The Importance of Accurate Weight Declarations for Importers of Jewellery
When importing products from outside the EU, it’s crucial for jewellers to ensure that the net weights declared in customs declarations are accurate. While weight might be considered a less critical piece of customs data for most goods, it plays a central role in valuing gold and silver jewellery.
At SwiftFile, we’ve observed that estimates are sometimes used for the net weight figure in import declarations. This could be because the net weight figure is not on the supplier invoice, or as a result of a semi-automated process used by some freight companies.
An example of the automation would be to use a 90% standard to calculate a 900g net weight off a 1kg gross weight package. Although errors in the weight figure are unlikely to cause goods to be held up at customs, they could lead to problems for the importer during a customs audit.
Why Accurate Weight Declarations Matter
For the majority of products, it is usually value, commodity code, and country of origin that determine the import duty payable. It is for this reason that weight is regarded as a less important piece of customs data, and why an estimate might be deemed acceptable. However, for precious metals like gold and silver, weight plays an intrinsic part in determining the value of the goods. Discrepancies in the weights declared can lead to questions over the valuation of the goods during customs audits.
The Risks of Inaccurate Declarations
The use of estimated weights figures can result in significant differences between the declarations filed and actuals. Returning to the above example of the 900g estimated net weight. If the actual weight of the jewellery in this instance was 400g, it would be reasonable for the customs official to question if the goods were undervalued. At best, this would then lead to a prolonged customs audit process. But it could also lead to the payment of back duties, fines and penalties.
Recommended Best Practices for Importers
1. Take Ownership: Importers should take ownership of the customs declarations filed in their name. Relying solely on freight companies or clearance agents does not absolve the importer of responsibility.
2. Regular Spot Checks: Conduct regular spot checks to ensure the accuracy of the data in customs declarations. Errors in customs data caught early are likely to be easier to fix and less expensive.
3. Clear Communication: Ensure clear communication with your freight company or clearance agent. Make sure supplier documents show all customs data (including net weight) clearly for each shipment.
4. Documentation: Maintain copies of all import documents for a period of four years after the date of import. Ensure copies of all import declarations are readily accessible in the event of a customs audit.
Accurate net weight declarations are vital for importers of gold and silver jewellery. By taking ownership of customs declarations, conducting regular spot checks, and ensuring all customs data is on supplier documents, importers can avoid costly customs compliance issues. Remember, attention to detail today can prevent significant problems in the future. Get in touch with us at SwiftFile to guide you on your customs journey – info@swiftfile.ie
