A trusted friend in Zhejiang shared his factory's experiences with customs inspections and low declarations under DDP arrangements. Over two years and fifteen containers, his freight forwarder consistently reported lower values without issue until recently. One container underwent rigorous customs inspection, resulting in a nerve-racking two-week delay, although it ultimately cleared without penalties. Extended inspection times, now typically two weeks or more, increase importers' costs with accumulating storage and demurrage fees, highlighting the delicate balance businesses navigate amidst heightened tariff scrutiny.
It underscores the growing risks and cost burdens importers face as inspections intensify, urging caution in customs declarations.
Most DDP forwarders I know won’t go below 30-40% undervalue but it’s not guesswork. They’ve got their own “playbook”:
• Multiple importer names (each with their own bond)
• Each bond has a “safe” declared value range based on past activity
• They’ll map the real cargo value to the right entity to keep delta under $2K-5K per box
That said, it’s still a balancing act. When you play close to the edge, one slow box can cost more in storage + stress than you saved on duty.
—JH