Customs authorities can impose fines when shipped products, invoices, and clearance documents don't match. These mismatches are classified as overages or shortages.
Overage — The quantity received exceeds the amount stated on the export shipping documents.
Shortage — The quantity received is less than the amount stated on the export shipping documents.
Discrepancies affect the accuracy of duty and tax calculations. The commercial invoice includes a declaration that the information provided is accurate, so it's important to verify it before shipping.
Correcting item shortages
If a customer reports a missing item, compare the sales and commercial invoices for inconsistencies. Any differences could mean incorrect duty and tax charges. If you send a replacement item:
Ensure the replacement shipment's commercial invoice includes the commodity, description, HS code, and replacement value. Every item must have a value, even if the customer is not charged.
Include a note indicating that the value is a correction for an earlier shipment error, specifying the original shipment date and tracking number.
Correcting a shortage for customs declaration
Most carriers offer a duty and tax dispute form to correct a commercial invoice post-clearance. After submitting, the carrier will forward it to customs and confirm whether the dispute is accepted and whether a refund will be issued. For DDP shipments, the merchant refunds the customer; for DDU shipments, the carrier refunds the customer (details vary by carrier and country).
Correcting item overages
Handling overages for customers
When excess products are sent to a customer, you can either let them keep the extra item or have them pay for it. Returning a low-value item internationally is often not cost-effective. Duty and tax are based on the quantity and value stated on the commercial invoice — verify whether the invoice reflected the correct total.
Correcting an overage for customs declaration
Use the carrier's duty and tax dispute form to adjust the commercial invoice. The carrier submits the form on your behalf. There is no guarantee that customs will accept the post-entry amendment, and the process can be lengthy. Refer to the relevant country's customs website for specific procedures.
Wrong shipping address
If an order was placed with the wrong shipping address:
Cancel the existing order — Cancel the order with the incorrect address.
Place a new order — Have the customer place a new order with the correct address.
Refund overpaid fees — Refund any overpaid shipping fees, duties, or taxes from the cancelled order. A new order ensures the correct shipping method and taxes/duties are applied automatically.
If you use Swap Global we will integrate with your WMS, 3PL or label printing solution to make sure that Swap displays the correct item data and consequently the correct duties & taxes on your Commercial Invoice and shipping label. Find out more about how to integrate here.