International orders and customs questions

[Phillip Patton]

Hey guys,
I have a customer across the Big Pond who wants me to declare the value of the knife as a lot less than it is. I can understand him wanting to save money, but I REALLY do NOT want to lie. What do you guys do in this kind of situation?

 

[Matt Shade]

Thats a tough call. If I remember right, they have to pay sort of a tax on the item they bought, which is based on the declared value you put on it. So its easy to see why the guy made this request.
The problem I see with it is that you are more than likely going to insure the package and will want it insured for its actual value. If the declared value and insured value contradict each other, and something happens you may have trouble getting your money back. That seems to be a fairly common type of fraud.....insuring something for a lot more than its worth and then claiming something happened to it. I wouldnt' want to do anything that would red flag me as a potential cheat on my insurance claim, becuase from stories here it sounds like it can be difficult to get them to honor it anyway :grumpy:

 

[John Frankl]

I live in Korea. I understand what your customer is asking. And I also understand your reluctance.

If you will really lose sleep over declaring a lower price for customs, don't do it. OTOH, if you see customs as essentially a government wanting to get paid for what is essentially a private transaction between you and your customer, then help out your customer. It is as simple as that.

John

 

[Andre V]

Probably a good way to overcome the whole issue is to send the knife over as a guarantee repair. That way you can still insure for the full amount and save your customer paying the extra on taxes, etc. I am not sure on the details, it may be worth while looking into.

I think the main thing here is that by ''bending the rules'' you are probably infringing on illegal practices. I think the right thing is for your customer just to just accept he has to pay the taxes.

 

[Rob!]

In Canada, we pay taxes on the higher of;

• The declared value
• The insured value
• The value on an enclosed invoice
• An assigned value if they see the others as unreasonable

I often ask suppliers to be careful not to overvalue an item. If, for instance, someone puts $200 insurance on a $125 item, I may well wind up paying tax on on the insured amount.

I don't get grumpy about paying my fair share - but I will admit I appreciate the gesture when a supplier tries to minimize my costs. No, I would not be so presumtuous to ask for dishonesty.

I have heard the V.A.T. in England makes our taxes look like chump change.

Rob!

 

[Lanza]

Actual cash value and insured value are two different things. It is similar with vehicles. If ever questioned, that is how you answer, and, you have not lied.

 

[Stacy E. Apelt - Bladesmith]

There is no tough call here.
Anyone who asks me to commit mail fraud would cease to be a customer. I don't need money that bad.If you haven't thought of the fact that filling out a customs form is illegal,look at that part that says 10 years/$10,000.
I admit that lots of people do it and don't get into trouble. My theory on staying out of trouble is to not do things that can get you into trouble.
The other point is that your reputation is your most valued asset. If you are known to potential customers as someone who bends the rules,lies,and cheats the government,.....well what do you think they will think of the things you tell them about your knives.

I know that this sounds a bit old fashioned and all,but honesty really is the best policy.

I would suggest that you politely decline to fill out the form for anything but the exact amount of the sale. If the customer values your work,he will understand your principles.
Stacy

 

[Phillip Patton]

There is no tough call here.
Anyone who asks me to commit mail fraud would cease to be a customer. I don't need money that bad.If you haven't thought of the fact that filling out a customs form is illegal,look at that part that says 10 years/$10,000.
I admit that lots of people do it and don't get into trouble. My theory on staying out of trouble is to not do things that can get you into trouble.
The other point is that your reputation is your most valued asset. If you are known to potential customers as someone who bends the rules,lies,and cheats the government,.....well what do you think they will think of the things you tell them about your knives.

I know that this sounds a bit old fashioned and all,but honesty really is the best policy.

I would suggest that you politely decline to fill out the form for anything but the exact amount of the sale. If the customer values your work,he will understand your principles.
Stacy

Thanks Stacy, this is what I was thinking, and needed to hear. :thumbup:
Case closed.