Greetings to all fellow dropshippers / resellers!
I have a problem with the information that are provided on the customs declaration (on the front of the parcel) by an overseas supplier.
Customs requires the overseas supplier to declare the goods sold for export as 'merchandise' and the value declared should be the price that the recipient of the goods had paid.
In a dropshipping transaction, the overseas supplier is the sender of the goods, the end consumer is the recipient of the goods, and I as a resller is just someone in between to faciliate the sale. The price declared on the customs declaration should therefore be the price that my customer had paid me (rather than the price I paid to my overseas supplier).
I discussed this problem with my overseas supplier, they said they can declare the goods as 'merchandise' but they cannot accomodate my request to declare the value of the goods as my sales price (i.e. the price that my customer, the recipient/importer of the goods had paid).
I'm not asking them to undervalue the goods to avoid taxes, in fact, I'm asking them to do the opposite, to declare a correct value, so my customer (the recipient/importer of the goods) and I won't get into trouble with Customs.
They said they can't help. But I really wanna work with this supplier. What can I do?
The most frustrating thing is, when they are selling direct to end consumers (i.e. when they are not dropshipping), they declare the correct value cos their own name is on the parcel! This shows that they clearly understand the importance of following customs requirements.
Is this a common problem in dropshipping? Are most suppliers unwilling to comply with customs rules? If someone is reading this, how do you get around this problem? Please do share your thoughts......
Hope someone will read this thread and offer some advice.