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Consequences of incorrect customs classification of international express delivery: supplementary tax and return shipment


  International Express Incorrect customs code classification may result in supplementary taxes or return of goods. Huijietong will provide a detailed explanation to help you understand this issue.

  Supplementary Taxes and Related Penalties: Customs codes determine the applicable tariff rates for goods. Incorrect classification may lead to overpayment or underpayment of taxes. For underpayment, customs will require supplementary payment, and may also impose late payment fees. For example, if exporting stainless steel valves, the correct code has a 13% tax refund rate. If incorrectly entered as 9%, a shipment valued at 500,000 will lose some of the tax refund amount. Furthermore, companies may face customs administrative penalties, with fines varying depending on the specific circumstances. If it affects customs statistics or trade control, the maximum penalty is 30,000 RMB; if it affects license management, etc., the penalty may be calculated as a certain percentage of the value of the goods. At the same time, the company's customs credit may be downgraded, and subsequent exports will be subject to stricter inspections.

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  Return of Goods: If goods are incorrectly classified as restricted or prohibited imports, they may be detained by customs. If correct classification information or relevant licenses cannot be provided, the goods may be returned. For example, a medical equipment importer incorrectly classified a "pathological analysis capable testing instrument" as ordinary medical equipment. Because they could not provide supplementary documentation proving the instrument's suitability for radiological testing, the entire shipment was returned, and the company had to bear additional costs for return shipping and import taxes, and may also face penalties for breach of contract due to delayed delivery.

  In addition, incorrect customs code classification may affect the enjoyment of trade agreement preferences, resulting in the inability to enjoy preferential tariff rates under free trade agreements, increasing trade costs. It will also prolong customs clearance time. If customs inspects and detains goods with incorrect declarations, the customs clearance time may be extended by 2 to 8 working days, or even longer.