Taipei Customs stated that the Customs frequently discover that importers undervalue international freight, which should be included in the customs value for imported goods, when conducting post-clearance audit. In accordance with Article 29 of the "Customs Act", the customs value of imported goods subject to ad valorem duties shall be determined and calculated on the basis of the transaction value. The term "transaction value" means the price actually paid or payable for the imported goods sold from the exporting country to the Republic of China. In this regard, the transport cost to the port or place or importation is one of the expenses paid or payable for the imported good. As such,  the international freight shall be added into the calculation of customs value. 

Taipei Customs further stated that the war in Ukraine and the Red Sea crisis have caused significant increase of international freight. In the case importers don't honestly report international freight to the Customs, the expense equal to the discrepancy of the transport cost shall be added into the customs value. Furthermore, if it is discovered that forged, altered or false invoices are submitted, the Customs may impose a fine on the importer in accordance with the "Customs Anti-Smuggling Act".

Taipei Customs called on importers to honestly declare international freight. If the international freight is omitted from customs value, the duty payers may proactively apply to the Customs for modification with attached relevant documents.