JCtrans Platform-International Freight Forwarders Platform

"Under-Reporting of Goods Value" Leads to Customs Seizure and Fines, Yet the Blame is Shifted! JCtrans Restores the Truth for Customers.

4-Jul-2024

In international logistics, freight forwarders, actingas agents for factories/traders, must meticulously verify cargo information andensure compliant and legal declarations. Today, we share a typical case of"non-compliant declaration" and how the JCtrans platform clarifiedthe truth, providing fair and reasonable rights protection and penalties forthe involved freight forwarders Case Details In a collaboration betweena freight forwarding company from Pakistan (hereinafter referred to as"Pakistani Party") and a freight forwarding company from Slovakia(hereinafter referred to as "Slovakian Party"), the JCtrans riskcontrol team received a complaint from the Pakistani Party regarding oneparticular shipment. The Pakistani Party claimed that due to anerror by the Slovakian Party, the goods were inspected by customs, resulting ina "fine," and the goods were held by customs for nearly two months,leading to the consignee filing a claim against them. <img src="https://assets.jctrans.com/FAQ_IMAGE/9a578adf-0121-40d0-9883-7954e15d23fb.jpg">△Pakistani Party claimed that the inspection and costs is becausethe mistakes of Slovakian Party. And ithas not been released for more than 45 days After verification and complaints from the Slovakian Party, it was foundthat they had not received the payment for their cooperation with the PakistaniParty. Additionally, the Slovakian Party claimed that the "fine"amount exceeded the total outstanding payment. Consequently, the platform begana direct investigation into both parties.Investigation revealed that the previous collaborations between the twoparties had been normal. However, in the final shipment where the disputearose, there was an issue regarding the "fine" as stated by theSlovakian Party, with both sides holding different views.The Pakistani Party insisted that the invoice accompanying the shipment hadan incorrect value, leading customs at the destination port to discover adiscrepancy in the declared value, resulting in a "fine" which theydemanded the Slovakian Party to pay.The Slovakian Party maintained that the invoice included with the shipmentwas confirmed and provided by the shipping factory, and the value involved wasagreed upon by both parties, asserting that there was no discrepancy in the declared value.Regarding the dispute, theplatform requested both parties to provide evidence and related documents.After review, several issues were discovered:<ul><li>Why did the same shipment have different declared values? </li><li>Why did the consignee, knowing the original value, opt for under-reporting? </li><li>Why did the destination port agent proceed with the shipment despite knowing the under-reporting and the risk of fines?</li></ul>After nearly a month of review andverification, the platform ultimately determined that the Pakistani Party wasfully responsible. The reason for this conclusion was that the Pakistani Partyproceeded with the non-compliant operation despite knowing that the consigneeintentionally concealed the value of the goods and conducted an under-priceddeclaration. <img src="https://assets.jctrans.com/FAQ_IMAGE/a04fcfd9-8b5b-4716-b5df-f4b9a065e4f1.jpg"><img src="https://assets.jctrans.com/FAQ_IMAGE/7629665d-9841-42c5-afee-7fd9d52d5678.jpg">△Show Cause Notice - Proof of Discrepancyin Declared Value by the Pakistani Party<img src="https://assets.jctrans.com/FAQ_IMAGE/ed441ef4-092e-48b0-8490-6a32cad7e6f3.jpg">△The Pakistani Party Received Instructions from the Consignee to Conceal theActual Value Risk Control Team's Handling Planand Results <ol><li>The platform does not support the Pakistani Party's claim that the Slovakian Party should bear the fine and the refusal to pay the outstanding amount based on this reason. </li><li>The platform determined that the Pakistani Party must pay the confirmed outstanding amount in full. If the Pakistani Party fails to comply within the stipulated period, the platform will hold them accountable and publicly list them on the blacklist. </li><li>If the Pakistani Party does not pay the confirmed outstanding amount within the specified period, JCtrans will fulfill its "advance compensation" responsibility to the Slovakian Party in accordance with the platform's "Cooperation Risk Guarantee Service" terms.</li></ol><img src="https://assets.jctrans.com/FAQ_IMAGE/7baed0fc-d0f4-4e73-849b-ee1cf362d452.jpg">△Platform CompensationReceipt PlatformRecommendations <ol><li>Under any circumstances, freight forwarding companies must conduct their agency business and cooperation within the legal framework.</li><li>It is not advisable to carry out instructions from clients that clearly violate national laws, and reasons for non-compliance should be explained to them. </li><li>Prevent illegal and high-risk business operations during the course of business activities.</li></ol>

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