If you have a buyer outside of the USA you will have to file Customs Forms. This is the paperwork that tells Customs what is inside of the box as well as the value of the item(s). When you are creating Customs Forms you have to declare what the purpose of the merchandise is. This means you get to select from the categories, such as Inventory or Gift. It is very common for buyers to request that you declare the inventory is a “gift” because it helps them avoid paying taxes on the merchandise, however, here's 4 reasons you NEVER should lie on Customs Forms:

1. First and foremost, it’s a CRIME, and YOU are the guilty party (NOT the buyer; YOU!). You see, when you file Customs Forms you swear under oath that the information provided on the forms is accurate.  This means you have committed perjury.  BUT, that's not all... lying on customs forms to help your buyer avoid importing duties is also FRAUD. 

I get it, you’re thinking, “It can’t be THAT big of a deal, right?”  Wrong. In fact, there 13 U.S. Code § 305 Outlines exactly how big of a deal it is. Here’s brief summary of the potential punishment you will face if you are caught:

• A fine of up to $10,000 per violation
• 5 years in prison
• OR the fine plus the prison time
• Forfeiture of the merchandise
• A lot of time spent in court. This is the type of crime that involves the Attorney General
• So you will need to pay a lot for a lawyer
• Full investigation of you, conducted by the Secretary of Commerce
• As well as full investigations by The Commissioner of Customs

2. Customs job is to find contraband / illegal imports. Like, this is their actual job, meaning they do it for a living. They are used to people trying to defraud the system. Customs knows damn well that nobody gifts merchandise of high value to a different country. When they see the bogus forms it is a red flag to cut the package open.

After the parcel is opened Customs can assign a reasonable value to the merchandise. For example, let’s say your buyer bought a $100 coat from you for $40 but they begged you to mark it as a gift so they could avoid paying $5 in taxes. Well, now that Customs has realized the Customs Forms are faulty, they have to determine what they feel the REAL value is. Chances are they will look at the price tag and mark it as $100. So instead of your buyer owning $5 in taxes, they now owe double if they ever want the order. But wait, that’s not all…

3. Customs also has the right to charge EIGHT TIMES the lawful duties, taxes or fees. Read section 1592 of the Customs Border Patrol handbook provided by the Department of Homeland Security.

4. Did I mention that Customs can also assess even more Financial Penalties? Here’s a couple of the penalties you may incur:

• commercial fraud and negligence (19 U.S.C. 1592);
• customs broker penalties (19 U.S.C.1641);
• recordkeeping penalties (19 U.S.C. 1509);
• falsity or lack of manifest (19 U.S.C.1584(a)(1))
• penalties for aiding unlawful importation (19 U.S.C. 1595a(b))

So let me ask you, is this worth lying for a buyer who wants to avoid paying lawful importing taxes? Obviously not. 

There’s plenty more reasons, but if you’re not yet convinced that filing false Customs Forms is a terrible idea, I don’t think anything further will convince you.