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Detecting Tariff Evasion : Evidence from Matched Container Data

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  • Anne, Clement
  • Chalendard, Cyril
  • Fernandes, Ana Margarida
  • Rijkers, Bob
  • Vicard, Vincent

Abstract

This paper matches French export and Madagascan import declarations using container identifiers and account for shipment-specific transport costs to identify declarations and firms at risk of tariff evasion, examine how evasion occurs, and assess customs enforcement. Tariff liabilities calculated from French declarations exceed those based on corresponding Madagascan declarations by 24 percent in aggregate. This tariff revenue gap is highly concentrated: the five importers with the largest positive gaps account for three-quarters of it. Undervaluation accounts for approximately two-thirds of implied tariff revenue losses, with product misclassification accounting for the remainder. Larger-value containers facing high tariffs appear at greater risk of evasion. Many reporting discrepancies are nevertheless inconsistent with tariff minimization: For approximately two-fifths of containers, tariff liabilities calculated from Madagascan declarations exceed those based on French declarations. Customs value adjustments are ineffective, reducing implied tariff revenue losses by only 1.8 percent.

Suggested Citation

  • Anne, Clement & Chalendard, Cyril & Fernandes, Ana Margarida & Rijkers, Bob & Vicard, Vincent, 2023. "Detecting Tariff Evasion : Evidence from Matched Container Data," Policy Research Working Paper Series 10606, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10606
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    References listed on IDEAS

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    1. Artuc, Erhan & Falcone, Guillermo & Porto, Guido & Rijkers, Bob, 2026. "Protectionism, evasion and household welfare evidence from Nigeria’s import bans," Journal of Public Economics, Elsevier, vol. 253(C).

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