Customs Value as a Tool for Combating Smuggling: Impact on Taxation and Financial Revenues to the State Budget

Abstract

The customs value is one of the key tools in the fight against smuggling and plays an important role in the tax policy of the Republic of Moldova (RM). It serves as the basis for calculating customs duties and taxes, which, in turn, affects financial revenues to the state budget. In the article, the author analyzes the impact of customs value on the effective fight against smuggling and its role in tax revenues. The methods of determining the customs value are being investigated, including the use of international standards such as the World Customs Organization (WСO) customs valuation system, as well as the Tax and Customs Codes of the Republic of Moldova. Statistics show that increasing the accuracy in determining the customs value helps to increase budget revenues and reduce the volume of contraband. The article also discusses the problems associated with the discrepancy between the declared and actual cost of goods, as well as suggestions for improving existing mechanisms. In general, increasing the transparency and effectiveness of customs value control is becoming an important step to strengthen tax control and combat illegal shipments. CZU: 339.543.3:336.228.34; JEL: H25, K33, F13, F53, H71