Can the manufacturing cost be used for DHL customs declarations?

[StrawHatSam]

Hi Community,

I will mostly be selling high value items to Europe so DHL will be my friend.

Now, when you enter your product price, is that same number used on the customs declaration when the customer chooses DHL shipping? If so, for an item priced at $5000, the customer would have to pay upwards of $1250 in some countries like Norway on import tax which is unacceptable. Is there a way to have the customs declaration for the item be only the cost to manufacture which would only be around $2000? That way the shipping insurance would cover the cost of a lost package on my end, but the customer only has to pay $500 on import tax.

Thanks!

-Sam

[ShipAntdotcom]

Currently the EU VAT rules has been took into effect since 1st July, 2021. If you sell so high value products to EU countries I suggest you register one company in EU countries, then pay the VAT and custom tax via company account instead of agency account.

As for the product value, it is okay for the supplier or DHL shipping agent to help you declare 40% to 50% of the product actual value, for example, 2nd hand products when make invoice for custom clearance.

[StrawHatSam]

Thanks explorer! Actually it may make more sense for me to just not worry about it and have my customers pay the full tax. Most of my customers can make the money back through their own businesses and they may also want the invoice to show the full price to have proper documentation for their insurance on my products. 

[Mr-Flo]

@StrawHatSam 

what you are trying to do may end up in a hefty fine or prison.

You have a VAT of around 20%

+ Duties (depending on product category).

When you set a company in the EU, you can ship to the company at production cost, pay VAT & Duty. You get the paid VAT back, then you need to charge the customer VAT for delivery (End price).

Depending on the volume you might have to consider hiring an expert.