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Misinvoicing Analysis in ASEAN-China Free Trade Aggrement (ACFTA)

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  • Mahjus Ekananda

Abstract

This paper specifically examines the Smuggling that occurred between Indonesia and the ACFTA member countries can be seen from the import-export trade gap.Smuggling occurs because the attempt to avoid tariffs, resulting in the manipulation of incoming documents, both in terms of quantity and price of imported goods. The policy change tariff rates on ACFTA cooperation and increase financial penalties affecting allegedly smuggling.This study uses a fixed effect panel data regression to analyze the policy change. The results obtained are: 1. The reduction of smuggling after the application of policy to reduce tariff rates on ACFTA cooperation, and 2. A decrease in smuggling after the implementation of the policy of increasing the maximum financial penalties.Keyword: Smuggling, Tariff Rates, Financial Pinalties. JEL Code: F14, H26, K42.

Suggested Citation

  • Mahjus Ekananda, 2018. "Misinvoicing Analysis in ASEAN-China Free Trade Aggrement (ACFTA)," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 187-205.
    • Handle: RePEc:ers:journl:v:xx:y:2017:i:3b:p:187-205
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    References listed on IDEAS

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    1. Arcade Ndoricimpa & Eduardo Araral, 2024. "Determinants of illicit capital movement in China‐Africa trade: Evidence of trade misinvoicing," African Development Review, African Development Bank, vol. 36(2), pages 334-349, June.

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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