:::Skip to main content
Site Map Contact us 中文版
  • font size
    A A A
font size small icon font size medium icon font size large icon Share information to Facebook Forwarding information by email Pop-up print setting

Not to Declare "Advance Payment" as the Deductive Value of the Customs Value

Taichung Customs expressed that several import recently regarding the "advance payment" as a transaction discount and declaring it as a deductive value of the customs value, resulted in a shortage of customs value and duty evasion and liable to penalties.


Taichung Customs further explained that transaction value is the price paid or payable for the goods sold for export to the country of importation. And it needs to be adjusted according to certain factors contained in Customs Act. The payment paid in advance by the buyer is often regarded as a deposit made to the seller to ensure the fulfillment of the contract and reduce the risk of unilateral cancellation of the order in international trade. The residual proceeds will be paid by the buyer after conditions (such as the goods production completed, delivery or receipt, etc.) are achieved, so advance payment is included in the determination of a customs value. It is not a deductible discount and shall not be included in the deductive value. In practice, "advance payment" is often expressed in terms of "DEPOSIT", "LESS ○% ADVANCE" or "○% PREPAYMENT" in transaction documents.


Taichung Customs calls on the transaction documents should be carefully reviewed before submitting import declarations. The "advance payment" shall not be listed as the deductive value.

Issued:Secretariat Release date:2021-02-24 Click times:176