikes has a tendency of beinghighly-sheltered and less risky. Joint efforts should be taken to suppress thesmuggling with fictitious customs values. In this thesis, four main measures will befully illustrated. Firstly, in terms of import and export management, an early warningmechanism of prices with audit for import and export goods should be settled.Secondly, for the import and export enterprises, the credibility and the awareness ofobserving laws and paying taxes as required should be emphasized and established.Thirdly, the custom valuation mechanism in our country should be improved so thatrelated laws and regulations will be formulated for anti fictitious customs values.Fourthly, truncate the capital source of smuggling with fictitious customs values, andcombat money laundering crime which is closely related to this type of smuggling.