Sellers lie on customs forms

[erotwriter]

What does a buyer do when sellers lie about the value on customs forms and customs start to get suspicious?

Two sellers I bought from lied on the forms (I only found out once customs sent out the note), claiming the value is 0.100 and 1.00 (items, roughly $1.90-$4 per order) and customs charged me on $10 value per item.  In order to re-evaluate the value I had to show customs the order and was accused of getting the sellers to lie on the customs forms.  So I had to either pay the customs value on $10 or get into trouble.

I never ask for false values because I have no reason to since my orders are almost always of low value.  Makes me mad!

[richard1rst]

You just don't give up, do you.

The fact that it is a business expense does not make it tax free. Only items which are bought for resale are tax exempt, as long as you actually sell it and not use it yourself.

An ink cartdrige is no different than a ream of paper, for example. It is subject to sales tax. And even if you buy inventory for resale and then use it yourself it becomes taxable since, in effect, you did sell  it - to yourself.

[the_fancy_fox]

Sam, business pay sales tax on the items they use. They don't pay sales tax on those items that are resold.

I too pay the use tax to my state for what little I buy. I don't buy much that requires it. Usually when I need something I just go get it local. Within 15 miles of me the there are 4 Home Depot's so that should tell you I ain't in the boonies. 

I used to sell at craft fairs. When you do that consistently you get to know other sellers that are also doing it for a living. Got to know a few others very well. They used to tease me as I would get a business license to cover the days I was at the fair from the city I was in (if required) and I posted my resale/tax certificate on the wall of my booth. I charged sales tax and it was itemized on the receipt I gave my customer.

Well one day the state came in along with the city to check compliance. I was one of the few that was in compliance.  Talked to a guy a few years later, he was caught in that sweep and the fines and fees he was nailed with nearly ruined him. Then state went back years on an audit. California is not kind to tax cheats. 

Do I care that you lie about the cost of an item on a customs form? Nope, I really don't. If that is how you chose to live your life,  someday it will all come home to roost for you.  I just find it sad to see it being promoted on the forums to lie and cheat when you can I the name of getting a sale. I really puts to question someone that will do that and advocate it freely, what else will they lie and cheat about?

[the_fancy_fox]

Any person who knowingly submits false or misleading export information through the Shippers Export Declaration (SED) (or any successor document) shall be subject to a fine not to exceed $10,000 per violation or imprisonment for not more than 5 years, or both. Source: U.S. Code: Title 13 : Section 305 http://digbig.com/4fqcw.

The sender's failure to complete the form properly can delay delivery of the item or inconvenience the sender and addressee. Moreover, a false, misleading, or incomplete declaration can result in the seizure or return of the item and/or in criminal or civil penalties. Source: http://pe.usps.gov/text/Imm/immc1_002.html.

Just because you don't know of anyone convicted under the law doesn't mean no one has been. 

Not something I am interested in messing with.

[richard1rst]

Further to the above: Each country is different, but here is what the UK says:

“All goods sent to the UK are liable to customs duty and Value Added Tax on importation whether or not the package is marked as a gift.” (source: https://pe.usps.com/text/Imm/fh_014.htm#ep3576772)

I have also seen comments on other countries that state if a package is sent from a commercial address and marked Gift it is assumed to be fraudulent and is automatically returned to the sender.

One example: “Gift shipments must be sent by private individuals. Those sent by commercial firms are not admitted”. (source: https://pe.usps.com/text/Imm/ce_020.htm) although in all fairness different counties may have different rules.

I don't know what others use, but my return address is a business name, therefore it will re refused.

Just not worth the hassle.

[7606dennis]

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@sam9876 wrote:

"The ink cartridges were bought for my E-commerce business. And, yes, when I filed my sales tax form they were itemized as a business expense and the tax was paid."

Why would you pay sales tax or use tax on something that is a business expense?

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Actually, Sam, only items purchased and held for resale are sales tax exempt.  Other items, although a business expense and deductible when calculating profit and loss, are not exempt from sales tax.

[green-night]

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@the_fancy_fox wrote:

Any person who knowingly submits false or misleading export information through the Shippers Export Declaration (SED) (or any successor document) shall be subject to a fine not to exceed $10,000 per violation or imprisonment for not more than 5 years, or both. Source: U.S. Code: Title 13 : Section 305 http://digbig.com/4fqcw.

The sender's failure to complete the form properly can delay delivery of the item or inconvenience the sender and addressee. Moreover, a false, misleading, or incomplete declaration can result in the seizure or return of the item and/or in criminal or civil penalties. Source: http://pe.usps.gov/text/Imm/immc1_002.html.

Just because you don't know of anyone convicted under the law doesn't mean no one has been. 

Not something I am interested in messing with.

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Do you think the vast majority of eBay sellers need to fill out an SED document?   Do you even know what that is? 

[the_fancy_fox]

 No matter which form one uses you are supposed to fill out the forms honestly, regardless of what some anonymous poster on an eBay forum tells you to do or brags how they never get caught. I mean seriously? Seems those that like to lie on the customs forms also cheat on paying taxes, sales tax and otherwise . What a surprise.

What if someone follows your supposed example and does get caught? Too bad for them? Do you think the government will never crack down and prosecute those that falsify forms? Quite an untapped profit center there and with the current administration? Anything is possible.

Most ebay sellers use form 2976 in its various forms.  The prosecution remains the same, falsifying customs documents. 

Best advice? Don't lie.