Declare accurate values on commercial invoices

With the new U.S. tariffs now in place, compliance with customs regulations is more important than ever. Fudging the numbers on a commercial invoice might seem like an easy way to reduce import duties and taxes, but it’s a high-risk move that can cost you far more in the long run. Whether you’re undervaluing shipments, misclassifying products, or hoping customs won’t notice, this guide explains the risks of using fraudulent values, and tips for compliance.

False declaration risks 

Customs authorities verify invoice values using databases, inspections, and documentation cross-checks. If you are caught falsifying values on the commercial invoice, you could face:

• Legal penalties: Fines, seizure of goods, and potential criminal charges.

• Additional duties

• Operational disruptions: Delayed shipments, supply chain interruptions, and increased scrutiny for future shipments.

• Reputational harm: Customer dissatisfaction, negative reviews, and potential bans from marketplaces.

Gift misdeclaration 

A common form of fraud is falsely declaring a shipment as a “gift” when it is actually a sale. Customs authorities treat this the same as undervaluing or misclassifying goods:

• Consequences: Penalties, shipment confiscation, loss of shipping privileges, and higher inspection rates on future imports.

• Why it matters: Gifts often qualify for lower or exempted duties. Misusing this designation not only breaks the law but undermines trust with carriers, customs, and customers.

What qualifies as a bona-fide gift?

According to U.S. Customs and Border Protection (CBP), a gift must be:

• Given freely and unconditionally (no payment, barter, or promotion involved).

• Previously owned by the sender.

• Sent from a person abroad to an individual in the U.S.

• Within the duty-free value limits ($100 per recipient per day from most countries, $200 if sent from Guam, the Virgin Islands, or American Samoa).

• Not part of any commercial activity—no sales, promotions, bonuses, or business exchanges

Ineligible as gifts:

• Alcohol and tobacco products.

• Items subject to quotas or internal revenue taxes.

• Anything exceeding the value limits.

Key compliance tips 

• Declare the correct country of origin: This refers to where the product was manufactured or substantially transformed, not the country it was shipped from. Incorrect declarations can trigger fines, delays, and legal actions, especially when trade agreements are in play. With new U.S. tariffs, accurately stating the country of origin is crucial. Attempts to misrepresent this information to avoid duties can lead to severe consequences, including shipment holds, increased inspections, and bans on future imports.

• Declare true value: Always report the accurate commercial value.

• Accurately describe the products in the shipment: In addition to accurate values, it’s important not to falsify product descriptions.

• Use correct HS codes: Proper classification avoids incorrect duty rates.

• Leverage duty-saving programs: Utilize de minimis thresholds and free trade agreements where applicable.

• Transparent customer experience: Offer duties-paid options to enhance customer trust.

Want to learn more? Read about this topic in our more in-depth blog.