Which method of committing fraud involves submitting a lower-valued invoice to customs?

Submitting a lower-valued invoice to customs is an example of double invoicing. This practice involves providing one invoice for customs purposes that shows a reduced value of the goods being imported, which may result in lower duties and taxes being assessed. By doing this, the individual or company can unlawfully minimize their tax liability while misrepresenting the true worth of the goods being brought into the country.

In the context of customs and trade, double invoicing serves as a means to evade compliance with regulations intended to ensure that accurate fees are collected based on the actual value of imported goods. This method can lead to significant financial benefits for fraudulent importers, as it allows them to underreport the amount they owe, which poses risks to economic integrity and fair competition. Understanding this method is critical for identifying and preventing customs fraud.